# EDGAR Filing Document

**Accession Number:** 0001064046
**File Stem:** 0001398344-23-005581
**Filing Date:** 2023-3
**Character Count:** 2087171
**Document Hash:** c72246d956cf25f1bd30c9da72288c99
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001398344-23-005581.hdr.sgml**: 20230306

**ACCESSION NUMBER**: 0001398344-23-005581

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 113

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230306

**DATE AS OF CHANGE**: 20230306

**EFFECTIVENESS DATE**: 20230306

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** RYDEX VARIABLE TRUST
- **CENTRAL INDEX KEY:** 0001064046
- **IRS NUMBER:** 000000000
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-08821
- **FILM NUMBER:** 23708784

**BUSINESS ADDRESS:**
- **STREET 1:** 702 KING FARM BOULEVARD
- **STREET 2:** SUITE 200
- **CITY:** ROCKVILLE
- **STATE:** MD
- **ZIP:** 20850
- **BUSINESS PHONE:** 301-296-5100

**MAIL ADDRESS:**
- **STREET 1:** 702 KING FARM BOULEVARD
- **STREET 2:** SUITE 200
- **CITY:** ROCKVILLE
- **STATE:** MD
- **ZIP:** 20850

## Series and Classes Contracts Data

### U.S. Government Money Market Fund (Series ID: S000003710)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010379 | Variable Annuity |  |

### Biotechnology Fund (Series ID: S000003711)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010380 | Variable Annuity |  |

### Consumer Products Fund (Series ID: S000003712)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010381 | Variable Annuity |  |

### Electronics Fund (Series ID: S000003713)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010382 | Variable Annuity |  |

### Energy Fund (Series ID: S000003714)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010383 | Variable Annuity |  |

### Energy Services Fund (Series ID: S000003715)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010384 | Variable Annuity |  |

### Financial Services Fund (Series ID: S000003716)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010385 | Variable Annuity |  |

### Health Care Fund (Series ID: S000003717)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010386 | Variable Annuity |  |

### Internet Fund (Series ID: S000003718)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010387 | Variable Annuity |  |

### Leisure Fund (Series ID: S000003719)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010388 | Variable Annuity |  |

### Retailing Fund (Series ID: S000003720)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010389 | Variable Annuity |  |

### Government Long Bond 1.2x Strategy Fund (Series ID: S000003721)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010390 | Variable Annuity |  |

### Technology Fund (Series ID: S000003722)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010391 | Variable Annuity |  |

### Telecommunications Fund (Series ID: S000003723)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010392 | Variable Annuity |  |

### Transportation Fund (Series ID: S000003724)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010393 | Variable Annuity |  |

### Utilities Fund (Series ID: S000003725)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010394 | Variable Annuity |  |

### Real Estate Fund (Series ID: S000003726)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010395 | Variable Annuity |  |

### Mid-Cap 1.5x Strategy Fund (Series ID: S000003727)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010396 | Variable Annuity |  |

### Russell 2000(R) 1.5x Strategy Fund (Series ID: S000003728)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010397 | Variable Annuity |  |

### Guggenheim Long Short Equity Fund (Series ID: S000003729)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010398 | Variable Annuity |  |

### Weakening Dollar 2x Strategy Fund (Series ID: S000003731)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010400 | Variable Annuity |  |

### Nova Fund (Series ID: S000003732)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010401 | Variable Annuity |  |

### Strengthening Dollar 2x Strategy Fund (Series ID: S000003733)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010402 | Variable Annuity |  |

### Commodities Strategy Fund (Series ID: S000003734)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010403 | Variable Annuity |  |

### Inverse Government Long Bond Strategy Fund (Series ID: S000003735)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010404 | Variable Annuity |  |

### S&P 500 Pure Value Fund (Series ID: S000003738)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010407 | Variable Annuity |  |

### S&P 500 Pure Growth Fund (Series ID: S000003739)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010408 | Variable Annuity |  |

### S&P SmallCap 600 Pure Value Fund (Series ID: S000003740)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010409 | Variable Annuity |  |

### S&P SmallCap 600 Pure Growth Fund (Series ID: S000003741)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010410 | Variable Annuity |  |

### S&P MidCap 400 Pure Value Fund (Series ID: S000003742)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010411 | Variable Annuity |  |

### Precious Metals Fund (Series ID: S000003743)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010412 | Variable Annuity |  |

### S&P MidCap 400 Pure Growth Fund (Series ID: S000003744)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010413 | Variable Annuity |  |

### Inverse Mid-Cap Strategy Fund (Series ID: S000003745)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010414 | Variable Annuity |  |

### Inverse Russell 2000(R) Strategy Fund (Series ID: S000003746)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010415 | Variable Annuity |  |

### Multi-Hedge Strategies Fund (Series ID: S000003747)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010416 | Variable Annuity |  |

### Europe 1.25x Strategy Fund (Series ID: S000003749)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010418 | Variable Annuity |  |

### Japan 2x Strategy Fund (Series ID: S000003750)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010419 | Variable Annuity |  |

### S&P 500 2x Strategy Fund (Series ID: S000003751)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010420 | Variable Annuity |  |

### NASDAQ-100(R) 2x Strategy Fund (Series ID: S000003752)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010421 | Variable Annuity |  |

### Dow 2x Strategy Fund (Series ID: S000003753)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010422 | Variable Annuity |  |

### Inverse S&P 500 Strategy Fund (Series ID: S000003754)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010423 | Variable Annuity |  |

### Inverse Dow 2x Strategy Fund (Series ID: S000003755)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010424 | Variable Annuity |  |

### NASDAQ-100(R) Fund (Series ID: S000003756)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010425 | Variable Annuity |  |

### Inverse NASDAQ-100(R) Strategy Fund (Series ID: S000003757)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010426 | Variable Annuity |  |

### Banking Fund (Series ID: S000003758)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010427 | Variable Annuity |  |

### Basic Materials (Series ID: S000003759)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000010428 | Variable Annuity |  |

### Russell 2000(R) 2x Strategy Fund (Series ID: S000011813)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000032290 | Variable Annuity |  |

### High Yield Strategy Fund (Series ID: S000016688)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000046626 | Variable Annuity |  |

### Global Managed Futures Strategy Fund (Series ID: S000023531)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000069235 | Variable Annuity |  |

UNITED STATES<br> SECURITIES AND EXCHANGE COMMISSION<br> Washington, D.C. 20549

**FORM N-CSR**

**CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT**

**INVESTMENT COMPANIES**

Investment Company Act file number <u>811- 08821</u>

Rydex Variable Trust

(Exact name of registrant as specified in charter)

702 King Farm Boulevard, Suite 200<br> Rockville, Maryland 20850

(Address of principal executive offices) (Zip code)

Amy J. Lee

Rydex Variable Trust<br> 702 King Farm Boulevard, Suite 200<br> Rockville, Maryland 20850

(Name and address of agent for service)

Registrant's telephone number, including area code: <u>1-301-296-5100</u>

Date of fiscal year end: <u>December 31</u>

Date of reporting period: <u>January 1, 2022 - December 31, 2022</u>

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

**Item 1. Reports to Stockholders.**

The registrant's annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the "Investment Company Act"), is as follows:

![](fp0081230-1_i.jpg)<br>

**12.31.2022** 

**Rydex Variable Trust Funds Annual Report**

---

| |
|:---|
| &nbsp;&nbsp;**Alternatives Funds** |
| &nbsp;&nbsp;**Guggenheim Long Short Equity Fund** |
| &nbsp;&nbsp;**Guggenheim Global Managed Futures Strategy Fund** |
| &nbsp;&nbsp;**Guggenheim Multi-Hedge Strategies Fund** |
| &nbsp;&nbsp;**Rydex Commodities Fund** |
| &nbsp;&nbsp;**Rydex Commodities Strategy Fund** |

---

---

| | |
|:---|:---|
| **GuggenheimInvestments.com** | &nbsp;&nbsp;RVALTS-ANN-1222x1223 |

---

![](fp0081230-1_ii.jpg)

**TABLE OF CONTENTS** <br>

---

| | |
|:---|:---|
| DEAR SHAREHOLDER  | 2 |
| ECONOMIC AND MARKET OVERVIEW  | 4 |
| ABOUT SHAREHOLDERS' FUND EXPENSES  | 6 |
| LONG SHORT EQUITY FUND  | 8 |
| GLOBAL MANAGED FUTURES STRATEGY FUND  | 27 |
| MULTI-HEDGE STRATEGIES FUND  | 37 |
| COMMODITIES STRATEGY FUND  | 62 |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  | 70 |
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  | 84 |
| OTHER INFORMATION  | 85 |
| INFORMATION ON BOARD OF TRUSTEES AND OFFICERS  | 87 |
| GUGGENHEIM INVESTMENTS PRIVACY NOTICE  | 93 |

---

THE RYDEX FUNDS ANNUAL REPORT \| 1

  <u>December 31, 2022</u>

**Dear Shareholder:** 

Security Investors, LLC (the "Investment Adviser") is pleased to present the annual shareholder report for four alternative strategies funds (the "Funds") that are part of the Rydex Variable Trust. This report covers performance of the Funds for the annual period ended December 31, 2022 (the "Reporting Period").

In December 2022, Guggenheim Partners announced the untimely and unexpected death of Scott Minerd, one of Guggenheim's Managing Partners and its Global Chief Investment Officer. He joined Guggenheim as a Managing Partner shortly after the firm was formed. He was a frequent commentator on markets and investments, both on television and via social media. He also was one of the designers of the organization, systems and processes that make Guggenheim Investments a strong, robust and scalable leader in the asset management business.

Guggenheim has implemented its succession plan, which is designed to deal with unexpected events. There has been and will continue to be no disruption of service to our clients, no change in the daily management of client portfolios and no change in the process of selecting investment assets, all of which continue to be handled by the longstanding committees and long-tenured investment professionals who, every day, implement our investment processes.

Guggenheim Investments continues to be led by its Co-Presidents, Dina DiLorenzo and David Rone, and by Anne B. Walsh, a Managing Partner and Chief Investment Officer of Guggenheim Partners Investment Management.

The Investment Adviser is a part of Guggenheim Investments, which represents the investment management businesses of Guggenheim Partners, LLC ("Guggenheim"), a global, diversified financial services firm.

Guggenheim Funds Distributors, LLC is the distributor of the Funds. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim and the Investment Adviser.

We encourage you to read the Economic and Market Overview section of the report, which follows this letter, and then the Performance Report and Fund Profile for each Fund.

We are committed to providing innovative investment solutions and appreciate the trust you place in us.

Sincerely,

*Security Investors, LLC*

January 31, 2023

***Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at guggenheiminvestments.com or call 800.820.0888.***

***This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.*** 

2 \| THE RYDEX FUNDS ANNUAL REPORT

  <u>December 31, 2022</u>

**The Long Short Equity Fund may not be suitable for all investors.** ●The Fund is subject to the risk that the Advisor's use of a momentum-driven investment strategy may cause the Fund to underperform other types of mutual funds that use different investment strategies during periods when momentum investing is out of favor. ●It is possible that the stocks the Fund holds long will decline in value at the same time that the stocks or indices being shorted increase in value, thereby increasing potential losses to the Fund. ●The Fund's loss on a short sale is potentially unlimited because there is no upper limit on the price a borrowed security could attain. ● The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ●The use of derivatives, such as futures, options 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. ●The Fund may invest in American Depositary Receipts ("ADRs") therefore subjecting the value of the Fund's portfolio to fluctuations in foreign exchange rates. ● This Fund is considered non-diversified 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. See the prospectus for more information on these and additional risks.

**The Multi-Hedge Strategies 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 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. ● The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● The Fund's use of short selling involves increased risks and costs. The Fund risks paying more for a security than it received from its sale. ● The Fund's investments in high yield securities and unrated securities of similar credit quality ("junk bonds") may be subject to greater levels of interest rate, credit and liquidity risk than funds that do not invest in such securities. ● The Fund's fixed income investments will change in value in response to interest rate changes and other factors. ● The Fund's exposure to the commodity and currency markets may subject the Fund to greater volatility as commodity- and currency-linked derivative investments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates or factors affecting a particular industry, commodity or currency—such as droughts, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. The Fund may also incur transaction costs with the conversion between various currencies. ● The Fund's exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. ● These risks may cause the Fund to experience higher losses and/or volatility than a fund that does not invest in derivatives, use leverage or short sales or have exposure to high yield/fixed income securities, foreign currencies and/or securities. ● See the prospectus for more information on these and additional risks.

**The Commodities Strategy Fund is subject to a number of risks and may not be suitable for all investors.** ● 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. ● To the extent that the Fund's investments are concentrated in energy-related commodities, the Fund is subject to the risk that this sector will underperform the market as a whole. ● 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 or investments underlying those derivatives. ● The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● 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. ● The Fund's investments in other investment companies subjects the Fund to those risks affecting the investment company, including the possibility that the value of the underlying securities held by the investment company could decrease. Moreover, the Fund will incur its pro rata share of the expenses of the underlying investment companies' expenses. ● This Fund is considered non-diversified 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. ● See the prospectus for more information on these and additional risks.

THE RYDEX FUNDS ANNUAL REPORT \| 3

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| | |
|:---|:---|
| **ECONOMIC AND MARKET OVERVIEW** (Unaudited) | December 31, 2022 |

---

Helped by lower energy prices, real economic growth reaccelerated in the fourth quarter of 2022. Amid this continued strong growth, the Federal Reserve (the "Fed") is explicitly targeting a weaker labor market, and several leading indicators point to rising unemployment by the middle of the year. Consumption also faces headwinds from dwindling excess savings buffers and a sharply negative wealth shock as financial asset and home prices fall. Business investment also appears to be weakening due to the sharp tightening in financial conditions and more challenging outlook for economic growth. The housing sector could subtract further from gross domestic product ("GDP") as the spike in mortgage rates has adversely impacted demand.

Because private sector balance sheets are generally healthy in the aggregate and the economy lacks major imbalances, we do not expect a particularly deep recession. But the likelihood of a limited monetary and fiscal policy response means the economic recovery could be weak, and certain highly levered companies may suffer.

Moderation in goods prices as supply chains normalize should bring inflation lower over the next several months, and shelter inflation should roll over by mid-2023. Services inflation outside of shelter is the main concern for the Fed, but a softening labor market and cooling wage growth may keep this category contained. As a result, core inflation could fall below 3 percent by the end of the year.

The Fed's continued rate hike campaign may cause the front end of the yield curve to remain elevated in the near term. But should the economic cycle roll over later this year, Treasury yields may see a significant decline. Weakening corporate earnings growth and an emerging recession would present downside risk to equity returns later in 2023 but, given corporate fundamentals remain solid, high quality fixed income and carefully selected high yield issuers should provide attractive returns.

For the Reporting Period, the S&P 500<sup>®</sup> Index\* returned -18.11%. The MSCI Europe-Australasia-Far East ("EAFE") Index\* returned -14.45%. The return of the MSCI Emerging Markets Index\* was -20.09%.

In the bond market, the Bloomberg U.S. Aggregate Bond Index\* posted a -13.01% return for the Reporting Period, while the Bloomberg U.S. Corporate High Yield Index\* returned -11.19%. The return of the ICE Bank of America ("BofA") 3-Month U.S. Treasury Bill Index\* was 1.47% for the Reporting Period.

*The opinions and forecasts expressed may not actually come to pass. This information is subject to change at any time, based on market and other conditions, and should not be construed as a recommendation of any specific security or strategy.* 

4 \| THE RYDEX FUNDS ANNUAL REPORT

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| | |
|:---|:---|
| **ECONOMIC AND MARKET OVERVIEW** (Unaudited)(concluded) | December 31, 2022 |

---

\***Index Definitions:**

The following indices are referenced throughout this report. Indices are unmanaged and not available for direct investment. Index performance does not reflect transaction costs, fees, or expenses.

**Bloomberg U.S. Aggregate Bond Index** is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, mortgage-backed securities or "MBS" (agency fixed-rate and hybrid adjustable-rate mortgage, or "ARM", pass-throughs), asset-backed securities ("ABS"), and commercial mortgage-backed securities ("CMBS") (agency and non-agency).

**Bloomberg U.S. Corporate High Yield Index** measures the U.S. dollar-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody's, Fitch, and S&P is Ba1/BB +/BB + or below.

**HFRX Equity Hedge Fund Index** is designed to be representative of the overall composition of the equity hedge segment of the hedge fund universe. In an equity hedge strategy both long and short positions primarily in equities are maintained. Equities which are believed to be undervalued are bought and equities which are believed to be overvalued are sold.

**HFRX Global Hedge Fund Index** is designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies, including, but not limited to, convertible arbitrage, distressed securities, equity hedge, equity market neutral, event driven, macro, merger arbitrage and relative-value arbitrage. The strategies are asset weighted based on the distribution of assets in the hedge fund industry.

**ICE BofA 3-Month U.S. Treasury Bill Index** is an unmanaged market index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income.

**Morningstar Long/Short Equity Category Average** is an average return of the funds in the Morningstar Long/Short Equity Category. The categories assist investors and investment professionals in making meaningful comparisons between funds, making it easier to build well-diversified portfolios, assess potential risk, and identify top-performing funds.

**MSCI EAFE Index** is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

**MSCI Emerging Markets Index** is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets.

**S&P 500**<sup>®</sup> **Index** is a broad-based index, the performance of which is based on the performance of 500 widely held common stocks chosen for market size, liquidity, and industry group representation.

**S&P Goldman Sachs Commodity Index (S&P GSCI**<sup>®</sup>**)**, a benchmark for investment performance in the commodity markets, measures investable commodity price movements and inflation in the world economy. The index is calculated primarily on a world production weighted basis and is comprised of the principal physical commodities that are the subject of active, liquid futures markets.

**SG (Societe Generale) CTA Index** is designed to track the largest 20 (by AUM) Commodity Trading Advisors, or CTAs, and be representative of the managed futures space. The CTA Index is equally weighted, and rebalanced and reconstituted annually.

**Wilshire Focused Liquid Alternative Index** measures the performance of a focused basket of mutual funds that provides risk adjusted exposure to equity hedge, global macro, relative value, and event driven alternative investment strategies.

THE RYDEX FUNDS ANNUAL REPORT \| 5

**ABOUT SHAREHOLDERS' FUND EXPENSES** (Unaudited)<br>

All mutual funds have operating expenses, and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, other distributions, and exchange fees, and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund's gross income and reduce the investment return of the fund.

A fund's expenses are expressed as a percentage of its average net assets, which is known as the expense ratio. The following examples are intended to help investors understand the ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning June 30, 2022 and ending December 31, 2022.

The following tables illustrate the Funds' costs in two ways:

**Table 1. Based on actual Fund return:** This section helps investors estimate the actual expenses paid over the period. The "Ending Account Value" shown is derived from the Fund's actual return, and the fifth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund's account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number provided under the heading "Expenses Paid During Period."

**Table 2. Based on hypothetical 5% return:** This section is intended to help investors compare a fund's cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the "SEC") requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a fund's costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchase payments, and contingent deferred sales charges ("CDSC") on redemptions, if any. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

More information about the Funds' expenses, including annual expense ratios for periods up to five years (subject to the Fund's inception date), can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

6 \| THE RYDEX FUNDS ANNUAL REPORT

**ABOUT SHAREHOLDERS' FUND EXPENSES** (Unaudited)(concluded)<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Expense <br> Ratio<sup>1</sup>** | **Fund <br> Return**  | **Beginning <br> Account Value <br> June 30, 2022** | **Ending <br> Account Value <br> December 31, 2022** | **Expenses <br> Paid During <br> Period<sup>2</sup>** |
| **Table 1. Based on actual Fund return<sup>3</sup>** |  |  |  |  |  |
| Long Short Equity Fund | &nbsp;&nbsp;1.89% | &nbsp;&nbsp;(0.32%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$996.80 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$9.51 |
| Global Managed Futures Strategy Fund | &nbsp;&nbsp;1.94% | &nbsp;&nbsp;(2.41%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;975.90 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.66 |
| Multi-Hedge Strategies Fund | &nbsp;&nbsp;1.45% | &nbsp;&nbsp;(1.91%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;980.90 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.24 |
| Commodities Strategy Fund | &nbsp;&nbsp;1.68% | &nbsp;&nbsp;(8.09%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;919.10 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.13 |
| **Table 2. Based on hypothetical 5% return (before expenses)** | **Table 2. Based on hypothetical 5% return (before expenses)** |  |  |  |  |
| Long Short Equity Fund | &nbsp;&nbsp;1.89% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1015.68 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$9.60 |
| Global Managed Futures Strategy Fund | &nbsp;&nbsp;1.94% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1015.43 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.86 |
| Multi-Hedge Strategies Fund | &nbsp;&nbsp;1.45% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1017.90 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.38 |
| Commodities Strategy Fund | &nbsp;&nbsp;1.68% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.74 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.54 |

---

<sup>1</sup> Annualized and excludes expenses of the underlying funds in which the Funds invest. This ratio represents net expenses, which includes dividends on short sales and interest expenses. Excluding these expenses, the operating expense ratio of the Multi-Hedge Strategies Fund would be 1.15%.

<sup>2</sup> Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses shown do not include fees charged by insurance companies.

<sup>3</sup> Actual cumulative return at net asset value for the period June 30, 2022 to December 31, 2022.

THE RYDEX FUNDS ANNUAL REPORT \| 7

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**LONG SHORT EQUITY FUND** 

**OBJECTIVE:** Seeks long-term capital appreciation.

For the Reporting Period, Guggenheim Long Short Equity Fund returned -14.39%. The Fund underperformed one of the two benchmarks used by the Fund in the period, the Morningstar Long/Short Equity Category Average, which returned -7.67%, and outperformed the other benchmark, the S&P 500 Index, which returned -18.11% for the same one-year period.

**What factors contributed or detracted from the Fund's performance during the Reporting Period?** 

For the Reporting Period, the broad market reversed its 'reopening' excitement and began a steady bear market. Economic ramifications of the Covid pandemic continued–as supply constraints and worker shortages drove inflation steadily higher. Despite rebounding demand and consumers flush with money, many industries and service companies could not keep enough parts or employees, causing shortages and driving wages higher. Exacerbating the underlying inflation was the sudden war in Ukraine and continued rolling China Covid-related shutdowns. Both were human tragedies in their own rights. Both also threw supply chains into more chaos. The Federal Reserve board continued with rate increases to halt the inflation at a pace not seen in 40 years. The rapid and steady rise in rates led to a coordinated drop in stocks and bonds. As the year closed out, the lagged effects of rising rates began hitting corporate earnings, led to numerous layoff announcements, and rising fears of an inevitable recession in 2023.

Within equity markets, the most expensive and smaller cap names all suffered more than the broad averages.

The Fund had a -14.39% return, but after subtracting the -4.4% decline in a risk benchmark blend of 30% S&P 500 and 70% cash, the excess return was a -10.0% underperformance. The overall market decline contributed about -1.5% of the relative drag based on our net long exposure averaging a bit higher than the benchmark. The realized beta (sensitivity of daily returns to broad stock benchmark moves) was about 0.50 for the year.

Overall fundamental style positioning worked in the Fund's favor by about +5.3% attribution. Value names had a good year vis-à-vis expensive growth. Our Value style positioning paid off by about +11.4% excess for the year. With the value of far off and riskier earnings discounted at higher rates, there was more pain for expensive growth. A bias towards high quality positions didn't pay off as expected in a down year. With rate moves being a bigger factor than economic drag this year, higher quality names suffered the earnings discount math as much or more than lower-earnings quality companies.

Industry tilts totaled a moderate -1.1% drag in excess of the risk benchmark. A net short in Energy during the early part of the year caused substantial damage when oil and gas prices spiked during the Ukraine war. On the plus side, the Fund's net short in Real Estate was a positive contributor, as that sector suffered from both fundamental and rate-related risks.

Security selection (the impact of returns within style and industry groups) was a large drag (-9%) for the Reporting Period. For example, within the Real Estate sector, short names in the hotel group outperformed the sector while a few long positions in the office group underperformed–leading to negative selection.

**How did the Fund use derivatives during the Reporting Period?** 

The Fund uses total return swaps to gain exposure to short positions and to attain some leverage on the long side when surpassing 100% long weights. In total, the derivatives resulted in a net negative market exposure, creating a partial market hedge against assets that are invested in long stocks. While the standalone performance of derivatives was negative for the Reporting Period, the partial market hedge performed as expected.

**How was the Fund positioned at the end of the Reporting Period?** 

At Reporting Period end, the Fund held about 185% of assets in long securities, and 107% short, for a net-dollar exposure of 78%. Because the long side exposure holds higher quality and more defensive sectors, while the short side focuses on higher risk names, the actual expected net 'beta' of the fund is in the 0.45 to 0.55 range.

8 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(continued) | December 31, 2022 |

---

The Fund maintains its style bias towards cheaper valuation names. Our bias towards higher profitability and low stock volatility remains, but at reduced levels from 2021, as those factors have paid off significantly and look less underpriced than usual. The Fund's short position in the growth names has also shrunk as those names declined rapidly last year; we are now closer to neutral on this factor bias. The Fund remains biased to small-cap size, a shift that first began about a year ago. While small caps are generally riskier than their large cap brethren, the additional risk looks to be compensated with a much wider expected return based on fundamentals and valuations.

From an industry perspective, the Fund's largest net long sectors are Healthcare, IT, and Consumer Discretionary, with our names mostly focused on cheaper and higher cash-flow-generating groups within those otherwise growth-oriented sectors. The largest net short exposures are Real Estate, and Commercial Services. Notably, the Fund has flipped to a net long exposure to Energy and Materials, while cutting back on weights in Staples and Utilities. With considerable moves in relative stock prices and changing fundamentals, the dynamic industry weight reallocation was substantial this year.

**Performance displayed represents past performance which is no guarantee of future results.**

THE RYDEX FUNDS ANNUAL REPORT \| 9

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-1_10.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-1_10a.jpg)

**Inception Date:** May 1, 2002<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| Microsoft Corp. | 1.3% |
| Apple, Inc. | 1.1% |
| Exxon Mobil Corp. | 1.0% |
| Home Depot, Inc. | 0.9% |
| Coca-Cola Co. | 0.9% |
| Danaher Corp. | 0.8% |
| Quest Diagnostics, Inc. | 0.8% |
| Marathon Petroleum Corp. | 0.8% |
| Emerson Electric Co. | 0.8% |
| Lowe's Companies, Inc. | 0.8% |
| Top Ten Total | 9.2% |
| "Ten Largest Holdings" excludes any temporary cash or derivative investments. | "Ten Largest Holdings" excludes any temporary cash or derivative investments. |

---

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Long Short Equity Fund  | (14.39%)  | 0.43%  | 3.74%  |
| Morningstar Long/Short Equity Category Average  | (7.67%)  | 2.13%  | 3.81%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The Morningstar/Long Short Equity Category Average is the equal-weighted simple average daily return for all funds in the Morningstar Long/Short Equity Category. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

10 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **LONG SHORT EQUITY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 91.8%** | **COMMON STOCKS<sup>†</sup>** **- 91.8%** | **COMMON STOCKS<sup>†</sup>** **- 91.8%** |
| **Consumer, Non-cyclical - 19.7%** | **Consumer, Non-cyclical - 19.7%** | **Consumer, Non-cyclical - 19.7%** |
| &nbsp;&nbsp;&nbsp;Coca-Cola Co.<sup>1</sup> | 3069 | $195219 |
| &nbsp;&nbsp;&nbsp;Danaher Corp. | 698 | 185263 |
| &nbsp;&nbsp;&nbsp;Quest Diagnostics, Inc.<sup>1</sup> | 1154 | 180532 |
| &nbsp;&nbsp;&nbsp;Hershey Co. | 745 | 172520 |
| &nbsp;&nbsp;&nbsp;Hologic, Inc.\*<sup>,1</sup> | 2293 | 171539 |
| &nbsp;&nbsp;&nbsp;John B Sanfilippo & Son, Inc.<sup>1</sup> | 2064 | 167845 |
| &nbsp;&nbsp;&nbsp;Bristol-Myers Squibb Co.<sup>1</sup> | 2315 | 166564 |
| &nbsp;&nbsp;&nbsp;IDEXX Laboratories, Inc.\* | 407 | 166040 |
| &nbsp;&nbsp;&nbsp;Monster Beverage Corp.\* | 1591 | 161534 |
| &nbsp;&nbsp;&nbsp;Ironwood Pharmaceuticals, Inc. — Class A\* | 12001 | 148692 |
| &nbsp;&nbsp;&nbsp;Tyson Foods, Inc. — Class A<sup>1</sup> | 2333 | 145229 |
| &nbsp;&nbsp;&nbsp;Post Holdings, Inc.\*<sup>,1</sup> | 1585 | 143062 |
| &nbsp;&nbsp;&nbsp;Prestige Consumer Healthcare, Inc.\* | 2235 | 139911 |
| &nbsp;&nbsp;&nbsp;Perdoceo Education Corp.\* | 9967 | 138541 |
| &nbsp;&nbsp;&nbsp;Altria Group, Inc. | 3023 | 138182 |
| &nbsp;&nbsp;&nbsp;Royalty Pharma plc — Class A | 3174 | 125436 |
| &nbsp;&nbsp;&nbsp;Becton Dickinson and Co.<sup>1</sup> | 477 | 121301 |
| &nbsp;&nbsp;&nbsp;Gilead Sciences, Inc.<sup>1</sup> | 1276 | 109544 |
| &nbsp;&nbsp;&nbsp;Eli Lilly & Co.<sup>1</sup> | 297 | 108655 |
| &nbsp;&nbsp;&nbsp;Jazz Pharmaceuticals plc\* | 657 | 104667 |
| &nbsp;&nbsp;&nbsp;Globus Medical, Inc. — Class A\* | 1400 | 103978 |
| &nbsp;&nbsp;&nbsp;Vertex Pharmaceuticals, Inc.\*<sup>,1</sup> | 356 | 102806 |
| &nbsp;&nbsp;&nbsp;Varex Imaging Corp.\* | 4881 | 99084 |
| &nbsp;&nbsp;&nbsp;Supernus Pharmaceuticals, Inc.\* | 2629 | 93776 |
| &nbsp;&nbsp;&nbsp;United Therapeutics Corp.\*<sup>,1</sup> | 311 | 86486 |
| &nbsp;&nbsp;&nbsp;Lamb Weston Holdings, Inc.<sup>1</sup> | 926 | 82747 |
| &nbsp;&nbsp;&nbsp;Incyte Corp.\*<sup>,1</sup> | 940 | 75501 |
| &nbsp;&nbsp;&nbsp;Triton International Ltd. | 1089 | 74902 |
| &nbsp;&nbsp;&nbsp;USANA Health Sciences, Inc.\* | 1349 | 71767 |
| &nbsp;&nbsp;&nbsp;Inter Parfums, Inc. | 732 | 70653 |
| &nbsp;&nbsp;&nbsp;Philip Morris International, Inc. | 687 | 69531 |
| &nbsp;&nbsp;&nbsp;PerkinElmer, Inc.<sup>1</sup> | 494 | 69269 |
| &nbsp;&nbsp;&nbsp;Regeneron Pharmaceuticals, Inc.\*<sup>,1</sup> | 90 | 64934 |
| &nbsp;&nbsp;&nbsp;Eagle Pharmaceuticals, Inc.\*<sup>,1</sup> | 2058 | 60155 |
| &nbsp;&nbsp;&nbsp;Amphastar Pharmaceuticals, Inc.\* | 1809 | 50688 |
| &nbsp;&nbsp;&nbsp;Innoviva, Inc.\* | 3711 | 49171 |
| &nbsp;&nbsp;&nbsp;Johnson & Johnson | 259 | 45752 |
| &nbsp;&nbsp;&nbsp;EVERTEC, Inc.<sup>1</sup> | 1237 | 40054 |
| &nbsp;&nbsp;&nbsp;Neurocrine Biosciences, Inc.\* | 333 | 39774 |
| &nbsp;&nbsp;&nbsp;AMN Healthcare Services, Inc.\* | 327 | 33622 |
| &nbsp;&nbsp;&nbsp;Vanda Pharmaceuticals, Inc.\* | 4527 | 33455 |
| **Total Consumer, Non-cyclical** |  | 4408381 |
| **Industrial - 15.4%** | **Industrial - 15.4%** | **Industrial - 15.4%** |
| &nbsp;&nbsp;&nbsp;Emerson Electric Co.<sup>1</sup> | 1843 | 177039 |
| &nbsp;&nbsp;&nbsp;AMETEK, Inc. | 1213 | 169480 |
| &nbsp;&nbsp;&nbsp;General Dynamics Corp. | 678 | 168219 |
| &nbsp;&nbsp;&nbsp;Donaldson Company, Inc.<sup>1</sup> | 2855 | 168074 |
| &nbsp;&nbsp;&nbsp;Standex International Corp. | 1633 | 167235 |
| &nbsp;&nbsp;&nbsp;Graco, Inc.<sup>1</sup> | 2485 | 167141 |
| &nbsp;&nbsp;&nbsp;Textron, Inc.<sup>1</sup> | 2341 | 165743 |
| &nbsp;&nbsp;&nbsp;Snap-on, Inc.<sup>1</sup> | 713 | 162913 |
| &nbsp;&nbsp;&nbsp;Albany International Corp. — Class A<sup>1</sup> | 1580 | 155772 |
| &nbsp;&nbsp;&nbsp;Eagle Materials, Inc.<sup>1</sup> | 1155 | 153442 |
| &nbsp;&nbsp;&nbsp;Lockheed Martin Corp.<sup>1</sup> | 280 | 136217 |
| &nbsp;&nbsp;&nbsp;Vishay Intertechnology, Inc.<sup>1</sup> | 6133 | 132289 |
| &nbsp;&nbsp;&nbsp;Louisiana-Pacific Corp.<sup>1</sup> | 2228 | 131897 |
| &nbsp;&nbsp;&nbsp;Keysight Technologies, Inc.\*<sup>,1</sup> | 672 | 114959 |
| &nbsp;&nbsp;&nbsp;Eaton Corporation plc | 704 | 110493 |
| &nbsp;&nbsp;&nbsp;Acuity Brands, Inc.<sup>1</sup> | 641 | 106156 |
| &nbsp;&nbsp;&nbsp;Sealed Air Corp. | 2013 | 100408 |
| &nbsp;&nbsp;&nbsp;Advanced Energy Industries, Inc. | 1155 | 99076 |
| &nbsp;&nbsp;&nbsp;Sturm Ruger & Company, Inc. | 1891 | 95722 |
| &nbsp;&nbsp;&nbsp;3M Co. | 726 | 87062 |
| &nbsp;&nbsp;&nbsp;Otis Worldwide Corp. | 1017 | 79641 |
| &nbsp;&nbsp;&nbsp;Mueller Industries, Inc.<sup>1</sup> | 1216 | 71744 |
| &nbsp;&nbsp;&nbsp;Dorian LPG Ltd. | 3722 | 70532 |
| &nbsp;&nbsp;&nbsp;Barnes Group, Inc.<sup>1</sup> | 1554 | 63481 |
| &nbsp;&nbsp;&nbsp;Packaging Corporation of America<sup>1</sup> | 492 | 62932 |
| &nbsp;&nbsp;&nbsp;Crane Holdings Co. | 548 | 55047 |
| &nbsp;&nbsp;&nbsp;Toro Co. | 477 | 53996 |
| &nbsp;&nbsp;&nbsp;Sonoco Products Co.<sup>1</sup> | 860 | 52211 |
| &nbsp;&nbsp;&nbsp;OSI Systems, Inc.\* | 626 | 49779 |
| &nbsp;&nbsp;&nbsp;EnPro Industries, Inc.<sup>1</sup> | 394 | 42824 |
| &nbsp;&nbsp;&nbsp;Insteel Industries, Inc. | 1309 | 36024 |
| &nbsp;&nbsp;&nbsp;TopBuild Corp.\*<sup>,1</sup> | 220 | 34428 |
| **Total Industrial** |  | 3441976 |
| **Financial - 12.9%** | **Financial - 12.9%** | **Financial - 12.9%** |
| &nbsp;&nbsp;&nbsp;Preferred Bank/Los Angeles CA | 2268 | 169238 |
| &nbsp;&nbsp;&nbsp;National Bank Holdings Corp. — Class A | 3931 | 165377 |
| &nbsp;&nbsp;&nbsp;Hope Bancorp, Inc. | 12908 | 165351 |
| &nbsp;&nbsp;&nbsp;Heritage Financial Corp. | 5271 | 161503 |
| &nbsp;&nbsp;&nbsp;Renasant Corp. | 4259 | 160096 |
| &nbsp;&nbsp;&nbsp;S&T Bancorp, Inc. | 4672 | 159689 |
| &nbsp;&nbsp;&nbsp;TowneBank | 5051 | 155773 |
| &nbsp;&nbsp;&nbsp;Evercore, Inc. — Class A<sup>1</sup> | 1237 | 134932 |
| &nbsp;&nbsp;&nbsp;Goldman Sachs Group, Inc. | 286 | 98207 |
| &nbsp;&nbsp;&nbsp;U.S. Bancorp | 2150 | 93762 |
| &nbsp;&nbsp;&nbsp;Global Net Lease, Inc. REIT | 7117 | 89461 |
| &nbsp;&nbsp;&nbsp;Visa, Inc. — Class A<sup>1</sup> | 419 | 87051 |
| &nbsp;&nbsp;&nbsp;Arch Capital Group Ltd.\*<sup>,1</sup> | 1206 | 75713 |
| &nbsp;&nbsp;&nbsp;Mastercard, Inc. — Class A | 216 | 75110 |
| &nbsp;&nbsp;&nbsp;International Bancshares Corp.<sup>1</sup> | 1609 | 73628 |
| &nbsp;&nbsp;&nbsp;Office Properties Income Trust REIT | 5332 | 71182 |
| &nbsp;&nbsp;&nbsp;Apartment Income REIT Corp. REIT<sup>1</sup> | 1987 | 68174 |
| &nbsp;&nbsp;&nbsp;BankUnited, Inc.<sup>1</sup> | 1999 | 67906 |
| &nbsp;&nbsp;&nbsp;Central Pacific Financial Corp. | 3257 | 66052 |
| &nbsp;&nbsp;&nbsp;Virtus Investment Partners, Inc. | 344 | 65855 |
| &nbsp;&nbsp;&nbsp;Stewart Information Services Corp. | 1478 | 63155 |
| &nbsp;&nbsp;&nbsp;Trustmark Corp.<sup>1</sup> | 1701 | 59382 |
| &nbsp;&nbsp;&nbsp;FB Financial Corp. | 1581 | 57137 |
| &nbsp;&nbsp;&nbsp;Marcus & Millichap, Inc. | 1637 | 56394 |
| &nbsp;&nbsp;&nbsp;Hilltop Holdings, Inc. | 1879 | 56389 |
| &nbsp;&nbsp;&nbsp;Brightsphere Investment Group, Inc. | 2694 | 55443 |
| &nbsp;&nbsp;&nbsp;Bread Financial Holdings, Inc. | 1364 | 51368 |
| &nbsp;&nbsp;&nbsp;PennyMac Financial Services, Inc.<sup>1</sup> | 876 | 49634 |
| &nbsp;&nbsp;&nbsp;PotlatchDeltic Corp. REIT<sup>1</sup> | 1114 | 49005 |
| &nbsp;&nbsp;&nbsp;NMI Holdings, Inc. — Class A\* | 2179 | 45541 |
| &nbsp;&nbsp;&nbsp;RLI Corp. | 337 | 44238 |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 11

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **LONG SHORT EQUITY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;Aflac, Inc.<sup>1</sup> | 583 | $| 41941 |
| &nbsp;&nbsp;&nbsp;Pathward Financial, Inc. | 865 |  | 37238 |
| &nbsp;&nbsp;&nbsp;Associated Banc-Corp. | 343 |  | 7920 |
| **Total Financial** |  |  | 2878845 |
| **Consumer, Cyclical - 11.8%** | **Consumer, Cyclical - 11.8%** | **Consumer, Cyclical - 11.8%** | **Consumer, Cyclical - 11.8%** |
| &nbsp;&nbsp;&nbsp;Home Depot, Inc.<sup>1</sup> | 633 |  | 199939 |
| &nbsp;&nbsp;&nbsp;Lowe's Companies, Inc. | 882 |  | 175730 |
| &nbsp;&nbsp;&nbsp;Yum! Brands, Inc. | 1335 |  | 170987 |
| &nbsp;&nbsp;&nbsp;Wyndham Hotels & Resorts, Inc. | 2361 |  | 168363 |
| &nbsp;&nbsp;&nbsp;Columbia Sportswear Co. | 1917 |  | 167891 |
| &nbsp;&nbsp;&nbsp;Brunswick Corp.<sup>1</sup> | 2160 |  | 155693 |
| &nbsp;&nbsp;&nbsp;Starbucks Corp. | 1350 |  | 133920 |
| &nbsp;&nbsp;&nbsp;GMS, Inc.\*<sup>,1</sup> | 2375 |  | 118275 |
| &nbsp;&nbsp;&nbsp;NIKE, Inc. — Class B<sup>1</sup> | 916 |  | 107181 |
| &nbsp;&nbsp;&nbsp;Allison Transmission Holdings, Inc.<sup>1</sup> | 2377 |  | 98883 |
| &nbsp;&nbsp;&nbsp;Methode Electronics, Inc. | 2188 |  | 97082 |
| &nbsp;&nbsp;&nbsp;Buckle, Inc.<sup>1</sup> | 2093 |  | 94918 |
| &nbsp;&nbsp;&nbsp;Steven Madden Ltd. | 2730 |  | 87251 |
| &nbsp;&nbsp;&nbsp;Boyd Gaming Corp.<sup>1</sup> | 1564 |  | 85285 |
| &nbsp;&nbsp;&nbsp;Academy Sports & Outdoors, Inc.<sup>1</sup> | 1488 |  | 78179 |
| &nbsp;&nbsp;&nbsp;Watsco, Inc.<sup>1</sup> | 297 |  | 74072 |
| &nbsp;&nbsp;&nbsp;Casey's General Stores, Inc.<sup>1</sup> | 330 |  | 74035 |
| &nbsp;&nbsp;&nbsp;Patrick Industries, Inc. | 1055 |  | 63933 |
| &nbsp;&nbsp;&nbsp;General Motors Co.<sup>1</sup> | 1768 |  | 59476 |
| &nbsp;&nbsp;&nbsp;Williams-Sonoma, Inc. | 515 |  | 59184 |
| &nbsp;&nbsp;&nbsp;Haverty Furniture Companies, Inc. | 1951 |  | 58335 |
| &nbsp;&nbsp;&nbsp;Oxford Industries, Inc. | 608 |  | 56653 |
| &nbsp;&nbsp;&nbsp;Tesla, Inc.\*<sup>,1</sup> | 390 |  | 48040 |
| &nbsp;&nbsp;&nbsp;Group 1 Automotive, Inc.<sup>1</sup> | 252 |  | 45453 |
| &nbsp;&nbsp;&nbsp;Winnebago Industries, Inc. | 848 |  | 44689 |
| &nbsp;&nbsp;&nbsp;Polaris, Inc. | 439 |  | 44339 |
| &nbsp;&nbsp;&nbsp;Thor Industries, Inc.<sup>1</sup> | 469 |  | 35405 |
| &nbsp;&nbsp;&nbsp;Harley-Davidson, Inc. | 800 |  | 33280 |
| **Total Consumer, Cyclical** |  |  | 2636471 |
| **Technology - 9.4%** | **Technology - 9.4%** | **Technology - 9.4%** | **Technology - 9.4%** |
| &nbsp;&nbsp;&nbsp;Microsoft Corp. | 1205 |  | 288983 |
| &nbsp;&nbsp;&nbsp;Apple, Inc.<sup>1</sup> | 1901 |  | 246997 |
| &nbsp;&nbsp;&nbsp;Synopsys, Inc.\* | 478 |  | 152621 |
| &nbsp;&nbsp;&nbsp;Cirrus Logic, Inc.\*<sup>,1</sup> | 2007 |  | 149481 |
| &nbsp;&nbsp;&nbsp;Applied Materials, Inc. | 1469 |  | 143051 |
| &nbsp;&nbsp;&nbsp;Adobe, Inc.\* | 225 |  | 75719 |
| &nbsp;&nbsp;&nbsp;Maximus, Inc. | 984 |  | 72156 |
| &nbsp;&nbsp;&nbsp;Rambus, Inc.\*<sup>,1</sup> | 2005 |  | 71819 |
| &nbsp;&nbsp;&nbsp;QUALCOMM, Inc.<sup>1</sup> | 563 |  | 61896 |
| &nbsp;&nbsp;&nbsp;NetApp, Inc.<sup>1</sup> | 1012 |  | 60781 |
| &nbsp;&nbsp;&nbsp;International Business Machines Corp.<sup>1</sup> | 410 |  | 57765 |
| &nbsp;&nbsp;&nbsp;SS&C Technologies Holdings, Inc. | 1061 |  | 55236 |
| &nbsp;&nbsp;&nbsp;ServiceNow, Inc.\* | 134 |  | 52028 |
| &nbsp;&nbsp;&nbsp;Diodes, Inc.\* | 674 |  | 51318 |
| &nbsp;&nbsp;&nbsp;NetScout Systems, Inc.\*<sup>,1</sup> | 1576 |  | 51236 |
| &nbsp;&nbsp;&nbsp;Dropbox, Inc. — Class A\* | 2283 |  | 51094 |
| &nbsp;&nbsp;&nbsp;Synaptics, Inc.\*<sup>,1</sup> | 520 |  | 49483 |
| &nbsp;&nbsp;&nbsp;CSG Systems International, Inc. | 839 |  | 47991 |
| &nbsp;&nbsp;&nbsp;Analog Devices, Inc.<sup>1</sup> | 286 |  | 46913 |
| &nbsp;&nbsp;&nbsp;NVIDIA Corp. | 319 |  | 46619 |
| &nbsp;&nbsp;&nbsp;NXP Semiconductor N.V. | 286 |  | 45197 |
| &nbsp;&nbsp;&nbsp;Teradata Corp.\* | 1290 |  | 43421 |
| &nbsp;&nbsp;&nbsp;Veeco Instruments, Inc.\* | 2198 |  | 40839 |
| &nbsp;&nbsp;&nbsp;Avid Technology, Inc.\* | 1433 |  | 38104 |
| &nbsp;&nbsp;&nbsp;Microchip Technology, Inc.<sup>1</sup> | 541 |  | 38005 |
| &nbsp;&nbsp;&nbsp;Veradigm, Inc.\*<sup>,1</sup> | 2124 |  | 37467 |
| &nbsp;&nbsp;&nbsp;ACI Worldwide, Inc.\*<sup>,1</sup> | 1604 |  | 36892 |
| **Total Technology** |  |  | 2113112 |
| **Energy - 7.7%** | **Energy - 7.7%** | **Energy - 7.7%** | **Energy - 7.7%** |
| &nbsp;&nbsp;&nbsp;Exxon Mobil Corp.<sup>1</sup> | 2001 |  | 220710 |
| &nbsp;&nbsp;&nbsp;Marathon Petroleum Corp.<sup>1</sup> | 1540 |  | 179241 |
| &nbsp;&nbsp;&nbsp;Antero Midstream Corp.<sup>1</sup> | 15191 |  | 163911 |
| &nbsp;&nbsp;&nbsp;DT Midstream, Inc.<sup>1</sup> | 2864 |  | 158265 |
| &nbsp;&nbsp;&nbsp;Kinder Morgan, Inc.<sup>1</sup> | 8696 |  | 157224 |
| &nbsp;&nbsp;&nbsp;Valero Energy Corp.<sup>1</sup> | 917 |  | 116331 |
| &nbsp;&nbsp;&nbsp;Williams Companies, Inc.<sup>1</sup> | 3199 |  | 105247 |
| &nbsp;&nbsp;&nbsp;Phillips 66<sup>1</sup> | 1002 |  | 104288 |
| &nbsp;&nbsp;&nbsp;Chevron Corp. | 541 |  | 97104 |
| &nbsp;&nbsp;&nbsp;ONEOK, Inc.<sup>1</sup> | 1284 |  | 84359 |
| &nbsp;&nbsp;&nbsp;CVR Energy, Inc.<sup>1</sup> | 2381 |  | 74621 |
| &nbsp;&nbsp;&nbsp;Occidental Petroleum Corp.<sup>1</sup> | 992 |  | 62486 |
| &nbsp;&nbsp;&nbsp;Magnolia Oil & Gas Corp. — Class A | 2041 |  | 47861 |
| &nbsp;&nbsp;&nbsp;SunCoke Energy, Inc. | 5365 |  | 46300 |
| &nbsp;&nbsp;&nbsp;Par Pacific Holdings, Inc.\* | 1806 |  | 41989 |
| &nbsp;&nbsp;&nbsp;REX American Resources Corp.\* | 1164 |  | 37085 |
| &nbsp;&nbsp;&nbsp;Equitrans Midstream Corp.<sup>1</sup> | 5392 |  | 36126 |
| **Total Energy** |  |  | 1733148 |
| **Utilities - 6.3%** | **Utilities - 6.3%** | **Utilities - 6.3%** | **Utilities - 6.3%** |
| &nbsp;&nbsp;&nbsp;FirstEnergy Corp. | 4181 |  | 175351 |
| &nbsp;&nbsp;&nbsp;OGE Energy Corp. | 4319 |  | 170816 |
| &nbsp;&nbsp;&nbsp;Black Hills Corp. | 2419 |  | 170153 |
| &nbsp;&nbsp;&nbsp;UGI Corp.<sup>1</sup> | 4094 |  | 151765 |
| &nbsp;&nbsp;&nbsp;MGE Energy, Inc.<sup>1</sup> | 1739 |  | 122426 |
| &nbsp;&nbsp;&nbsp;Chesapeake Utilities Corp.<sup>1</sup> | 959 |  | 113335 |
| &nbsp;&nbsp;&nbsp;ONE Gas, Inc. | 1273 |  | 96391 |
| &nbsp;&nbsp;&nbsp;Ameren Corp. | 1000 |  | 88920 |
| &nbsp;&nbsp;&nbsp;Clearway Energy, Inc. — Class C | 2717 |  | 86591 |
| &nbsp;&nbsp;&nbsp;Otter Tail Corp.<sup>1</sup> | 1433 |  | 84131 |
| &nbsp;&nbsp;&nbsp;American States Water Co. | 646 |  | 59787 |
| &nbsp;&nbsp;&nbsp;National Fuel Gas Co. | 761 |  | 48171 |
| &nbsp;&nbsp;&nbsp;Unitil Corp. | 860 |  | 44170 |
| **Total Utilities** |  |  | 1412007 |
| **Communications - 4.6%** | **Communications - 4.6%** | **Communications - 4.6%** | **Communications - 4.6%** |
| &nbsp;&nbsp;&nbsp;Verizon Communications, Inc.<sup>1</sup> | 4404 |  | 173518 |
| &nbsp;&nbsp;&nbsp;T-Mobile US, Inc.\*<sup>,1</sup> | 1035 |  | 144900 |
| &nbsp;&nbsp;&nbsp;Alphabet, Inc. — Class C\*<sup>,1</sup> | 1486 |  | 131853 |
| &nbsp;&nbsp;&nbsp;Gogo, Inc.\*<sup>,1</sup> | 8644 |  | 127585 |
| &nbsp;&nbsp;&nbsp;Meta Platforms, Inc. — Class A\*<sup>,1</sup> | 926 |  | 111435 |
| &nbsp;&nbsp;&nbsp;Cisco Systems, Inc. | 2229 |  | 106190 |
| &nbsp;&nbsp;&nbsp;VeriSign, Inc.\* | 303 |  | 62248 |
| &nbsp;&nbsp;&nbsp;InterDigital, Inc. | 1129 |  | 55863 |
| &nbsp;&nbsp;&nbsp;Amazon.com, Inc.\*<sup>,1</sup> | 616 |  | 51744 |
| &nbsp;&nbsp;&nbsp;Arista Networks, Inc.\* | 255 |  | 30944 |

---

12 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **LONG SHORT EQUITY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| &nbsp;&nbsp;&nbsp;NETGEAR, Inc.\* | 1645 | $29791 |
| **Total Communications** |  | 1026071 |
| **Basic Materials - 4.0%** | **Basic Materials - 4.0%** | **Basic Materials - 4.0%** |
| &nbsp;&nbsp;&nbsp;Minerals Technologies, Inc.<sup>1</sup> | 2259 | 137166 |
| &nbsp;&nbsp;&nbsp;Balchem Corp.<sup>1</sup> | 1065 | 130047 |
| &nbsp;&nbsp;&nbsp;Huntsman Corp.<sup>1</sup> | 3412 | 93762 |
| &nbsp;&nbsp;&nbsp;NewMarket Corp.<sup>1</sup> | 278 | 86489 |
| &nbsp;&nbsp;&nbsp;FMC Corp.<sup>1</sup> | 644 | 80371 |
| &nbsp;&nbsp;&nbsp;Olin Corp. | 1336 | 70728 |
| &nbsp;&nbsp;&nbsp;LyondellBasell Industries N.V. — Class A<sup>1</sup> | 797 | 66175 |
| &nbsp;&nbsp;&nbsp;Dow, Inc. | 1204 | 60670 |
| &nbsp;&nbsp;&nbsp;Westlake Corp. | 574 | 58858 |
| &nbsp;&nbsp;&nbsp;PPG Industries, Inc. | 433 | 54445 |
| &nbsp;&nbsp;&nbsp;Ingevity Corp.\* | 745 | 52478 |
| **Total Basic Materials** |  | 891189 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $20,190,864) |  | 20541200 |
| **MONEY MARKET FUND<sup>†</sup>** **- 1.4%** | **MONEY MARKET FUND<sup>†</sup>** **- 1.4%** | **MONEY MARKET FUND<sup>†</sup>** **- 1.4%** |
| &nbsp;&nbsp;&nbsp;Invesco Treasury Obligations Portfolio, 1.00%<sup>2</sup> | 305247 | 305247 |
| **Total Money Market Fund** | **Total Money Market Fund** |  |
| &nbsp;&nbsp;&nbsp;(Cost $305,247) |  | 305247 |
| **Total Investments - 93.2%** | **Total Investments - 93.2%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $20,496,111) | &nbsp;&nbsp;&nbsp;(Cost $20,496,111) | $20846447 |
| **Other Assets & Liabilities, net - 6.8%** | **Other Assets & Liabilities, net - 6.8%** | 1530894 |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $22377341 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Custom Basket Swap Agreements** | **Custom Basket Swap Agreements** | **Custom Basket Swap Agreements** | **Custom Basket Swap Agreements** | **Custom Basket Swap Agreements** | **Custom Basket Swap Agreements** | **Custom Basket Swap Agreements** | **Custom Basket Swap Agreements** |
| **Counterparty** | **Reference Obligation** | **Type** | **Financing <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized <br> Appreciation** |
| **OTC Custom Basket Swap Agreements<sup>††</sup>** | **OTC Custom Basket Swap Agreements<sup>††</sup>** | **OTC Custom Basket Swap Agreements<sup>††</sup>** | **OTC Custom Basket Swap Agreements<sup>††</sup>** | **OTC Custom Basket Swap Agreements<sup>††</sup>** | **OTC Custom Basket Swap Agreements<sup>††</sup>** | **OTC Custom Basket Swap Agreements<sup>††</sup>** | **OTC Custom Basket Swap Agreements<sup>††</sup>** |
| Goldman Sachs International | GS Equity Custom Basket | Pay | 4.78% (Federal Funds Rate + 0.45%) | At Maturity | 05/06/24 | $10507324 | $178543 |
| Morgan Stanley Capital Services LLC | MS Equity Custom Basket | Pay | 4.73% (Federal Funds Rate + 0.40%) | At Maturity | 03/27/24 | 10587785 | 161499 |
|  |  |  |  |  |  | $21095109 | $340042 |
| **OTC Custom Basket Swap Agreements Sold Short<sup>††</sup>** | **OTC Custom Basket Swap Agreements Sold Short<sup>††</sup>** | **OTC Custom Basket Swap Agreements Sold Short<sup>††</sup>** | **OTC Custom Basket Swap Agreements Sold Short<sup>††</sup>** | **OTC Custom Basket Swap Agreements Sold Short<sup>††</sup>** | **OTC Custom Basket Swap Agreements Sold Short<sup>††</sup>** | **OTC Custom Basket Swap Agreements Sold Short<sup>††</sup>** | **OTC Custom Basket Swap Agreements Sold Short<sup>††</sup>** |
| Morgan Stanley Capital Services LLC | MS Equity Custom Basket | Receive | 4.03% (Federal Funds Rate - 0.30%) | At Maturity | 03/27/24 | $12075959 | $609266 |
| Goldman Sachs International | GS Equity Custom Basket | Receive | 4.13% (Federal Funds Rate - 0.20%) | At Maturity | 05/06/24 | 12007782 | 601789 |
|  |  |  |  |  |  | $24083741 | $1211055 |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 13

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **LONG SHORT EQUITY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| **MS EQUITY LONG CUSTOM BASKET** | **MS EQUITY LONG CUSTOM BASKET** |  |  |
| **Financial** |  |  |  |
| &nbsp;&nbsp;&nbsp;S&T Bancorp, Inc. | 2383 | 0.76% | $13575 |
| &nbsp;&nbsp;&nbsp;Associated Banc-Corp. | 3722 | 0.81% | 10615 |
| &nbsp;&nbsp;&nbsp;Renasant Corp. | 2172 | 0.77% | 8681 |
| &nbsp;&nbsp;&nbsp;Preferred Bank/Los Angeles CA | 1157 | 0.82% | 8000 |
| &nbsp;&nbsp;&nbsp;TowneBank | 2576 | 0.75% | 7671 |
| &nbsp;&nbsp;&nbsp;Virtus Investment Partners, Inc. | 175 | 0.32% | 4094 |
| &nbsp;&nbsp;&nbsp;PennyMac Financial Services, Inc. | 446 | 0.24% | 4029 |
| &nbsp;&nbsp;&nbsp;Arch Capital Group Ltd. | 615 | 0.36% | 3793 |
| &nbsp;&nbsp;&nbsp;Trustmark Corp. | 867 | 0.29% | 3554 |
| &nbsp;&nbsp;&nbsp;NMI Holdings, Inc. — Class A | 1111 | 0.22% | 2492 |
| &nbsp;&nbsp;&nbsp;Evercore, Inc. — Class A | 631 | 0.65% | 1867 |
| &nbsp;&nbsp;&nbsp;Bread Financial Holdings, Inc. | 696 | 0.25% | 1749 |
| &nbsp;&nbsp;&nbsp;Aflac, Inc. | 297 | 0.20% | 1510 |
| &nbsp;&nbsp;&nbsp;International Bancshares Corp. | 820 | 0.35% | 1478 |
| &nbsp;&nbsp;&nbsp;Hilltop Holdings, Inc. | 958 | 0.27% | 1405 |
| &nbsp;&nbsp;&nbsp;RLI Corp. | 172 | 0.21% | 807 |
| &nbsp;&nbsp;&nbsp;National Bank Holdings Corp. — Class A | 2005 | 0.80% | 359 |
| &nbsp;&nbsp;&nbsp;Visa, Inc. — Class A | 213 | 0.42% | 345 |
| &nbsp;&nbsp;&nbsp;Brightsphere Investment Group, Inc. | 1374 | 0.27% | (165) |
| &nbsp;&nbsp;&nbsp;U.S. Bancorp | 1096 | 0.45% | (356) |
| &nbsp;&nbsp;&nbsp;Mastercard, Inc. — Class A | 110 | 0.36% | (860) |
| &nbsp;&nbsp;&nbsp;Pathward Financial, Inc. | 441 | 0.18% | (1811) |
| &nbsp;&nbsp;&nbsp;Marcus & Millichap, Inc. | 835 | 0.27% | (2040) |
| &nbsp;&nbsp;&nbsp;Apartment Income REIT Corp. | 1013 | 0.33% | (2681) |
| &nbsp;&nbsp;&nbsp;Hope Bancorp, Inc. | 6584 | 0.80% | (3520) |
| &nbsp;&nbsp;&nbsp;FB Financial Corp. | 806 | 0.28% | (4292) |
| &nbsp;&nbsp;&nbsp;BankUnited, Inc. | 1019 | 0.33% | (4381) |
| &nbsp;&nbsp;&nbsp;PotlatchDeltic Corp. | 568 | 0.24% | (4671) |
| &nbsp;&nbsp;&nbsp;Global Net Lease, Inc. | 3630 | 0.43% | (6462) |
| &nbsp;&nbsp;&nbsp;Goldman Sachs Group, Inc. | 292 | 0.95% | (7914) |
| &nbsp;&nbsp;&nbsp;Heritage Financial Corp. | 2689 | 0.78% | (8294) |
| &nbsp;&nbsp;&nbsp;Central Pacific Financial Corp. | 1661 | 0.32% | (9821) |
| &nbsp;&nbsp;&nbsp;Stewart Information Services Corp. | 754 | 0.30% | (10226) |
| &nbsp;&nbsp;&nbsp;Office Properties Income Trust | 2719 | 0.34% | (19081) |
| **Total Financial** |  |  | (10551) |
| **Consumer, Non-cyclical** |  |  |  |
| &nbsp;&nbsp;&nbsp;Perdoceo Education Corp. | 5084 | 0.67% | 16404 |
| &nbsp;&nbsp;&nbsp;Bristol-Myers Squibb Co. | 1181 | 0.80% | 12463 |
| &nbsp;&nbsp;&nbsp;Vertex Pharmaceuticals, Inc. | 181 | 0.49% | 11308 |
| &nbsp;&nbsp;&nbsp;Ironwood Pharmaceuticals, Inc. — Class A | 6122 | 0.72% | 10359 |
| &nbsp;&nbsp;&nbsp;Regeneron Pharmaceuticals, Inc. | 46 | 0.31% | 9366 |
| &nbsp;&nbsp;&nbsp;United Therapeutics Corp. | 158 | 0.41% | 8979 |
| &nbsp;&nbsp;&nbsp;Eli Lilly & Co. | 151 | 0.52% | 8327 |
| &nbsp;&nbsp;&nbsp;Coca-Cola Co. | 1565 | 0.94% | 7536 |
| &nbsp;&nbsp;&nbsp;Amphastar Pharmaceuticals, Inc. | 922 | 0.24% | 7251 |
| &nbsp;&nbsp;&nbsp;Jazz Pharmaceuticals plc | 335 | 0.50% | 6354 |
| &nbsp;&nbsp;&nbsp;Hologic, Inc. | 1169 | 0.83% | 5349 |
| &nbsp;&nbsp;&nbsp;Incyte Corp. | 479 | 0.36% | 5141 |
| &nbsp;&nbsp;&nbsp;Quest Diagnostics, Inc. | 588 | 0.87% | 5101 |
| &nbsp;&nbsp;&nbsp;Becton Dickinson and Co. | 243 | 0.58% | 4100 |
| &nbsp;&nbsp;&nbsp;Supernus Pharmaceuticals, Inc. | 1341 | 0.45% | 3660 |
| &nbsp;&nbsp;&nbsp;Gilead Sciences, Inc. | 650 | 0.53% | 3430 |
| &nbsp;&nbsp;&nbsp;Triton International Ltd. | 555 | 0.36% | 3040 |
| &nbsp;&nbsp;&nbsp;Altria Group, Inc. | 1542 | 0.67% | 2538 |
| &nbsp;&nbsp;&nbsp;PerkinElmer, Inc. | 252 | 0.33% | 2523 |
| &nbsp;&nbsp;&nbsp;Lamb Weston Holdings, Inc. | 472 | 0.40% | 1821 |
| &nbsp;&nbsp;&nbsp;Philip Morris International, Inc. | 350 | 0.33% | 1779 |
| &nbsp;&nbsp;&nbsp;Innoviva, Inc. | 1893 | 0.24% | 1461 |
| &nbsp;&nbsp;&nbsp;Globus Medical, Inc. — Class A | 714 | 0.50% | 1200 |
| &nbsp;&nbsp;&nbsp;Prestige Consumer Healthcare, Inc. | 1140 | 0.67% | 1120 |
| &nbsp;&nbsp;&nbsp;Post Holdings, Inc. | 808 | 0.69% | 510 |
| &nbsp;&nbsp;&nbsp;Johnson & Johnson | 132 | 0.22% | (284) |
| &nbsp;&nbsp;&nbsp;Monster Beverage Corp. | 811 | 0.78% | (464) |
| &nbsp;&nbsp;&nbsp;Hershey Co. | 380 | 0.83% | (582) |
| &nbsp;&nbsp;&nbsp;Neurocrine Biosciences, Inc. | 170 | 0.19% | (741) |
| &nbsp;&nbsp;&nbsp;John B Sanfilippo & Son, Inc. | 1052 | 0.81% | (828) |
| &nbsp;&nbsp;&nbsp;Inter Parfums, Inc. | 373 | 0.34% | (895) |
| &nbsp;&nbsp;&nbsp;Danaher Corp. | 356 | 0.89% | (999) |
| &nbsp;&nbsp;&nbsp;IDEXX Laboratories, Inc. | 208 | 0.80% | (2654) |
| &nbsp;&nbsp;&nbsp;AMN Healthcare Services, Inc. | 167 | 0.16% | (2797) |
| &nbsp;&nbsp;&nbsp;Varex Imaging Corp. | 2490 | 0.48% | (3641) |
| &nbsp;&nbsp;&nbsp;Royalty Pharma plc — Class A | 1619 | 0.60% | (5460) |
| &nbsp;&nbsp;&nbsp;EVERTEC, Inc. | 631 | 0.19% | (5884) |
| &nbsp;&nbsp;&nbsp;Eagle Pharmaceuticals, Inc. | 1050 | 0.29% | (11350) |
| &nbsp;&nbsp;&nbsp;Vanda Pharmaceuticals, Inc. | 2309 | 0.16% | (17799) |

---

14 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **LONG SHORT EQUITY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| &nbsp;&nbsp;&nbsp;USANA Health Sciences, Inc. | 688 | 0.35% | $(20632) |
| &nbsp;&nbsp;&nbsp;Tyson Foods, Inc. — Class A | 1190 | 0.70% | (24810) |
| **Total Consumer, Non-cyclical** |  |  | 41300 |
| **Consumer, Cyclical** |  |  |  |
| &nbsp;&nbsp;&nbsp;Columbia Sportswear Co. | 977 | 0.81% | 9318 |
| &nbsp;&nbsp;&nbsp;NIKE, Inc. — Class B | 467 | 0.52% | 7751 |
| &nbsp;&nbsp;&nbsp;Academy Sports & Outdoors, Inc. | 759 | 0.38% | 6464 |
| &nbsp;&nbsp;&nbsp;GMS, Inc. | 1211 | 0.57% | 6017 |
| &nbsp;&nbsp;&nbsp;Home Depot, Inc. | 323 | 0.96% | 5642 |
| &nbsp;&nbsp;&nbsp;Buckle, Inc. | 1067 | 0.46% | 5147 |
| &nbsp;&nbsp;&nbsp;Allison Transmission Holdings, Inc. | 1212 | 0.48% | 4153 |
| &nbsp;&nbsp;&nbsp;Patrick Industries, Inc. | 246 | 0.14% | 3648 |
| &nbsp;&nbsp;&nbsp;Methode Electronics, Inc. | 1116 | 0.47% | 2622 |
| &nbsp;&nbsp;&nbsp;Lowe's Companies, Inc. | 450 | 0.85% | 2607 |
| &nbsp;&nbsp;&nbsp;Group 1 Automotive, Inc. | 129 | 0.22% | 1415 |
| &nbsp;&nbsp;&nbsp;Haverty Furniture Companies, Inc. | 995 | 0.28% | 1324 |
| &nbsp;&nbsp;&nbsp;Starbucks Corp. | 688 | 0.64% | 874 |
| &nbsp;&nbsp;&nbsp;Casey's General Stores, Inc. | 168 | 0.36% | 230 |
| &nbsp;&nbsp;&nbsp;Thor Industries, Inc. | 239 | 0.17% | (226) |
| &nbsp;&nbsp;&nbsp;Wyndham Hotels & Resorts, Inc. | 1204 | 0.81% | (766) |
| &nbsp;&nbsp;&nbsp;Watsco, Inc. | 151 | 0.36% | (1547) |
| &nbsp;&nbsp;&nbsp;Boyd Gaming Corp. | 798 | 0.41% | (1619) |
| &nbsp;&nbsp;&nbsp;Yum! Brands, Inc. | 681 | 0.82% | (1707) |
| &nbsp;&nbsp;&nbsp;Oxford Industries, Inc. | 310 | 0.27% | (1925) |
| &nbsp;&nbsp;&nbsp;Winnebago Industries, Inc. | 432 | 0.22% | (1963) |
| &nbsp;&nbsp;&nbsp;Harley-Davidson, Inc. | 408 | 0.16% | (2134) |
| &nbsp;&nbsp;&nbsp;Polaris, Inc. | 224 | 0.21% | (2360) |
| &nbsp;&nbsp;&nbsp;Steven Madden Ltd. | 1392 | 0.42% | (3406) |
| &nbsp;&nbsp;&nbsp;Williams-Sonoma, Inc. | 262 | 0.28% | (3542) |
| &nbsp;&nbsp;&nbsp;Brunswick Corp. | 1102 | 0.75% | (3783) |
| &nbsp;&nbsp;&nbsp;General Motors Co. | 902 | 0.29% | (4516) |
| &nbsp;&nbsp;&nbsp;Tesla, Inc. | 199 | 0.23% | (15445) |
| **Total Consumer, Cyclical** |  |  | 12273 |
| **Technology** |  |  |  |
| &nbsp;&nbsp;&nbsp;Apple, Inc. | 969 | 1.19% | 28412 |
| &nbsp;&nbsp;&nbsp;Microsoft Corp. | 615 | 1.39% | 27566 |
| &nbsp;&nbsp;&nbsp;Rambus, Inc. | 1022 | 0.35% | 16089 |
| &nbsp;&nbsp;&nbsp;Adobe, Inc. | 115 | 0.37% | 5541 |
| &nbsp;&nbsp;&nbsp;CSG Systems International, Inc. | 428 | 0.23% | 4528 |
| &nbsp;&nbsp;&nbsp;NetApp, Inc. | 516 | 0.29% | 3244 |
| &nbsp;&nbsp;&nbsp;Diodes, Inc. | 343 | 0.25% | 2772 |
| &nbsp;&nbsp;&nbsp;Veradigm, Inc. | 1083 | 0.18% | 2187 |
| &nbsp;&nbsp;&nbsp;Analog Devices, Inc. | 146 | 0.23% | 2118 |
| &nbsp;&nbsp;&nbsp;NetScout Systems, Inc. | 804 | 0.25% | 1383 |
| &nbsp;&nbsp;&nbsp;International Business Machines Corp. | 209 | 0.28% | 1057 |
| &nbsp;&nbsp;&nbsp;Maximus, Inc. | 502 | 0.35% | 401 |
| &nbsp;&nbsp;&nbsp;ServiceNow, Inc. | 68 | 0.25% | (74) |
| &nbsp;&nbsp;&nbsp;Dropbox, Inc. — Class A | 1164 | 0.25% | (185) |
| &nbsp;&nbsp;&nbsp;QUALCOMM, Inc. | 287 | 0.30% | (228) |
| &nbsp;&nbsp;&nbsp;Teradata Corp. | 658 | 0.21% | (284) |
| &nbsp;&nbsp;&nbsp;Microchip Technology, Inc. | 276 | 0.18% | (857) |
| &nbsp;&nbsp;&nbsp;Veeco Instruments, Inc. | 1121 | 0.20% | (1069) |
| &nbsp;&nbsp;&nbsp;Avid Technology, Inc. | 730 | 0.18% | (1343) |
| &nbsp;&nbsp;&nbsp;Synaptics, Inc. | 265 | 0.24% | (2186) |
| &nbsp;&nbsp;&nbsp;SS&C Technologies Holdings, Inc. | 541 | 0.27% | (2354) |
| &nbsp;&nbsp;&nbsp;NXP Semiconductor N.V. | 146 | 0.22% | (2744) |
| &nbsp;&nbsp;&nbsp;Synopsys, Inc. | 243 | 0.73% | (3249) |
| &nbsp;&nbsp;&nbsp;ACI Worldwide, Inc. | 818 | 0.18% | (3331) |
| &nbsp;&nbsp;&nbsp;NVIDIA Corp. | 163 | 0.22% | (3424) |
| &nbsp;&nbsp;&nbsp;Cirrus Logic, Inc. | 1024 | 0.72% | (3459) |
| &nbsp;&nbsp;&nbsp;Applied Materials, Inc. | 749 | 0.69% | (6632) |
| **Total Technology** |  |  | 63879 |
| **Industrial** |  |  |  |
| &nbsp;&nbsp;&nbsp;Vishay Intertechnology, Inc. | 3128 | 0.64% | 10816 |
| &nbsp;&nbsp;&nbsp;Standex International Corp. | 833 | 0.81% | 9895 |
| &nbsp;&nbsp;&nbsp;Dorian LPG Ltd. | 1898 | 0.34% | 9460 |
| &nbsp;&nbsp;&nbsp;Keysight Technologies, Inc. | 343 | 0.55% | 8185 |
| &nbsp;&nbsp;&nbsp;Donaldson Company, Inc. | 1456 | 0.81% | 6854 |
| &nbsp;&nbsp;&nbsp;Emerson Electric Co. | 940 | 0.85% | 6612 |
| &nbsp;&nbsp;&nbsp;Barnes Group, Inc. | 792 | 0.31% | 5675 |
| &nbsp;&nbsp;&nbsp;Snap-on, Inc. | 363 | 0.78% | 5390 |
| &nbsp;&nbsp;&nbsp;Louisiana-Pacific Corp. | 1136 | 0.64% | 4905 |
| &nbsp;&nbsp;&nbsp;Eagle Materials, Inc. | 589 | 0.74% | 4869 |
| &nbsp;&nbsp;&nbsp;Albany International Corp. — Class A | 806 | 0.75% | 4468 |
| &nbsp;&nbsp;&nbsp;Mueller Industries, Inc. | 620 | 0.35% | 3862 |
| &nbsp;&nbsp;&nbsp;Textron, Inc. | 1194 | 0.80% | 3068 |
| &nbsp;&nbsp;&nbsp;EnPro Industries, Inc. | 201 | 0.21% | 2071 |
| &nbsp;&nbsp;&nbsp;AMETEK, Inc. | 618 | 0.82% | 1948 |
| &nbsp;&nbsp;&nbsp;Advanced Energy Industries, Inc. | 589 | 0.48% | 1604 |
| &nbsp;&nbsp;&nbsp;Lockheed Martin Corp. | 142 | 0.65% | 1341 |
| &nbsp;&nbsp;&nbsp;Toro Co. | 243 | 0.26% | 849 |
| &nbsp;&nbsp;&nbsp;OSI Systems, Inc. | 319 | 0.24% | 32 |
| &nbsp;&nbsp;&nbsp;Otis Worldwide Corp. | 519 | 0.38% | (50) |
| &nbsp;&nbsp;&nbsp;General Dynamics Corp. | 346 | 0.81% | (161) |
| &nbsp;&nbsp;&nbsp;Sonoco Products Co. | 438 | 0.25% | (501) |
| &nbsp;&nbsp;&nbsp;Graco, Inc. | 1267 | 0.80% | (586) |
| &nbsp;&nbsp;&nbsp;Crane Holdings Co. | 279 | 0.26% | (700) |
| &nbsp;&nbsp;&nbsp;Eaton Corporation plc | 359 | 0.53% | (1386) |
| &nbsp;&nbsp;&nbsp;Packaging Corporation of America | 251 | 0.30% | (1775) |
| &nbsp;&nbsp;&nbsp;3M Co. | 370 | 0.42% | (1801) |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 15

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **LONG SHORT EQUITY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| &nbsp;&nbsp;&nbsp;TopBuild Corp. | 112 | 0.17% | $(1952) |
| &nbsp;&nbsp;&nbsp;Sealed Air Corp. | 1027 | 0.48% | (3294) |
| &nbsp;&nbsp;&nbsp;Acuity Brands, Inc. | 326 | 0.51% | (5005) |
| &nbsp;&nbsp;&nbsp;Insteel Industries, Inc. | 668 | 0.17% | (5528) |
| &nbsp;&nbsp;&nbsp;Sturm Ruger & Company, Inc. | 965 | 0.46% | (14438) |
| **Total Industrial** |  |  | 54727 |
| **Communications** |  |  |  |
| &nbsp;&nbsp;&nbsp;Alphabet, Inc. — Class C | 758 | 0.64% | 10584 |
| &nbsp;&nbsp;&nbsp;Cisco Systems, Inc. | 1137 | 0.51% | 5748 |
| &nbsp;&nbsp;&nbsp;T-Mobile US, Inc. | 528 | 0.70% | 2945 |
| &nbsp;&nbsp;&nbsp;VeriSign, Inc. | 154 | 0.30% | 1257 |
| &nbsp;&nbsp;&nbsp;Arista Networks, Inc. | 130 | 0.15% | (1568) |
| &nbsp;&nbsp;&nbsp;NETGEAR, Inc. | 839 | 0.14% | (5599) |
| &nbsp;&nbsp;&nbsp;Meta Platforms, Inc. — Class A | 472 | 0.54% | (7784) |
| &nbsp;&nbsp;&nbsp;InterDigital, Inc. | 576 | 0.27% | (7919) |
| &nbsp;&nbsp;&nbsp;Gogo, Inc. | 4409 | 0.61% | (9211) |
| &nbsp;&nbsp;&nbsp;Amazon.com, Inc. | 314 | 0.25% | (11483) |
| &nbsp;&nbsp;&nbsp;Verizon Communications, Inc. | 2246 | 0.84% | (15285) |
| **Total Communications** |  |  | (38315) |
| **Utilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;FirstEnergy Corp. | 2132 | 0.84% | 8977 |
| &nbsp;&nbsp;&nbsp;National Fuel Gas Co. | 388 | 0.23% | 3741 |
| &nbsp;&nbsp;&nbsp;Unitil Corp. | 439 | 0.21% | 2153 |
| &nbsp;&nbsp;&nbsp;ONE Gas, Inc. | 649 | 0.46% | 1702 |
| &nbsp;&nbsp;&nbsp;Ameren Corp. | 510 | 0.43% | 875 |
| &nbsp;&nbsp;&nbsp;Black Hills Corp. | 1234 | 0.82% | 259 |
| &nbsp;&nbsp;&nbsp;OGE Energy Corp. | 2203 | 0.82% | 17 |
| &nbsp;&nbsp;&nbsp;Chesapeake Utilities Corp. | 489 | 0.55% | (56) |
| &nbsp;&nbsp;&nbsp;American States Water Co. | 330 | 0.29% | (1644) |
| &nbsp;&nbsp;&nbsp;Otter Tail Corp. | 731 | 0.41% | (2377) |
| &nbsp;&nbsp;&nbsp;Clearway Energy, Inc. — Class C | 1386 | 0.42% | (3017) |
| &nbsp;&nbsp;&nbsp;MGE Energy, Inc. | 887 | 0.59% | (4361) |
| &nbsp;&nbsp;&nbsp;UGI Corp. | 2088 | 0.73% | (4609) |
| **Total Utilities** |  |  | 1660 |
| **Energy** |  |  |  |
| &nbsp;&nbsp;&nbsp;Exxon Mobil Corp. | 1021 | 1.06% | 15777 |
| &nbsp;&nbsp;&nbsp;Marathon Petroleum Corp. | 785 | 0.86% | 12523 |
| &nbsp;&nbsp;&nbsp;Phillips 66 | 511 | 0.50% | 9280 |
| &nbsp;&nbsp;&nbsp;Chevron Corp. | 276 | 0.47% | 8320 |
| &nbsp;&nbsp;&nbsp;Valero Energy Corp. | 468 | 0.56% | 6438 |
| &nbsp;&nbsp;&nbsp;Antero Midstream Corp. | 7749 | 0.79% | 4803 |
| &nbsp;&nbsp;&nbsp;Par Pacific Holdings, Inc. | 921 | 0.20% | 4550 |
| &nbsp;&nbsp;&nbsp;ONEOK, Inc. | 655 | 0.41% | 3689 |
| &nbsp;&nbsp;&nbsp;REX American Resources Corp. | 593 | 0.18% | 1160 |
| &nbsp;&nbsp;&nbsp;Kinder Morgan, Inc. | 4436 | 0.76% | 1102 |
| &nbsp;&nbsp;&nbsp;SunCoke Energy, Inc. | 2736 | 0.22% | 444 |
| &nbsp;&nbsp;&nbsp;Magnolia Oil & Gas Corp. — Class A | 1041 | 0.23% | (789) |
| &nbsp;&nbsp;&nbsp;Williams Companies, Inc. | 1632 | 0.51% | (1544) |
| &nbsp;&nbsp;&nbsp;Equitrans Midstream Corp. | 2750 | 0.17% | (1549) |
| &nbsp;&nbsp;&nbsp;DT Midstream, Inc. | 1461 | 0.76% | (2512) |
| &nbsp;&nbsp;&nbsp;Occidental Petroleum Corp. | 506 | 0.30% | (3953) |
| &nbsp;&nbsp;&nbsp;CVR Energy, Inc. | 1214 | 0.36% | (5816) |
| **Total Energy** |  |  | 51923 |
| **Basic Materials** |  |  |  |
| &nbsp;&nbsp;&nbsp;FMC Corp. | 328 | 0.39% | 5370 |
| &nbsp;&nbsp;&nbsp;Westlake Corp. | 293 | 0.28% | 3082 |
| &nbsp;&nbsp;&nbsp;Ingevity Corp. | 380 | 0.25% | 978 |
| &nbsp;&nbsp;&nbsp;NewMarket Corp. | 141 | 0.41% | (69) |
| &nbsp;&nbsp;&nbsp;Dow, Inc. | 614 | 0.29% | (466) |
| &nbsp;&nbsp;&nbsp;Olin Corp. | 681 | 0.34% | (1501) |
| &nbsp;&nbsp;&nbsp;PPG Industries, Inc. | 220 | 0.26% | (1950) |
| &nbsp;&nbsp;&nbsp;LyondellBasell Industries N.V. — Class A | 406 | 0.32% | (4068) |
| &nbsp;&nbsp;&nbsp;Huntsman Corp. | 1740 | 0.45% | (5537) |
| &nbsp;&nbsp;&nbsp;Minerals Technologies, Inc. | 1152 | 0.66% | (5562) |
| &nbsp;&nbsp;&nbsp;Balchem Corp. | 543 | 0.63% | (5674) |
| **Total Basic Materials** |  |  | (15397) |
| **Total MS Equity Long Custom Basket** | **Total MS Equity Long Custom Basket** |  | $161499 |
| **MS EQUITY SHORT CUSTOM BASKET** | **MS EQUITY SHORT CUSTOM BASKET** |  |  |
| **Consumer, Non-cyclical** |  |  |  |
| &nbsp;&nbsp;&nbsp;ASGN, Inc. | 817 | (0.54)% | $33959 |
| &nbsp;&nbsp;&nbsp;Healthcare Services Group, Inc. | 4464 | (0.44)% | 21240 |
| &nbsp;&nbsp;&nbsp;Dun & Bradstreet Holdings, Inc. | 2868 | (0.29)% | 19597 |
| &nbsp;&nbsp;&nbsp;Equifax, Inc. | 760 | (1.22)% | 17841 |
| &nbsp;&nbsp;&nbsp;FTI Consulting, Inc. | 653 | (0.86)% | 14144 |
| &nbsp;&nbsp;&nbsp;Viad Corp. | 1426 | (0.29)% | 8984 |
| &nbsp;&nbsp;&nbsp;TransUnion | 2000 | (0.94)% | 7353 |
| &nbsp;&nbsp;&nbsp;Rollins, Inc. | 1422 | (0.43)% | 7353 |
| &nbsp;&nbsp;&nbsp;CoStar Group, Inc. | 1292 | (0.83)% | 6985 |
| &nbsp;&nbsp;&nbsp;Driven Brands Holdings, Inc. | 4063 | (0.92)% | 6720 |
| &nbsp;&nbsp;&nbsp;Patterson Companies, Inc. | 2358 | (0.55)% | 6264 |
| &nbsp;&nbsp;&nbsp;ABM Industries, Inc. | 3063 | (1.13)% | 2727 |
| &nbsp;&nbsp;&nbsp;GXO Logistics, Inc. | 938 | (0.33)% | 2105 |
| &nbsp;&nbsp;&nbsp;Cardinal Health, Inc. | 621 | (0.40)% | 1900 |
| &nbsp;&nbsp;&nbsp;S&P Global, Inc. | 134 | (0.37)% | (2328) |
| &nbsp;&nbsp;&nbsp;Bright Horizons Family Solutions, Inc. | 743 | (0.39)% | (2871) |
| &nbsp;&nbsp;&nbsp;Quanta Services, Inc. | 450 | (0.53)% | (5176) |
| &nbsp;&nbsp;&nbsp;Cintas Corp. | 367 | (1.37)% | (9767) |
| &nbsp;&nbsp;&nbsp;ICU Medical, Inc. | 819 | (1.07)% | (17637) |
| **Total Consumer, Non-cyclical** |  |  | 119393 |

---

16 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **LONG SHORT EQUITY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| **Utilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Public Service Enterprise Group, Inc. | 2803 | (1.42)% | $11960 |
| &nbsp;&nbsp;&nbsp;Atmos Energy Corp. | 847 | (0.79)% | 2790 |
| &nbsp;&nbsp;&nbsp;Eversource Energy | 1018 | (0.71)% | (197) |
| &nbsp;&nbsp;&nbsp;AES Corp. | 2337 | (0.56)% | (832) |
| &nbsp;&nbsp;&nbsp;Vistra Corp. | 3588 | (0.69)% | (866) |
| &nbsp;&nbsp;&nbsp;Exelon Corp. | 3585 | (1.28)% | (5994) |
| &nbsp;&nbsp;&nbsp;Edison International | 2597 | (1.37)% | (12698) |
| **Total Utilities** |  |  | (5837) |
| **Basic Materials** |  |  |  |
| &nbsp;&nbsp;&nbsp;Alcoa Corp. | 1045 | (0.39)% | 1927 |
| &nbsp;&nbsp;&nbsp;Freeport-McMoRan, Inc. | 1337 | (0.42)% | 1273 |
| &nbsp;&nbsp;&nbsp;ATI, Inc. | 1649 | (0.41)% | 1151 |
| &nbsp;&nbsp;&nbsp;Southern Copper Corp. | 652 | (0.33)% | (4580) |
| **Total Basic Materials** |  |  | (229) |
| **Financial** |  |  |  |
| &nbsp;&nbsp;&nbsp;Signature Bank | 514 | (0.49)% | 68358 |
| &nbsp;&nbsp;&nbsp;Invitation Homes, Inc. | 3003 | (0.74)% | 39229 |
| &nbsp;&nbsp;&nbsp;Crown Castle, Inc. | 546 | (0.61)% | 32527 |
| &nbsp;&nbsp;&nbsp;Equinix, Inc. | 162 | (0.88)% | 26750 |
| &nbsp;&nbsp;&nbsp;Americold Realty Trust, Inc. | 2455 | (0.58)% | 24604 |
| &nbsp;&nbsp;&nbsp;Sun Communities, Inc. | 1206 | (1.43)% | 21846 |
| &nbsp;&nbsp;&nbsp;Bank of America Corp. | 4160 | (1.14)% | 17991 |
| &nbsp;&nbsp;&nbsp;Extra Space Storage, Inc. | 345 | (0.42)% | 17138 |
| &nbsp;&nbsp;&nbsp;Welltower, Inc. | 717 | (0.39)% | 16201 |
| &nbsp;&nbsp;&nbsp;Northern Trust Corp. | 1896 | (1.39)% | 15799 |
| &nbsp;&nbsp;&nbsp;KKR & Company, Inc. — Class A | 1812 | (0.70)% | 15584 |
| &nbsp;&nbsp;&nbsp;Xenia Hotels & Resorts, Inc. | 4153 | (0.45)% | 15471 |
| &nbsp;&nbsp;&nbsp;Howard Hughes Corp. | 2088 | (1.32)% | 15191 |
| &nbsp;&nbsp;&nbsp;Kennedy-Wilson Holdings, Inc. | 6366 | (0.83)% | 14971 |
| &nbsp;&nbsp;&nbsp;UDR, Inc. | 4208 | (1.35)% | 14543 |
| &nbsp;&nbsp;&nbsp;Ares Management Corp. — Class A | 1461 | (0.83)% | 13466 |
| &nbsp;&nbsp;&nbsp;Digital Realty Trust, Inc. | 646 | (0.54)% | 13129 |
| &nbsp;&nbsp;&nbsp;Equitable Holdings, Inc. | 5510 | (1.31)% | 12703 |
| &nbsp;&nbsp;&nbsp;Raymond James Financial, Inc. | 1461 | (1.29)% | 12477 |
| &nbsp;&nbsp;&nbsp;Assurant, Inc. | 529 | (0.55)% | 11333 |
| &nbsp;&nbsp;&nbsp;NexPoint Residential Trust, Inc. | 775 | (0.28)% | 10905 |
| &nbsp;&nbsp;&nbsp;American Tower Corp. — Class A | 662 | (1.16)% | 10761 |
| &nbsp;&nbsp;&nbsp;Ryman Hospitality Properties, Inc. | 1115 | (0.76)% | 8817 |
| &nbsp;&nbsp;&nbsp;Pebblebrook Hotel Trust | 3731 | (0.41)% | 8118 |
| &nbsp;&nbsp;&nbsp;Host Hotels & Resorts, Inc. | 4228 | (0.56)% | 7005 |
| &nbsp;&nbsp;&nbsp;American Homes 4 Rent — Class A | 1131 | (0.28)% | 6803 |
| &nbsp;&nbsp;&nbsp;Wells Fargo & Co. | 1845 | (0.63)% | 5583 |
| &nbsp;&nbsp;&nbsp;Principal Financial Group, Inc. | 1050 | (0.73)% | 5409 |
| &nbsp;&nbsp;&nbsp;Alexandria Real Estate Equities, Inc. | 1118 | (1.35)% | 5016 |
| &nbsp;&nbsp;&nbsp;Realty Income Corp. | 550 | (0.29)% | 4991 |
| &nbsp;&nbsp;&nbsp;KeyCorp | 9645 | (1.39)% | 4882 |
| &nbsp;&nbsp;&nbsp;Kite Realty Group Trust | 5986 | (1.04)% | 4572 |
| &nbsp;&nbsp;&nbsp;Ventas, Inc. | 1417 | (0.53)% | 4251 |
| &nbsp;&nbsp;&nbsp;Iron Mountain, Inc. | 2237 | (0.92)% | 3622 |
| &nbsp;&nbsp;&nbsp;Kimco Realty Corp. | 6323 | (1.11)% | 3575 |
| &nbsp;&nbsp;&nbsp;Apple Hospitality REIT, Inc. | 2919 | (0.38)% | 2384 |
| &nbsp;&nbsp;&nbsp;Independence Realty Trust, Inc. | 3685 | (0.51)% | 1631 |
| &nbsp;&nbsp;&nbsp;Cboe Global Markets, Inc. | 477 | (0.50)% | 820 |
| &nbsp;&nbsp;&nbsp;Citigroup, Inc. | 2373 | (0.89)% | 815 |
| &nbsp;&nbsp;&nbsp;Willis Towers Watson plc | 313 | (0.63)% | 697 |
| &nbsp;&nbsp;&nbsp;Cullen/Frost Bankers, Inc. | 534 | (0.59)% | (1124) |
| &nbsp;&nbsp;&nbsp;Progressive Corp. | 1192 | (1.28)% | (1346) |
| &nbsp;&nbsp;&nbsp;Cincinnati Financial Corp. | 431 | (0.37)% | (1391) |
| &nbsp;&nbsp;&nbsp;Equity LifeStyle Properties, Inc. | 721 | (0.39)% | (1558) |
| &nbsp;&nbsp;&nbsp;Intercontinental Exchange, Inc. | 949 | (0.81)% | (1980) |
| &nbsp;&nbsp;&nbsp;PNC Financial Services Group, Inc. | 1047 | (1.37)% | (2561) |
| &nbsp;&nbsp;&nbsp;American International Group, Inc. | 1561 | (0.82)% | (3024) |
| &nbsp;&nbsp;&nbsp;TFS Financial Corp. | 4576 | (0.55)% | (3175) |
| &nbsp;&nbsp;&nbsp;Aon plc — Class A | 189 | (0.47)% | (4442) |
| &nbsp;&nbsp;&nbsp;BlackRock, Inc. — Class A | 125 | (0.73)% | (4516) |
| &nbsp;&nbsp;&nbsp;Invesco Ltd. | 5066 | (0.75)% | (7359) |
| &nbsp;&nbsp;&nbsp;First Republic Bank | 913 | (0.92)% | (7435) |
| &nbsp;&nbsp;&nbsp;CBRE Group, Inc. — Class A | 1162 | (0.74)% | (7561) |
| &nbsp;&nbsp;&nbsp;Allstate Corp. | 1031 | (1.16)% | (10341) |
| &nbsp;&nbsp;&nbsp;Arthur J Gallagher & Co. | 409 | (0.64)% | (10499) |
| &nbsp;&nbsp;&nbsp;Apollo Global Management, Inc. | 2299 | (1.21)% | (11866) |
| **Total Financial** |  |  | 439790 |
| **Consumer, Cyclical** |  |  |  |
| &nbsp;&nbsp;&nbsp;MillerKnoll, Inc. | 2001 | (0.35)% | 32558 |
| &nbsp;&nbsp;&nbsp;CarMax, Inc. | 989 | (0.50)% | 23200 |
| &nbsp;&nbsp;&nbsp;American Airlines Group, Inc. | 3895 | (0.41)% | 20915 |
| &nbsp;&nbsp;&nbsp;Hanesbrands, Inc. | 7148 | (0.38)% | 16335 |
| &nbsp;&nbsp;&nbsp;Hawaiian Holdings, Inc. | 3532 | (0.30)% | 12093 |
| &nbsp;&nbsp;&nbsp;Hyatt Hotels Corp. — Class A | 424 | (0.32)% | 3270 |
| &nbsp;&nbsp;&nbsp;Costco Wholesale Corp. | 106 | (0.40)% | 3197 |
| &nbsp;&nbsp;&nbsp;Floor & Decor Holdings, Inc. — Class A | 546 | (0.31)% | 2881 |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 17

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **LONG SHORT EQUITY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| &nbsp;&nbsp;&nbsp;Live Nation Entertainment, Inc. | 720 | (0.42)% | $2764 |
| &nbsp;&nbsp;&nbsp;Cracker Barrel Old Country Store, Inc. | 500 | (0.39)% | 813 |
| &nbsp;&nbsp;&nbsp;Delta Air Lines, Inc. | 3757 | (1.02)% | 610 |
| &nbsp;&nbsp;&nbsp;Walgreens Boots Alliance, Inc. | 3128 | (0.97)% | (1481) |
| &nbsp;&nbsp;&nbsp;WESCO International, Inc. | 467 | (0.48)% | (2976) |
| &nbsp;&nbsp;&nbsp;Copart, Inc. | 2560 | (1.29)% | (4154) |
| &nbsp;&nbsp;&nbsp;Madison Square Garden Sports Corp. — Class A | 467 | (0.71)% | (18901) |
| **Total Consumer, Cyclical** |  |  | 91124 |
| **Industrial** |  |  |  |
| &nbsp;&nbsp;&nbsp;Stanley Black & Decker, Inc. | 862 | (0.54)% | 47169 |
| &nbsp;&nbsp;&nbsp;Stericycle, Inc. | 759 | (0.31)% | 18438 |
| &nbsp;&nbsp;&nbsp;Waste Management, Inc. | 988 | (1.28)% | 14477 |
| &nbsp;&nbsp;&nbsp;CH Robinson Worldwide, Inc. | 385 | (0.29)% | 6075 |
| &nbsp;&nbsp;&nbsp;Union Pacific Corp. | 229 | (0.39)% | 4914 |
| &nbsp;&nbsp;&nbsp;Republic Services, Inc. — Class A | 473 | (0.51)% | 4892 |
| &nbsp;&nbsp;&nbsp;Kirby Corp. | 840 | (0.45)% | 3419 |
| &nbsp;&nbsp;&nbsp;Old Dominion Freight Line, Inc. | 189 | (0.44)% | 2296 |
| &nbsp;&nbsp;&nbsp;Knight-Swift Transportation Holdings, Inc. | 722 | (0.31)% | 2157 |
| &nbsp;&nbsp;&nbsp;Jacobs Solutions, Inc. | 1347 | (1.34)% | 2090 |
| &nbsp;&nbsp;&nbsp;TD SYNNEX Corp. | 1743 | (1.37)% | (408) |
| &nbsp;&nbsp;&nbsp;Teledyne Technologies, Inc. | 127 | (0.42)% | (676) |
| &nbsp;&nbsp;&nbsp;Norfolk Southern Corp. | 285 | (0.58)% | (974) |
| &nbsp;&nbsp;&nbsp;J.B. Hunt Transport Services, Inc. | 321 | (0.46)% | (1122) |
| &nbsp;&nbsp;&nbsp;TransDigm Group, Inc. | 56 | (0.29)% | (4706) |
| &nbsp;&nbsp;&nbsp;FedEx Corp. | 370 | (0.53)% | (6540) |
| &nbsp;&nbsp;&nbsp;Boeing Co. | 320 | (0.50)% | (7987) |
| &nbsp;&nbsp;&nbsp;Xylem, Inc. | 490 | (0.45)% | (9272) |
| &nbsp;&nbsp;&nbsp;Casella Waste Systems, Inc. — Class A | 1457 | (0.96)% | (16844) |
| &nbsp;&nbsp;&nbsp;MSA Safety, Inc. | 834 | (1.00)% | (16895) |
| **Total Industrial** |  |  | 40503 |
| **Energy** |  |  |  |
| &nbsp;&nbsp;&nbsp;Diamondback Energy, Inc. | 413 | (0.47)% | 9372 |
| &nbsp;&nbsp;&nbsp;NOV, Inc. | 3123 | (0.54)% | 6323 |
| &nbsp;&nbsp;&nbsp;Pioneer Natural Resources Co. | 234 | (0.44)% | 591 |
| &nbsp;&nbsp;&nbsp;Helmerich & Payne, Inc. | 1356 | (0.56)% | 60 |
| &nbsp;&nbsp;&nbsp;ChampionX Corp. | 1770 | (0.42)% | (12540) |
| &nbsp;&nbsp;&nbsp;Valaris Ltd. | 1145 | (0.64)% | (18838) |
| &nbsp;&nbsp;&nbsp;Halliburton Co. | 4492 | (1.46)% | (19158) |
| &nbsp;&nbsp;&nbsp;Hess Corp. | 974 | (1.14)% | (23679) |
| &nbsp;&nbsp;&nbsp;EOG Resources, Inc. | 1155 | (1.24)% | (25586) |
| &nbsp;&nbsp;&nbsp;Schlumberger Ltd. | 1782 | (0.79)% | (27646) |
| **Total Energy** |  |  | (111101) |
| **Communications** |  |  |  |
| &nbsp;&nbsp;&nbsp;IAC, Inc. | 1342 | (0.49)% | 16536 |
| &nbsp;&nbsp;&nbsp;Walt Disney Co. | 1123 | (0.81)% | 13092 |
| &nbsp;&nbsp;&nbsp;Warner Bros Discovery, Inc. | 4549 | (0.36)% | 11491 |
| &nbsp;&nbsp;&nbsp;Paramount Global — Class B | 2958 | (0.41)% | 7865 |
| &nbsp;&nbsp;&nbsp;Uber Technologies, Inc. | 2750 | (0.56)% | 4248 |
| &nbsp;&nbsp;&nbsp;Interpublic Group of Companies, Inc. | 4524 | (1.25)% | (17902) |
| **Total Communications** |  |  | 35330 |
| **Technology** |  |  |  |
| &nbsp;&nbsp;&nbsp;Take-Two Interactive Software, Inc. | 809 | (0.70)% | 2204 |
| &nbsp;&nbsp;&nbsp;Science Applications International Corp. | 1509 | (1.39)% | (1911) |
| **Total Technology** |  |  | 293 |
| **Total MS Equity Short Custom Basket** | **Total MS Equity Short Custom Basket** |  | 609266 |
| **GS EQUITY LONG CUSTOM BASKET** | **GS EQUITY LONG CUSTOM BASKET** |  |  |
| **Financial** |  |  |  |
| &nbsp;&nbsp;&nbsp;S&T Bancorp, Inc. | 2383 | 0.79% | 13528 |
| &nbsp;&nbsp;&nbsp;Associated Banc-Corp. | 3722 | 0.82% | 10742 |
| &nbsp;&nbsp;&nbsp;Renasant Corp. | 2172 | 0.78% | 8658 |
| &nbsp;&nbsp;&nbsp;Preferred Bank/Los Angeles CA | 1157 | 0.82% | 8067 |
| &nbsp;&nbsp;&nbsp;TowneBank | 2576 | 0.76% | 8017 |
| &nbsp;&nbsp;&nbsp;PennyMac Financial Services, Inc. | 446 | 0.24% | 4083 |
| &nbsp;&nbsp;&nbsp;Virtus Investment Partners, Inc. | 175 | 0.32% | 4021 |
| &nbsp;&nbsp;&nbsp;Arch Capital Group Ltd. | 615 | 0.37% | 3837 |
| &nbsp;&nbsp;&nbsp;Trustmark Corp. | 867 | 0.29% | 3554 |
| &nbsp;&nbsp;&nbsp;NMI Holdings, Inc. — Class A | 1111 | 0.22% | 2541 |
| &nbsp;&nbsp;&nbsp;Evercore, Inc. — Class A | 631 | 0.66% | 2402 |
| &nbsp;&nbsp;&nbsp;Bread Financial Holdings, Inc. | 696 | 0.25% | 1849 |
| &nbsp;&nbsp;&nbsp;Aflac, Inc. | 297 | 0.20% | 1582 |
| &nbsp;&nbsp;&nbsp;International Bancshares Corp. | 820 | 0.36% | 1461 |
| &nbsp;&nbsp;&nbsp;Hilltop Holdings, Inc. | 958 | 0.27% | 1400 |
| &nbsp;&nbsp;&nbsp;RLI Corp. | 172 | 0.21% | 826 |
| &nbsp;&nbsp;&nbsp;National Bank Holdings Corp. — Class A | 2005 | 0.80% | 587 |
| &nbsp;&nbsp;&nbsp;Visa, Inc. — Class A | 213 | 0.42% | 296 |
| &nbsp;&nbsp;&nbsp;Brightsphere Investment Group, Inc. | 1374 | 0.27% | (107) |
| &nbsp;&nbsp;&nbsp;U.S. Bancorp | 1096 | 0.45% | (339) |
| &nbsp;&nbsp;&nbsp;Mastercard, Inc. — Class A | 110 | 0.36% | (859) |

---

18 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **LONG SHORT EQUITY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| &nbsp;&nbsp;&nbsp;Pathward Financial, Inc. | 441 | 0.18% | $(1869) |
| &nbsp;&nbsp;&nbsp;Marcus & Millichap, Inc. | 835 | 0.27% | (2054) |
| &nbsp;&nbsp;&nbsp;Apartment Income REIT Corp. | 1013 | 0.33% | (2610) |
| &nbsp;&nbsp;&nbsp;Hope Bancorp, Inc. | 6584 | 0.80% | (3488) |
| &nbsp;&nbsp;&nbsp;FB Financial Corp. | 806 | 0.28% | (4313) |
| &nbsp;&nbsp;&nbsp;BankUnited, Inc. | 1019 | 0.33% | (4374) |
| &nbsp;&nbsp;&nbsp;PotlatchDeltic Corp. | 568 | 0.24% | (4727) |
| &nbsp;&nbsp;&nbsp;Global Net Lease, Inc. | 3630 | 0.43% | (6410) |
| &nbsp;&nbsp;&nbsp;Heritage Financial Corp. | 2689 | 0.78% | (8393) |
| &nbsp;&nbsp;&nbsp;Central Pacific Financial Corp. | 1661 | 0.32% | (9857) |
| &nbsp;&nbsp;&nbsp;Stewart Information Services Corp. | 754 | 0.31% | (10249) |
| &nbsp;&nbsp;&nbsp;Office Properties Income Trust | 2719 | 0.35% | (19078) |
| **Total Financial** |  |  | (1276) |
| **Consumer, Non-cyclical** |  |  |  |
| &nbsp;&nbsp;&nbsp;Perdoceo Education Corp. | 5084 | 0.68% | 16374 |
| &nbsp;&nbsp;&nbsp;Bristol-Myers Squibb Co. | 1181 | 0.81% | 12470 |
| &nbsp;&nbsp;&nbsp;Vertex Pharmaceuticals, Inc. | 181 | 0.50% | 11267 |
| &nbsp;&nbsp;&nbsp;Ironwood Pharmaceuticals, Inc. — Class A | 6122 | 0.72% | 10215 |
| &nbsp;&nbsp;&nbsp;Regeneron Pharmaceuticals, Inc. | 46 | 0.32% | 9370 |
| &nbsp;&nbsp;&nbsp;United Therapeutics Corp. | 158 | 0.42% | 8946 |
| &nbsp;&nbsp;&nbsp;Eli Lilly & Co. | 151 | 0.53% | 8342 |
| &nbsp;&nbsp;&nbsp;Coca-Cola Co. | 1565 | 0.95% | 7692 |
| &nbsp;&nbsp;&nbsp;Amphastar Pharmaceuticals, Inc. | 922 | 0.25% | 7243 |
| &nbsp;&nbsp;&nbsp;Jazz Pharmaceuticals plc | 335 | 0.51% | 6508 |
| &nbsp;&nbsp;&nbsp;Hologic, Inc. | 1169 | 0.83% | 5341 |
| &nbsp;&nbsp;&nbsp;Incyte Corp. | 479 | 0.37% | 5309 |
| &nbsp;&nbsp;&nbsp;Quest Diagnostics, Inc. | 588 | 0.88% | 5153 |
| &nbsp;&nbsp;&nbsp;Becton Dickinson and Co. | 243 | 0.59% | 4034 |
| &nbsp;&nbsp;&nbsp;Gilead Sciences, Inc. | 650 | 0.53% | 3399 |
| &nbsp;&nbsp;&nbsp;Supernus Pharmaceuticals, Inc. | 1341 | 0.46% | 3157 |
| &nbsp;&nbsp;&nbsp;Triton International Ltd. | 555 | 0.36% | 3045 |
| &nbsp;&nbsp;&nbsp;Altria Group, Inc. | 1542 | 0.67% | 2528 |
| &nbsp;&nbsp;&nbsp;PerkinElmer, Inc. | 252 | 0.34% | 2484 |
| &nbsp;&nbsp;&nbsp;Lamb Weston Holdings, Inc. | 472 | 0.40% | 1847 |
| &nbsp;&nbsp;&nbsp;Philip Morris International, Inc. | 350 | 0.34% | 1746 |
| &nbsp;&nbsp;&nbsp;Innoviva, Inc. | 1893 | 0.24% | 1348 |
| &nbsp;&nbsp;&nbsp;Prestige Consumer Healthcare, Inc. | 1140 | 0.68% | 1116 |
| &nbsp;&nbsp;&nbsp;Globus Medical, Inc. — Class A | 714 | 0.50% | 984 |
| &nbsp;&nbsp;&nbsp;Post Holdings, Inc. | 808 | 0.69% | 777 |
| &nbsp;&nbsp;&nbsp;Johnson & Johnson | 132 | 0.22% | (283) |
| &nbsp;&nbsp;&nbsp;Hershey Co. | 380 | 0.84% | (500) |
| &nbsp;&nbsp;&nbsp;Monster Beverage Corp. | 811 | 0.78% | (577) |
| &nbsp;&nbsp;&nbsp;Neurocrine Biosciences, Inc. | 170 | 0.19% | (748) |
| &nbsp;&nbsp;&nbsp;John B Sanfilippo & Son, Inc. | 1052 | 0.81% | (800) |
| &nbsp;&nbsp;&nbsp;Inter Parfums, Inc. | 373 | 0.34% | (821) |
| &nbsp;&nbsp;&nbsp;Danaher Corp. | 356 | 0.90% | (1185) |
| &nbsp;&nbsp;&nbsp;IDEXX Laboratories, Inc. | 208 | 0.81% | (2734) |
| &nbsp;&nbsp;&nbsp;AMN Healthcare Services, Inc. | 167 | 0.16% | (2785) |
| &nbsp;&nbsp;&nbsp;Varex Imaging Corp. | 2490 | 0.48% | (3425) |
| &nbsp;&nbsp;&nbsp;Royalty Pharma plc — Class A | 1619 | 0.61% | (5230) |
| &nbsp;&nbsp;&nbsp;EVERTEC, Inc. | 631 | 0.19% | (5906) |
| &nbsp;&nbsp;&nbsp;Eagle Pharmaceuticals, Inc. | 1050 | 0.29% | (11605) |
| &nbsp;&nbsp;&nbsp;Vanda Pharmaceuticals, Inc. | 2309 | 0.16% | (17814) |
| &nbsp;&nbsp;&nbsp;USANA Health Sciences, Inc. | 688 | 0.35% | (20683) |
| &nbsp;&nbsp;&nbsp;Tyson Foods, Inc. — Class A | 1190 | 0.71% | (24725) |
| **Total Consumer, Non-cyclical** |  |  | 40874 |
| **Consumer, Cyclical** |  |  |  |
| &nbsp;&nbsp;&nbsp;Columbia Sportswear Co. | 977 | 0.81% | 9651 |
| &nbsp;&nbsp;&nbsp;Patrick Industries, Inc. | 573 | 0.33% | 8431 |
| &nbsp;&nbsp;&nbsp;NIKE, Inc. — Class B | 467 | 0.52% | 7763 |
| &nbsp;&nbsp;&nbsp;Academy Sports & Outdoors, Inc. | 759 | 0.38% | 6512 |
| &nbsp;&nbsp;&nbsp;GMS, Inc. | 1211 | 0.57% | 5904 |
| &nbsp;&nbsp;&nbsp;Home Depot, Inc. | 323 | 0.97% | 5602 |
| &nbsp;&nbsp;&nbsp;Buckle, Inc. | 1067 | 0.46% | 5179 |
| &nbsp;&nbsp;&nbsp;Allison Transmission Holdings, Inc. | 1212 | 0.48% | 4151 |
| &nbsp;&nbsp;&nbsp;Methode Electronics, Inc. | 1116 | 0.47% | 2635 |
| &nbsp;&nbsp;&nbsp;Lowe's Companies, Inc. | 450 | 0.85% | 2599 |
| &nbsp;&nbsp;&nbsp;Group 1 Automotive, Inc. | 129 | 0.22% | 1553 |
| &nbsp;&nbsp;&nbsp;Haverty Furniture Companies, Inc. | 995 | 0.28% | 1307 |
| &nbsp;&nbsp;&nbsp;Starbucks Corp. | 688 | 0.65% | 863 |
| &nbsp;&nbsp;&nbsp;Casey's General Stores, Inc. | 168 | 0.36% | 369 |
| &nbsp;&nbsp;&nbsp;Thor Industries, Inc. | 239 | 0.17% | (195) |
| &nbsp;&nbsp;&nbsp;Wyndham Hotels & Resorts, Inc. | 1204 | 0.82% | (903) |
| &nbsp;&nbsp;&nbsp;Watsco, Inc. | 151 | 0.36% | (1298) |
| &nbsp;&nbsp;&nbsp;Boyd Gaming Corp. | 798 | 0.41% | (1552) |
| &nbsp;&nbsp;&nbsp;Yum! Brands, Inc. | 681 | 0.83% | (1694) |
| &nbsp;&nbsp;&nbsp;Winnebago Industries, Inc. | 432 | 0.22% | (1800) |
| &nbsp;&nbsp;&nbsp;Harley-Davidson, Inc. | 408 | 0.16% | (2159) |
| &nbsp;&nbsp;&nbsp;Oxford Industries, Inc. | 310 | 0.27% | (2164) |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 19

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **LONG SHORT EQUITY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| &nbsp;&nbsp;&nbsp;Polaris, Inc. | 224 | 0.22% | $(2375) |
| &nbsp;&nbsp;&nbsp;Williams-Sonoma, Inc. | 262 | 0.29% | (3326) |
| &nbsp;&nbsp;&nbsp;Steven Madden Ltd. | 1392 | 0.42% | (3502) |
| &nbsp;&nbsp;&nbsp;Brunswick Corp. | 1102 | 0.76% | (3552) |
| &nbsp;&nbsp;&nbsp;General Motors Co. | 902 | 0.29% | (4501) |
| &nbsp;&nbsp;&nbsp;Tesla, Inc. | 199 | 0.23% | (15297) |
| **Total Consumer, Cyclical** |  |  | 18201 |
| **Technology** |  |  |  |
| &nbsp;&nbsp;&nbsp;Apple, Inc. | 969 | 1.20% | 27865 |
| &nbsp;&nbsp;&nbsp;Microsoft Corp. | 615 | 1.40% | 25120 |
| &nbsp;&nbsp;&nbsp;Rambus, Inc. | 1022 | 0.35% | 16081 |
| &nbsp;&nbsp;&nbsp;Adobe, Inc. | 115 | 0.37% | 5476 |
| &nbsp;&nbsp;&nbsp;CSG Systems International, Inc. | 428 | 0.23% | 4480 |
| &nbsp;&nbsp;&nbsp;NetApp, Inc. | 516 | 0.29% | 3242 |
| &nbsp;&nbsp;&nbsp;Diodes, Inc. | 343 | 0.25% | 2768 |
| &nbsp;&nbsp;&nbsp;Veradigm, Inc. | 1083 | 0.18% | 2172 |
| &nbsp;&nbsp;&nbsp;Analog Devices, Inc. | 146 | 0.23% | 2140 |
| &nbsp;&nbsp;&nbsp;International Business Machines Corp. | 209 | 0.28% | 1064 |
| &nbsp;&nbsp;&nbsp;NetScout Systems, Inc. | 804 | 0.25% | 980 |
| &nbsp;&nbsp;&nbsp;Maximus, Inc. | 502 | 0.35% | 487 |
| &nbsp;&nbsp;&nbsp;ServiceNow, Inc. | 68 | 0.25% | (98) |
| &nbsp;&nbsp;&nbsp;QUALCOMM, Inc. | 287 | 0.30% | (134) |
| &nbsp;&nbsp;&nbsp;Dropbox, Inc. — Class A | 1164 | 0.25% | (264) |
| &nbsp;&nbsp;&nbsp;Teradata Corp. | 658 | 0.21% | (292) |
| &nbsp;&nbsp;&nbsp;Microchip Technology, Inc. | 276 | 0.18% | (812) |
| &nbsp;&nbsp;&nbsp;Veeco Instruments, Inc. | 1121 | 0.20% | (1047) |
| &nbsp;&nbsp;&nbsp;Avid Technology, Inc. | 730 | 0.18% | (1481) |
| &nbsp;&nbsp;&nbsp;Synaptics, Inc. | 265 | 0.24% | (2106) |
| &nbsp;&nbsp;&nbsp;SS&C Technologies Holdings, Inc. | 541 | 0.27% | (2234) |
| &nbsp;&nbsp;&nbsp;NXP Semiconductor N.V. | 146 | 0.22% | (2653) |
| &nbsp;&nbsp;&nbsp;NVIDIA Corp. | 163 | 0.23% | (3220) |
| &nbsp;&nbsp;&nbsp;ACI Worldwide, Inc. | 818 | 0.18% | (3286) |
| &nbsp;&nbsp;&nbsp;Synopsys, Inc. | 243 | 0.74% | (3301) |
| &nbsp;&nbsp;&nbsp;Cirrus Logic, Inc. | 1024 | 0.73% | (3590) |
| &nbsp;&nbsp;&nbsp;Applied Materials, Inc. | 749 | 0.69% | (6802) |
| **Total Technology** |  |  | 60555 |
| **Industrial** |  |  |  |
| &nbsp;&nbsp;&nbsp;Vishay Intertechnology, Inc. | 3128 | 0.65% | 10758 |
| &nbsp;&nbsp;&nbsp;Standex International Corp. | 833 | 0.81% | 9748 |
| &nbsp;&nbsp;&nbsp;Dorian LPG Ltd. | 1898 | 0.34% | 9513 |
| &nbsp;&nbsp;&nbsp;Keysight Technologies, Inc. | 343 | 0.56% | 8190 |
| &nbsp;&nbsp;&nbsp;Donaldson Company, Inc. | 1456 | 0.82% | 7067 |
| &nbsp;&nbsp;&nbsp;Emerson Electric Co. | 940 | 0.86% | 6679 |
| &nbsp;&nbsp;&nbsp;Barnes Group, Inc. | 792 | 0.31% | 5589 |
| &nbsp;&nbsp;&nbsp;Snap-on, Inc. | 363 | 0.79% | 5342 |
| &nbsp;&nbsp;&nbsp;Louisiana-Pacific Corp. | 1136 | 0.64% | 5270 |
| &nbsp;&nbsp;&nbsp;Eagle Materials, Inc. | 589 | 0.74% | 4899 |
| &nbsp;&nbsp;&nbsp;Albany International Corp. — Class A | 806 | 0.76% | 4418 |
| &nbsp;&nbsp;&nbsp;Mueller Industries, Inc. | 620 | 0.35% | 3903 |
| &nbsp;&nbsp;&nbsp;Textron, Inc. | 1194 | 0.80% | 3745 |
| &nbsp;&nbsp;&nbsp;AMETEK, Inc. | 618 | 0.82% | 2070 |
| &nbsp;&nbsp;&nbsp;EnPro Industries, Inc. | 201 | 0.21% | 2039 |
| &nbsp;&nbsp;&nbsp;Advanced Energy Industries, Inc. | 589 | 0.48% | 1763 |
| &nbsp;&nbsp;&nbsp;Lockheed Martin Corp. | 142 | 0.66% | 1449 |
| &nbsp;&nbsp;&nbsp;Toro Co. | 243 | 0.26% | 843 |
| &nbsp;&nbsp;&nbsp;General Dynamics Corp. | 346 | 0.82% | 26 |
| &nbsp;&nbsp;&nbsp;OSI Systems, Inc. | 319 | 0.24% | (2) |
| &nbsp;&nbsp;&nbsp;Otis Worldwide Corp. | 519 | 0.39% | (67) |
| &nbsp;&nbsp;&nbsp;Graco, Inc. | 1267 | 0.81% | (422) |
| &nbsp;&nbsp;&nbsp;Sonoco Products Co. | 438 | 0.25% | (438) |
| &nbsp;&nbsp;&nbsp;Crane Holdings Co. | 279 | 0.27% | (661) |
| &nbsp;&nbsp;&nbsp;Eaton Corporation plc | 359 | 0.54% | (1392) |
| &nbsp;&nbsp;&nbsp;Packaging Corporation of America | 251 | 0.31% | (1802) |
| &nbsp;&nbsp;&nbsp;3M Co. | 370 | 0.42% | (1838) |
| &nbsp;&nbsp;&nbsp;TopBuild Corp. | 112 | 0.17% | (2005) |
| &nbsp;&nbsp;&nbsp;Sealed Air Corp. | 1027 | 0.49% | (3316) |
| &nbsp;&nbsp;&nbsp;Acuity Brands, Inc. | 326 | 0.51% | (4885) |
| &nbsp;&nbsp;&nbsp;Insteel Industries, Inc. | 668 | 0.17% | (5206) |
| &nbsp;&nbsp;&nbsp;Sturm Ruger & Company, Inc. | 965 | 0.46% | (14552) |
| **Total Industrial** |  |  | 56725 |
| **Communications** |  |  |  |
| &nbsp;&nbsp;&nbsp;Alphabet, Inc. — Class C | 758 | 0.64% | 11979 |
| &nbsp;&nbsp;&nbsp;Cisco Systems, Inc. | 1137 | 0.52% | 5840 |
| &nbsp;&nbsp;&nbsp;T-Mobile US, Inc. | 528 | 0.70% | 2887 |
| &nbsp;&nbsp;&nbsp;VeriSign, Inc. | 154 | 0.30% | 1276 |
| &nbsp;&nbsp;&nbsp;Arista Networks, Inc. | 130 | 0.15% | (1460) |
| &nbsp;&nbsp;&nbsp;NETGEAR, Inc. | 839 | 0.14% | (5668) |
| &nbsp;&nbsp;&nbsp;InterDigital, Inc. | 576 | 0.27% | (7900) |
| &nbsp;&nbsp;&nbsp;Meta Platforms, Inc. — Class A | 472 | 0.54% | (8038) |
| &nbsp;&nbsp;&nbsp;Gogo, Inc. | 4409 | 0.62% | (8664) |
| &nbsp;&nbsp;&nbsp;Amazon.com, Inc. | 314 | 0.25% | (11554) |
| &nbsp;&nbsp;&nbsp;Verizon Communications, Inc. | 2246 | 0.84% | (15347) |
| **Total Communications** |  |  | (36649) |
| **Utilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;FirstEnergy Corp. | 2132 | 0.85% | 9492 |
| &nbsp;&nbsp;&nbsp;National Fuel Gas Co. | 388 | 0.23% | 3728 |
| &nbsp;&nbsp;&nbsp;Unitil Corp. | 439 | 0.21% | 2148 |
| &nbsp;&nbsp;&nbsp;ONE Gas, Inc. | 649 | 0.47% | 1776 |
| &nbsp;&nbsp;&nbsp;Ameren Corp. | 510 | 0.43% | 884 |
| &nbsp;&nbsp;&nbsp;OGE Energy Corp. | 2203 | 0.83% | 198 |
| &nbsp;&nbsp;&nbsp;Black Hills Corp. | 1234 | 0.83% | 102 |
| &nbsp;&nbsp;&nbsp;Chesapeake Utilities Corp. | 489 | 0.55% | (146) |
| &nbsp;&nbsp;&nbsp;American States Water Co. | 330 | 0.29% | (1584) |
| &nbsp;&nbsp;&nbsp;Otter Tail Corp. | 731 | 0.41% | (2422) |

---

20 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **LONG SHORT EQUITY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| &nbsp;&nbsp;&nbsp;Clearway Energy, Inc. — Class C | 1386 | 0.42% | $(3021) |
| &nbsp;&nbsp;&nbsp;MGE Energy, Inc. | 887 | 0.59% | (4401) |
| &nbsp;&nbsp;&nbsp;UGI Corp. | 2088 | 0.74% | (4420) |
| **Total Utilities** |  |  | 2334 |
| **Energy** |  |  |  |
| &nbsp;&nbsp;&nbsp;Exxon Mobil Corp. | 1021 | 1.07% | 15785 |
| &nbsp;&nbsp;&nbsp;Marathon Petroleum Corp. | 785 | 0.87% | 12649 |
| &nbsp;&nbsp;&nbsp;Phillips 66 | 511 | 0.51% | 9347 |
| &nbsp;&nbsp;&nbsp;Chevron Corp. | 276 | 0.47% | 8400 |
| &nbsp;&nbsp;&nbsp;Valero Energy Corp. | 468 | 0.57% | 6584 |
| &nbsp;&nbsp;&nbsp;Antero Midstream Corp. | 7749 | 0.80% | 4981 |
| &nbsp;&nbsp;&nbsp;Par Pacific Holdings, Inc. | 921 | 0.20% | 4551 |
| &nbsp;&nbsp;&nbsp;ONEOK, Inc. | 655 | 0.41% | 3671 |
| &nbsp;&nbsp;&nbsp;Kinder Morgan, Inc. | 4436 | 0.76% | 1203 |
| &nbsp;&nbsp;&nbsp;REX American Resources Corp. | 593 | 0.18% | 1173 |
| &nbsp;&nbsp;&nbsp;SunCoke Energy, Inc. | 2736 | 0.22% | 444 |
| &nbsp;&nbsp;&nbsp;Magnolia Oil & Gas Corp. — Class A | 1041 | 0.23% | (831) |
| &nbsp;&nbsp;&nbsp;Williams Companies, Inc. | 1632 | 0.51% | (1576) |
| &nbsp;&nbsp;&nbsp;Equitrans Midstream Corp. | 2750 | 0.18% | (1684) |
| &nbsp;&nbsp;&nbsp;DT Midstream, Inc. | 1461 | 0.77% | (2499) |
| &nbsp;&nbsp;&nbsp;Occidental Petroleum Corp. | 506 | 0.30% | (3623) |
| &nbsp;&nbsp;&nbsp;CVR Energy, Inc. | 1214 | 0.36% | (5638) |
| **Total Energy** |  |  | 52937 |
| **Basic Materials** |  |  |  |
| &nbsp;&nbsp;&nbsp;FMC Corp. | 328 | 0.39% | 5569 |
| &nbsp;&nbsp;&nbsp;Westlake Corp. | 293 | 0.29% | 3061 |
| &nbsp;&nbsp;&nbsp;Ingevity Corp. | 380 | 0.25% | 925 |
| &nbsp;&nbsp;&nbsp;NewMarket Corp. | 141 | 0.42% | 32 |
| &nbsp;&nbsp;&nbsp;Dow, Inc. | 614 | 0.29% | (438) |
| &nbsp;&nbsp;&nbsp;Olin Corp. | 681 | 0.34% | (1518) |
| &nbsp;&nbsp;&nbsp;PPG Industries, Inc. | 220 | 0.26% | (1974) |
| &nbsp;&nbsp;&nbsp;LyondellBasell Industries N.V. — Class A | 406 | 0.32% | (4082) |
| &nbsp;&nbsp;&nbsp;Minerals Technologies, Inc. | 1152 | 0.67% | (5438) |
| &nbsp;&nbsp;&nbsp;Balchem Corp. | 543 | 0.63% | (5626) |
| &nbsp;&nbsp;&nbsp;Huntsman Corp. | 1740 | 0.46% | (5669) |
| **Total Basic Materials** |  |  | (15158) |
| **Total GS Equity Long Custom Basket** | **Total GS Equity Long Custom Basket** |  | 178543 |
| **GS EQUITY SHORT CUSTOM BASKET** | **GS EQUITY SHORT CUSTOM BASKET** |  |  |
| **Consumer, Non-cyclical** |  |  |  |
| &nbsp;&nbsp;&nbsp;ASGN, Inc. | 817 | (0.56)% | 33897 |
| &nbsp;&nbsp;&nbsp;Healthcare Services Group, Inc. | 4464 | (0.45)% | 21467 |
| &nbsp;&nbsp;&nbsp;Dun & Bradstreet Holdings, Inc. | 2868 | (0.29)% | 19381 |
| &nbsp;&nbsp;&nbsp;Equifax, Inc. | 760 | (1.23)% | 18072 |
| &nbsp;&nbsp;&nbsp;FTI Consulting, Inc. | 653 | (0.86)% | 14513 |
| &nbsp;&nbsp;&nbsp;Viad Corp. | 1426 | (0.29)% | 9139 |
| &nbsp;&nbsp;&nbsp;Rollins, Inc. | 1422 | (0.43)% | 7280 |
| &nbsp;&nbsp;&nbsp;TransUnion | 2000 | (0.95)% | 7018 |
| &nbsp;&nbsp;&nbsp;Driven Brands Holdings, Inc. | 4063 | (0.92)% | 6852 |
| &nbsp;&nbsp;&nbsp;CoStar Group, Inc. | 1292 | (0.83)% | 6672 |
| &nbsp;&nbsp;&nbsp;Patterson Companies, Inc. | 2358 | (0.55)% | 6054 |
| &nbsp;&nbsp;&nbsp;ABM Industries, Inc. | 3063 | (1.13)% | 2693 |
| &nbsp;&nbsp;&nbsp;GXO Logistics, Inc. | 938 | (0.33)% | 2092 |
| &nbsp;&nbsp;&nbsp;Cardinal Health, Inc. | 621 | (0.40)% | 1973 |
| &nbsp;&nbsp;&nbsp;S&P Global, Inc. | 134 | (0.37)% | (2363) |
| &nbsp;&nbsp;&nbsp;Bright Horizons Family Solutions, Inc. | 743 | (0.39)% | (2777) |
| &nbsp;&nbsp;&nbsp;Quanta Services, Inc. | 450 | (0.53)% | (5115) |
| &nbsp;&nbsp;&nbsp;Cintas Corp. | 367 | (1.38)% | (10292) |
| &nbsp;&nbsp;&nbsp;ICU Medical, Inc. | 819 | (1.07)% | (17759) |
| **Total Consumer, Non-cyclical** |  |  | 118797 |
| **Utilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Public Service Enterprise Group, Inc. | 2803 | (1.44)% | 12709 |
| &nbsp;&nbsp;&nbsp;Atmos Energy Corp. | 847 | (0.79)% | 2798 |
| &nbsp;&nbsp;&nbsp;Eversource Energy | 1018 | (0.71)% | (445) |
| &nbsp;&nbsp;&nbsp;AES Corp. | 2337 | (0.56)% | (710) |
| &nbsp;&nbsp;&nbsp;Vistra Corp. | 3588 | (0.69)% | (1090) |
| &nbsp;&nbsp;&nbsp;Exelon Corp. | 3585 | (1.29)% | (6104) |
| &nbsp;&nbsp;&nbsp;Edison International | 2597 | (1.38)% | (13617) |
| **Total Utilities** |  |  | (6459) |
| **Basic Materials** |  |  |  |
| &nbsp;&nbsp;&nbsp;Alcoa Corp. | 1045 | (0.41)% | 2117 |
| &nbsp;&nbsp;&nbsp;ATI, Inc. | 1649 | (0.41)% | 1325 |
| &nbsp;&nbsp;&nbsp;Freeport-McMoRan, Inc. | 1337 | (0.42)% | 1298 |
| &nbsp;&nbsp;&nbsp;Southern Copper Corp. | 652 | (0.33)% | (4592) |
| **Total Basic Materials** |  |  | 148 |
| **Financial** |  |  |  |
| &nbsp;&nbsp;&nbsp;Signature Bank | 514 | (0.50)% | 68291 |
| &nbsp;&nbsp;&nbsp;Invitation Homes, Inc. | 3003 | (0.74)% | 39185 |
| &nbsp;&nbsp;&nbsp;Crown Castle, Inc. | 546 | (0.62)% | 32059 |
| &nbsp;&nbsp;&nbsp;Equinix, Inc. | 162 | (0.88)% | 26481 |
| &nbsp;&nbsp;&nbsp;Americold Realty Trust, Inc. | 2455 | (0.58)% | 24452 |
| &nbsp;&nbsp;&nbsp;Howard Hughes Corp. | 1196 | (0.76)% | 21953 |
| &nbsp;&nbsp;&nbsp;Sun Communities, Inc. | 1206 | (1.44)% | 21949 |
| &nbsp;&nbsp;&nbsp;Bank of America Corp. | 4160 | (1.15)% | 17934 |
| &nbsp;&nbsp;&nbsp;Extra Space Storage, Inc. | 345 | (0.42)% | 17029 |
| &nbsp;&nbsp;&nbsp;Welltower, Inc. | 717 | (0.39)% | 16252 |
| &nbsp;&nbsp;&nbsp;Xenia Hotels & Resorts, Inc. | 4153 | (0.46)% | 15941 |
| &nbsp;&nbsp;&nbsp;KKR & Company, Inc. — Class A | 1812 | (0.70)% | 15652 |
| &nbsp;&nbsp;&nbsp;Kennedy-Wilson Holdings, Inc. | 6366 | (0.83)% | 14967 |
| &nbsp;&nbsp;&nbsp;Northern Trust Corp. | 1896 | (1.40)% | 14575 |
| &nbsp;&nbsp;&nbsp;UDR, Inc. | 4208 | (1.36)% | 14552 |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 21

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **LONG SHORT EQUITY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| &nbsp;&nbsp;&nbsp;Ares Management Corp. — Class A | 1461 | (0.83)% | $13482 |
| &nbsp;&nbsp;&nbsp;Digital Realty Trust, Inc. | 646 | (0.54)% | 13075 |
| &nbsp;&nbsp;&nbsp;Equitable Holdings, Inc. | 5510 | (1.32)% | 12429 |
| &nbsp;&nbsp;&nbsp;Raymond James Financial, Inc. | 1461 | (1.30)% | 12231 |
| &nbsp;&nbsp;&nbsp;Assurant, Inc. | 529 | (0.55)% | 11370 |
| &nbsp;&nbsp;&nbsp;American Tower Corp. — Class A | 662 | (1.17)% | 11032 |
| &nbsp;&nbsp;&nbsp;NexPoint Residential Trust, Inc. | 775 | (0.28)% | 10944 |
| &nbsp;&nbsp;&nbsp;Ryman Hospitality Properties, Inc. | 1115 | (0.76)% | 8783 |
| &nbsp;&nbsp;&nbsp;Pebblebrook Hotel Trust | 3731 | (0.42)% | 8196 |
| &nbsp;&nbsp;&nbsp;Host Hotels & Resorts, Inc. | 4228 | (0.57)% | 7155 |
| &nbsp;&nbsp;&nbsp;American Homes 4 Rent — Class A | 1131 | (0.28)% | 6904 |
| &nbsp;&nbsp;&nbsp;Wells Fargo & Co. | 1845 | (0.63)% | 5558 |
| &nbsp;&nbsp;&nbsp;Principal Financial Group, Inc. | 1050 | (0.73)% | 5448 |
| &nbsp;&nbsp;&nbsp;Realty Income Corp. | 550 | (0.29)% | 5089 |
| &nbsp;&nbsp;&nbsp;Kite Realty Group Trust | 5986 | (1.05)% | 4650 |
| &nbsp;&nbsp;&nbsp;KeyCorp | 9645 | (1.40)% | 4222 |
| &nbsp;&nbsp;&nbsp;Alexandria Real Estate Equities, Inc. | 1118 | (1.36)% | 4116 |
| &nbsp;&nbsp;&nbsp;Ventas, Inc. | 1417 | (0.53)% | 3986 |
| &nbsp;&nbsp;&nbsp;Iron Mountain, Inc. | 2237 | (0.93)% | 3604 |
| &nbsp;&nbsp;&nbsp;Kimco Realty Corp. | 6323 | (1.12)% | 3249 |
| &nbsp;&nbsp;&nbsp;Apple Hospitality REIT, Inc. | 2919 | (0.38)% | 2352 |
| &nbsp;&nbsp;&nbsp;Independence Realty Trust, Inc. | 3685 | (0.52)% | 1593 |
| &nbsp;&nbsp;&nbsp;Citigroup, Inc. | 2373 | (0.89)% | 996 |
| &nbsp;&nbsp;&nbsp;Cboe Global Markets, Inc. | 477 | (0.50)% | 884 |
| &nbsp;&nbsp;&nbsp;Willis Towers Watson plc | 313 | (0.64)% | 842 |
| &nbsp;&nbsp;&nbsp;Cullen/Frost Bankers, Inc. | 534 | (0.59)% | (1116) |
| &nbsp;&nbsp;&nbsp;Equity LifeStyle Properties, Inc. | 721 | (0.39)% | (1261) |
| &nbsp;&nbsp;&nbsp;Progressive Corp. | 1192 | (1.29)% | (1451) |
| &nbsp;&nbsp;&nbsp;Cincinnati Financial Corp. | 431 | (0.37)% | (1739) |
| &nbsp;&nbsp;&nbsp;Intercontinental Exchange, Inc. | 949 | (0.81)% | (2108) |
| &nbsp;&nbsp;&nbsp;American International Group, Inc. | 1561 | (0.82)% | (2861) |
| &nbsp;&nbsp;&nbsp;PNC Financial Services Group, Inc. | 1047 | (1.38)% | (3079) |
| &nbsp;&nbsp;&nbsp;TFS Financial Corp. | 4576 | (0.55)% | (3160) |
| &nbsp;&nbsp;&nbsp;BlackRock, Inc. — Class A | 125 | (0.74)% | (4538) |
| &nbsp;&nbsp;&nbsp;Aon plc — Class A | 189 | (0.47)% | (4598) |
| &nbsp;&nbsp;&nbsp;Invesco Ltd. | 5066 | (0.76)% | (7525) |
| &nbsp;&nbsp;&nbsp;First Republic Bank | 913 | (0.93)% | (7733) |
| &nbsp;&nbsp;&nbsp;CBRE Group, Inc. — Class A | 1162 | (0.74)% | (8269) |
| &nbsp;&nbsp;&nbsp;Arthur J Gallagher & Co. | 409 | (0.64)% | (10365) |
| &nbsp;&nbsp;&nbsp;Allstate Corp. | 1031 | (1.16)% | (10421) |
| &nbsp;&nbsp;&nbsp;Apollo Global Management, Inc. | 2299 | (1.22)% | (11992) |
| **Total Financial** |  |  | 441246 |
| **Consumer, Cyclical** |  |  |  |
| &nbsp;&nbsp;&nbsp;MillerKnoll, Inc. | 2001 | (0.35)% | 32544 |
| &nbsp;&nbsp;&nbsp;CarMax, Inc. | 989 | (0.50)% | 23148 |
| &nbsp;&nbsp;&nbsp;American Airlines Group, Inc. | 3895 | (0.41)% | 20968 |
| &nbsp;&nbsp;&nbsp;Hanesbrands, Inc. | 7148 | (0.38)% | 15876 |
| &nbsp;&nbsp;&nbsp;Hawaiian Holdings, Inc. | 3532 | (0.30)% | 12003 |
| &nbsp;&nbsp;&nbsp;Hyatt Hotels Corp. — Class A | 424 | (0.32)% | 3335 |
| &nbsp;&nbsp;&nbsp;Costco Wholesale Corp. | 106 | (0.40)% | 3214 |
| &nbsp;&nbsp;&nbsp;Floor & Decor Holdings, Inc. — Class A | 546 | (0.32)% | 2918 |
| &nbsp;&nbsp;&nbsp;Live Nation Entertainment, Inc. | 720 | (0.42)% | 2876 |
| &nbsp;&nbsp;&nbsp;Cracker Barrel Old Country Store, Inc. | 500 | (0.39)% | 738 |
| &nbsp;&nbsp;&nbsp;Delta Air Lines, Inc. | 3757 | (1.03)% | 560 |
| &nbsp;&nbsp;&nbsp;Walgreens Boots Alliance, Inc. | 3128 | (0.97)% | (2234) |
| &nbsp;&nbsp;&nbsp;WESCO International, Inc. | 467 | (0.49)% | (2829) |
| &nbsp;&nbsp;&nbsp;Copart, Inc. | 2560 | (1.30)% | (5074) |
| &nbsp;&nbsp;&nbsp;Madison Square Garden Sports Corp. — Class A | 467 | (0.71)% | (19915) |
| **Total Consumer, Cyclical** |  |  | 88129 |
| **Industrial** |  |  |  |
| &nbsp;&nbsp;&nbsp;Stanley Black & Decker, Inc. | 862 | (0.54)% | 47061 |
| &nbsp;&nbsp;&nbsp;Stericycle, Inc. | 759 | (0.32)% | 18425 |
| &nbsp;&nbsp;&nbsp;Waste Management, Inc. | 988 | (1.29)% | 14278 |
| &nbsp;&nbsp;&nbsp;CH Robinson Worldwide, Inc. | 385 | (0.29)% | 5967 |
| &nbsp;&nbsp;&nbsp;Republic Services, Inc. — Class A | 473 | (0.51)% | 4926 |
| &nbsp;&nbsp;&nbsp;Union Pacific Corp. | 229 | (0.39)% | 4879 |
| &nbsp;&nbsp;&nbsp;Kirby Corp. | 840 | (0.45)% | 3656 |
| &nbsp;&nbsp;&nbsp;Knight-Swift Transportation Holdings, Inc. | 722 | (0.32)% | 2182 |
| &nbsp;&nbsp;&nbsp;Old Dominion Freight Line, Inc. | 189 | (0.45)% | 2176 |
| &nbsp;&nbsp;&nbsp;Jacobs Solutions, Inc. | 1347 | (1.35)% | 1647 |
| &nbsp;&nbsp;&nbsp;Teledyne Technologies, Inc. | 127 | (0.42)% | (485) |
| &nbsp;&nbsp;&nbsp;TD SYNNEX Corp. | 1743 | (1.37)% | (648) |
| &nbsp;&nbsp;&nbsp;Norfolk Southern Corp. | 285 | (0.58)% | (1018) |
| &nbsp;&nbsp;&nbsp;J.B. Hunt Transport Services, Inc. | 321 | (0.47)% | (1358) |
| &nbsp;&nbsp;&nbsp;TransDigm Group, Inc. | 56 | (0.29)% | (4603) |
| &nbsp;&nbsp;&nbsp;FedEx Corp. | 370 | (0.53)% | (6635) |
| &nbsp;&nbsp;&nbsp;Boeing Co. | 320 | (0.51)% | (8117) |

---

22 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **LONG SHORT EQUITY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| &nbsp;&nbsp;&nbsp;Xylem, Inc. | 490 | (0.45)% | $(9172) |
| &nbsp;&nbsp;&nbsp;Casella Waste Systems, Inc. — Class A | 1457 | (0.96)% | (16806) |
| &nbsp;&nbsp;&nbsp;MSA Safety, Inc. | 834 | (1.00)% | (16893) |
| **Total Industrial** |  |  | 39462 |
| **Energy** |  |  |  |
| &nbsp;&nbsp;&nbsp;Diamondback Energy, Inc. | 413 | (0.47)% | 9299 |
| &nbsp;&nbsp;&nbsp;NOV, Inc. | 3123 | (0.54)% | 6384 |
| &nbsp;&nbsp;&nbsp;Pioneer Natural Resources Co. | 234 | (0.45)% | 718 |
| &nbsp;&nbsp;&nbsp;Helmerich & Payne, Inc. | 1356 | (0.56)% | 103 |
| &nbsp;&nbsp;&nbsp;ChampionX Corp. | 1770 | (0.43)% | (12406) |
| &nbsp;&nbsp;&nbsp;Valaris Ltd. | 1145 | (0.64)% | (18996) |
| &nbsp;&nbsp;&nbsp;Halliburton Co. | 4492 | (1.47)% | (19629) |
| &nbsp;&nbsp;&nbsp;Hess Corp. | 974 | (1.15)% | (23622) |
| &nbsp;&nbsp;&nbsp;EOG Resources, Inc. | 1155 | (1.25)% | (26114) |
| &nbsp;&nbsp;&nbsp;Schlumberger Ltd. | 1782 | (0.79)% | (27785) |
| **Total Energy** |  |  | (112048) |
| **Communications** |  |  |  |
| &nbsp;&nbsp;&nbsp;IAC, Inc. | 1342 | (0.50)% | 15708 |
| &nbsp;&nbsp;&nbsp;Walt Disney Co. | 1123 | (0.81)% | 12863 |
| &nbsp;&nbsp;&nbsp;Warner Bros Discovery, Inc. | 4549 | (0.36)% | 10853 |
| &nbsp;&nbsp;&nbsp;Paramount Global — Class B | 2958 | (0.42)% | 7998 |
| &nbsp;&nbsp;&nbsp;Uber Technologies, Inc. | 2750 | (0.57)% | 4288 |
| &nbsp;&nbsp;&nbsp;Interpublic Group of Companies, Inc. | 4524 | (1.25)% | (19391) |
| **Total Communications** |  |  | 32319 |
| **Technology** |  |  |  |
| &nbsp;&nbsp;&nbsp;Take-Two Interactive Software, Inc. | 809 | (0.70)% | 2399 |
| &nbsp;&nbsp;&nbsp;Science Applications International Corp. | 1509 | (1.39)% | (2203) |
| **Total Technology** |  |  | 196 |
| **Total GS Equity Short Custom Basket** | **Total GS Equity Short Custom Basket** |  | $601789 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as equity custom basket swap collateral at December 31, 2022. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;GS — Goldman Sachs International |
|  | &nbsp;&nbsp;&nbsp;MS — Morgan Stanley Capital Services LLC |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;REIT — Real Estate Investment Trust |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $20541200 | $— | $— | $20541200 |
| Money Market Fund | 305247 |  |  | 305247 |
| Equity Custom Basket Swap Agreements\*\* |  | 1551097 |  | 1551097 |
| Total Assets | $20846447 | $1551097 | $— | $22397544 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 23

**LONG SHORT EQUITY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value (cost $20,496,111) | $20846447 |
| Cash | 65279 |
| Unrealized appreciation on OTC swap agreements | 1551097 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 25924 |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 1010 |
| **Total assets** | 22489757 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Professional fees | 33650 |
| &nbsp;&nbsp;&nbsp;Management fees | 17369 |
| &nbsp;&nbsp;&nbsp;Swap settlement | 16658 |
| &nbsp;&nbsp;&nbsp;Printing fees | 8972 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 7998 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 4825 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 2991 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 2354 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 326 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 17273 |
| **Total liabilities** | 112416 |
| **Net assets** | $22377341 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $22858933 |
| Total distributable earnings (loss) | (481592) |
| Net assets | $22377341 |
| Capital shares outstanding | 1482465 |
| Net asset value per share | $15.09 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $150) | $476676 |
| Income from securities lending, net | 86 |
| &nbsp;&nbsp;&nbsp;Total investment income | 476762 |
| **Expenses:** | **Expenses:** |
| Management fees | 213787 |
| Investor service fees | 59385 |
| Transfer agent fees | 53926 |
| Professional fees | 38810 |
| Portfolio accounting and administration fees | 30051 |
| Custodian fees | 3586 |
| Trustees' fees\* | 3566 |
| Miscellaneous | 18826 |
| &nbsp;&nbsp;&nbsp;Total expenses | 421937 |
| Net investment income | 54825 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | (689636) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (388639) |
| Net realized loss | (1078275) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (2644595) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (264318) |
| Net change in unrealized appreciation (depreciation) | (2908913) |
| Net realized and unrealized loss | (3987188) |
| **Net decrease in net assets resulting from operations** | $(3932363) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

24 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

**LONG SHORT EQUITY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income | $54825 | $115440 |
| Net realized gain (loss) on investments | (1078275) | 2728983 |
| Net change in unrealized appreciation (depreciation) on investments | (2908913) | 2537970 |
| Net increase (decrease) in net assets resulting from operations | (3932363) | 5382393 |
| Distributions to shareholders | (114913) | (164195) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 6127910 | 7652856 |
| Distributions reinvested | 114913 | 164195 |
| Cost of shares redeemed | (7201449) | (8621079) |
| Net decrease from capital share transactions | (958626) | (804028) |
| Net increase (decrease) in net assets | (5005902) | 4414170 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 27383243 | 22969073 |
| &nbsp;&nbsp;&nbsp;End of year | $22377341 | $27383243 |
| **Capital share activity:** |  |  |
| Shares sold | 388498 | 474278 |
| Shares issued from reinvestment of distributions | 7428 | 10294 |
| Shares redeemed | (459654) | (533153) |
| Net decrease in shares | (63728) | (48581) |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 25

**LONG SHORT EQUITY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $17.71 | $14.40 | $13.84 | $13.19 | $17.59 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .04 | .07 | .08 | .09 | .08 |
| Net gain (loss) on investments (realized and unrealized) | (2.59) | 3.35 | .59 | .64 | (2.19) |
| Total from investment operations | (2.55) | 3.42 | .67 | .73 | (2.11) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (.07) | (.11) | (.11) | (.08) |  |
| Net realized gains |  |  |  |  | (2.29) |
| Total distributions | (.07) | (.11) | (.11) | (.08) | (2.29) |
| Net asset value, end of period | $15.09 | $17.71 | $14.40 | $13.84 | $13.19 |
| **Total Return<sup>b</sup>** | **(14.39** **%)** | **23.80%** | **4.93%** | **5.54%** | **(12.94** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $22377 | $27383 | $22969 | $30683 | $29211 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.23% | 0.45% | 0.59% | 0.65% | 0.52% |
| Total expenses<sup>c</sup> | 1.78% | 1.60% | 1.73% | 1.72% | 1.62% |
| Portfolio turnover rate | 302% | 211% | 160% | 170% | 266% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Total expenses may include certain non-operating expenses. Excluding these non-operating expenses, the net expense ratios for the years presented would be: 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **12/31/22** | **12/31/21** | **12/31/20** | **12/31/19** | **12/31/18** |
| 1.78% | 1.60% | 1.73% | 1.72% | 1.62% |

---

26 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**GLOBAL MANAGED FUTURES STRATEGY FUND** 

**OBJECTIVE:** Seeks to generate positive total returns over time.

For the Reporting Period, Guggenheim Global Managed Futures Strategy Fund returned 11.28%, outperforming the ICE BofA 3-Month U.S. Treasury Bill Index, the Fund's benchmark, which returned 1.47%. The Fund underperformed the SG (Societe Generale) CTA Index for the year, which returned 20.15%.

**What factors contributed or detracted from the Fund's performance during the Reporting Period?** 

For the Reporting Period, markets continued to be influenced by fallout from the Covid pandemic as well as the war in Ukraine. Worker shortages and supply chain disruptions due to Covid combined with reduced oil and grain production out of Ukraine and Russia to create inflationary pressures around the world. In turn, central banks responded by increasing interest rates, causing a drop in both stock and bond prices. These events helped produce strong trends in all sectors, which were profitably captured by the Fund's various trend-following strategies.

With price momentum being the main story for 2022, commodities delivered strong returns in the first quarter and then detracted for the next three, with a net negative contribution on the year. Currencies delivered positive returns in the first three quarters, were negative in the fourth, and were net positive on the year. Fixed income delivered steady positive returns in all four quarters and was the best-performing sector in the Fund for 2022. Although equity indexes generally trended downward in 2022, there were enough reversals throughout the year to confuse trend-following systems, resulting in equities being a net detractor overall.

The non-trend-following alpha strategies (which include a range of sector-specific carry, flow, value, and calendar effects models, among others) contributed positive returns in the first half of the year and detracted in the second half. For the year, they provided a net positive contribution.

**How did the Fund use derivatives during the Reporting Period?** 

The Fund's performance is primarily derived from the trading of liquid futures. Futures are used to express investment views and hedge exposures across a wide range of global markets, including commodities, currencies, fixed income, and stock indexes. Positions held may be long or short depending on the investment view and/or nature of the hedge. The use of futures also enables the ready use of leverage, which actively facilitates portfolio diversification and risk management.

Additionally, the Guggenheim Ultra Short Duration Fund and Guggenheim Strategy Funds were utilized within the Managed Futures Strategy Fund to obtain higher cash yields than what would otherwise be achieved through overnight repurchase agreements or short-term investments.

**How was the Fund positioned at the end of the Reporting Period?** 

At the end of 2022, the Fund was net long equities, commodities, the U.S. dollar, and bond yields (short bond futures). The Fund's gross leverage was approximately 380%, with 67% of its expected risk in fixed income, 25% of expected risk in commodities, 5% in foreign exchange, and 3% in equities. The Fund's net leverage was approximately -180%.

**Performance displayed represents past performance which is no guarantee of future results.** 

THE RYDEX FUNDS ANNUAL REPORT \| 27

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(continued) | December 31, 2022 |

---

**Consolidated Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-1_28.jpg)

"Consolidated Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Inception Date:** November 7, 2008<br>

The Fund invests principally in derivative investments such as futures contracts.

---

| | |
|:---|:---|
| **Largest Holdings** | **(% of Total Net Assets)** |
| Guggenheim Variable Insurance Strategy Fund III | 15.4% |
| Guggenheim Strategy Fund III | 10.2% |
| Guggenheim Strategy Fund II | 0.5% |
| Guggenheim Ultra Short Duration Fund — Institutional Class | 0.3% |
| Total | 26.4% |
| "Largest Holdings" excludes any temporary cash or derivative investments. | "Largest Holdings" excludes any temporary cash or derivative investments. |

---

28 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Global Managed Futures Strategy Fund  | 11.28%  | 2.54%  | 1.75%  |
| ICE BofA 3-Month U.S. Treasury Bill Index  | 1.47%  | 1.27%  | 0.77%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The ICE BofA 3-Month U.S. Treasury Bill Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 29

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **GLOBAL MANAGED FUTURES STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **MUTUAL FUNDS<sup>†</sup>** **- 26.4%** | **MUTUAL FUNDS<sup>†</sup>** **- 26.4%** | **MUTUAL FUNDS<sup>†</sup>** **- 26.4%** |
| &nbsp;&nbsp;&nbsp;Guggenheim Variable Insurance Strategy Fund III<sup>1</sup> | 134486 | $3237068 |
| &nbsp;&nbsp;&nbsp;Guggenheim Strategy Fund III<sup>1</sup> | 89107 | 2143912 |
| &nbsp;&nbsp;&nbsp;Guggenheim Strategy Fund II<sup>1</sup> | 4552 | 109435 |
| &nbsp;&nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class<sup>1</sup> | 7274 | 70118 |
| **Total Mutual Funds** | **Total Mutual Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $5,738,109) |  | 5560533 |

---

---

| | | |
|:---|:---|:---|
|  | **Face<br> Amount** |  |
| **U.S. TREASURY BILLS<sup>††</sup>** **- 11.2%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 11.2%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 11.2%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.80% due 01/17/23<sup>2,3</sup> | $2355000 | $2351631 |
| **Total U.S. Treasury Bills** | **Total U.S. Treasury Bills** |  |
| &nbsp;&nbsp;&nbsp;(Cost $2,350,934) |  | 2351631 |
| **REPURCHASE AGREEMENTS<sup>††,4</sup>** **- 59.0%** | **REPURCHASE AGREEMENTS<sup>††,4</sup>** **- 59.0%** | **REPURCHASE AGREEMENTS<sup>††,4</sup>** **- 59.0%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | 7020004 | 7020004 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 2700002 | 2700002 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 2691640 | 2691640 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $12,411,646) |  | 12411646 |
| **Total Investments - 96.6%** | **Total Investments - 96.6%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $20,500,689) | &nbsp;&nbsp;&nbsp;(Cost $20,500,689) | $20323810 |
| **Other Assets & Liabilities, net - 3.4%** | **Other Assets & Liabilities, net - 3.4%** | 717403 |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $21041213 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** |
| **Description** | **Number of <br> Contracts** | **Expiration Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)\*\*** |
| **Commodity Futures Contracts Purchased<sup>†</sup>** | **Commodity Futures Contracts Purchased<sup>†</sup>** | **Commodity Futures Contracts Purchased<sup>†</sup>** | **Commodity Futures Contracts Purchased<sup>†</sup>** | **Commodity Futures Contracts Purchased<sup>†</sup>** |
| Corn Futures Contracts | 48 | Mar 2023 | $1628400 | $52023 |
| Gasoline RBOB Futures Contracts | 5 | Jan 2023 | 521976 | 46376 |
| Sugar #11 Futures Contracts | 27 | Jun 2023 | 544320 | 37742 |
| Live Cattle Futures Contracts | 20 | Jun 2023 | 1262600 | 23723 |
| Soybean Futures Contracts | 14 | Mar 2023 | 1066975 | 22467 |
| Soybean Meal Futures Contracts | 11 | Mar 2023 | 518540 | 20657 |
| Live Cattle Futures Contracts | 25 | Feb 2023 | 1579250 | 11523 |
| Soybean Oil Futures Contracts | 15 | Mar 2023 | 577080 | 11475 |
| NY Harbor ULSD Futures Contracts | 1 | Jan 2023 | 138230 | 10718 |
| Coffee 'C' Futures Contracts | 8 | Mar 2023 | 501300 | 9158 |
| Gold 100 oz. Futures Contracts | 5 | Feb 2023 | 914950 | 9084 |
| Silver Futures Contracts | 3 | Mar 2023 | 362100 | 7341 |
| Platinum Futures Contracts | 4 | Apr 2023 | 216840 | 7246 |
| SGX Iron Ore 62% Futures Contracts | 18 | Feb 2023 | 209160 | 6804 |
| Low Sulphur Gas Oil Futures Contracts | 3 | Feb 2023 | 277950 | 5395 |
| NY Harbor ULSD Futures Contracts | 3 | Mar 2023 | 385661 | 1714 |
| Canadian Canola (WCE) Futures Contracts | 10 | Mar 2023 | 127930 | 1217 |
| Red Spring Wheat Futures Contracts | 8 | Mar 2023 | 376000 | 648 |
| Cotton #2 Futures Contracts | 5 | Mar 2023 | 208500 | (217) |
| LME Nickel Futures Contracts | 2 | Feb 2023 | 359580 | (5354) |
| Natural Gas Futures Contracts | 1 | Mar 2023 | 39050 | (7663) |
| LME Primary Aluminum Futures Contracts | 5 | Feb 2023 | 294958 | (9532) |
| Natural Gas Futures Contracts | 3 | Feb 2023 | 121860 | (10027) |
| Cocoa Futures Contracts | 48 | Mar 2023 | 1244160 | (13700) |
| ECX Emission Futures Contracts | 3 | Dec 2023 | 269798 | (22410) |
|  |  |  | $13747168 | $216408 |

---

30 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **GLOBAL MANAGED FUTURES STRATEGY FUND** |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts (Continued)** | **Futures Contracts (Continued)** | **Futures Contracts (Continued)** | **Futures Contracts (Continued)** | **Futures Contracts (Continued)** |
| **Description** | **Number of <br> Contracts** | **Expiration Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)\*\*** |
| **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** |
| Mexican Peso Futures Contracts | 108 | Mar 2023 | $2736180 | $50405 |
| Canadian Dollar Futures Contracts | 9 | Mar 2023 | 665190 | 1180 |
| New Zealand Dollar Futures Contracts | 3 | Mar 2023 | 190590 | 258 |
|  |  |  | $3591960 | $51843 |
| **Interest Rate Futures Contracts Purchased<sup>†</sup>** | **Interest Rate Futures Contracts Purchased<sup>†</sup>** | **Interest Rate Futures Contracts Purchased<sup>†</sup>** | **Interest Rate Futures Contracts Purchased<sup>†</sup>** | **Interest Rate Futures Contracts Purchased<sup>†</sup>** |
| Long Gilt Futures Contracts<sup>††</sup> | 1 | Mar 2023 | $120479 | $(152) |
| Australian Government 10 Year Bond Futures Contracts<sup>††</sup> | 2 | Mar 2023 | 157282 | (189) |
| Euro - BTP Italian Government Bond Futures Contracts<sup>††</sup> | 2 | Mar 2023 | 232323 | (1468) |
|  |  |  | $510084 | $(1809) |
| **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** |
| FTSE 100 Index Futures Contracts<sup>††</sup> | 12 | Mar 2023 | $1084929 | $3069 |
| CBOE Volatility Index Futures Contracts | 6 | Mar 2023 | 152100 | (872) |
| Euro STOXX 50 Index Futures Contracts | 5 | Mar 2023 | 202849 | (1692) |
| IBEX 35 Index Futures Contracts<sup>††</sup> | 6 | Jan 2023 | 526206 | (1859) |
| OMX Stockholm 30 Index Futures Contracts<sup>††</sup> | 4 | Jan 2023 | 78649 | (1929) |
| CAC 40 10 Euro Index Futures Contracts | 5 | Jan 2023 | 345936 | (3619) |
| CBOE Volatility Index Futures Contracts | 15 | Jun 2023 | 395250 | (4661) |
| FTSE/JSE TOP 40 Index Futures Contracts<sup>††</sup> | 17 | Mar 2023 | 678768 | (13403) |
| Amsterdam Index Futures Contracts | 3 | Jan 2023 | 443269 | (21673) |
| Tokyo Stock Price Index Futures Contracts | 8 | Mar 2023 | 1139427 | (49794) |
|  |  |  | $5047383 | $(96433) |
| **Interest Rate Futures Contracts Sold Short<sup>†</sup>** | **Interest Rate Futures Contracts Sold Short<sup>†</sup>** | **Interest Rate Futures Contracts Sold Short<sup>†</sup>** | **Interest Rate Futures Contracts Sold Short<sup>†</sup>** | **Interest Rate Futures Contracts Sold Short<sup>†</sup>** |
| Euro - Bund Futures Contracts | 32 | Mar 2023 | $4551355 | $165287 |
| Euro - Bobl Futures Contracts | 22 | Mar 2023 | 2725436 | 66819 |
| Australian Government 3 Year Bond Futures Contracts<sup>††</sup> | 61 | Mar 2023 | 4428284 | 66187 |
| U.S. Treasury 5 Year Note Futures Contracts | 48 | Mar 2023 | 5175750 | 41311 |
| U.S. Treasury 10 Year Note Futures Contracts | 27 | Mar 2023 | 3027375 | 37160 |
| U.S. Treasury 2 Year Note Futures Contracts | 65 | Mar 2023 | 13325000 | 36754 |
| U.S. Treasury Long Bond Futures Contracts | 15 | Mar 2023 | 1870312 | 33017 |
| Euro - Schatz Futures Contracts | 65 | Mar 2023 | 7335038 | 28920 |
| U.S. Treasury Ultra Long Bond Futures Contracts | 10 | Mar 2023 | 1335625 | 26894 |
| Canadian Government 10 Year Bond Futures Contracts<sup>††</sup> | 15 | Mar 2023 | 1355325 | 14181 |
|  |  |  | $45129500 | $516530 |
| **Commodity Futures Contracts Sold Short<sup>†</sup>** | **Commodity Futures Contracts Sold Short<sup>†</sup>** | **Commodity Futures Contracts Sold Short<sup>†</sup>** | **Commodity Futures Contracts Sold Short<sup>†</sup>** | **Commodity Futures Contracts Sold Short<sup>†</sup>** |
| Natural Gas Futures Contracts | 7 | Jan 2023 | $310310 | $48685 |
| ICE Endex Dutch TTF Natural Gas Futures Contracts | 5 | Jan 2023 | 261797 | 39471 |
| Euro - Rapeseed Futures Contracts | 5 | Jan 2023 | 156434 | 7832 |
| LME Zinc Futures Contracts | 3 | Feb 2023 | 223744 | 6066 |
| CME Random Length Lumber Futures Contracts | 3 | Mar 2023 | 125301 | 6017 |
| Oat Futures Contracts | 4 | Mar 2023 | 73050 | 3421 |
| Hard Red Winter Wheat Futures Contracts | 11 | Mar 2023 | 487988 | 3145 |
| Sugar #11 Futures Contracts | 19 | Feb 2023 | 426664 | 2491 |
| Euro - Mill Wheat Futures Contracts | 9 | Mar 2023 | 149044 | 2377 |
| Wheat Futures Contracts | 11 | Mar 2023 | 435050 | 2315 |
| Cattle Feeder Futures Contracts | 6 | Mar 2023 | 558075 | (1662) |
| Lean Hogs Futures Contracts | 6 | Feb 2023 | 211140 | (1948) |
| Brent Crude Futures Contracts | 1 | Jan 2023 | 85990 | (3242) |
| Copper Futures Contracts | 6 | Mar 2023 | 573000 | (3676) |
| LME Lead Futures Contracts | 3 | Feb 2023 | 173531 | (7978) |
| Live Cattle Futures Contracts | 16 | Apr 2023 | 1035360 | (8424) |
| Gasoline RBOB Futures Contracts | 4 | Mar 2023 | 442848 | (31006) |
|  |  |  | $5729326 | $63884 |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 31

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **GLOBAL MANAGED FUTURES STRATEGY FUND** |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts (Concluded)** | **Futures Contracts (Concluded)** | **Futures Contracts (Concluded)** | **Futures Contracts (Concluded)** | **Futures Contracts (Concluded)** |
| **Description** | **Number of <br> Contracts** | **Expiration Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)\*\*** |
| **Equity Futures Contracts Sold Short<sup>†</sup>** | **Equity Futures Contracts Sold Short<sup>†</sup>** | **Equity Futures Contracts Sold Short<sup>†</sup>** | **Equity Futures Contracts Sold Short<sup>†</sup>** | **Equity Futures Contracts Sold Short<sup>†</sup>** |
| MSCI EAFE Index Futures Contracts | 6 | Mar 2023 | $584730 | $10928 |
| DAX Index Futures Contracts | 1 | Mar 2023 | 372202 | 6866 |
| FTSE Taiwan Index Futures Contracts | 14 | Jan 2023 | 692020 | 5364 |
| Nikkei 225 (OSE) Index Futures Contracts | 1 | Mar 2023 | 196406 | 3371 |
| CBOE Volatility Index Futures Contracts | 8 | Feb 2023 | 196000 | 2129 |
| SPI 200 Index Futures Contracts | 2 | Mar 2023 | 238223 | 2111 |
| CBOE Volatility Index Futures Contracts | 3 | Jan 2023 | 69150 | 308 |
| Russell 2000 Index Mini Futures Contracts | 2 | Mar 2023 | 177130 | 44 |
| NASDAQ-100 Index Mini Futures Contracts | 2 | Mar 2023 | 440920 | (171) |
| S&P 500 Index Mini Futures Contracts | 2 | Mar 2023 | 386150 | (244) |
|  |  |  | $3352931 | $30706 |
| **Currency Futures Contracts Sold Short<sup>†</sup>** | **Currency Futures Contracts Sold Short<sup>†</sup>** | **Currency Futures Contracts Sold Short<sup>†</sup>** | **Currency Futures Contracts Sold Short<sup>†</sup>** | **Currency Futures Contracts Sold Short<sup>†</sup>** |
| British Pound Futures Contracts | 13 | Mar 2023 | $983937 | $3277 |
| Australian Dollar Futures Contracts | 4 | Mar 2023 | 273080 | (1818) |
| Swiss Franc Futures Contracts | 10 | Mar 2023 | 1362313 | (4243) |
| Japanese Yen Futures Contracts | 9 | Mar 2023 | 865013 | (18753) |
| Euro FX Futures Contracts | 24 | Mar 2023 | 3227850 | (31826) |
|  |  |  | $6712193 | $(53363) |

---

---

| | |
|:---|:---|
| \*\* | &nbsp;&nbsp;&nbsp;Includes cumulative appreciation (depreciation). Variation margin is reported within the Consolidated Statement of Assets and Liabilities. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs, unless otherwise noted — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Affiliated issuer. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as futures collateral at December 31, 2022. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;CME — Chicago Mercantile Exchange |
|  | &nbsp;&nbsp;&nbsp;ICE — Intercontinental Exchange |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Consolidated Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Mutual Funds | $5560533 | $— | $— | $5560533 |
| U.S. Treasury Bills |  | 2351631 |  | 2351631 |
| Repurchase Agreements |  | 12411646 |  | 12411646 |
| Interest Rate Futures Contracts\*\* | 436162 | 80368 |  | 516530 |
| Commodity Futures Contracts\*\* | 407131 |  |  | 407131 |
| Currency Futures Contracts\*\* | 55120 |  |  | 55120 |
| Equity Futures Contracts\*\* | 31121 | 3069 |  | 34190 |
| Total Assets | $6490067 | $14846714 | $— | $21336781 |

---

32 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **GLOBAL MANAGED FUTURES STRATEGY FUND** |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Liabilities)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Commodity Futures Contracts\*\* | $126839 | $— | $— | $126839 |
| Equity Futures Contracts\*\* | 82726 | 17191 |  | 99917 |
| Currency Futures Contracts\*\* | 56640 |  |  | 56640 |
| Interest Rate Futures Contracts\*\* |  | 1809 |  | 1809 |
| Total Liabilities | $266205 | $19000 | $— | $285205 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $113258 | $— | $— | $— | $(3823) | $109435 | 4552 | $3112 |
| &nbsp;&nbsp;Guggenheim Strategy Fund III | 2230346 |  |  |  | (86434) | 2143912 | 89107 | 63701 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 72155 |  |  |  | (2037) | 70118 | 7274 | 1592 |
| &nbsp;&nbsp;Guggenheim Variable Insurance Strategy Fund III | 3356761 |  |  |  | (119693) | 3237068 | 134486 | 88488 |
|  | $5772520 | $— | $— | $— | $(211987) | $5560533 |  | $156893 |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 33

**GLOBAL MANAGED FUTURES STRATEGY FUND**<br>

---

| |
|:---|
| **CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments in unaffiliated issuers, at value (cost $2,350,934) | $2351631 |
| Investments in affiliated issuers, at value (cost $5,738,109) | 5560533 |
| Repurchase agreements, at value (cost $12,411,646) | 12411646 |
| Cash | 3703 |
| Segregated cash with broker | 764721 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 27956 |
| &nbsp;&nbsp;&nbsp;Dividends | 21965 |
| &nbsp;&nbsp;&nbsp;Interest | 2929 |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 1673 |
| Other assets | 325 |
| **Total assets** | 21147082 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Professional fees | 30980 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 19929 |
| &nbsp;&nbsp;&nbsp;Management fees | 15489 |
| &nbsp;&nbsp;&nbsp;Printing fees | 6882 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 7604 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 4250 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 2635 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 287 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 17813 |
| **Total liabilities** | 105869 |
| **Net assets** | $21041213 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $21468318 |
| Total distributable earnings (loss) | (427105) |
| Net assets | $21041213 |
| Capital shares outstanding | 1196665 |
| Net asset value per share | $17.58 |

---

---

| |
|:---|
| **CONSOLIDATED STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of affiliated issuers | $156893 |
| Interest | 246003 |
| &nbsp;&nbsp;&nbsp;Total investment income | 402896 |
| **Expenses:** | **Expenses:** |
| Management fees | 182710 |
| Investor service fees | 45549 |
| Transfer agent fees | 42046 |
| Professional fees | 34604 |
| Portfolio accounting and administration fees | 23994 |
| Custodian fees | 2675 |
| Trustees' fees\* | 1993 |
| Miscellaneous | 22923 |
| &nbsp;&nbsp;&nbsp;Total expenses | 356494 |
| Less: | Less: |
| Expenses waived by Adviser | (18708) |
| Net expenses | 337786 |
| Net investment income | 65110 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | 4 |
| &nbsp;&nbsp;&nbsp;Futures contracts | 18407 |
| &nbsp;&nbsp;&nbsp;Foreign currency transactions | 887 |
| Net realized gain | 19298 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | 690 |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (211987) |
| &nbsp;&nbsp;&nbsp;Futures contracts | 764316 |
| &nbsp;&nbsp;&nbsp;Foreign currency translations | 376 |
| Net change in unrealized appreciation (depreciation) | 553395 |
| Net realized and unrealized gain | 572693 |
| **Net increase in net assets resulting from operations** | $637803 |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

34 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

**GLOBAL MANAGED FUTURES STRATEGY FUND**<br>

**CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income (loss) | $65110 | $(107878) |
| Net realized gain on investments | 19298 | 727441 |
| Net change in unrealized appreciation (depreciation) on investments | 553395 | (402436) |
| Net increase in net assets resulting from operations | 637803 | 217127 |
| Distributions to shareholders | (577535) | (159696) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 28635105 | 1612119 |
| Distributions reinvested | 577535 | 159696 |
| Cost of shares redeemed | (18902324) | (4751302) |
| Net increase (decrease) from capital share transactions | 10310316 | (2979487) |
| Net increase (decrease) in net assets | 10370584 | (2922056) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 10670629 | 13592685 |
| &nbsp;&nbsp;&nbsp;End of year | $21041213 | $10670629 |
| **Capital share activity:** |  |  |
| Shares sold | 1564274 | 96246 |
| Shares issued from reinvestment of distributions | 32428 | 9684 |
| Shares redeemed | (1057017) | (281924) |
| Net increase (decrease) in shares | 539685 | (175994) |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 35

**GLOBAL MANAGED FUTURES STRATEGY FUND**<br>

**CONSOLIDATED FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $16.24 | $16.32 | $16.64 | $15.50 | $17.06 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .06 | (.15) | (.09) | .14 | .20 |
| Net gain (loss) on investments (realized and unrealized) | 1.80 | .29 | .51 | 1.15 | (1.76) |
| Total from investment operations | 1.86 | .14 | .42 | 1.29 | (1.56) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (.43) |  | (.65) | (.15) |  |
| Net realized gains | (.09) | (.22) | (.09) |  |  |
| Total distributions | (.52) | (.22) | (.74) | (.15) |  |
| Net asset value, end of period | $17.58 | $16.24 | $16.32 | $16.64 | $15.50 |
| **Total Return<sup>b</sup>** | **11.28%** | **0.82%** | **2.60%** | **8.35%** | **(9.14** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $21041 | $10671 | $13593 | $14282 | $13281 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.36% | (0.87%) | (0.55%) | 0.82% | 1.21% |
| Total expenses<sup>c</sup> | 1.96% | 1.81% | 1.80% | 1.81% | 1.72% |
| Net expenses<sup>d</sup> | 1.85% | 1.69% | 1.72% | 1.74% | 1.66% |
| Portfolio turnover rate |  | 2% | 2% | 13% | 8% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

36 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**MULTI-HEDGE STRATEGIES FUND** 

**OBJECTIVE:** Seeks to provide long-term capital appreciation with less risk than traditional equity funds.

For the Reporting Period, Guggenheim Multi-Hedge Strategies Fund returned -3.40%, outperforming the HFRX Global Hedge Fund Index, the Fund's benchmark, which returned -4.41%.

**What factors contributed or detracted from the Fund's performance during the Reporting Period?** 

In 2022, continued supply constraints and worker shortages drove inflation steadily higher. Inflation was also intensified by Russia's war with Ukraine and China Covid-related shutdowns, which threw supply chains into more chaos. To drive inflation downward closer to its 2% target, the Federal Reserve (the "Fed") announced seven rate increases during the year by raising the target upper bound lending rate, from 0.25% to 4.50% by year end. This significant increase in lending rates did begin to dampen inflation, but also led to corresponding drops in both stocks and bonds.

The S&P 500 Index ended the year down 18.11% and, with the Bloomberg U.S. Aggregate Bond Index also down 13.01%, investors looking for diversification benefits from these typically uncorrelated asset classes were left highly disappointed. Whether looking at a universe of hedge funds (HFRX Global Hedge Fund Index, down 4.4%) or mutual funds (Wilshire Focused Liquid Alternative Index, down 5.6%) it was also a difficult year for alternative investments in general. Given this challenging market environment, the Fund's return of -3.40% for the Reporting Period should be seen in a positive light in that it not only outperformed the majority of its peers, but also both equities and bonds.

By providing exposure to a collection of uncorrelated alternative strategies, the Fund generally mitigates the impact of macroeconomic and market fluctuations. Even in such a volatile year as 2022, the Fund had just a 36% correlation to equities, -18% correlation to bonds, and an annualized standard deviation of only 4.6% in 2022.

Standard deviation is a measure of risk, a statistic of the historical volatility of an investment, usually computed using the most recent 36-monthly returns and then annualized. More generally, it is a measure of the extent to which numbers are spread around their average. The higher the number, the more volatility is to be expected.

Positive contributors to the Fund included the Merger Arbitrage (+0.8%) and Global Macro (+0.6%) strategies, but the Market Neutral (-2.5%) and Long/Short Equity (-1.3%) strategies both had challenging years. Within Global Macro, the Momentum (+1.0%) strategies were by far the strongest drivers of returns while the Flow (-0.5%) strategies had a down year. The Carry and Value strategies were essentially flat for the year. Within Market Neutral, both the Closed-End Fund Arbitrage (-0.4%) and Market Neutral Real Estate (-2.1%) strategies were down similar amounts, but Market Neutral Real Estate was a much larger allocation to the Fund.

**How did the Fund use derivatives during the Reporting Period?** 

Our equity-based strategies, primarily Long/Short Equity and Market Neutral, use total return swaps to gain exposure to both long and short positions. In aggregate, while largely hedged, the derivatives had a net long market exposure. The net performance impact of these derivatives was negative for the Reporting Period as the overall market had a large negative return.

Our Global Macro strategies use exchange traded futures contracts covering a wide variety of equity indexes, fixed income, commodities, and currencies. For the Reporting Period, these derivative positions were a net positive to the performance of the Fund.

Guggenheim Ultra Short Duration Fund and Guggenheim Strategy Funds were utilized within the Fund to achieve higher yields than what would otherwise be achieved through overnight repurchase agreements or short-term investments.

**How was the Fund positioned at the end of the Reporting Period?** 

As of the end of the Reporting Period, the Fund was long 163% and short 122%. This provides the Fund with a net exposure of 41% and a gross exposure of 285%. By providing exposure to a wide variety of uncorrelated alternative strategies, we expect the Fund will generally mitigate the impact of macroeconomic and market fluctuations while seeking capital appreciation with low correlations to both equity and bond markets.

**Performance displayed represents past performance which is no guarantee of future results.** 

THE RYDEX FUNDS ANNUAL REPORT \| 37

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(continued) | December 31, 2022 |

---

**Consolidated Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-1_38.jpg)

"Consolidated Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Inception Date:** November 29, 2005<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| Guggenheim Strategy Fund II | 5.2% |
| Guggenheim Ultra Short Duration Fund — Institutional Class | 5.0% |
| Guggenheim Strategy Fund III | 4.8% |
| Guggenheim Variable Insurance Strategy Fund III | 4.1% |
| First Horizon Corp. | 1.4% |
| VMware, Inc. — Class A | 1.4% |
| Atlas Air Worldwide Holdings, Inc. | 1.4% |
| Activision Blizzard, Inc. | 1.4% |
| South Jersey Industries, Inc. | 1.3% |
| STORE Capital Corp. REIT | 1.3% |
| Top Ten Total | 27.3% |
| "Ten Largest Holdings" excludes any temporary cash or derivative investments. | "Ten Largest Holdings" excludes any temporary cash or derivative investments. |

---

38 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-1_39.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Multi-Hedge Strategies Fund  | (3.40%)  | 2.25%  | 2.25%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |
| HFRX Global Hedge Fund Index  | (4.41%)  | 1.41%  | 1.76%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the HFRX Global Hedge Fund Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 39

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 28.7%** | **COMMON STOCKS<sup>†</sup>** **- 28.7%** | **COMMON STOCKS<sup>†</sup>** **- 28.7%** |
| **Consumer, Non-cyclical - 7.7%** | **Consumer, Non-cyclical - 7.7%** | **Consumer, Non-cyclical - 7.7%** |
| &nbsp;&nbsp;&nbsp;MoneyGram International, Inc.\*<sup>,4</sup> | 58613 | $638307 |
| &nbsp;&nbsp;&nbsp;LHC Group, Inc.\* | 3763 | 608439 |
| &nbsp;&nbsp;&nbsp;Meridian Bioscience, Inc.\* | 17248 | 572806 |
| &nbsp;&nbsp;&nbsp;Signify Health, Inc. — Class A\*<sup>,4</sup> | 17277 | 495159 |
| &nbsp;&nbsp;&nbsp;Vivint Smart Home, Inc.\* | 23387 | 278305 |
| &nbsp;&nbsp;&nbsp;Horizon Therapeutics plc\* | 2433 | 276875 |
| &nbsp;&nbsp;&nbsp;Evo Payments, Inc. — Class A\* | 8002 | 270788 |
| &nbsp;&nbsp;&nbsp;Myovant Sciences Ltd.\* | 8901 | 239971 |
| &nbsp;&nbsp;&nbsp;AVEO Pharmaceuticals, Inc.\* | 13849 | 207043 |
| &nbsp;&nbsp;&nbsp;Oyster Point Pharma, Inc.\* | 12816 | 143155 |
| &nbsp;&nbsp;&nbsp;Imago Biosciences, Inc.\* | 3894 | 139989 |
| **Total Consumer, Non-cyclical** |  | 3870837 |
| **Technology - 6.7%** | **Technology - 6.7%** | **Technology - 6.7%** |
| &nbsp;&nbsp;&nbsp;VMware, Inc. — Class A\*<sup>,4</sup> | 5854 | 718649 |
| &nbsp;&nbsp;&nbsp;Activision Blizzard, Inc.<sup>4</sup> | 9138 | 699514 |
| &nbsp;&nbsp;&nbsp;1Life Healthcare, Inc.\* | 34456 | 575760 |
| &nbsp;&nbsp;&nbsp;ForgeRock, Inc. — Class A\* | 22875 | 520864 |
| &nbsp;&nbsp;&nbsp;KnowBe4, Inc. — Class A\* | 17426 | 431816 |
| &nbsp;&nbsp;&nbsp;Tower Semiconductor Ltd.\*<sup>,4</sup> | 9649 | 416837 |
| **Total Technology** |  | 3363440 |
| **Financial - 4.2%** | **Financial - 4.2%** | **Financial - 4.2%** |
| &nbsp;&nbsp;&nbsp;First Horizon Corp.<sup>4</sup> | 29565 | 724342 |
| &nbsp;&nbsp;&nbsp;STORE Capital Corp. REIT | 20266 | 649728 |
| &nbsp;&nbsp;&nbsp;Cowen, Inc. — Class A<sup>4</sup> | 14732 | 568950 |
| &nbsp;&nbsp;&nbsp;Umpqua Holdings Corp. | 9435 | 168415 |
| **Total Financial** |  | 2111435 |
| **Industrial - 3.1%** | **Industrial - 3.1%** | **Industrial - 3.1%** |
| &nbsp;&nbsp;&nbsp;Atlas Air Worldwide Holdings, Inc.\* | 7066 | 712253 |
| &nbsp;&nbsp;&nbsp;Atlas Corp.<sup>4</sup> | 28308 | 434245 |
| &nbsp;&nbsp;&nbsp;Altra Industrial Motion Corp.<sup>4</sup> | 6313 | 377202 |
| &nbsp;&nbsp;&nbsp;MasTec, Inc.\* | 1 | 85 |
| **Total Industrial** |  | 1523785 |
| **Communications - 2.9%** | **Communications - 2.9%** | **Communications - 2.9%** |
| &nbsp;&nbsp;&nbsp;TEGNA, Inc. | 30617 | 648774 |
| &nbsp;&nbsp;&nbsp;Sierra Wireless, Inc.\* | 14115 | 409194 |
| &nbsp;&nbsp;&nbsp;Poshmark, Inc. — Class A\* | 15373 | 274870 |
| &nbsp;&nbsp;&nbsp;Maxar Technologies, Inc. | 1872 | 96857 |
| **Total Communications** |  | 1429695 |
| **Consumer, Cyclical - 2.3%** | **Consumer, Cyclical - 2.3%** | **Consumer, Cyclical - 2.3%** |
| &nbsp;&nbsp;&nbsp;Spirit Airlines, Inc.\*<sup>,4</sup> | 25986 | 506207 |
| &nbsp;&nbsp;&nbsp;IAA, Inc.\* | 10601 | 424040 |
| &nbsp;&nbsp;&nbsp;iRobot Corp.\*<sup>,4</sup> | 4981 | 239736 |
| **Total Consumer, Cyclical** |  | 1169983 |
| **Utilities - 1.3%** | **Utilities - 1.3%** | **Utilities - 1.3%** |
| &nbsp;&nbsp;&nbsp;South Jersey Industries, Inc. | 18460 | 655884 |
| **Diversified - 0.5%** | **Diversified - 0.5%** | **Diversified - 0.5%** |
| &nbsp;&nbsp;&nbsp;Professional Holding Corp. — Class A\* | 8917 | 247357 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $14,318,742) |  | 14372416 |
| **RIGHTS<sup>†††</sup>** **- 0.0%** | **RIGHTS<sup>†††</sup>** **- 0.0%** | **RIGHTS<sup>†††</sup>** **- 0.0%** |
| **Consumer, Non-cyclical - 0.0%** | **Consumer, Non-cyclical - 0.0%** | **Consumer, Non-cyclical - 0.0%** |
| &nbsp;&nbsp;&nbsp;Lantheus Holdings, Inc.\* | 41807 |  |
| &nbsp;&nbsp;&nbsp;Alexion Pharmaceuticals, Inc.\* | 32749 |  |
| &nbsp;&nbsp;&nbsp;Johnson & Johnson\* | 1553 |  |
| **Total Consumer, Non-cyclical** |  |  |
| **Total Rights** | **Total Rights** |  |
| &nbsp;&nbsp;&nbsp;(Cost $—) |  |  |
| **MUTUAL FUNDS<sup>†</sup>** **- 19.1%** | **MUTUAL FUNDS<sup>†</sup>** **- 19.1%** | **MUTUAL FUNDS<sup>†</sup>** **- 19.1%** |
| &nbsp;&nbsp;&nbsp;Guggenheim Strategy Fund II<sup>1</sup> | 108001 | 2596348 |
| &nbsp;&nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class<sup>1</sup> | 257937 | 2486511 |
| &nbsp;&nbsp;&nbsp;Guggenheim Strategy Fund III<sup>1</sup> | 99249 | 2387928 |
| &nbsp;&nbsp;&nbsp;Guggenheim Variable Insurance Strategy Fund III<sup>1</sup> | 86555 | 2083380 |
| **Total Mutual Funds** | **Total Mutual Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $9,906,756) |  | 9554167 |
| **CLOSED-END FUNDS<sup>†</sup>** **- 6.5%** | **CLOSED-END FUNDS<sup>†</sup>** **- 6.5%** | **CLOSED-END FUNDS<sup>†</sup>** **- 6.5%** |
| &nbsp;&nbsp;&nbsp;BlackRock Resources & Commodities Strategy Trust | 8894 | 88673 |
| &nbsp;&nbsp;&nbsp;Western Asset Inflation-Linked Opportunities & Income Fund | 9400 | 85822 |
| &nbsp;&nbsp;&nbsp;Nuveen New Jersey Quality Municipal Income Fund | 7427 | 83925 |
| &nbsp;&nbsp;&nbsp;Virtus Convertible & Income Fund II | 28991 | 83494 |
| &nbsp;&nbsp;&nbsp;General American Investors Company, Inc. | 2217 | 80145 |
| &nbsp;&nbsp;&nbsp;Gabelli Dividend & Income Trust | 3880 | 79967 |
| &nbsp;&nbsp;&nbsp;Aberdeen Total Dynamic Dividend Fund | 10214 | 79669 |
| &nbsp;&nbsp;&nbsp;Adams Diversified Equity Fund, Inc. | 5475 | 79606 |
| &nbsp;&nbsp;&nbsp;BlackRock California Municipal Income Trust | 7012 | 75940 |
| &nbsp;&nbsp;&nbsp;SRH Total Return Fund, Inc. | 5753 | 73063 |
| &nbsp;&nbsp;&nbsp;Western Asset Emerging Markets Debt Fund, Inc. | 7718 | 70311 |
| &nbsp;&nbsp;&nbsp;Eaton Vance California Municipal Bond Fund | 7784 | 67254 |
| &nbsp;&nbsp;&nbsp;Nuveen Real Asset Income and Growth Fund | 5692 | 66596 |
| &nbsp;&nbsp;&nbsp;Nuveen Credit Strategies Income Fund | 12385 | 63040 |
| &nbsp;&nbsp;&nbsp;Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. | 13930 | 61292 |
| &nbsp;&nbsp;&nbsp;Nuveen Pennsylvania Quality Municipal Income Fund | 5430 | 60436 |
| &nbsp;&nbsp;&nbsp;Tekla Life Sciences Investors | 3664 | 52065 |
| &nbsp;&nbsp;&nbsp;Eaton Vance New York Municipal Bond Fund | 5201 | 46861 |
| &nbsp;&nbsp;&nbsp;Invesco Pennsylvania Value Municipal Income Trust | 4293 | 42071 |
| &nbsp;&nbsp;&nbsp;Voya Infrastructure Industrials and Materials Fund | 4064 | 37267 |
| &nbsp;&nbsp;&nbsp;MFS Municipal Income Trust | 6961 | 36058 |
| &nbsp;&nbsp;&nbsp;BlackRock MuniHoldings New York Quality Fund, Inc. | 3441 | 35339 |

---

40 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| &nbsp;&nbsp;&nbsp;First Trust Dynamic Europe Equity Income Fund | 3100 | $34968 |
| &nbsp;&nbsp;&nbsp;BlackRock MuniYield New York Quality Fund, Inc. | 3355 | 32879 |
| &nbsp;&nbsp;&nbsp;Western Asset Inflation - Linked Securities & Income Fund | 3777 | 32520 |
| &nbsp;&nbsp;&nbsp;Virtus Convertible & Income Fund | 9541 | 32439 |
| &nbsp;&nbsp;&nbsp;MFS High Yield Municipal Trust | 9879 | 30921 |
| &nbsp;&nbsp;&nbsp;Gabelli Healthcare & WellnessRx Trust | 2819 | 28979 |
| &nbsp;&nbsp;&nbsp;Ellsworth Growth and Income Fund Ltd. | 3288 | 26238 |
| &nbsp;&nbsp;&nbsp;abrdn Emerging Markets Equity | 5054 | 26028 |
| &nbsp;&nbsp;&nbsp;Invesco Senior Income Trust | 6779 | 25963 |
| &nbsp;&nbsp;&nbsp;Nuveen New York Quality Municipal Income Fund | 2356 | 25209 |
| &nbsp;&nbsp;&nbsp;DWS Strategic Municipal Income Trust | 2958 | 24167 |
| &nbsp;&nbsp;&nbsp;Nuveen New York AMT-Free Quality Municipal Income Fund | 2324 | 23844 |
| &nbsp;&nbsp;&nbsp;Mexico Fund, Inc. | 1589 | 23422 |
| &nbsp;&nbsp;&nbsp;Templeton Emerging Markets Fund/United States | 1927 | 22006 |
| &nbsp;&nbsp;&nbsp;Royce Micro-Capital Trust, Inc.<sup>2</sup> | 2368 | 20558 |
| &nbsp;&nbsp;&nbsp;Tri-Continental Corp. | 769 | 19703 |
| &nbsp;&nbsp;&nbsp;Voya Asia Pacific High Dividend Equity Income Fund | 3205 | 19647 |
| &nbsp;&nbsp;&nbsp;Franklin Limited Duration Income Trust | 3119 | 19369 |
| &nbsp;&nbsp;&nbsp;BlackRock New York Municipal Income Trust | 1880 | 18932 |
| &nbsp;&nbsp;&nbsp;Voya Emerging Markets High Dividend Equity Fund | 3636 | 18762 |
| &nbsp;&nbsp;&nbsp;Western Asset Intermediate Muni Fund, Inc. | 2408 | 18277 |
| &nbsp;&nbsp;&nbsp;Eaton Vance California Municipal Income Trust | 1812 | 18084 |
| &nbsp;&nbsp;&nbsp;Tortoise Power and Energy Infrastructure Fund, Inc. | 1317 | 16805 |
| &nbsp;&nbsp;&nbsp;Neuberger Berman California Municipal Fund, Inc.<sup>2</sup> | 1469 | 16599 |
| &nbsp;&nbsp;&nbsp;Morgan Stanley Emerging Markets Debt Fund, Inc. | 2502 | 16363 |
| &nbsp;&nbsp;&nbsp;Bancroft Fund Ltd. | 957 | 15676 |
| &nbsp;&nbsp;&nbsp;Western Asset Municipal Partners Fund, Inc. | 1296 | 15085 |
| &nbsp;&nbsp;&nbsp;Korea Fund, Inc. | 697 | 14519 |
| &nbsp;&nbsp;&nbsp;Nuveen Floating Rate Income Opportunity Fund | 1810 | 14136 |
| &nbsp;&nbsp;&nbsp;Invesco Trust for Investment Grade New York Municipals | 1399 | 14130 |
| &nbsp;&nbsp;&nbsp;BlackRock MuniYield Fund, Inc. | 1341 | 13960 |
| &nbsp;&nbsp;&nbsp;MFS Investment Grade Municipal Trust | 1705 | 12140 |
| &nbsp;&nbsp;&nbsp;PGIM High Yield Bond Fund, Inc. | 940 | 11158 |
| &nbsp;&nbsp;&nbsp;BlackRock MuniAssets Fund, Inc. | 1023 | 11069 |
| &nbsp;&nbsp;&nbsp;Eaton Vance Municipal Bond Fund | 1050 | 10909 |
| &nbsp;&nbsp;&nbsp;BlackRock MuniYield Quality Fund III, Inc. | 972 | 10896 |
| &nbsp;&nbsp;&nbsp;Nuveen Quality Municipal Income Fund | 918 | 10832 |
| &nbsp;&nbsp;&nbsp;Nuveen California AMT-Free Quality Municipal Income Fund | 880 | 10824 |
| &nbsp;&nbsp;&nbsp;Apollo Senior Floating Rate Fund, Inc. | 870 | 10736 |
| &nbsp;&nbsp;&nbsp;Nuveen AMT-Free Quality Municipal Income Fund | 940 | 10688 |
| &nbsp;&nbsp;&nbsp;Invesco Value Municipal Income Trust | 886 | 10676 |
| &nbsp;&nbsp;&nbsp;Nuveen California Quality Municipal Income Fund | 962 | 10649 |
| &nbsp;&nbsp;&nbsp;Cohen & Steers Limited Duration Preferred and Income Fund, Inc. | 559 | 10632 |
| &nbsp;&nbsp;&nbsp;BlackRock MuniYield Quality Fund, Inc. | 913 | 10591 |
| &nbsp;&nbsp;&nbsp;DWS Municipal Income Trust | 1230 | 10590 |
| &nbsp;&nbsp;&nbsp;Nuveen Municipal Credit Income Fund | 876 | 10582 |
| &nbsp;&nbsp;&nbsp;BlackRock Municipal 2030 Target Term Trust | 497 | 10581 |
| &nbsp;&nbsp;&nbsp;Swiss Helvetia Fund, Inc. | 1398 | 10569 |
| &nbsp;&nbsp;&nbsp;BlackRock Municipal Income Fund, Inc. | 931 | 10548 |
| &nbsp;&nbsp;&nbsp;BlackRock Municipal Income Trust | 1046 | 10523 |
| &nbsp;&nbsp;&nbsp;BlackRock MuniHoldings California Quality Fund, Inc. | 978 | 10504 |
| &nbsp;&nbsp;&nbsp;Nuveen AMT-Free Municipal Credit Income Fund | 865 | 10501 |
| &nbsp;&nbsp;&nbsp;BlackRock Municipal Income Trust II | 1012 | 10454 |
| &nbsp;&nbsp;&nbsp;BlackRock Enhanced Global Dividend Trust | 1093 | 10449 |
| &nbsp;&nbsp;&nbsp;Invesco California Value Municipal Income Trust | 1100 | 10428 |
| &nbsp;&nbsp;&nbsp;BlackRock Enhanced International Dividend Trust | 2072 | 10401 |
| &nbsp;&nbsp;&nbsp;PGIM Global High Yield Fund, Inc. | 959 | 10396 |
| &nbsp;&nbsp;&nbsp;Nuveen Preferred & Income Securities Fund | 1524 | 10363 |
| &nbsp;&nbsp;&nbsp;Tekla Healthcare Opportunities Fund | 523 | 10361 |
| &nbsp;&nbsp;&nbsp;Invesco Quality Municipal Income Trust | 1099 | 10353 |
| &nbsp;&nbsp;&nbsp;Flaherty & Crumrine Dynamic Preferred and Income Fund, Inc. | 552 | 10328 |
| &nbsp;&nbsp;&nbsp;BlackRock MuniHoldings Fund, Inc. | 848 | 10295 |
| &nbsp;&nbsp;&nbsp;BlackRock MuniHoldings New Jersey Quality Fund, Inc. | 929 | 10284 |
| &nbsp;&nbsp;&nbsp;Eaton Vance Tax-Advantaged Global Dividend Income Fund | 681 | 10283 |
| &nbsp;&nbsp;&nbsp;Tekla Healthcare Investors | 567 | 10206 |
| &nbsp;&nbsp;&nbsp;Nuveen Floating Rate Income Fund/Closed-end Fund | 1279 | 10130 |
| &nbsp;&nbsp;&nbsp;Principal Real Estate Income Fund | 976 | 10102 |
| &nbsp;&nbsp;&nbsp;Nuveen Ohio Quality Municipal Income Fund | 796 | 10101 |
| &nbsp;&nbsp;&nbsp;Eaton Vance Floating-Rate Income Trust | 881 | 9770 |
| &nbsp;&nbsp;&nbsp;Western Asset Managed Municipals Fund, Inc. | 967 | 9738 |
| &nbsp;&nbsp;&nbsp;Saba Capital Income & Opportunities Fund | 1265 | 9627 |
| &nbsp;&nbsp;&nbsp;abrdn Japan Equity Fund, Inc. | 1822 | 9620 |
| &nbsp;&nbsp;&nbsp;Eaton Vance Senior Floating-Rate Trust | 870 | 9518 |
| &nbsp;&nbsp;&nbsp;First Trust Aberdeen Global Opportunity Income Fund | 1585 | 9510 |
| &nbsp;&nbsp;&nbsp;BNY Mellon Strategic Municipal Bond Fund, Inc. | 1625 | 9392 |
| &nbsp;&nbsp;&nbsp;Eaton Vance National Municipal Opportunities Trust | 564 | 9267 |
| &nbsp;&nbsp;&nbsp;Barings Global Short Duration High Yield Fund | 715 | 9066 |
| &nbsp;&nbsp;&nbsp;Western Asset High Income Opportunity Fund, Inc. | 2261 | 8931 |
| &nbsp;&nbsp;&nbsp;BNY Mellon High Yield Strategies Fund | 4120 | 8899 |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 41

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| &nbsp;&nbsp;&nbsp;BlackRock MuniHoldings Quality Fund II, Inc. | 874 | $8696 |
| &nbsp;&nbsp;&nbsp;Putnam Premier Income Trust | 2347 | 8520 |
| &nbsp;&nbsp;&nbsp;Apollo Tactical Income Fund, Inc. | 693 | 8399 |
| &nbsp;&nbsp;&nbsp;KKR Income Opportunities Fund | 760 | 8368 |
| &nbsp;&nbsp;&nbsp;MFS High Income Municipal Trust | 2386 | 8327 |
| &nbsp;&nbsp;&nbsp;BlackRock MuniVest Fund II, Inc. | 796 | 8318 |
| &nbsp;&nbsp;&nbsp;Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund | 396 | 8292 |
| &nbsp;&nbsp;&nbsp;BNY Mellon Strategic Municipals, Inc. | 1316 | 8041 |
| &nbsp;&nbsp;&nbsp;BlackRock MuniYield Quality Fund II, Inc. | 783 | 8002 |
| &nbsp;&nbsp;&nbsp;BlackRock MuniYield Michigan Quality Fund, Inc. | 721 | 7996 |
| &nbsp;&nbsp;&nbsp;Nuveen California Municipal Value Fund, Inc. | 945 | 7985 |
| &nbsp;&nbsp;&nbsp;Nuveen AMT-Free Municipal Value Fund | 584 | 7948 |
| &nbsp;&nbsp;&nbsp;Nuveen Global High Income Fund | 697 | 7841 |
| &nbsp;&nbsp;&nbsp;First Trust Enhanced Equity Income Fund | 487 | 7675 |
| &nbsp;&nbsp;&nbsp;Herzfeld Caribbean Basin Fund, Inc. | 2072 | 7666 |
| &nbsp;&nbsp;&nbsp;MFS Multimarket Income Trust | 1667 | 7518 |
| &nbsp;&nbsp;&nbsp;LMP Capital and Income Fund, Inc. | 615 | 7405 |
| &nbsp;&nbsp;&nbsp;BlackRock MuniYield Pennsylvania Quality Fund | 672 | 7399 |
| &nbsp;&nbsp;&nbsp;Federated Hermes Premier Municipal Income Fund<sup>2</sup> | 693 | 7276 |
| &nbsp;&nbsp;&nbsp;Nuveen New York Municipal Value Fund | 872 | 7203 |
| &nbsp;&nbsp;&nbsp;BNY Mellon Municipal Income, Inc. | 1122 | 7024 |
| &nbsp;&nbsp;&nbsp;Nuveen Short Duration Credit Opportunities Fund | 589 | 6986 |
| &nbsp;&nbsp;&nbsp;BrandywineGLOBAL Global Income Opportunities Fund, Inc. | 855 | 6968 |
| &nbsp;&nbsp;&nbsp;Flaherty & Crumrine Total Return Fund, Inc. | 441 | 6963 |
| &nbsp;&nbsp;&nbsp;Pioneer Municipal High Income Fund Trust | 808 | 6933 |
| &nbsp;&nbsp;&nbsp;Franklin Universal Trust | 1008 | 6784 |
| &nbsp;&nbsp;&nbsp;Pioneer Municipal High Income Advantage Fund, Inc. | 830 | 6723 |
| &nbsp;&nbsp;&nbsp;Miller/Howard High Dividend Fund | 622 | 6500 |
| &nbsp;&nbsp;&nbsp;Gabelli Global Small and Mid Capital Value Trust | 579 | 6496 |
| &nbsp;&nbsp;&nbsp;Nuveen Massachusetts Quality Municipal Income Fund | 614 | 6490 |
| &nbsp;&nbsp;&nbsp;Nuveen Select Maturities Municipal Fund | 711 | 6442 |
| &nbsp;&nbsp;&nbsp;New America High Income Fund, Inc. | 966 | 6376 |
| &nbsp;&nbsp;&nbsp;Putnam Master Intermediate Income Trust | 1966 | 6291 |
| &nbsp;&nbsp;&nbsp;European Equity Fund, Inc. | 829 | 6217 |
| &nbsp;&nbsp;&nbsp;Nuveen Georgia Quality Municipal Income Fund | 611 | 6189 |
| &nbsp;&nbsp;&nbsp;Nuveen Minnesota Quality Municipal Income Fund | 546 | 6142 |
| &nbsp;&nbsp;&nbsp;John Hancock Income Securities Trust | 574 | 6113 |
| &nbsp;&nbsp;&nbsp;Allspring Utilities and High I | 537 | 6014 |
| &nbsp;&nbsp;&nbsp;John Hancock Tax-Advantaged Global Shareholder Yield Fund<sup>2</sup> | 1208 | 5992 |
| &nbsp;&nbsp;&nbsp;Invesco High Income Trust II | 573 | 5879 |
| &nbsp;&nbsp;&nbsp;Source Capital, Inc. | 152 | 5876 |
| &nbsp;&nbsp;&nbsp;Nuveen Municipal Income Fund, Inc.<sup>2</sup> | 625 | 5875 |
| &nbsp;&nbsp;&nbsp;DTF Tax-Free Income 2028 Term Fund, Inc. | 534 | 5826 |
| &nbsp;&nbsp;&nbsp;Invesco Bond Fund | 371 | 5817 |
| &nbsp;&nbsp;&nbsp;Delaware Investments Dividend and Income Fund, Inc. | 707 | 5748 |
| &nbsp;&nbsp;&nbsp;Western Asset Premier Bond Fund<sup>2</sup> | 539 | 5735 |
| &nbsp;&nbsp;&nbsp;BlackRock MuniVest Fund, Inc. | 808 | 5664 |
| &nbsp;&nbsp;&nbsp;Invesco Municipal Trust | 572 | 5663 |
| &nbsp;&nbsp;&nbsp;BlackRock Income Trust, Inc. | 456 | 5627 |
| &nbsp;&nbsp;&nbsp;Royce Global Value Trust, Inc. | 648 | 5602 |
| &nbsp;&nbsp;&nbsp;Insight Select Income Fund | 367 | 5545 |
| &nbsp;&nbsp;&nbsp;First Trust High Income Long/Short Fund | 484 | 5542 |
| &nbsp;&nbsp;&nbsp;Pioneer Floating Rate Fund, Inc. | 631 | 5534 |
| &nbsp;&nbsp;&nbsp;abrdn Global Dynamic Dividend | 579 | 5477 |
| &nbsp;&nbsp;&nbsp;Sprott Focus Trust, Inc.<sup>2</sup> | 687 | 5474 |
| &nbsp;&nbsp;&nbsp;AllianceBernstein National Municipal Income Fund, Inc. | 521 | 5460 |
| &nbsp;&nbsp;&nbsp;Eaton Vance Municipal Income Trust | 553 | 5458 |
| &nbsp;&nbsp;&nbsp;Pioneer Diversified High Income Fund, Inc. | 541 | 5453 |
| &nbsp;&nbsp;&nbsp;New Germany Fund, Inc. | 691 | 5452 |
| &nbsp;&nbsp;&nbsp;Eaton Vance Senior Income Trust | 1033 | 5444 |
| &nbsp;&nbsp;&nbsp;First Trust Intermediate Duration Preferred & Income Fund | 322 | 5432 |
| &nbsp;&nbsp;&nbsp;Neuberger Berman New York Municipal Fund, Inc. | 572 | 5394 |
| &nbsp;&nbsp;&nbsp;BlackRock Floating Rate Income Strategies Fund, Inc. | 476 | 5360 |
| &nbsp;&nbsp;&nbsp;Lazard Global Total Return and Income Fund, Inc. | 366 | 5358 |
| &nbsp;&nbsp;&nbsp;Virtus Total Return Fund, Inc. | 816 | 5345 |
| &nbsp;&nbsp;&nbsp;abrdn Australia Equity Fund In | 1215 | 5334 |
| &nbsp;&nbsp;&nbsp;Neuberger Berman Municipal Fund, Inc. | 509 | 5304 |
| &nbsp;&nbsp;&nbsp;Pioneer High Income Fund, Inc. | 813 | 5285 |
| &nbsp;&nbsp;&nbsp;Gabelli Global Utility & Income Trust | 374 | 5266 |
| &nbsp;&nbsp;&nbsp;Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund | 649 | 5250 |
| &nbsp;&nbsp;&nbsp;Virtus Diversified Income & Co. | 280 | 5197 |
| &nbsp;&nbsp;&nbsp;Eaton Vance Tax-Managed Global Diversified Equity Income Fund | 673 | 5081 |
| &nbsp;&nbsp;&nbsp;Nuveen Municipal Value Fund, Inc. | 589 | 5065 |
| &nbsp;&nbsp;&nbsp;Nuveen Preferred & Income Opportunities Fund | 689 | 5016 |
| &nbsp;&nbsp;&nbsp;Eaton Vance Tax Managed Global Buy Write Opportunities Fund | 646 | 5013 |
| &nbsp;&nbsp;&nbsp;Nuveen Multi-Asset Income Fund | 436 | 5010 |
| &nbsp;&nbsp;&nbsp;CBRE Global Real Estate Income Fund | 872 | 4997 |
| &nbsp;&nbsp;&nbsp;Highland Income Fund | 485 | 4995 |
| &nbsp;&nbsp;&nbsp;Nuveen Preferred and Income Fund | 282 | 4989 |
| &nbsp;&nbsp;&nbsp;BlackRock Energy and Resources Trust | 394 | 4937 |
| &nbsp;&nbsp;&nbsp;Eaton Vance Risk-Managed Diversified Equity Income Fund | 658 | 4935 |
| &nbsp;&nbsp;&nbsp;Cohen & Steers Quality Income Realty Fund, Inc. | 427 | 4910 |
| &nbsp;&nbsp;&nbsp;Clough Global Opportunities Fund | 967 | 4903 |

---

42 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| &nbsp;&nbsp;&nbsp;Templeton Global Income Fund | 954 | $4131 |
| &nbsp;&nbsp;&nbsp;Nuveen Dow 30sm Dynamic Overwrite Fund | 265 | 4110 |
| &nbsp;&nbsp;&nbsp;Blackrock Investment Quality Municipal Trust, Inc. | 332 | 3871 |
| &nbsp;&nbsp;&nbsp;Nuveen New York Select Tax-Free Income Portfolio | 317 | 3674 |
| &nbsp;&nbsp;&nbsp;BlackRock Utilities Infrastructure & Power Opportunities Trust | 173 | 3593 |
| &nbsp;&nbsp;&nbsp;Templeton Emerging Markets Income Fund | 640 | 3514 |
| &nbsp;&nbsp;&nbsp;BlackRock Municipal Income Quality Trust | 288 | 3269 |
| &nbsp;&nbsp;&nbsp;Allspring Income Opportunities | 496 | 3170 |
| &nbsp;&nbsp;&nbsp;BlackRock Long-Term Municipal Advantage Trust | 335 | 3149 |
| &nbsp;&nbsp;&nbsp;BNY Mellon Municipal Bond Infrastructure Fund, Inc. | 298 | 3132 |
| &nbsp;&nbsp;&nbsp;Cohen & Steers Select Preferred and Income Fund, Inc. | 160 | 2995 |
| &nbsp;&nbsp;&nbsp;Clough Global Equity Fund | 459 | 2988 |
| &nbsp;&nbsp;&nbsp;Western Asset High Yield Defined Opportunity Fund, Inc. | 216 | 2696 |
| &nbsp;&nbsp;&nbsp;Macquarie Global Infrastructure Total Return Fund, Inc. | 118 | 2681 |
| &nbsp;&nbsp;&nbsp;MFS Intermediate Income Trust | 918 | 2534 |
| &nbsp;&nbsp;&nbsp;Eaton Vance Municipal Income 2028 Term Trust | 140 | 2496 |
| &nbsp;&nbsp;&nbsp;Western Asset Mortgage Opportunity Fund, Inc. | 213 | 2294 |
| &nbsp;&nbsp;&nbsp;Nuveen Real Estate Income Fund | 294 | 2223 |
| &nbsp;&nbsp;&nbsp;MFS Charter Income Trust | 335 | 2060 |
| &nbsp;&nbsp;&nbsp;Western Asset Investment Grade Defined Opportunity Trust, Inc. | 121 | 1970 |
| &nbsp;&nbsp;&nbsp;Neuberger Berman MLP & Energy Income Fund, Inc. | 279 | 1858 |
| &nbsp;&nbsp;&nbsp;Delaware Ivy High Income Opportunities Fund | 168 | 1841 |
| &nbsp;&nbsp;&nbsp;Western Asset Global Corporate Defined Opportunity Fund, Inc. | 141 | 1801 |
| &nbsp;&nbsp;&nbsp;Nuveen Missouri Quality Municipal Income Fund | 172 | 1797 |
| &nbsp;&nbsp;&nbsp;Western Asset Municipal High Income Fund, Inc. | 281 | 1793 |
| &nbsp;&nbsp;&nbsp;High Income Securities Fund | 266 | 1729 |
| &nbsp;&nbsp;&nbsp;Highland Global Allocation Fund | 180 | 1696 |
| &nbsp;&nbsp;&nbsp;Delaware Investments National Municipal Income Fund | 145 | 1506 |
| &nbsp;&nbsp;&nbsp;Nuveen Virginia Quality Municipal Income Fund | 119 | 1328 |
| &nbsp;&nbsp;&nbsp;PIMCO New York Municipal Income Fund II | 162 | 1288 |
| &nbsp;&nbsp;&nbsp;BlackRock Enhanced Government Fund, Inc. | 124 | 1200 |
| &nbsp;&nbsp;&nbsp;Neuberger Berman Real Estate Securities Income Fund, Inc. | 364 | 1139 |
| &nbsp;&nbsp;&nbsp;Western Asset Global High Income Fund, Inc. | 156 | 1061 |
| &nbsp;&nbsp;&nbsp;Clough Global Dividend and Income Fund | 165 | 1056 |
| &nbsp;&nbsp;&nbsp;Nuveen Arizona Quality Municipal Income Fund | 89 | 993 |
| &nbsp;&nbsp;&nbsp;Special Opportunities Fund, Inc. | 87 | 992 |
| &nbsp;&nbsp;&nbsp;Western Asset Investment Grade Income Fund, Inc. | 72 | 834 |
| &nbsp;&nbsp;&nbsp;Nuveen Multi-Market Income Fund | 137 | 804 |
| &nbsp;&nbsp;&nbsp;Nuveen Mortgage and Income Fund | 47 | 760 |
| &nbsp;&nbsp;&nbsp;John Hancock Investors Trust | 60 | 752 |
| &nbsp;&nbsp;&nbsp;MFS Government Markets Income Trust | 217 | 718 |
| &nbsp;&nbsp;&nbsp;Delaware Enhanced Global Dividend & Income Fund | 82 | 640 |
| &nbsp;&nbsp;&nbsp;Vertical Capital Income Fund | 48 | 418 |
| &nbsp;&nbsp;&nbsp;Central Securities Corp. | 11 | 357 |
| &nbsp;&nbsp;&nbsp;BlackRock Virginia Municipal Bond Trust | 24 | 272 |
| &nbsp;&nbsp;&nbsp;MFS Special Value Trust | 32 | 134 |
| **Total Closed-End Funds** | **Total Closed-End Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $3,291,817) |  | 3231914 |
|  | **Face<br> Amount** |  |
| **U.S. TREASURY BILLS<sup>††</sup>** **- 15.0%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 15.0%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 15.0%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;4.00% due 01/24/23<sup>3,4</sup> | $4700000 | 4689470 |
| &nbsp;&nbsp;&nbsp;3.79% due 01/17/23<sup>3,5</sup> | 2795000 | 2791001 |
| **Total U.S. Treasury Bills** | **Total U.S. Treasury Bills** |  |
| &nbsp;&nbsp;&nbsp;(Cost $7,477,950) |  | 7480471 |
| **REPURCHASE AGREEMENTS<sup>††,6</sup>** **- 23.5%** | **REPURCHASE AGREEMENTS<sup>††,6</sup>** **- 23.5%** | **REPURCHASE AGREEMENTS<sup>††,6</sup>** **- 23.5%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23<sup>4</sup> | 6658032 | 6658032 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23<sup>4</sup> | 2560782 | 2560782 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23<sup>4</sup> | 2552851 | 2552851 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $11,771,665) |  | 11771665 |
|  | **Share** |  |
| **SECURITIES LENDING COLLATERAL<sup>†,7</sup>** **- 0.0%** | **SECURITIES LENDING COLLATERAL<sup>†,7</sup>** **- 0.0%** | **SECURITIES LENDING COLLATERAL<sup>†,7</sup>** **- 0.0%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>8</sup> | 21038 | 21038 |
| **Total Securities Lending Collateral** | **Total Securities Lending Collateral** |  |
| &nbsp;&nbsp;&nbsp;(Cost $21,038) |  | 21038 |
| **Total Investments - 92.8%** | **Total Investments - 92.8%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $46,787,968) | &nbsp;&nbsp;&nbsp;(Cost $46,787,968) | $46431671 |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 43

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS SOLD SHORT<sup>†</sup>** **- (2.3)%** | **COMMON STOCKS SOLD SHORT<sup>†</sup>** **- (2.3)%** | **COMMON STOCKS SOLD SHORT<sup>†</sup>** **- (2.3)%** |
| **Consumer, Non-cyclical - (0.7)%** | **Consumer, Non-cyclical - (0.7)%** | **Consumer, Non-cyclical - (0.7)%** |
| &nbsp;&nbsp;&nbsp;Ritchie Bros Auctioneers, Inc. | 6153 | $(355828) |
| **Technology - (0.8)%** | **Technology - (0.8)%** | **Technology - (0.8)%** |
| &nbsp;&nbsp;&nbsp;Broadcom, Inc. | 738 | (412638) |
| **Financial - (0.8)%** | **Financial - (0.8)%** | **Financial - (0.8)%** |
| &nbsp;&nbsp;&nbsp;Columbia Banking System, Inc. | 5673 | (170928) |
| &nbsp;&nbsp;&nbsp;Seacoast Banking Corporation of Florida | 7944 | (247773) |
| **Total Financial** |  | (418701) |
| **Total Common Stocks Sold Short** | **Total Common Stocks Sold Short** |  |
| &nbsp;&nbsp;&nbsp;(Proceeds $1,127,100) |  | (1187167) |
| **EXCHANGE-TRADED FUNDS SOLD SHORT<sup>†</sup>** **- (6.5)%** | **EXCHANGE-TRADED FUNDS SOLD SHORT<sup>†</sup>** **- (6.5)%** | **EXCHANGE-TRADED FUNDS SOLD SHORT<sup>†</sup>** **- (6.5)%** |
| &nbsp;&nbsp;&nbsp;iShares 7-10 Year Treasury Bond ETF | 21 | (2011) |
| &nbsp;&nbsp;&nbsp;iShares Mortgage Real Estate ETF | 95 | (2156) |
| &nbsp;&nbsp;&nbsp;VanEck Gold Miners ETF | 84 | (2407) |
| &nbsp;&nbsp;&nbsp;iShares U.S. Real Estate ETF | 41 | (3452) |
| &nbsp;&nbsp;&nbsp;iShares MBS ETF | 47 | (4359) |
| &nbsp;&nbsp;&nbsp;iShares Agency Bond ETF | 42 | (4470) |
| &nbsp;&nbsp;&nbsp;Energy Select Sector SPDR Fund | 89 | (7785) |
| &nbsp;&nbsp;&nbsp;Utilities Select Sector SPDR Fund | 142 | (10011) |
| &nbsp;&nbsp;&nbsp;iShares MSCI All Country Asia ex Japan ETF | 158 | (10237) |
| &nbsp;&nbsp;&nbsp;iShares Latin America 40 ETF | 589 | (13482) |
| &nbsp;&nbsp;&nbsp;iShares Russell 1000 Growth ETF | 64 | (13711) |
| &nbsp;&nbsp;&nbsp;VanEck High Yield Muni ETF | 328 | (16580) |
| &nbsp;&nbsp;&nbsp;SPDR S&P Biotech ETF\* | 310 | (25730) |
| &nbsp;&nbsp;&nbsp;iShares Preferred & Income Securities ETF | 852 | (26012) |
| &nbsp;&nbsp;&nbsp;iShares Core High Dividend ETF | 442 | (46074) |
| &nbsp;&nbsp;&nbsp;Health Care Select Sector SPDR Fund | 353 | (47955) |
| &nbsp;&nbsp;&nbsp;iShares MSCI Emerging Markets ETF | 1281 | (48550) |
| &nbsp;&nbsp;&nbsp;iShares Russell 2000 Index ETF | 441 | (76893) |
| &nbsp;&nbsp;&nbsp;iShares JP Morgan USD Emerging Markets Bond ETF | 1083 | (91611) |
| &nbsp;&nbsp;&nbsp;iShares TIPS Bond ETF | 1010 | (107504) |
| &nbsp;&nbsp;&nbsp;SPDR Nuveen Bloomberg High Yield Municipal Bond ETF | 2474 | (121152) |
| &nbsp;&nbsp;&nbsp;SPDR Bloomberg Convertible Securities ETF | 2183 | (140454) |
| &nbsp;&nbsp;&nbsp;Schwab U.S. Aggregate Bond ETF | 3206 | (146354) |
| &nbsp;&nbsp;&nbsp;iShares National Muni Bond ETF | 1461 | (154165) |
| &nbsp;&nbsp;&nbsp;iShares iBoxx $ Investment Grade Corporate Bond ETF | 1485 | (156564) |
| &nbsp;&nbsp;&nbsp;iShares Floating Rate Bond ETF | 3841 | (193318) |
| &nbsp;&nbsp;&nbsp;SPDR S&P 500 ETF Trust | 590 | (225633) |
| &nbsp;&nbsp;&nbsp;iShares Russell 1000 Value ETF | 1491 | (226110) |
| &nbsp;&nbsp;&nbsp;SPDR Nuveen Bloomberg Municipal Bond ETF | 5890 | (268702) |
| &nbsp;&nbsp;&nbsp;Invesco Senior Loan ETF | 13194 | (270873) |
| &nbsp;&nbsp;&nbsp;iShares MSCI EAFE ETF | 4237 | (278117) |
| &nbsp;&nbsp;&nbsp;iShares iBoxx High Yield Corporate Bond ETF | 7004 | (515704) |
| **Total Exchange-Traded Funds Sold Short** | **Total Exchange-Traded Funds Sold Short** |  |
| &nbsp;&nbsp;&nbsp;(Proceeds $3,603,720) |  | $(3258136) |
| **Total Securities Sold Short - (8.8)%** | **Total Securities Sold Short - (8.8)%** |  |
| &nbsp;&nbsp;&nbsp;(Proceeds $4,730,820) |  | $(4445303) |
| **Other Assets & Liabilities, net - 16.0%** | **Other Assets & Liabilities, net - 16.0%** | 8022843 |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $50009211 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)\*\*** |
| **Commodity Futures Contracts Purchased<sup>†</sup>** | **Commodity Futures Contracts Purchased<sup>†</sup>** | **Commodity Futures Contracts Purchased<sup>†</sup>** | **Commodity Futures Contracts Purchased<sup>†</sup>** | **Commodity Futures Contracts Purchased<sup>†</sup>** |
| Gasoline RBOB Futures Contracts | 13 | Jan 2023 | $1357138 | $111674 |
| Sugar #11 Futures Contracts | 84 | Jun 2023 | 1693440 | 111228 |
| Live Cattle Futures Contracts | 61 | Jun 2023 | 3850930 | 54839 |
| Soybean Meal Futures Contracts | 18 | Mar 2023 | 848520 | 33606 |
| Live Cattle Futures Contracts | 27 | Feb 2023 | 1705590 | 21238 |
| Soybean Futures Contracts | 11 | Mar 2023 | 838338 | 15358 |
| Corn Futures Contracts | 17 | Mar 2023 | 576725 | 12989 |
| Soybean Oil Futures Contracts | 9 | Mar 2023 | 346248 | 6885 |
| NY Harbor ULSD Futures Contracts | 10 | Mar 2023 | 1285536 | 5712 |
| LME Lead Futures Contracts | 2 | Feb 2023 | 115688 | 3719 |
| Lean Hogs Futures Contracts | 10 | Feb 2023 | 351900 | (1260) |
| Cocoa Futures Contracts | 6 | Mar 2023 | 155520 | (2612) |
| Hard Red Winter Wheat Futures Contracts | 4 | Mar 2023 | 177450 | (4012) |
| LME Nickel Futures Contracts | 2 | Feb 2023 | 359580 | (17270) |
| Natural Gas Futures Contracts | 3 | Mar 2023 | 117150 | (22988) |
| Natural Gas Futures Contracts | 10 | Feb 2023 | 406200 | (31328) |
|  |  |  | $14185953 | $297778 |

---

44 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts (Continued)** | **Futures Contracts (Continued)** | **Futures Contracts (Continued)** | **Futures Contracts (Continued)** | **Futures Contracts (Continued)** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)\*\*** |
| **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** |
| Japanese Yen Futures Contracts | 17 | Mar 2023 | $1633913 | $63250 |
| Canadian Dollar Futures Contracts | 8 | Mar 2023 | 591280 | (511) |
| New Zealand Dollar Futures Contracts | 33 | Mar 2023 | 2096490 | (6612) |
| British Pound Futures Contracts | 31 | Mar 2023 | 2346313 | (31067) |
|  |  |  | $6667996 | $25060 |
| **Interest Rate Futures Contracts Purchased<sup>†</sup>** | **Interest Rate Futures Contracts Purchased<sup>†</sup>** | **Interest Rate Futures Contracts Purchased<sup>†</sup>** | **Interest Rate Futures Contracts Purchased<sup>†</sup>** | **Interest Rate Futures Contracts Purchased<sup>†</sup>** |
| Long Gilt Futures Contracts<sup>††</sup> | 2 | Mar 2023 | $240957 | $(304) |
| Euro - Bund Futures Contracts | 2 | Mar 2023 | 284460 | (1399) |
| Australian Government 10 Year Bond Futures Contracts<sup>††</sup> | 19 | Mar 2023 | 1494179 | (2021) |
| Euro - BTP Italian Government Bond Futures Contracts<sup>††</sup> | 8 | Mar 2023 | 929292 | (7672) |
|  |  |  | $2948888 | $(11396) |
| **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** |
| FTSE 100 Index Futures Contracts<sup>††</sup> | 35 | Mar 2023 | $3164377 | $24983 |
| SPI 200 Index Futures Contracts<sup>††</sup> | 2 | Mar 2023 | 238223 | (4711) |
| Euro STOXX 50 Index Futures Contracts | 16 | Mar 2023 | 649117 | (5015) |
| CBOE Volatility Index Futures Contracts | 42 | Mar 2023 | 1064700 | (7566) |
| FTSE MIB Index Futures Contracts | 3 | Mar 2023 | 380422 | (7741) |
| OMX Stockholm 30 Index Futures Contracts<sup>††</sup> | 26 | Jan 2023 | 511217 | (12424) |
| CAC 40 10 Euro Index Futures Contracts | 8 | Jan 2023 | 553497 | (13625) |
| Amsterdam Index Futures Contracts | 4 | Jan 2023 | 591025 | (26281) |
| CBOE Volatility Index Futures Contracts | 113 | Jun 2023 | 2977550 | (41086) |
| Tokyo Stock Price Index Futures Contracts | 13 | Mar 2023 | 1851568 | (89766) |
|  |  |  | $11981696 | $(183232) |
| **Interest Rate Futures Contracts Sold Short<sup>†</sup>** | **Interest Rate Futures Contracts Sold Short<sup>†</sup>** | **Interest Rate Futures Contracts Sold Short<sup>†</sup>** | **Interest Rate Futures Contracts Sold Short<sup>†</sup>** | **Interest Rate Futures Contracts Sold Short<sup>†</sup>** |
| Canadian Government 10 Year Bond Futures Contracts<sup>††</sup> | 44 | Mar 2023 | $3975620 | $78018 |
| U.S. Treasury 10 Year Note Futures Contracts | 25 | Mar 2023 | 2803125 | 15143 |
| U.S. Treasury Long Bond Futures Contracts | 3 | Mar 2023 | 374063 | 2276 |
| U.S. Treasury Ultra Long Bond Futures Contracts | 2 | Mar 2023 | 267125 | 1784 |
| Euro - 30 year Bond Futures Contracts | 1 | Mar 2023 | 144436 | 370 |
| Euro - OATS Futures Contracts | 2 | Mar 2023 | 272571 | 90 |
|  |  |  | $7836940 | $97681 |
| **Equity Futures Contracts Sold Short<sup>†</sup>** | **Equity Futures Contracts Sold Short<sup>†</sup>** | **Equity Futures Contracts Sold Short<sup>†</sup>** | **Equity Futures Contracts Sold Short<sup>†</sup>** | **Equity Futures Contracts Sold Short<sup>†</sup>** |
| CBOE Volatility Index Futures Contracts | 61 | Feb 2023 | $1494500 | $12372 |
| S&P/TSX 60 IX Index Futures Contracts | 2 | Mar 2023 | 345344 | 5957 |
| IBEX 35 Index Futures Contracts<sup>††</sup> | 9 | Jan 2023 | 789309 | 2705 |
| CBOE Volatility Index Futures Contracts | 22 | Jan 2023 | 507100 | 2256 |
| DAX Index Futures Contracts | 1 | Mar 2023 | 372202 | 505 |
| Russell 2000 Index Mini Futures Contracts | 8 | Mar 2023 | 708520 | 176 |
| CBOE Volatility Index Futures Contracts | 3 | Apr 2023 | 77550 | (220) |
| NASDAQ-100 Index Mini Futures Contracts | 4 | Mar 2023 | 881840 | (342) |
| S&P 500 Index Mini Futures Contracts | 4 | Mar 2023 | 772300 | (488) |
|  |  |  | $5948665 | $22921 |
| **Commodity Futures Contracts Sold Short<sup>†</sup>** | **Commodity Futures Contracts Sold Short<sup>†</sup>** | **Commodity Futures Contracts Sold Short<sup>†</sup>** | **Commodity Futures Contracts Sold Short<sup>†</sup>** | **Commodity Futures Contracts Sold Short<sup>†</sup>** |
| Natural Gas Futures Contracts | 11 | Jan 2023 | $487630 | $139072 |
| LME Zinc Futures Contracts | 3 | Feb 2023 | 223744 | 15329 |
| LME Primary Aluminum Futures Contracts | 3 | Feb 2023 | 176975 | 8810 |
| Wheat Futures Contracts | 15 | Mar 2023 | 593250 | 4377 |
| Cotton #2 Futures Contracts | 5 | Mar 2023 | 208500 | 3131 |
| Sugar #11 Futures Contracts | 13 | Feb 2023 | 291928 | 361 |
| NY Harbor ULSD Futures Contracts | 6 | Jan 2023 | 829382 | (2961) |
| Copper Futures Contracts | 1 | Mar 2023 | 95500 | (3381) |
| Coffee 'C' Futures Contracts | 3 | Mar 2023 | 187988 | (4050) |
| Cattle Feeder Futures Contracts | 13 | Mar 2023 | 1209163 | (18078) |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 45

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts (Concluded)** | **Futures Contracts (Concluded)** | **Futures Contracts (Concluded)** | **Futures Contracts (Concluded)** | **Futures Contracts (Concluded)** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)\*\*** |
| **Commodity Futures Contracts Sold Short<sup>†</sup>** **(Continued)** | **Commodity Futures Contracts Sold Short<sup>†</sup>** **(Continued)** | **Commodity Futures Contracts Sold Short<sup>†</sup>** **(Continued)** | **Commodity Futures Contracts Sold Short<sup>†</sup>** **(Continued)** | **Commodity Futures Contracts Sold Short<sup>†</sup>** **(Continued)** |
| Gold 100 oz. Futures Contracts | 2 | Feb 2023 | $365980 | $(20431) |
| Live Cattle Futures Contracts | 50 | Apr 2023 | 3235500 | (47095) |
| Gasoline RBOB Futures Contracts | 13 | Mar 2023 | 1439256 | (93332) |
|  |  |  | $9344796 | $(18248) |
| **Currency Futures Contracts Sold Short<sup>†</sup>** | **Currency Futures Contracts Sold Short<sup>†</sup>** | **Currency Futures Contracts Sold Short<sup>†</sup>** | **Currency Futures Contracts Sold Short<sup>†</sup>** | **Currency Futures Contracts Sold Short<sup>†</sup>** |
| Euro FX Futures Contracts | 1 | Mar 2023 | $134494 | $(716) |
| Australian Dollar Futures Contracts | 26 | Mar 2023 | 1775020 | (11188) |
| Swiss Franc Futures Contracts | 62 | Mar 2023 | 8446338 | (55072) |
|  |  |  | $10355852 | $(66976) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Custom Basket Swap Agreements** | **Custom Basket Swap Agreements** | **Custom Basket Swap Agreements** | **Custom Basket Swap Agreements** | **Custom Basket Swap Agreements** | **Custom Basket Swap Agreements** | **Custom Basket Swap Agreements** | **Custom Basket Swap Agreements** |
| **Counterparty** | **Reference Obligation** | **Type** | **Financing <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized <br> Appreciation <br> (Depreciation)** |
| **OTC Custom Basket Swap Agreements<sup>††</sup>** | **OTC Custom Basket Swap Agreements<sup>††</sup>** | **OTC Custom Basket Swap Agreements<sup>††</sup>** | **OTC Custom Basket Swap Agreements<sup>††</sup>** | **OTC Custom Basket Swap Agreements<sup>††</sup>** | **OTC Custom Basket Swap Agreements<sup>††</sup>** | **OTC Custom Basket Swap Agreements<sup>††</sup>** | **OTC Custom Basket Swap Agreements<sup>††</sup>** |
| Goldman Sachs International | GS Long/Short Equity Custom Basket | Pay | 4.78% (Federal Funds Rate + 0.45%) | At Maturity | 05/06/24 | $7005079 | $59316 |
| Morgan Stanley Capital Services LLC | MS Long/Short Equity Custom Basket | Pay | 4.73% (Federal Funds Rate + 0.40%) | At Maturity | 08/31/23 | 6988128 | 50610 |
| Morgan Stanley Capital Services LLC | MS Equity Market Neutral Custom Basket | Pay | 4.73% (Federal Funds Rate + 0.40%) | At Maturity | 08/31/23 | 7130718 | (28042) |
| Goldman Sachs International | GS Equity Market Neutral Custom Basket | Pay | 4.78% (Federal Funds Rate + 0.45%) | At Maturity | 05/06/24 | 7130718 | (52982) |
|  |  |  |  |  |  | $28254643 | $28902 |
| **OTC Custom Basket Swap Agreements Sold Short<sup>††</sup>** | **OTC Custom Basket Swap Agreements Sold Short<sup>††</sup>** | **OTC Custom Basket Swap Agreements Sold Short<sup>††</sup>** | **OTC Custom Basket Swap Agreements Sold Short<sup>††</sup>** | **OTC Custom Basket Swap Agreements Sold Short<sup>††</sup>** | **OTC Custom Basket Swap Agreements Sold Short<sup>††</sup>** | **OTC Custom Basket Swap Agreements Sold Short<sup>††</sup>** | **OTC Custom Basket Swap Agreements Sold Short<sup>††</sup>** |
| Morgan Stanley Capital Services LLC | MS Equity Market Neutral Custom Basket | Receive | 4.03% (Federal Funds Rate - 0.30%) | At Maturity | 08/31/23 | $6810781 | $1049896 |
| Goldman Sachs International | GS Equity Market Neutral Custom Basket | Receive | 4.11% (Federal Funds Rate - 0.22%) | At Maturity | 05/06/24 | 6810814 | 1036449 |
| Goldman Sachs International | GS Long/Short Equity Custom Basket | Receive | 4.13% (Federal Funds Rate - 0.20%) | At Maturity | 05/06/24 | 4623461 | 200126 |
| Morgan Stanley Capital Services LLC | MS Long/Short Equity Custom Basket | Receive | 4.03% (Federal Funds Rate - 0.30%) | At Maturity | 08/31/23 | 4660312 | 196841 |
|  |  |  |  |  |  | $22905368 | $2483312 |

---

46 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| **MS LONG/SHORT EQUITY LONG CUSTOM BASKET** | **MS LONG/SHORT EQUITY LONG CUSTOM BASKET** | **MS LONG/SHORT EQUITY LONG CUSTOM BASKET** | **MS LONG/SHORT EQUITY LONG CUSTOM BASKET** |
| **Consumer, Cyclical** |  |  |  |
| &nbsp;&nbsp;&nbsp;Home Depot, Inc. | 182 | 0.85% | $6711 |
| &nbsp;&nbsp;&nbsp;GMS, Inc. | 1199 | 0.89% | 5970 |
| &nbsp;&nbsp;&nbsp;Academy Sports & Outdoors, Inc. | 545 | 0.41% | 5401 |
| &nbsp;&nbsp;&nbsp;Buckle, Inc. | 906 | 0.59% | 4760 |
| &nbsp;&nbsp;&nbsp;Allison Transmission Holdings, Inc. | 1312 | 0.78% | 4293 |
| &nbsp;&nbsp;&nbsp;Patrick Industries, Inc. | 247 | 0.21% | 3663 |
| &nbsp;&nbsp;&nbsp;Methode Electronics, Inc. | 936 | 0.59% | 3216 |
| &nbsp;&nbsp;&nbsp;Haverty Furniture Companies, Inc. | 908 | 0.39% | 1458 |
| &nbsp;&nbsp;&nbsp;Group 1 Automotive, Inc. | 118 | 0.30% | 1312 |
| &nbsp;&nbsp;&nbsp;Starbucks Corp. | 327 | 0.46% | 1201 |
| &nbsp;&nbsp;&nbsp;Ethan Allen Interiors, Inc. | 614 | 0.23% | (325) |
| &nbsp;&nbsp;&nbsp;Wyndham Hotels & Resorts, Inc. | 1008 | 1.03% | (641) |
| &nbsp;&nbsp;&nbsp;Watsco, Inc. | 84 | 0.30% | (888) |
| &nbsp;&nbsp;&nbsp;Boyd Gaming Corp. | 567 | 0.44% | (971) |
| &nbsp;&nbsp;&nbsp;Lowe's Companies, Inc. | 126 | 0.36% | (1016) |
| &nbsp;&nbsp;&nbsp;Columbia Sportswear Co. | 818 | 1.03% | (1358) |
| &nbsp;&nbsp;&nbsp;Yum! Brands, Inc. | 558 | 1.02% | (1399) |
| &nbsp;&nbsp;&nbsp;Winnebago Industries, Inc. | 328 | 0.25% | (1460) |
| &nbsp;&nbsp;&nbsp;MSC Industrial Direct Company, Inc. — Class A | 555 | 0.65% | (1549) |
| &nbsp;&nbsp;&nbsp;Oxford Industries, Inc. | 279 | 0.37% | (1722) |
| &nbsp;&nbsp;&nbsp;Steven Madden Ltd. | 902 | 0.41% | (2207) |
| &nbsp;&nbsp;&nbsp;Williams-Sonoma, Inc. | 198 | 0.33% | (2677) |
| &nbsp;&nbsp;&nbsp;Brunswick Corp. | 787 | 0.81% | (2769) |
| **Total Consumer, Cyclical** |  |  | 19003 |
| **Technology** |  |  |  |
| &nbsp;&nbsp;&nbsp;Rambus, Inc. | 532 | 0.27% | 8346 |
| &nbsp;&nbsp;&nbsp;Axcelis Technologies, Inc. | 227 | 0.26% | 3482 |
| &nbsp;&nbsp;&nbsp;CSG Systems International, Inc. | 299 | 0.24% | 2931 |
| &nbsp;&nbsp;&nbsp;Diodes, Inc. | 338 | 0.37% | 2732 |
| &nbsp;&nbsp;&nbsp;NetApp, Inc. | 315 | 0.27% | 1203 |
| &nbsp;&nbsp;&nbsp;QUALCOMM, Inc. | 183 | 0.29% | 924 |
| &nbsp;&nbsp;&nbsp;Maximus, Inc. | 444 | 0.47% | 354 |
| &nbsp;&nbsp;&nbsp;Adobe, Inc. | 62 | 0.30% | 189 |
| &nbsp;&nbsp;&nbsp;Dropbox, Inc. — Class A | 1809 | 0.58% | (287) |
| &nbsp;&nbsp;&nbsp;Teradata Corp. | 735 | 0.35% | (317) |
| &nbsp;&nbsp;&nbsp;Veeco Instruments, Inc. | 900 | 0.24% | (785) |
| &nbsp;&nbsp;&nbsp;Apple, Inc. | 165 | 0.31% | (829) |
| &nbsp;&nbsp;&nbsp;Synaptics, Inc. | 237 | 0.32% | (957) |
| &nbsp;&nbsp;&nbsp;Kulicke & Soffa Industries, Inc. | 406 | 0.26% | (1422) |
| &nbsp;&nbsp;&nbsp;Avid Technology, Inc. | 828 | 0.32% | (1523) |
| &nbsp;&nbsp;&nbsp;NetScout Systems, Inc. | 702 | 0.33% | (1589) |
| &nbsp;&nbsp;&nbsp;Cirrus Logic, Inc. | 951 | 1.01% | (1622) |
| &nbsp;&nbsp;&nbsp;Microsoft Corp. | 193 | 0.66% | (1873) |
| &nbsp;&nbsp;&nbsp;ACI Worldwide, Inc. | 702 | 0.23% | (1988) |
| &nbsp;&nbsp;&nbsp;Synopsys, Inc. | 173 | 0.79% | (2313) |
| &nbsp;&nbsp;&nbsp;Applied Materials, Inc. | 582 | 0.81% | (5153) |
| **Total Technology** |  |  | (497) |
| **Industrial** |  |  |  |
| &nbsp;&nbsp;&nbsp;Vishay Intertechnology, Inc. | 2541 | 0.78% | 12019 |
| &nbsp;&nbsp;&nbsp;Standex International Corp. | 681 | 1.00% | 7254 |
| &nbsp;&nbsp;&nbsp;Dorian LPG Ltd. | 1881 | 0.51% | 7253 |
| &nbsp;&nbsp;&nbsp;Louisiana-Pacific Corp. | 1000 | 0.85% | 4942 |
| &nbsp;&nbsp;&nbsp;Albany International Corp. — Class A | 646 | 0.91% | 4489 |
| &nbsp;&nbsp;&nbsp;Snap-on, Inc. | 302 | 0.99% | 4400 |
| &nbsp;&nbsp;&nbsp;Eagle Materials, Inc. | 483 | 0.92% | 4175 |
| &nbsp;&nbsp;&nbsp;Emerson Electric Co. | 704 | 0.97% | 3814 |
| &nbsp;&nbsp;&nbsp;Textron, Inc. | 1014 | 1.03% | 2605 |
| &nbsp;&nbsp;&nbsp;Lockheed Martin Corp. | 111 | 0.77% | 1048 |
| &nbsp;&nbsp;&nbsp;Advanced Energy Industries, Inc. | 518 | 0.64% | 893 |
| &nbsp;&nbsp;&nbsp;Donaldson Company, Inc. | 1218 | 1.03% | 708 |
| &nbsp;&nbsp;&nbsp;OSI Systems, Inc. | 267 | 0.30% | 300 |
| &nbsp;&nbsp;&nbsp;Otis Worldwide Corp. | 284 | 0.32% | (28) |
| &nbsp;&nbsp;&nbsp;General Dynamics Corp. | 221 | 0.78% | (103) |
| &nbsp;&nbsp;&nbsp;AMETEK, Inc. | 226 | 0.45% | (712) |
| &nbsp;&nbsp;&nbsp;3M Co. | 222 | 0.38% | (1081) |
| &nbsp;&nbsp;&nbsp;Graco, Inc. | 1061 | 1.02% | (1849) |
| &nbsp;&nbsp;&nbsp;Mueller Industries, Inc. | 629 | 0.53% | (2069) |
| &nbsp;&nbsp;&nbsp;Sealed Air Corp. | 719 | 0.51% | (2306) |
| &nbsp;&nbsp;&nbsp;Acuity Brands, Inc. | 266 | 0.63% | (4087) |
| &nbsp;&nbsp;&nbsp;PGT Innovations, Inc. | 1152 | 0.30% | (5249) |
| &nbsp;&nbsp;&nbsp;Sturm Ruger & Company, Inc. | 926 | 0.67% | (13167) |
| **Total Industrial** |  |  | 23249 |
| **Basic Materials** |  |  |  |
| &nbsp;&nbsp;&nbsp;FMC Corp. | 187 | 0.33% | 2260 |
| &nbsp;&nbsp;&nbsp;Westlake Corp. | 179 | 0.26% | 2182 |
| &nbsp;&nbsp;&nbsp;American Vanguard Corp. | 880 | 0.27% | 648 |
| &nbsp;&nbsp;&nbsp;NewMarket Corp. | 113 | 0.50% | 614 |
| &nbsp;&nbsp;&nbsp;Olin Corp. | 585 | 0.44% | (1289) |
| &nbsp;&nbsp;&nbsp;Ingevity Corp. | 290 | 0.29% | (1555) |
| &nbsp;&nbsp;&nbsp;AdvanSix, Inc. | 537 | 0.29% | (1744) |
| &nbsp;&nbsp;&nbsp;Minerals Technologies, Inc. | 818 | 0.71% | (3262) |
| &nbsp;&nbsp;&nbsp;LyondellBasell Industries N.V. — Class A | 363 | 0.43% | (3346) |
| &nbsp;&nbsp;&nbsp;Huntsman Corp. | 1458 | 0.57% | (3703) |
| &nbsp;&nbsp;&nbsp;Balchem Corp. | 373 | 0.65% | (3854) |
| **Total Basic Materials** |  |  | (13049) |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 47

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| **Financial** |  |  |  |
| &nbsp;&nbsp;&nbsp;S&T Bancorp, Inc. | 2044 | 1.00% | $11833 |
| &nbsp;&nbsp;&nbsp;Renasant Corp. | 1856 | 1.00% | 7740 |
| &nbsp;&nbsp;&nbsp;Preferred Bank/Los Angeles CA | 992 | 1.06% | 6315 |
| &nbsp;&nbsp;&nbsp;TowneBank | 2209 | 0.97% | 6140 |
| &nbsp;&nbsp;&nbsp;PennyMac Financial Services, Inc. | 328 | 0.27% | 3028 |
| &nbsp;&nbsp;&nbsp;Virtus Investment Partners, Inc. | 124 | 0.34% | 2972 |
| &nbsp;&nbsp;&nbsp;Associated Banc-Corp. | 701 | 0.23% | 2149 |
| &nbsp;&nbsp;&nbsp;NMI Holdings, Inc. — Class A | 748 | 0.22% | 1605 |
| &nbsp;&nbsp;&nbsp;International Bancshares Corp. | 801 | 0.52% | 1594 |
| &nbsp;&nbsp;&nbsp;Evercore, Inc. — Class A | 403 | 0.63% | 1585 |
| &nbsp;&nbsp;&nbsp;Bread Financial Holdings, Inc. | 547 | 0.29% | 1421 |
| &nbsp;&nbsp;&nbsp;Hilltop Holdings, Inc. | 752 | 0.32% | 1276 |
| &nbsp;&nbsp;&nbsp;National Bank Holdings Corp. — Class A | 1678 | 1.01% | (428) |
| &nbsp;&nbsp;&nbsp;Visa, Inc. — Class A | 96 | 0.29% | (653) |
| &nbsp;&nbsp;&nbsp;Marcus & Millichap, Inc. | 647 | 0.32% | (1631) |
| &nbsp;&nbsp;&nbsp;Hope Bancorp, Inc. | 5510 | 1.01% | (2946) |
| &nbsp;&nbsp;&nbsp;BankUnited, Inc. | 866 | 0.42% | (3082) |
| &nbsp;&nbsp;&nbsp;Central Pacific Financial Corp. | 1467 | 0.43% | (7001) |
| &nbsp;&nbsp;&nbsp;Heritage Financial Corp. | 2335 | 1.02% | (7395) |
| &nbsp;&nbsp;&nbsp;Stewart Information Services Corp. | 657 | 0.40% | (7398) |
| &nbsp;&nbsp;&nbsp;Office Properties Income Trust | 2410 | 0.46% | (16097) |
| **Total Financial** |  |  | 1027 |
| **Communications** |  |  |  |
| &nbsp;&nbsp;&nbsp;Cisco Systems, Inc. | 806 | 0.55% | 4219 |
| &nbsp;&nbsp;&nbsp;VeriSign, Inc. | 148 | 0.44% | 1208 |
| &nbsp;&nbsp;&nbsp;T-Mobile US, Inc. | 416 | 0.83% | 1162 |
| &nbsp;&nbsp;&nbsp;Alphabet, Inc. — Class C | 240 | 0.30% | (2217) |
| &nbsp;&nbsp;&nbsp;Meta Platforms, Inc. — Class A | 395 | 0.68% | (6490) |
| &nbsp;&nbsp;&nbsp;Gogo, Inc. | 3522 | 0.74% | (6566) |
| &nbsp;&nbsp;&nbsp;InterDigital, Inc. | 566 | 0.40% | (8234) |
| &nbsp;&nbsp;&nbsp;Verizon Communications, Inc. | 1693 | 0.95% | (8457) |
| **Total Communications** |  |  | (25375) |
| **Consumer, Non-cyclical** |  |  |  |
| &nbsp;&nbsp;&nbsp;Perdoceo Education Corp. | 4758 | 0.95% | 14564 |
| &nbsp;&nbsp;&nbsp;Ironwood Pharmaceuticals, Inc. — Class A | 6048 | 1.07% | 9134 |
| &nbsp;&nbsp;&nbsp;United Therapeutics Corp. | 137 | 0.55% | 7928 |
| &nbsp;&nbsp;&nbsp;Bristol-Myers Squibb Co. | 898 | 0.92% | 7083 |
| &nbsp;&nbsp;&nbsp;Regeneron Pharmaceuticals, Inc. | 29 | 0.30% | 6952 |
| &nbsp;&nbsp;&nbsp;Hologic, Inc. | 968 | 1.04% | 6410 |
| &nbsp;&nbsp;&nbsp;Coca-Cola Co. | 1144 | 1.04% | 5509 |
| &nbsp;&nbsp;&nbsp;Vertex Pharmaceuticals, Inc. | 121 | 0.50% | 4876 |
| &nbsp;&nbsp;&nbsp;Jazz Pharmaceuticals plc | 242 | 0.55% | 4673 |
| &nbsp;&nbsp;&nbsp;Incyte Corp. | 362 | 0.42% | 3885 |
| &nbsp;&nbsp;&nbsp;Amphastar Pharmaceuticals, Inc. | 685 | 0.27% | 3762 |
| &nbsp;&nbsp;&nbsp;Quest Diagnostics, Inc. | 487 | 1.09% | 3606 |
| &nbsp;&nbsp;&nbsp;Triton International Ltd. | 654 | 0.64% | 3482 |
| &nbsp;&nbsp;&nbsp;Supernus Pharmaceuticals, Inc. | 1012 | 0.52% | 2818 |
| &nbsp;&nbsp;&nbsp;Innoviva, Inc. | 2078 | 0.39% | 2486 |
| &nbsp;&nbsp;&nbsp;Eli Lilly & Co. | 41 | 0.21% | 2261 |
| &nbsp;&nbsp;&nbsp;Post Holdings, Inc. | 552 | 0.71% | 1847 |
| &nbsp;&nbsp;&nbsp;Altria Group, Inc. | 1179 | 0.77% | 1781 |
| &nbsp;&nbsp;&nbsp;Lamb Weston Holdings, Inc. | 310 | 0.40% | 1196 |
| &nbsp;&nbsp;&nbsp;Quanex Building Products Corp. | 822 | 0.28% | 1033 |
| &nbsp;&nbsp;&nbsp;Prestige Consumer Healthcare, Inc. | 954 | 0.85% | 937 |
| &nbsp;&nbsp;&nbsp;Globus Medical, Inc. — Class A | 507 | 0.54% | 852 |
| &nbsp;&nbsp;&nbsp;John B Sanfilippo & Son, Inc. | 889 | 1.03% | 643 |
| &nbsp;&nbsp;&nbsp;Monster Beverage Corp. | 419 | 0.61% | (240) |
| &nbsp;&nbsp;&nbsp;Hershey Co. | 312 | 1.03% | (477) |
| &nbsp;&nbsp;&nbsp;Inter Parfums, Inc. | 215 | 0.30% | (516) |
| &nbsp;&nbsp;&nbsp;Danaher Corp. | 215 | 0.82% | (604) |
| &nbsp;&nbsp;&nbsp;Gilead Sciences, Inc. | 433 | 0.53% | (947) |
| &nbsp;&nbsp;&nbsp;Exelixis, Inc. | 1194 | 0.27% | (1238) |
| &nbsp;&nbsp;&nbsp;IDEXX Laboratories, Inc. | 162 | 0.95% | (2067) |
| &nbsp;&nbsp;&nbsp;Varex Imaging Corp. | 2623 | 0.76% | (3265) |
| &nbsp;&nbsp;&nbsp;EVERTEC, Inc. | 1341 | 0.62% | (4146) |
| &nbsp;&nbsp;&nbsp;Royalty Pharma plc — Class A | 1355 | 0.77% | (4570) |
| &nbsp;&nbsp;&nbsp;Eagle Pharmaceuticals, Inc. | 1098 | 0.46% | (8506) |
| &nbsp;&nbsp;&nbsp;Tyson Foods, Inc. — Class A | 849 | 0.76% | (16867) |
| &nbsp;&nbsp;&nbsp;Vanda Pharmaceuticals, Inc. | 2684 | 0.28% | (17287) |
| &nbsp;&nbsp;&nbsp;USANA Health Sciences, Inc. | 1008 | 0.77% | (20422) |
| **Total Consumer, Non-cyclical** |  |  | 16566 |
| **Energy** |  |  |  |
| &nbsp;&nbsp;&nbsp;Marathon Petroleum Corp. | 636 | 1.06% | 9410 |
| &nbsp;&nbsp;&nbsp;Exxon Mobil Corp. | 672 | 1.06% | 6738 |
| &nbsp;&nbsp;&nbsp;Phillips 66 | 363 | 0.54% | 6595 |
| &nbsp;&nbsp;&nbsp;Valero Energy Corp. | 368 | 0.67% | 5131 |

---

48 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| &nbsp;&nbsp;&nbsp;Par Pacific Holdings, Inc. | 789 | 0.26% | $2885 |
| &nbsp;&nbsp;&nbsp;Antero Midstream Corp. | 6485 | 1.00% | 2697 |
| &nbsp;&nbsp;&nbsp;REX American Resources Corp. | 746 | 0.34% | 1917 |
| &nbsp;&nbsp;&nbsp;ONEOK, Inc. | 257 | 0.24% | 1459 |
| &nbsp;&nbsp;&nbsp;SunCoke Energy, Inc. | 2674 | 0.33% | 1012 |
| &nbsp;&nbsp;&nbsp;Kinder Morgan, Inc. | 3715 | 0.96% | 618 |
| &nbsp;&nbsp;&nbsp;Williams Companies, Inc. | 1230 | 0.58% | (456) |
| &nbsp;&nbsp;&nbsp;Equitrans Midstream Corp. | 2573 | 0.25% | (1797) |
| &nbsp;&nbsp;&nbsp;DT Midstream, Inc. | 1222 | 0.97% | (2136) |
| &nbsp;&nbsp;&nbsp;CVR Energy, Inc. | 1128 | 0.51% | (3546) |
| &nbsp;&nbsp;&nbsp;Occidental Petroleum Corp. | 443 | 0.40% | (3607) |
| **Total Energy** |  |  | 26920 |
| **Utilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;FirstEnergy Corp. | 1761 | 1.06% | 7415 |
| &nbsp;&nbsp;&nbsp;ONE Gas, Inc. | 534 | 0.58% | 1401 |
| &nbsp;&nbsp;&nbsp;UGI Corp. | 1794 | 0.95% | 826 |
| &nbsp;&nbsp;&nbsp;Chesapeake Utilities Corp. | 378 | 0.64% | 238 |
| &nbsp;&nbsp;&nbsp;Black Hills Corp. | 1033 | 1.04% | 217 |
| &nbsp;&nbsp;&nbsp;National Fuel Gas Co. | 309 | 0.28% | 93 |
| &nbsp;&nbsp;&nbsp;OGE Energy Corp. | 1844 | 1.04% | 14 |
| &nbsp;&nbsp;&nbsp;Otter Tail Corp. | 524 | 0.44% | (1836) |
| &nbsp;&nbsp;&nbsp;Clearway Energy, Inc. — Class C | 1267 | 0.58% | (2758) |
| &nbsp;&nbsp;&nbsp;MGE Energy, Inc. | 738 | 0.74% | (2844) |
| **Total Utilities** |  |  | 2766 |
| **Total MS Long/Short Equity Long Custom Basket** | **Total MS Long/Short Equity Long Custom Basket** | **Total MS Long/Short Equity Long Custom Basket** | 50610 |
| **MS LONG/SHORT EQUITY SHORT CUSTOM BASKET** | **MS LONG/SHORT EQUITY SHORT CUSTOM BASKET** | **MS LONG/SHORT EQUITY SHORT CUSTOM BASKET** | **MS LONG/SHORT EQUITY SHORT CUSTOM BASKET** |
| **Consumer, Non-cyclical** |  |  |  |
| &nbsp;&nbsp;&nbsp;Viad Corp. | 720 | (0.41)% | 14417 |
| &nbsp;&nbsp;&nbsp;ASGN, Inc. | 337 | (0.59)% | 13262 |
| &nbsp;&nbsp;&nbsp;Healthcare Services Group, Inc. | 2193 | (0.56)% | 8680 |
| &nbsp;&nbsp;&nbsp;Equifax, Inc. | 359 | (1.50)% | 7204 |
| &nbsp;&nbsp;&nbsp;FTI Consulting, Inc. | 289 | (0.98)% | 4704 |
| &nbsp;&nbsp;&nbsp;CoStar Group, Inc. | 624 | (1.03)% | 4216 |
| &nbsp;&nbsp;&nbsp;TransUnion | 1085 | (1.32)% | 3989 |
| &nbsp;&nbsp;&nbsp;Driven Brands Holdings, Inc. | 1781 | (1.04)% | 3584 |
| &nbsp;&nbsp;&nbsp;Rollins, Inc. | 571 | (0.45)% | 1993 |
| &nbsp;&nbsp;&nbsp;Patterson Companies, Inc. | 711 | (0.43)% | 1889 |
| &nbsp;&nbsp;&nbsp;GXO Logistics, Inc. | 457 | (0.42)% | 1026 |
| &nbsp;&nbsp;&nbsp;ABM Industries, Inc. | 1451 | (1.38)% | (771) |
| &nbsp;&nbsp;&nbsp;Quanta Services, Inc. | 176 | (0.54)% | (1516) |
| &nbsp;&nbsp;&nbsp;Cintas Corp. | 159 | (1.54)% | (4479) |
| &nbsp;&nbsp;&nbsp;ICU Medical, Inc. | 394 | (1.33)% | (8485) |
| **Total Consumer, Non-cyclical** |  |  | 49713 |
| **Utilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;AES Corp. | 874 | (0.54)% | (311) |
| &nbsp;&nbsp;&nbsp;Vistra Corp. | 1370 | (0.68)% | (548) |
| &nbsp;&nbsp;&nbsp;Public Service Enterprise Group, Inc. | 1197 | (1.57)% | (2418) |
| &nbsp;&nbsp;&nbsp;Exelon Corp. | 1630 | (1.51)% | (2725) |
| &nbsp;&nbsp;&nbsp;Edison International | 1114 | (1.52)% | (5447) |
| **Total Utilities** |  |  | (11449) |
| **Basic Materials** |  |  |  |
| &nbsp;&nbsp;&nbsp;Alcoa Corp. | 526 | (0.51)% | 965 |
| &nbsp;&nbsp;&nbsp;Freeport-McMoRan, Inc. | 703 | (0.57)% | 669 |
| &nbsp;&nbsp;&nbsp;ATI, Inc. | 735 | (0.47)% | 513 |
| **Total Basic Materials** |  |  | 2147 |
| **Financial** |  |  |  |
| &nbsp;&nbsp;&nbsp;Signature Bank | 202 | (0.50)% | 25196 |
| &nbsp;&nbsp;&nbsp;Invitation Homes, Inc. | 1263 | (0.80)% | 15093 |
| &nbsp;&nbsp;&nbsp;Welltower, Inc. | 497 | (0.70)% | 12270 |
| &nbsp;&nbsp;&nbsp;Crown Castle, Inc. | 232 | (0.68)% | 10790 |
| &nbsp;&nbsp;&nbsp;Equinix, Inc. | 84 | (1.18)% | 8594 |
| &nbsp;&nbsp;&nbsp;Sun Communities, Inc. | 510 | (1.56)% | 8333 |
| &nbsp;&nbsp;&nbsp;Americold Realty Trust, Inc. | 1299 | (0.79)% | 7451 |
| &nbsp;&nbsp;&nbsp;Bank of America Corp. | 2079 | (1.48)% | 6916 |
| &nbsp;&nbsp;&nbsp;KKR & Company, Inc. — Class A | 944 | (0.94)% | 6758 |
| &nbsp;&nbsp;&nbsp;Ares Management Corp. — Class A | 769 | (1.13)% | 6575 |
| &nbsp;&nbsp;&nbsp;Equitable Holdings, Inc. | 2329 | (1.43)% | 5369 |
| &nbsp;&nbsp;&nbsp;Raymond James Financial, Inc. | 626 | (1.44)% | 5346 |
| &nbsp;&nbsp;&nbsp;Kennedy-Wilson Holdings, Inc. | 3087 | (1.04)% | 4923 |
| &nbsp;&nbsp;&nbsp;Digital Realty Trust, Inc. | 314 | (0.68)% | 4882 |
| &nbsp;&nbsp;&nbsp;American Tower Corp. — Class A | 332 | (1.51)% | 4294 |
| &nbsp;&nbsp;&nbsp;Assurant, Inc. | 225 | (0.60)% | 3999 |
| &nbsp;&nbsp;&nbsp;Independence Realty Trust, Inc. | 1700 | (0.62)% | 3687 |
| &nbsp;&nbsp;&nbsp;Ryman Hospitality Properties, Inc. | 602 | (1.06)% | 3263 |
| &nbsp;&nbsp;&nbsp;Host Hotels & Resorts, Inc. | 1702 | (0.59)% | 2820 |
| &nbsp;&nbsp;&nbsp;Pebblebrook Hotel Trust | 1140 | (0.33)% | 2480 |
| &nbsp;&nbsp;&nbsp;KeyCorp | 3087 | (1.15)% | 2153 |
| &nbsp;&nbsp;&nbsp;Kite Realty Group Trust | 2707 | (1.22)% | 2036 |
| &nbsp;&nbsp;&nbsp;Alexandria Real Estate Equities, Inc. | 479 | (1.50)% | 1996 |
| &nbsp;&nbsp;&nbsp;Wells Fargo & Co. | 629 | (0.56)% | 1903 |
| &nbsp;&nbsp;&nbsp;Principal Financial Group, Inc. | 249 | (0.45)% | 1283 |
| &nbsp;&nbsp;&nbsp;UDR, Inc. | 1792 | (1.49)% | 1261 |
| &nbsp;&nbsp;&nbsp;Northern Trust Corp. | 811 | (1.54)% | 1204 |
| &nbsp;&nbsp;&nbsp;Kimco Realty Corp. | 2396 | (1.09)% | 1147 |

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SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 49

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| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| &nbsp;&nbsp;&nbsp;Ventas, Inc. | 649 | (0.63)% | $1138 |
| &nbsp;&nbsp;&nbsp;Citigroup, Inc. | 1101 | (1.07)% | 378 |
| &nbsp;&nbsp;&nbsp;Cboe Global Markets, Inc. | 218 | (0.59)% | 375 |
| &nbsp;&nbsp;&nbsp;Willis Towers Watson plc | 146 | (0.77)% | 325 |
| &nbsp;&nbsp;&nbsp;Cullen/Frost Bankers, Inc. | 171 | (0.49)% | 92 |
| &nbsp;&nbsp;&nbsp;Progressive Corp. | 555 | (1.54)% | (653) |
| &nbsp;&nbsp;&nbsp;Cincinnati Financial Corp. | 207 | (0.45)% | (686) |
| &nbsp;&nbsp;&nbsp;Iron Mountain, Inc. | 1145 | (1.22)% | (789) |
| &nbsp;&nbsp;&nbsp;American International Group, Inc. | 515 | (0.70)% | (998) |
| &nbsp;&nbsp;&nbsp;TFS Financial Corp. | 1959 | (0.61)% | (1359) |
| &nbsp;&nbsp;&nbsp;Intercontinental Exchange, Inc. | 431 | (0.95)% | (1857) |
| &nbsp;&nbsp;&nbsp;BlackRock, Inc. — Class A | 57 | (0.87)% | (2059) |
| &nbsp;&nbsp;&nbsp;Arthur J Gallagher & Co. | 137 | (0.55)% | (2244) |
| &nbsp;&nbsp;&nbsp;CBRE Group, Inc. — Class A | 479 | (0.79)% | (3159) |
| &nbsp;&nbsp;&nbsp;Howard Hughes Corp. | 1128 | (1.85)% | (3398) |
| &nbsp;&nbsp;&nbsp;First Republic Bank | 431 | (1.13)% | (3595) |
| &nbsp;&nbsp;&nbsp;Invesco Ltd. | 2576 | (0.99)% | (3997) |
| &nbsp;&nbsp;&nbsp;Allstate Corp. | 456 | (1.33)% | (4047) |
| &nbsp;&nbsp;&nbsp;Apollo Global Management, Inc. | 1117 | (1.53)% | (5614) |
| **Total Financial** |  |  | 129875 |
| **Consumer, Cyclical** |  |  |  |
| &nbsp;&nbsp;&nbsp;MillerKnoll, Inc. | 1245 | (0.56)% | 20204 |
| &nbsp;&nbsp;&nbsp;CarMax, Inc. | 437 | (0.57)% | 8444 |
| &nbsp;&nbsp;&nbsp;American Airlines Group, Inc. | 1833 | (0.50)% | 7835 |
| &nbsp;&nbsp;&nbsp;Hawaiian Holdings, Inc. | 1633 | (0.36)% | 5591 |
| &nbsp;&nbsp;&nbsp;Floor & Decor Holdings, Inc. — Class A | 246 | (0.37)% | 1576 |
| &nbsp;&nbsp;&nbsp;Live Nation Entertainment, Inc. | 390 | (0.58)% | 1497 |
| &nbsp;&nbsp;&nbsp;Walgreens Boots Alliance, Inc. | 1148 | (0.92)% | (536) |
| &nbsp;&nbsp;&nbsp;Delta Air Lines, Inc. | 1821 | (1.28)% | (755) |
| &nbsp;&nbsp;&nbsp;Copart, Inc. | 1101 | (1.44)% | (1944) |
| &nbsp;&nbsp;&nbsp;Madison Square Garden Sports Corp. — Class A | 161 | (0.63)% | (6357) |
| **Total Consumer, Cyclical** |  |  | 35555 |
| **Industrial** |  |  |  |
| &nbsp;&nbsp;&nbsp;Stanley Black & Decker, Inc. | 330 | (0.53)% | 11732 |
| &nbsp;&nbsp;&nbsp;Stericycle, Inc. | 342 | (0.37)% | 7128 |
| &nbsp;&nbsp;&nbsp;Waste Management, Inc. | 434 | (1.46)% | 5773 |
| &nbsp;&nbsp;&nbsp;TD SYNNEX Corp. | 737 | (1.50)% | 2626 |
| &nbsp;&nbsp;&nbsp;Kirby Corp. | 373 | (0.52)% | 1518 |
| &nbsp;&nbsp;&nbsp;Jacobs Solutions, Inc. | 599 | (1.54)% | 930 |
| &nbsp;&nbsp;&nbsp;J.B. Hunt Transport Services, Inc. | 113 | (0.42)% | (403) |
| &nbsp;&nbsp;&nbsp;Norfolk Southern Corp. | 103 | (0.54)% | (1470) |
| &nbsp;&nbsp;&nbsp;TransDigm Group, Inc. | 24 | (0.32)% | (2008) |
| &nbsp;&nbsp;&nbsp;FedEx Corp. | 138 | (0.51)% | (2480) |
| &nbsp;&nbsp;&nbsp;Casella Waste Systems, Inc. — Class A | 565 | (0.96)% | (3248) |
| &nbsp;&nbsp;&nbsp;Boeing Co. | 128 | (0.52)% | (3509) |
| &nbsp;&nbsp;&nbsp;MSA Safety, Inc. | 415 | (1.28)% | (9826) |
| **Total Industrial** |  |  | 6763 |
| **Energy** |  |  |  |
| &nbsp;&nbsp;&nbsp;NOV, Inc. | 1331 | (0.60)% | 3031 |
| &nbsp;&nbsp;&nbsp;Helmerich & Payne, Inc. | 470 | (0.50)% | (499) |
| &nbsp;&nbsp;&nbsp;Patterson-UTI Energy, Inc. | 2097 | (0.76)% | (722) |
| &nbsp;&nbsp;&nbsp;Halliburton Co. | 1937 | (1.64)% | (2058) |
| &nbsp;&nbsp;&nbsp;Liberty Energy, Inc. — Class A | 1603 | (0.55)% | (2757) |
| &nbsp;&nbsp;&nbsp;ChampionX Corp. | 491 | (0.31)% | (3479) |
| &nbsp;&nbsp;&nbsp;Hess Corp. | 318 | (0.97)% | (4455) |
| &nbsp;&nbsp;&nbsp;Valaris Ltd. | 525 | (0.76)% | (8163) |
| &nbsp;&nbsp;&nbsp;EOG Resources, Inc. | 514 | (1.43)% | (9022) |
| &nbsp;&nbsp;&nbsp;Schlumberger Ltd. | 658 | (0.75)% | (9375) |
| **Total Energy** |  |  | (37499) |
| **Communications** |  |  |  |
| &nbsp;&nbsp;&nbsp;IAC, Inc. | 765 | (0.73)% | 8831 |
| &nbsp;&nbsp;&nbsp;Walt Disney Co. | 597 | (1.11)% | 6960 |
| &nbsp;&nbsp;&nbsp;Warner Bros Discovery, Inc. | 2464 | (0.50)% | 5585 |
| &nbsp;&nbsp;&nbsp;Paramount Global — Class B | 1530 | (0.55)% | 4068 |
| &nbsp;&nbsp;&nbsp;Uber Technologies, Inc. | 1477 | (0.78)% | 1848 |
| &nbsp;&nbsp;&nbsp;Interpublic Group of Companies, Inc. | 1491 | (1.07)% | (5940) |
| **Total Communications** |  |  | 21352 |
| **Technology** |  |  |  |
| &nbsp;&nbsp;&nbsp;Take-Two Interactive Software, Inc. | 449 | (1.00)% | 1223 |
| &nbsp;&nbsp;&nbsp;Science Applications International Corp. | 546 | (1.30)% | (839) |
| **Total Technology** |  |  | 384 |
| **Total MS Long/Short Equity Short Custom Basket** | **Total MS Long/Short Equity Short Custom Basket** | **Total MS Long/Short Equity Short Custom Basket** | 196841 |

---

50 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| **GS LONG/SHORT EQUITY LONG CUSTOM BASKET** | **GS LONG/SHORT EQUITY LONG CUSTOM BASKET** | **GS LONG/SHORT EQUITY LONG CUSTOM BASKET** | **GS LONG/SHORT EQUITY LONG CUSTOM BASKET** |
| **Consumer, Cyclical** |  |  |  |
| &nbsp;&nbsp;&nbsp;Patrick Industries, Inc. | 527 | 0.48% | $7754 |
| &nbsp;&nbsp;&nbsp;Home Depot, Inc. | 182 | 0.82% | 6766 |
| &nbsp;&nbsp;&nbsp;GMS, Inc. | 1199 | 0.85% | 5841 |
| &nbsp;&nbsp;&nbsp;Academy Sports & Outdoors, Inc. | 545 | 0.41% | 5456 |
| &nbsp;&nbsp;&nbsp;Buckle, Inc. | 906 | 0.59% | 4794 |
| &nbsp;&nbsp;&nbsp;Allison Transmission Holdings, Inc. | 1312 | 0.78% | 4302 |
| &nbsp;&nbsp;&nbsp;Methode Electronics, Inc. | 936 | 0.59% | 3250 |
| &nbsp;&nbsp;&nbsp;Haverty Furniture Companies, Inc. | 908 | 0.39% | 1440 |
| &nbsp;&nbsp;&nbsp;Group 1 Automotive, Inc. | 118 | 0.30% | 1439 |
| &nbsp;&nbsp;&nbsp;Starbucks Corp. | 327 | 0.46% | 1206 |
| &nbsp;&nbsp;&nbsp;Ethan Allen Interiors, Inc. | 614 | 0.23% | (287) |
| &nbsp;&nbsp;&nbsp;Watsco, Inc. | 84 | 0.30% | (727) |
| &nbsp;&nbsp;&nbsp;Wyndham Hotels & Resorts, Inc. | 1008 | 1.03% | (756) |
| &nbsp;&nbsp;&nbsp;Boyd Gaming Corp. | 567 | 0.44% | (913) |
| &nbsp;&nbsp;&nbsp;Lowe's Companies, Inc. | 126 | 0.36% | (1043) |
| &nbsp;&nbsp;&nbsp;Winnebago Industries, Inc. | 328 | 0.25% | (1312) |
| &nbsp;&nbsp;&nbsp;Yum! Brands, Inc. | 558 | 1.02% | (1388) |
| &nbsp;&nbsp;&nbsp;Columbia Sportswear Co. | 818 | 1.02% | (1433) |
| &nbsp;&nbsp;&nbsp;MSC Industrial Direct Company, Inc. — Class A | 555 | 0.65% | (1554) |
| &nbsp;&nbsp;&nbsp;Oxford Industries, Inc. | 279 | 0.37% | (1941) |
| &nbsp;&nbsp;&nbsp;Steven Madden Ltd. | 902 | 0.41% | (2269) |
| &nbsp;&nbsp;&nbsp;Williams-Sonoma, Inc. | 198 | 0.32% | (2514) |
| &nbsp;&nbsp;&nbsp;Brunswick Corp. | 787 | 0.81% | (2595) |
| **Total Consumer, Cyclical** |  |  | 23516 |
| **Technology** |  |  |  |
| &nbsp;&nbsp;&nbsp;Rambus, Inc. | 532 | 0.27% | 8341 |
| &nbsp;&nbsp;&nbsp;Axcelis Technologies, Inc. | 227 | 0.26% | 3556 |
| &nbsp;&nbsp;&nbsp;CSG Systems International, Inc. | 299 | 0.24% | 2902 |
| &nbsp;&nbsp;&nbsp;Diodes, Inc. | 338 | 0.37% | 2727 |
| &nbsp;&nbsp;&nbsp;NetApp, Inc. | 315 | 0.27% | 1196 |
| &nbsp;&nbsp;&nbsp;QUALCOMM, Inc. | 183 | 0.29% | 948 |
| &nbsp;&nbsp;&nbsp;Maximus, Inc. | 444 | 0.46% | 431 |
| &nbsp;&nbsp;&nbsp;Adobe, Inc. | 62 | 0.30% | 157 |
| &nbsp;&nbsp;&nbsp;Teradata Corp. | 735 | 0.35% | (327) |
| &nbsp;&nbsp;&nbsp;Dropbox, Inc. — Class A | 1809 | 0.58% | (410) |
| &nbsp;&nbsp;&nbsp;Veeco Instruments, Inc. | 900 | 0.24% | (768) |
| &nbsp;&nbsp;&nbsp;Apple, Inc. | 165 | 0.31% | (814) |
| &nbsp;&nbsp;&nbsp;Synaptics, Inc. | 237 | 0.32% | (900) |
| &nbsp;&nbsp;&nbsp;Kulicke & Soffa Industries, Inc. | 406 | 0.26% | (1420) |
| &nbsp;&nbsp;&nbsp;NetScout Systems, Inc. | 702 | 0.33% | (1423) |
| &nbsp;&nbsp;&nbsp;Avid Technology, Inc. | 828 | 0.31% | (1680) |
| &nbsp;&nbsp;&nbsp;Cirrus Logic, Inc. | 951 | 1.01% | (1691) |
| &nbsp;&nbsp;&nbsp;Microsoft Corp. | 193 | 0.66% | (1908) |
| &nbsp;&nbsp;&nbsp;ACI Worldwide, Inc. | 702 | 0.23% | (1964) |
| &nbsp;&nbsp;&nbsp;Synopsys, Inc. | 173 | 0.79% | (2350) |
| &nbsp;&nbsp;&nbsp;Applied Materials, Inc. | 582 | 0.81% | (5285) |
| **Total Technology** |  |  | (682) |
| **Industrial** |  |  |  |
| &nbsp;&nbsp;&nbsp;Vishay Intertechnology, Inc. | 2541 | 0.78% | 11970 |
| &nbsp;&nbsp;&nbsp;Dorian LPG Ltd. | 1881 | 0.51% | 7370 |
| &nbsp;&nbsp;&nbsp;Standex International Corp. | 681 | 1.00% | 7123 |
| &nbsp;&nbsp;&nbsp;Louisiana-Pacific Corp. | 1000 | 0.85% | 5290 |
| &nbsp;&nbsp;&nbsp;Albany International Corp. — Class A | 646 | 0.91% | 4480 |
| &nbsp;&nbsp;&nbsp;Snap-on, Inc. | 302 | 0.99% | 4368 |
| &nbsp;&nbsp;&nbsp;Eagle Materials, Inc. | 483 | 0.92% | 4231 |
| &nbsp;&nbsp;&nbsp;Emerson Electric Co. | 704 | 0.97% | 3853 |
| &nbsp;&nbsp;&nbsp;Textron, Inc. | 1014 | 1.02% | 3180 |
| &nbsp;&nbsp;&nbsp;Lockheed Martin Corp. | 111 | 0.77% | 1133 |
| &nbsp;&nbsp;&nbsp;Advanced Energy Industries, Inc. | 518 | 0.63% | 1008 |
| &nbsp;&nbsp;&nbsp;Donaldson Company, Inc. | 1218 | 1.02% | 789 |
| &nbsp;&nbsp;&nbsp;OSI Systems, Inc. | 267 | 0.30% | 284 |
| &nbsp;&nbsp;&nbsp;General Dynamics Corp. | 221 | 0.78% | 17 |
| &nbsp;&nbsp;&nbsp;Otis Worldwide Corp. | 284 | 0.32% | (37) |
| &nbsp;&nbsp;&nbsp;AMETEK, Inc. | 226 | 0.45% | (725) |
| &nbsp;&nbsp;&nbsp;3M Co. | 222 | 0.38% | (1103) |
| &nbsp;&nbsp;&nbsp;Graco, Inc. | 1061 | 1.02% | (1887) |
| &nbsp;&nbsp;&nbsp;Mueller Industries, Inc. | 629 | 0.53% | (2076) |
| &nbsp;&nbsp;&nbsp;Sealed Air Corp. | 719 | 0.51% | (2322) |
| &nbsp;&nbsp;&nbsp;Acuity Brands, Inc. | 266 | 0.63% | (3993) |
| &nbsp;&nbsp;&nbsp;PGT Innovations, Inc. | 1152 | 0.30% | (5214) |
| &nbsp;&nbsp;&nbsp;Sturm Ruger & Company, Inc. | 926 | 0.67% | (13461) |
| **Total Industrial** |  |  | 24278 |
| **Basic Materials** |  |  |  |
| &nbsp;&nbsp;&nbsp;FMC Corp. | 187 | 0.33% | 2331 |
| &nbsp;&nbsp;&nbsp;Westlake Corp. | 179 | 0.26% | 2124 |
| &nbsp;&nbsp;&nbsp;NewMarket Corp. | 113 | 0.50% | 700 |
| &nbsp;&nbsp;&nbsp;American Vanguard Corp. | 880 | 0.27% | 636 |
| &nbsp;&nbsp;&nbsp;Olin Corp. | 585 | 0.44% | (1304) |
| &nbsp;&nbsp;&nbsp;Ingevity Corp. | 290 | 0.29% | (1571) |
| &nbsp;&nbsp;&nbsp;AdvanSix, Inc. | 537 | 0.29% | (1743) |
| &nbsp;&nbsp;&nbsp;Minerals Technologies, Inc. | 818 | 0.71% | (3182) |
| &nbsp;&nbsp;&nbsp;LyondellBasell Industries N.V. — Class A | 363 | 0.43% | (3342) |
| &nbsp;&nbsp;&nbsp;Huntsman Corp. | 1458 | 0.57% | (3793) |
| &nbsp;&nbsp;&nbsp;Balchem Corp. | 373 | 0.65% | (3852) |
| **Total Basic Materials** |  |  | (12996) |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 51

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| **Financial** |  |  |  |
| &nbsp;&nbsp;&nbsp;S&T Bancorp, Inc. | 2044 | 1.00% | $11792 |
| &nbsp;&nbsp;&nbsp;Renasant Corp. | 1856 | 1.00% | 7734 |
| &nbsp;&nbsp;&nbsp;TowneBank | 2209 | 0.97% | 6424 |
| &nbsp;&nbsp;&nbsp;Preferred Bank/Los Angeles CA | 992 | 1.06% | 6231 |
| &nbsp;&nbsp;&nbsp;PennyMac Financial Services, Inc. | 328 | 0.27% | 3069 |
| &nbsp;&nbsp;&nbsp;Virtus Investment Partners, Inc. | 124 | 0.34% | 2920 |
| &nbsp;&nbsp;&nbsp;Associated Banc-Corp. | 701 | 0.23% | 2188 |
| &nbsp;&nbsp;&nbsp;Evercore, Inc. — Class A | 403 | 0.63% | 1970 |
| &nbsp;&nbsp;&nbsp;NMI Holdings, Inc. — Class A | 748 | 0.22% | 1640 |
| &nbsp;&nbsp;&nbsp;International Bancshares Corp. | 801 | 0.52% | 1582 |
| &nbsp;&nbsp;&nbsp;Bread Financial Holdings, Inc. | 547 | 0.29% | 1501 |
| &nbsp;&nbsp;&nbsp;Hilltop Holdings, Inc. | 752 | 0.32% | 1280 |
| &nbsp;&nbsp;&nbsp;National Bank Holdings Corp. — Class A | 1678 | 1.01% | (326) |
| &nbsp;&nbsp;&nbsp;Visa, Inc. — Class A | 96 | 0.28% | (685) |
| &nbsp;&nbsp;&nbsp;Marcus & Millichap, Inc. | 647 | 0.32% | (1661) |
| &nbsp;&nbsp;&nbsp;Hope Bancorp, Inc. | 5510 | 1.01% | (2923) |
| &nbsp;&nbsp;&nbsp;BankUnited, Inc. | 866 | 0.42% | (3008) |
| &nbsp;&nbsp;&nbsp;Central Pacific Financial Corp. | 1467 | 0.42% | (7040) |
| &nbsp;&nbsp;&nbsp;Stewart Information Services Corp. | 657 | 0.40% | (7418) |
| &nbsp;&nbsp;&nbsp;Heritage Financial Corp. | 2335 | 1.02% | (7488) |
| &nbsp;&nbsp;&nbsp;Office Properties Income Trust | 2410 | 0.46% | (16044) |
| **Total Financial** |  |  | 1738 |
| **Communications** |  |  |  |
| &nbsp;&nbsp;&nbsp;Cisco Systems, Inc. | 806 | 0.55% | 4290 |
| &nbsp;&nbsp;&nbsp;VeriSign, Inc. | 148 | 0.43% | 1226 |
| &nbsp;&nbsp;&nbsp;T-Mobile US, Inc. | 416 | 0.83% | 1157 |
| &nbsp;&nbsp;&nbsp;Alphabet, Inc. — Class C | 240 | 0.30% | (2212) |
| &nbsp;&nbsp;&nbsp;Gogo, Inc. | 3522 | 0.74% | (5886) |
| &nbsp;&nbsp;&nbsp;Meta Platforms, Inc. — Class A | 395 | 0.68% | (6491) |
| &nbsp;&nbsp;&nbsp;InterDigital, Inc. | 566 | 0.40% | (8254) |
| &nbsp;&nbsp;&nbsp;Verizon Communications, Inc. | 1693 | 0.95% | (8524) |
| **Total Communications** |  |  | (24694) |
| **Consumer, Non-cyclical** |  |  |  |
| &nbsp;&nbsp;&nbsp;Perdoceo Education Corp. | 4758 | 0.94% | 14591 |
| &nbsp;&nbsp;&nbsp;Ironwood Pharmaceuticals, Inc. — Class A | 6048 | 1.07% | 9037 |
| &nbsp;&nbsp;&nbsp;United Therapeutics Corp. | 137 | 0.54% | 7937 |
| &nbsp;&nbsp;&nbsp;Bristol-Myers Squibb Co. | 898 | 0.92% | 7137 |
| &nbsp;&nbsp;&nbsp;Regeneron Pharmaceuticals, Inc. | 29 | 0.30% | 6954 |
| &nbsp;&nbsp;&nbsp;Hologic, Inc. | 968 | 1.03% | 6400 |
| &nbsp;&nbsp;&nbsp;Coca-Cola Co. | 1144 | 1.04% | 5623 |
| &nbsp;&nbsp;&nbsp;Vertex Pharmaceuticals, Inc. | 121 | 0.50% | 4859 |
| &nbsp;&nbsp;&nbsp;Jazz Pharmaceuticals plc | 242 | 0.55% | 4798 |
| &nbsp;&nbsp;&nbsp;Incyte Corp. | 362 | 0.42% | 4012 |
| &nbsp;&nbsp;&nbsp;Amphastar Pharmaceuticals, Inc. | 685 | 0.27% | 3769 |
| &nbsp;&nbsp;&nbsp;Quest Diagnostics, Inc. | 487 | 1.09% | 3558 |
| &nbsp;&nbsp;&nbsp;Triton International Ltd. | 654 | 0.64% | 3489 |
| &nbsp;&nbsp;&nbsp;Innoviva, Inc. | 2078 | 0.39% | 2461 |
| &nbsp;&nbsp;&nbsp;Supernus Pharmaceuticals, Inc. | 1012 | 0.52% | 2435 |
| &nbsp;&nbsp;&nbsp;Eli Lilly & Co. | 41 | 0.21% | 2265 |
| &nbsp;&nbsp;&nbsp;Post Holdings, Inc. | 552 | 0.71% | 1965 |
| &nbsp;&nbsp;&nbsp;Altria Group, Inc. | 1179 | 0.77% | 1771 |
| &nbsp;&nbsp;&nbsp;Lamb Weston Holdings, Inc. | 310 | 0.40% | 1213 |
| &nbsp;&nbsp;&nbsp;Quanex Building Products Corp. | 822 | 0.28% | 1020 |
| &nbsp;&nbsp;&nbsp;Prestige Consumer Healthcare, Inc. | 954 | 0.85% | 934 |
| &nbsp;&nbsp;&nbsp;Globus Medical, Inc. — Class A | 507 | 0.54% | 699 |
| &nbsp;&nbsp;&nbsp;John B Sanfilippo & Son, Inc. | 889 | 1.03% | 665 |
| &nbsp;&nbsp;&nbsp;Monster Beverage Corp. | 419 | 0.61% | (298) |
| &nbsp;&nbsp;&nbsp;Hershey Co. | 312 | 1.03% | (411) |
| &nbsp;&nbsp;&nbsp;Inter Parfums, Inc. | 215 | 0.30% | (473) |
| &nbsp;&nbsp;&nbsp;Danaher Corp. | 215 | 0.81% | (716) |
| &nbsp;&nbsp;&nbsp;Gilead Sciences, Inc. | 433 | 0.53% | (1012) |
| &nbsp;&nbsp;&nbsp;Exelixis, Inc. | 1194 | 0.27% | (1167) |
| &nbsp;&nbsp;&nbsp;IDEXX Laboratories, Inc. | 162 | 0.94% | (2129) |
| &nbsp;&nbsp;&nbsp;Varex Imaging Corp. | 2623 | 0.76% | (3079) |
| &nbsp;&nbsp;&nbsp;EVERTEC, Inc. | 1341 | 0.62% | (4065) |
| &nbsp;&nbsp;&nbsp;Royalty Pharma plc — Class A | 1355 | 0.76% | (4377) |
| &nbsp;&nbsp;&nbsp;Eagle Pharmaceuticals, Inc. | 1098 | 0.46% | (8806) |
| &nbsp;&nbsp;&nbsp;Tyson Foods, Inc. — Class A | 849 | 0.75% | (16807) |
| &nbsp;&nbsp;&nbsp;Vanda Pharmaceuticals, Inc. | 2684 | 0.28% | (17289) |
| &nbsp;&nbsp;&nbsp;USANA Health Sciences, Inc. | 1008 | 0.77% | (20415) |
| **Total Consumer, Non-cyclical** |  |  | 16548 |
| **Energy** |  |  |  |
| &nbsp;&nbsp;&nbsp;Marathon Petroleum Corp. | 636 | 1.06% | 9553 |
| &nbsp;&nbsp;&nbsp;Exxon Mobil Corp. | 672 | 1.06% | 6885 |

---

52 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| &nbsp;&nbsp;&nbsp;Phillips 66 | 363 | 0.54% | $6639 |
| &nbsp;&nbsp;&nbsp;Valero Energy Corp. | 368 | 0.67% | 5237 |
| &nbsp;&nbsp;&nbsp;Par Pacific Holdings, Inc. | 789 | 0.26% | 2928 |
| &nbsp;&nbsp;&nbsp;Antero Midstream Corp. | 6485 | 1.00% | 2827 |
| &nbsp;&nbsp;&nbsp;REX American Resources Corp. | 746 | 0.34% | 2036 |
| &nbsp;&nbsp;&nbsp;ONEOK, Inc. | 257 | 0.24% | 1473 |
| &nbsp;&nbsp;&nbsp;SunCoke Energy, Inc. | 2674 | 0.33% | 1019 |
| &nbsp;&nbsp;&nbsp;Kinder Morgan, Inc. | 3715 | 0.96% | 713 |
| &nbsp;&nbsp;&nbsp;Williams Companies, Inc. | 1230 | 0.58% | (403) |
| &nbsp;&nbsp;&nbsp;Equitrans Midstream Corp. | 2573 | 0.25% | (1906) |
| &nbsp;&nbsp;&nbsp;DT Midstream, Inc. | 1222 | 0.96% | (2075) |
| &nbsp;&nbsp;&nbsp;Occidental Petroleum Corp. | 443 | 0.40% | (3350) |
| &nbsp;&nbsp;&nbsp;CVR Energy, Inc. | 1128 | 0.50% | (3379) |
| **Total Energy** |  |  | 28197 |
| **Utilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;FirstEnergy Corp. | 1761 | 1.05% | 7840 |
| &nbsp;&nbsp;&nbsp;ONE Gas, Inc. | 534 | 0.58% | 1462 |
| &nbsp;&nbsp;&nbsp;UGI Corp. | 1794 | 0.95% | 1029 |
| &nbsp;&nbsp;&nbsp;Chesapeake Utilities Corp. | 378 | 0.64% | 167 |
| &nbsp;&nbsp;&nbsp;OGE Energy Corp. | 1844 | 1.04% | 166 |
| &nbsp;&nbsp;&nbsp;National Fuel Gas Co. | 309 | 0.28% | 138 |
| &nbsp;&nbsp;&nbsp;Black Hills Corp. | 1033 | 1.04% | 86 |
| &nbsp;&nbsp;&nbsp;Otter Tail Corp. | 524 | 0.44% | (1876) |
| &nbsp;&nbsp;&nbsp;Clearway Energy, Inc. — Class C | 1267 | 0.58% | (2762) |
| &nbsp;&nbsp;&nbsp;MGE Energy, Inc. | 738 | 0.74% | (2839) |
| **Total Utilities** |  |  | 3411 |
| **Total GS Long/Short Equity Long Custom Basket** | **Total GS Long/Short Equity Long Custom Basket** | **Total GS Long/Short Equity Long Custom Basket** | 59316 |
| **GS LONG/SHORT EQUITY SHORT CUSTOM BASKET** | **GS LONG/SHORT EQUITY SHORT CUSTOM BASKET** | **GS LONG/SHORT EQUITY SHORT CUSTOM BASKET** | **GS LONG/SHORT EQUITY SHORT CUSTOM BASKET** |
| **Consumer, Non-cyclical** |  |  |  |
| &nbsp;&nbsp;&nbsp;Viad Corp. | 720 | (0.40)% | 14396 |
| &nbsp;&nbsp;&nbsp;ASGN, Inc. | 337 | (0.59)% | 13299 |
| &nbsp;&nbsp;&nbsp;Healthcare Services Group, Inc. | 2193 | (0.57)% | 8765 |
| &nbsp;&nbsp;&nbsp;Equifax, Inc. | 359 | (1.51)% | 7252 |
| &nbsp;&nbsp;&nbsp;FTI Consulting, Inc. | 289 | (0.99)% | 5073 |
| &nbsp;&nbsp;&nbsp;CoStar Group, Inc. | 624 | (1.04)% | 4056 |
| &nbsp;&nbsp;&nbsp;TransUnion | 1085 | (1.33)% | 3807 |
| &nbsp;&nbsp;&nbsp;Driven Brands Holdings, Inc. | 1781 | (1.05)% | 3672 |
| &nbsp;&nbsp;&nbsp;Rollins, Inc. | 571 | (0.45)% | 1966 |
| &nbsp;&nbsp;&nbsp;Patterson Companies, Inc. | 711 | (0.43)% | 1826 |
| &nbsp;&nbsp;&nbsp;GXO Logistics, Inc. | 457 | (0.42)% | 1019 |
| &nbsp;&nbsp;&nbsp;ABM Industries, Inc. | 1451 | (1.39)% | (775) |
| &nbsp;&nbsp;&nbsp;Quanta Services, Inc. | 176 | (0.54)% | (1479) |
| &nbsp;&nbsp;&nbsp;Cintas Corp. | 159 | (1.55)% | (4683) |
| &nbsp;&nbsp;&nbsp;ICU Medical, Inc. | 394 | (1.34)% | (8543) |
| **Total Consumer, Non-cyclical** |  |  | 49651 |
| **Utilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;AES Corp. | 874 | (0.54)% | (265) |
| &nbsp;&nbsp;&nbsp;Vistra Corp. | 1370 | (0.69)% | (667) |
| &nbsp;&nbsp;&nbsp;Public Service Enterprise Group, Inc. | 1197 | (1.59)% | (2147) |
| &nbsp;&nbsp;&nbsp;Exelon Corp. | 1630 | (1.52)% | (2775) |
| &nbsp;&nbsp;&nbsp;Edison International | 1114 | (1.53)% | (5841) |
| **Total Utilities** |  |  | (11695) |
| **Basic Materials** |  |  |  |
| &nbsp;&nbsp;&nbsp;Alcoa Corp. | 526 | (0.52)% | 1065 |
| &nbsp;&nbsp;&nbsp;Freeport-McMoRan, Inc. | 703 | (0.58)% | 683 |
| &nbsp;&nbsp;&nbsp;ATI, Inc. | 735 | (0.47)% | 591 |
| **Total Basic Materials** |  |  | 2339 |
| **Financial** |  |  |  |
| &nbsp;&nbsp;&nbsp;Signature Bank | 202 | (0.50)% | 25135 |
| &nbsp;&nbsp;&nbsp;Invitation Homes, Inc. | 1263 | (0.81)% | 15095 |
| &nbsp;&nbsp;&nbsp;Welltower, Inc. | 497 | (0.70)% | 12275 |
| &nbsp;&nbsp;&nbsp;Crown Castle, Inc. | 232 | (0.68)% | 10784 |
| &nbsp;&nbsp;&nbsp;Equinix, Inc. | 84 | (1.19)% | 8476 |
| &nbsp;&nbsp;&nbsp;Sun Communities, Inc. | 510 | (1.58)% | 8303 |
| &nbsp;&nbsp;&nbsp;Americold Realty Trust, Inc. | 1299 | (0.80)% | 7414 |
| &nbsp;&nbsp;&nbsp;Bank of America Corp. | 2079 | (1.49)% | 6904 |
| &nbsp;&nbsp;&nbsp;KKR & Company, Inc. — Class A | 944 | (0.95)% | 6767 |
| &nbsp;&nbsp;&nbsp;Ares Management Corp. — Class A | 769 | (1.14)% | 6578 |
| &nbsp;&nbsp;&nbsp;Howard Hughes Corp. | 646 | (1.07)% | 5445 |
| &nbsp;&nbsp;&nbsp;Equitable Holdings, Inc. | 2329 | (1.45)% | 5254 |
| &nbsp;&nbsp;&nbsp;Raymond James Financial, Inc. | 626 | (1.45)% | 5241 |
| &nbsp;&nbsp;&nbsp;Kennedy-Wilson Holdings, Inc. | 3087 | (1.05)% | 4903 |
| &nbsp;&nbsp;&nbsp;Digital Realty Trust, Inc. | 314 | (0.68)% | 4838 |
| &nbsp;&nbsp;&nbsp;American Tower Corp. — Class A | 332 | (1.52)% | 4441 |
| &nbsp;&nbsp;&nbsp;Assurant, Inc. | 225 | (0.61)% | 4002 |
| &nbsp;&nbsp;&nbsp;Independence Realty Trust, Inc. | 1700 | (0.62)% | 3661 |
| &nbsp;&nbsp;&nbsp;Ryman Hospitality Properties, Inc. | 602 | (1.06)% | 3235 |
| &nbsp;&nbsp;&nbsp;Host Hotels & Resorts, Inc. | 1702 | (0.59)% | 2880 |
| &nbsp;&nbsp;&nbsp;Pebblebrook Hotel Trust | 1140 | (0.33)% | 2504 |
| &nbsp;&nbsp;&nbsp;Kite Realty Group Trust | 2707 | (1.23)% | 2063 |
| &nbsp;&nbsp;&nbsp;Wells Fargo & Co. | 629 | (0.56)% | 1895 |
| &nbsp;&nbsp;&nbsp;KeyCorp | 3087 | (1.16)% | 1862 |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 53

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| &nbsp;&nbsp;&nbsp;Alexandria Real Estate Equities, Inc. | 479 | (1.51)% | $1604 |
| &nbsp;&nbsp;&nbsp;Principal Financial Group, Inc. | 249 | (0.45)% | 1292 |
| &nbsp;&nbsp;&nbsp;UDR, Inc. | 1792 | (1.50)% | 1240 |
| &nbsp;&nbsp;&nbsp;Ventas, Inc. | 649 | (0.63)% | 1002 |
| &nbsp;&nbsp;&nbsp;Kimco Realty Corp. | 2396 | (1.10)% | 985 |
| &nbsp;&nbsp;&nbsp;Northern Trust Corp. | 811 | (1.55)% | 881 |
| &nbsp;&nbsp;&nbsp;Citigroup, Inc. | 1101 | (1.08)% | 462 |
| &nbsp;&nbsp;&nbsp;Cboe Global Markets, Inc. | 218 | (0.59)% | 404 |
| &nbsp;&nbsp;&nbsp;Willis Towers Watson plc | 146 | (0.77)% | 393 |
| &nbsp;&nbsp;&nbsp;Cullen/Frost Bankers, Inc. | 171 | (0.49)% | 61 |
| &nbsp;&nbsp;&nbsp;Progressive Corp. | 555 | (1.56)% | (698) |
| &nbsp;&nbsp;&nbsp;Iron Mountain, Inc. | 1145 | (1.23)% | (814) |
| &nbsp;&nbsp;&nbsp;Cincinnati Financial Corp. | 207 | (0.46)% | (858) |
| &nbsp;&nbsp;&nbsp;American International Group, Inc. | 515 | (0.70)% | (944) |
| &nbsp;&nbsp;&nbsp;TFS Financial Corp. | 1959 | (0.61)% | (1353) |
| &nbsp;&nbsp;&nbsp;Intercontinental Exchange, Inc. | 431 | (0.96)% | (1950) |
| &nbsp;&nbsp;&nbsp;BlackRock, Inc. — Class A | 57 | (0.87)% | (2069) |
| &nbsp;&nbsp;&nbsp;Arthur J Gallagher & Co. | 137 | (0.56)% | (2223) |
| &nbsp;&nbsp;&nbsp;CBRE Group, Inc. — Class A | 479 | (0.80)% | (3453) |
| &nbsp;&nbsp;&nbsp;First Republic Bank | 431 | (1.14)% | (3748) |
| &nbsp;&nbsp;&nbsp;Allstate Corp. | 456 | (1.34)% | (4038) |
| &nbsp;&nbsp;&nbsp;Invesco Ltd. | 2576 | (1.00)% | (4085) |
| &nbsp;&nbsp;&nbsp;Apollo Global Management, Inc. | 1117 | (1.54)% | (5672) |
| **Total Financial** |  |  | 136374 |
| **Consumer, Cyclical** |  |  |  |
| &nbsp;&nbsp;&nbsp;MillerKnoll, Inc. | 1245 | (0.57)% | 20186 |
| &nbsp;&nbsp;&nbsp;CarMax, Inc. | 437 | (0.58)% | 8403 |
| &nbsp;&nbsp;&nbsp;American Airlines Group, Inc. | 1833 | (0.50)% | 7864 |
| &nbsp;&nbsp;&nbsp;Hawaiian Holdings, Inc. | 1633 | (0.36)% | 5550 |
| &nbsp;&nbsp;&nbsp;Live Nation Entertainment, Inc. | 390 | (0.59)% | 1558 |
| &nbsp;&nbsp;&nbsp;Floor & Decor Holdings, Inc. — Class A | 246 | (0.37)% | 1532 |
| &nbsp;&nbsp;&nbsp;Walgreens Boots Alliance, Inc. | 1148 | (0.93)% | (820) |
| &nbsp;&nbsp;&nbsp;Delta Air Lines, Inc. | 1821 | (1.29)% | (838) |
| &nbsp;&nbsp;&nbsp;Copart, Inc. | 1101 | (1.45)% | (2310) |
| &nbsp;&nbsp;&nbsp;Madison Square Garden Sports Corp. — Class A | 161 | (0.64)% | (6866) |
| **Total Consumer, Cyclical** |  |  | 34259 |
| **Industrial** |  |  |  |
| &nbsp;&nbsp;&nbsp;Stanley Black & Decker, Inc. | 330 | (0.54)% | 11689 |
| &nbsp;&nbsp;&nbsp;Stericycle, Inc. | 342 | (0.37)% | 7114 |
| &nbsp;&nbsp;&nbsp;Waste Management, Inc. | 434 | (1.47)% | 5742 |
| &nbsp;&nbsp;&nbsp;TD SYNNEX Corp. | 737 | (1.51)% | 2558 |
| &nbsp;&nbsp;&nbsp;Kirby Corp. | 373 | (0.52)% | 1623 |
| &nbsp;&nbsp;&nbsp;Jacobs Solutions, Inc. | 599 | (1.56)% | 732 |
| &nbsp;&nbsp;&nbsp;J.B. Hunt Transport Services, Inc. | 113 | (0.43)% | (487) |
| &nbsp;&nbsp;&nbsp;Norfolk Southern Corp. | 103 | (0.55)% | (1485) |
| &nbsp;&nbsp;&nbsp;TransDigm Group, Inc. | 24 | (0.33)% | (1961) |
| &nbsp;&nbsp;&nbsp;FedEx Corp. | 138 | (0.52)% | (2515) |
| &nbsp;&nbsp;&nbsp;Casella Waste Systems, Inc. — Class A | 565 | (0.97)% | (3216) |
| &nbsp;&nbsp;&nbsp;Boeing Co. | 128 | (0.53)% | (3555) |
| &nbsp;&nbsp;&nbsp;MSA Safety, Inc. | 415 | (1.29)% | (9555) |
| **Total Industrial** |  |  | 6684 |
| **Energy** |  |  |  |
| &nbsp;&nbsp;&nbsp;NOV, Inc. | 1331 | (0.60)% | 3053 |
| &nbsp;&nbsp;&nbsp;Helmerich & Payne, Inc. | 470 | (0.50)% | (499) |
| &nbsp;&nbsp;&nbsp;Patterson-UTI Energy, Inc. | 2097 | (0.76)% | (628) |
| &nbsp;&nbsp;&nbsp;Halliburton Co. | 1937 | (1.65)% | (2312) |
| &nbsp;&nbsp;&nbsp;Liberty Energy, Inc. — Class A | 1603 | (0.56)% | (2878) |
| &nbsp;&nbsp;&nbsp;ChampionX Corp. | 491 | (0.31)% | (3441) |
| &nbsp;&nbsp;&nbsp;Hess Corp. | 318 | (0.98)% | (4464) |
| &nbsp;&nbsp;&nbsp;Valaris Ltd. | 525 | (0.77)% | (8218) |
| &nbsp;&nbsp;&nbsp;EOG Resources, Inc. | 514 | (1.44)% | (9215) |
| &nbsp;&nbsp;&nbsp;Schlumberger Ltd. | 658 | (0.76)% | (9443) |
| **Total Energy** |  |  | (38045) |
| **Communications** |  |  |  |
| &nbsp;&nbsp;&nbsp;IAC, Inc. | 765 | (0.73)% | 8430 |
| &nbsp;&nbsp;&nbsp;Walt Disney Co. | 597 | (1.12)% | 6838 |
| &nbsp;&nbsp;&nbsp;Warner Bros Discovery, Inc. | 2464 | (0.51)% | 5316 |
| &nbsp;&nbsp;&nbsp;Paramount Global — Class B | 1530 | (0.56)% | 4137 |
| &nbsp;&nbsp;&nbsp;Uber Technologies, Inc. | 1477 | (0.79)% | 1899 |
| &nbsp;&nbsp;&nbsp;Interpublic Group of Companies, Inc. | 1491 | (1.07)% | (6433) |
| **Total Communications** |  |  | 20187 |
| **Technology** |  |  |  |
| &nbsp;&nbsp;&nbsp;Take-Two Interactive Software, Inc. | 449 | (1.01)% | 1331 |
| &nbsp;&nbsp;&nbsp;Science Applications International Corp. | 546 | (1.31)% | (959) |
| **Total Technology** |  |  | 372 |
| **Total GS Long/Short Equity Short Custom Basket** | **Total GS Long/Short Equity Short Custom Basket** | **Total GS Long/Short Equity Short Custom Basket** | 200126 |

---

54 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| **MS EQUITY MARKET NEUTRAL LONG CUSTOM BASKET** | **MS EQUITY MARKET NEUTRAL LONG CUSTOM BASKET** | **MS EQUITY MARKET NEUTRAL LONG CUSTOM BASKET** | **MS EQUITY MARKET NEUTRAL LONG CUSTOM BASKET** |
| **Financial** |  |  |  |
| &nbsp;&nbsp;&nbsp;Gaming and Leisure Properties, Inc. | 9851 | 7.20% | $85444 |
| &nbsp;&nbsp;&nbsp;Sun Communities, Inc. | 2615 | 5.24% | 51636 |
| &nbsp;&nbsp;&nbsp;Ryman Hospitality Properties, Inc. | 6809 | 7.81% | 32529 |
| &nbsp;&nbsp;&nbsp;Brixmor Property Group, Inc. | 11962 | 3.80% | 26481 |
| &nbsp;&nbsp;&nbsp;SITE Centers Corp. | 23047 | 4.42% | 22024 |
| &nbsp;&nbsp;&nbsp;Ventas, Inc. | 7850 | 4.96% | 19847 |
| &nbsp;&nbsp;&nbsp;Agree Realty Corp. | 6546 | 6.51% | 18938 |
| &nbsp;&nbsp;&nbsp;CareTrust REIT, Inc. | 21772 | 5.67% | 9441 |
| &nbsp;&nbsp;&nbsp;InvenTrust Properties Corp. | 12513 | 4.15% | 1763 |
| &nbsp;&nbsp;&nbsp;Cousins Properties, Inc. | 4372 | 1.55% | (1335) |
| &nbsp;&nbsp;&nbsp;Four Corners Property Trust, Inc. | 15421 | 5.61% | (1511) |
| &nbsp;&nbsp;&nbsp;Alexandria Real Estate Equities, Inc. | 2880 | 5.88% | (2273) |
| &nbsp;&nbsp;&nbsp;SBA Communications Corp. | 577 | 2.27% | (12686) |
| &nbsp;&nbsp;&nbsp;American Tower Corp. — Class A | 729 | 2.17% | (16659) |
| &nbsp;&nbsp;&nbsp;Boston Properties, Inc. | 1551 | 1.47% | (20691) |
| &nbsp;&nbsp;&nbsp;Rexford Industrial Realty, Inc. | 11283 | 8.65% | (26663) |
| &nbsp;&nbsp;&nbsp;Piedmont Office Realty Trust, Inc. — Class A | 12141 | 1.56% | (29300) |
| &nbsp;&nbsp;&nbsp;NETSTREIT Corp. | 24392 | 6.27% | (33654) |
| &nbsp;&nbsp;&nbsp;AvalonBay Communities, Inc. | 2353 | 5.33% | (33665) |
| &nbsp;&nbsp;&nbsp;Equity Residential | 6223 | 5.15% | (41568) |
| &nbsp;&nbsp;&nbsp;Xenia Hotels & Resorts, Inc. | 23440 | 4.33% | (76140) |
| **Total Financial** |  |  | (28042) |
| **Total MS Equity Market Neutral Long Custom Basket** | **Total MS Equity Market Neutral Long Custom Basket** | **Total MS Equity Market Neutral Long Custom Basket** | (28042) |
| **MS EQUITY MARKET NEUTRAL SHORT CUSTOM BASKET** | **MS EQUITY MARKET NEUTRAL SHORT CUSTOM BASKET** | **MS EQUITY MARKET NEUTRAL SHORT CUSTOM BASKET** | **MS EQUITY MARKET NEUTRAL SHORT CUSTOM BASKET** |
| **Financial** |  |  |  |
| &nbsp;&nbsp;&nbsp;Douglas Emmett, Inc. | 28923 | (6.66)% | 205550 |
| &nbsp;&nbsp;&nbsp;Office Properties Income Trust | 23513 | (4.61)% | 182832 |
| &nbsp;&nbsp;&nbsp;Broadstone Net Lease, Inc. | 25100 | (5.97)% | 141862 |
| &nbsp;&nbsp;&nbsp;Essex Property Trust, Inc. | 2074 | (6.45)% | 97333 |
| &nbsp;&nbsp;&nbsp;Necessity Retail REIT, Inc. | 39646 | (3.45)% | 73298 |
| &nbsp;&nbsp;&nbsp;Apartment Income REIT Corp. | 6013 | (3.03)% | 58419 |
| &nbsp;&nbsp;&nbsp;Camden Property Trust | 1909 | (3.14)% | 51141 |
| &nbsp;&nbsp;&nbsp;Mid-America Apartment Communities, Inc. | 2458 | (5.67)% | 36901 |
| &nbsp;&nbsp;&nbsp;Host Hotels & Resorts, Inc. | 13395 | (3.16)% | 34796 |
| &nbsp;&nbsp;&nbsp;Realty Income Corp. | 11369 | (10.59)% | 20323 |
| &nbsp;&nbsp;&nbsp;Apple Hospitality REIT, Inc. | 24492 | (5.67)% | 13398 |
| &nbsp;&nbsp;&nbsp;STAG Industrial, Inc. | 19042 | (9.03)% | 11665 |
| &nbsp;&nbsp;&nbsp;Federal Realty Investment Trust | 3693 | (5.48)% | 801 |
| &nbsp;&nbsp;&nbsp;Phillips Edison & Company, Inc. | 24380 | (11.40)% | (2676) |
| &nbsp;&nbsp;&nbsp;Welltower, Inc. | 5031 | (4.84)% | (22477) |
| **Total Financial** |  |  | 903166 |
| **Exchange Traded Funds** |  |  |  |
| &nbsp;&nbsp;&nbsp;Vanguard Real Estate ETF | 8960 | (10.85)% | 146730 |
| **Total MS Equity Market Neutral Short Custom Basket** | **Total MS Equity Market Neutral Short Custom Basket** | **Total MS Equity Market Neutral Short Custom Basket** | 1049896 |
| **GS EQUITY MARKET NEUTRAL LONG CUSTOM BASKET** | **GS EQUITY MARKET NEUTRAL LONG CUSTOM BASKET** | **GS EQUITY MARKET NEUTRAL LONG CUSTOM BASKET** | **GS EQUITY MARKET NEUTRAL LONG CUSTOM BASKET** |
| **Financial** |  |  |  |
| &nbsp;&nbsp;&nbsp;Gaming and Leisure Properties, Inc. | 9851 | 7.20% | 85408 |
| &nbsp;&nbsp;&nbsp;Ryman Hospitality Properties, Inc. | 6809 | 7.81% | 33217 |
| &nbsp;&nbsp;&nbsp;Brixmor Property Group, Inc. | 11962 | 3.80% | 26534 |
| &nbsp;&nbsp;&nbsp;Sun Communities, Inc. | 2615 | 5.24% | 24883 |
| &nbsp;&nbsp;&nbsp;SITE Centers Corp. | 23047 | 4.42% | 22262 |
| &nbsp;&nbsp;&nbsp;Ventas, Inc. | 7850 | 4.96% | 19916 |
| &nbsp;&nbsp;&nbsp;Agree Realty Corp. | 6546 | 6.51% | 17991 |
| &nbsp;&nbsp;&nbsp;CareTrust REIT, Inc. | 21772 | 5.67% | 9322 |
| &nbsp;&nbsp;&nbsp;InvenTrust Properties Corp. | 12513 | 4.15% | 2700 |
| &nbsp;&nbsp;&nbsp;Cousins Properties, Inc. | 4372 | 1.55% | (1406) |
| &nbsp;&nbsp;&nbsp;Four Corners Property Trust, Inc. | 15421 | 5.61% | (1473) |
| &nbsp;&nbsp;&nbsp;Alexandria Real Estate Equities, Inc. | 2880 | 5.88% | (2193) |
| &nbsp;&nbsp;&nbsp;SBA Communications Corp. | 577 | 2.27% | (12580) |
| &nbsp;&nbsp;&nbsp;American Tower Corp. — Class A | 729 | 2.17% | (16675) |
| &nbsp;&nbsp;&nbsp;Boston Properties, Inc. | 1551 | 1.47% | (20881) |
| &nbsp;&nbsp;&nbsp;Rexford Industrial Realty, Inc. | 11283 | 8.65% | (25922) |
| &nbsp;&nbsp;&nbsp;Piedmont Office Realty Trust, Inc. — Class A | 12141 | 1.56% | (29252) |
| &nbsp;&nbsp;&nbsp;NETSTREIT Corp. | 24392 | 6.27% | (33353) |
| &nbsp;&nbsp;&nbsp;AvalonBay Communities, Inc. | 2353 | 5.33% | (33933) |
| &nbsp;&nbsp;&nbsp;Equity Residential | 6223 | 5.15% | (42046) |
| &nbsp;&nbsp;&nbsp;Xenia Hotels & Resorts, Inc. | 23440 | 4.33% | (75501) |
| **Total Financial** |  |  | (52982) |
| **Total GS Equity Market Neutral Long Custom Basket** | **Total GS Equity Market Neutral Long Custom Basket** | **Total GS Equity Market Neutral Long Custom Basket** | (52982) |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 55

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Percentage <br> Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)** |
| **GS EQUITY MARKET NEUTRAL SHORT CUSTOM BASKET** | **GS EQUITY MARKET NEUTRAL SHORT CUSTOM BASKET** | **GS EQUITY MARKET NEUTRAL SHORT CUSTOM BASKET** | **GS EQUITY MARKET NEUTRAL SHORT CUSTOM BASKET** |
| **Financial** |  |  |  |
| &nbsp;&nbsp;&nbsp;Douglas Emmett, Inc. | 28923 | (6.66)% | $206436 |
| &nbsp;&nbsp;&nbsp;Office Properties Income Trust | 23513 | (4.61)% | 183877 |
| &nbsp;&nbsp;&nbsp;Broadstone Net Lease, Inc. | 25100 | (5.97)% | 138185 |
| &nbsp;&nbsp;&nbsp;Essex Property Trust, Inc. | 2074 | (6.45)% | 95900 |
| &nbsp;&nbsp;&nbsp;Necessity Retail REIT, Inc. | 39646 | (3.45)% | 73122 |
| &nbsp;&nbsp;&nbsp;Apartment Income REIT Corp. | 6013 | (3.03)% | 58347 |
| &nbsp;&nbsp;&nbsp;Camden Property Trust | 1909 | (3.14)% | 51122 |
| &nbsp;&nbsp;&nbsp;Mid-America Apartment Communities, Inc. | 2458 | (5.67)% | 36957 |
| &nbsp;&nbsp;&nbsp;Host Hotels & Resorts, Inc. | 13395 | (3.16)% | 34986 |
| &nbsp;&nbsp;&nbsp;Realty Income Corp. | 11369 | (10.59)% | 20134 |
| &nbsp;&nbsp;&nbsp;STAG Industrial, Inc. | 19043 | (9.03)% | 10567 |
| &nbsp;&nbsp;&nbsp;Apple Hospitality REIT, Inc. | 24492 | (5.67)% | 6136 |
| &nbsp;&nbsp;&nbsp;Federal Realty Investment Trust | 3693 | (5.48)% | 505 |
| &nbsp;&nbsp;&nbsp;Phillips Edison & Company, Inc. | 24380 | (11.40)% | (4814) |
| &nbsp;&nbsp;&nbsp;Welltower, Inc. | 5031 | (4.84)% | (23029) |
| **Total Financial** |  |  | 888431 |
| **Exchange Traded Funds** |  |  |  |
| &nbsp;&nbsp;&nbsp;Vanguard Real Estate ETF | 8960 | (10.85)% | 148018 |
| **Total GS Equity Market Neutral Short Custom Basket** | **Total GS Equity Market Neutral Short Custom Basket** | **Total GS Equity Market Neutral Short Custom Basket** | $1036449 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| \*\* | &nbsp;&nbsp;&nbsp;Includes cumulative appreciation (depreciation). Variation margin is reported within the Consolidated Statement of Assets and Liabilities. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs, unless otherwise noted — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>†††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 3 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Affiliated issuer. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as short security and equity custom basket swap collateral at December 31, 2022. |
| <sup>5</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as futures collateral at December 31, 2022. |
| <sup>6</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>7</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>8</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;GS — Goldman Sachs International |
|  | &nbsp;&nbsp;&nbsp;MS — Morgan Stanley Capital Services LLC |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;REIT — Real Estate Investment Trust |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

56 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Consolidated Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $14372416 | $— | $— | $14372416 |
| Rights |  |  | — \* |  |
| Mutual Funds | 9554167 |  |  | 9554167 |
| Closed-End Funds | 3231914 |  |  | 3231914 |
| U.S. Treasury Bills |  | 7480471 |  | 7480471 |
| Repurchase Agreements |  | 11771665 |  | 11771665 |
| Securities Lending Collateral | 21038 |  |  | 21038 |
| Commodity Futures Contracts\*\* | 548328 |  |  | 548328 |
| Interest Rate Futures Contracts\*\* | 19663 | 78018 |  | 97681 |
| Currency Futures Contracts\*\* | 63250 |  |  | 63250 |
| Equity Futures Contracts\*\* | 21266 | 27688 |  | 48954 |
| Equity Custom Basket Swap Agreements\*\* |  | 2593238 |  | 2593238 |
| Total Assets | $27832042 | $21951080 | $— | $49783122 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Liabilities)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks Sold Short | $1187167 | $— | $— | $1187167 |
| Exchange-Traded Funds Sold Short | 3258136 |  |  | 3258136 |
| Commodity Futures Contracts\*\* | 268798 |  |  | 268798 |
| Equity Futures Contracts\*\* | 192130 | 17135 |  | 209265 |
| Currency Futures Contracts\*\* | 105166 |  |  | 105166 |
| Interest Rate Futures Contracts\*\* | 1399 | 9997 |  | 11396 |
| Equity Custom Basket Swap Agreements\*\* |  | 81024 |  | 81024 |
| Total Liabilities | $5012796 | $108156 | $— | $5120952 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Includes securities with a market value of $0. |
| \*\* | &nbsp;&nbsp;&nbsp;This derivative is reported as unrealized appreciation/depreciation at period end. |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 57

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **MULTI-HEDGE STRATEGIES FUND** |  |

---

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $2687069 | $— | $— | $— | $(90721) | $2596348 | 108001 | $73827 |
| &nbsp;&nbsp;Guggenheim Strategy Fund III | 2484199 |  |  |  | (96271) | 2387928 | 99249 | 70952 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 2558734 |  |  |  | (72223) | 2486511 | 257937 | 56463 |
| &nbsp;&nbsp;Guggenheim Variable Insurance Strategy Fund III | 2160414 |  |  |  | (77034) | 2083380 | 86555 | 56951 |
|  | $9890416 | $— | $— | $— | $(336249) | $9554167 |  | $258193 |

---

58 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

**MULTI-HEDGE STRATEGIES FUND**<br>

---

| |
|:---|
| **CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments in unaffiliated issuers, at value - including $19,209 of securities loaned (cost $25,109,547) | $25105839 |
| Investments in affiliated issuers, at value (cost $9,906,756) | 9554167 |
| Repurchase agreements, at value (cost $11,771,665) | 11771665 |
| Cash | 4626375 |
| Segregated cash with broker | 584284 |
| Unrealized appreciation on OTC swap agreements | 2593238 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Securities sold | 462581 |
| &nbsp;&nbsp;&nbsp;Dividends | 56033 |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 12920 |
| &nbsp;&nbsp;&nbsp;Short sale rebate income | 11375 |
| &nbsp;&nbsp;&nbsp;Interest | 2777 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 1610 |
| Other assets | 2177 |
| **Total assets** | 54785041 |
| **Liabilities:** | **Liabilities:** |
| Securities sold short, at value (proceeds $4,730,820) | 4445303 |
| Unrealized depreciation on OTC swap agreements | 81024 |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Swap settlement | 96569 |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 76809 |
| &nbsp;&nbsp;&nbsp;Management fees | 48840 |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 21038 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 2831 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 664 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 2752 |
| **Total liabilities** | 4775830 |
| **Net assets** | $50009211 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $51871194 |
| Total distributable earnings (loss) | (1861983) |
| Net assets | $50009211 |
| Capital shares outstanding | 1956776 |
| Net asset value per share | $25.56 |

---

---

| |
|:---|
| **CONSOLIDATED STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $507) | $348890 |
| Dividends from securities of affiliated issuers | 258193 |
| Interest | 315379 |
| Income from securities lending, net | 17352 |
| &nbsp;&nbsp;&nbsp;Total investment income | 939814 |
| **Expenses:** | **Expenses:** |
| Management fees | 602947 |
| Short sales dividend expense | 163722 |
| Interest expense | 24642 |
| Trustees' fees\* | 6786 |
| Miscellaneous | 1443 |
| &nbsp;&nbsp;&nbsp;Total expenses | 799540 |
| Less: | Less: |
| Expenses waived by Adviser | (25589) |
| Net expenses | 773951 |
| Net investment income | 165863 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (47948) |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers sold short | (256469) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (1464624) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (276303) |
| &nbsp;&nbsp;&nbsp;Foreign currency transactions | (2287) |
| Net realized loss | (2047631) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (1207889) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (336249) |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers sold short | 1405877 |
| &nbsp;&nbsp;&nbsp;Swap agreements | (113893) |
| &nbsp;&nbsp;&nbsp;Futures contracts | 348742 |
| &nbsp;&nbsp;&nbsp;Foreign currency translations | (670) |
| Net change in unrealized appreciation (depreciation) | 95918 |
| Net realized and unrealized loss | (1951713) |
| **Net decrease in net assets resulting from operations** | $(1785850) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 59

**MULTI-HEDGE STRATEGIES FUND**<br>

**CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income (loss) | $165863 | $(194117) |
| Net realized gain (loss) on investments | (2047631) | 1956793 |
| Net change in unrealized appreciation (depreciation) on investments | 95918 | 1313474 |
| Net increase (decrease) in net assets resulting from operations | (1785850) | 3076150 |
| Distributions to shareholders | (1162689) | (1077383) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 25458108 | 12200221 |
| Distributions reinvested | 1162689 | 1077383 |
| Cost of shares redeemed | (17511929) | (11740269) |
| Net increase from capital share transactions | 9108868 | 1537335 |
| Net increase in net assets | 6160329 | 3536102 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 43848882 | 40312780 |
| &nbsp;&nbsp;&nbsp;End of year | $50009211 | $43848882 |
| **Capital share activity:** |  |  |
| Shares sold | 953181 | 447099 |
| Shares issued from reinvestment of distributions | 44394 | 40051 |
| Shares redeemed | (663986) | (437203) |
| Net increase in shares | 333589 | 49947 |

---

60 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

**MULTI-HEDGE STRATEGIES FUND**<br>

**CONSOLIDATED FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $27.01 | $25.62 | $24.17 | $23.55 | $24.83 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .09 | (.12) | (.07) | .23 | .20 |
| Net gain (loss) on investments (realized and unrealized) | (.96) | 2.18 | 1.85 | .97 | (1.48) |
| Total from investment operations | (.87) | 2.06 | 1.78 | 1.20 | (1.28) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (.31) |  | (.33) | (.58) |  |
| Net realized gains | (.27) | (.67) |  |  |  |
| Total distributions | (.58) | (.67) | (.33) | (.58) |  |
| Net asset value, end of period | $25.56 | $27.01 | $25.62 | $24.17 | $23.55 |
| **Total Return<sup>b</sup>** | **(3.40** **%)** | **8.10%** | **7.39%** | **5.15%** | **(5.16** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $50009 | $43849 | $40313 | $34610 | $40335 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.33% | (0.45%) | (0.27%) | 0.94% | 0.85% |
| Total expenses<sup>c</sup> | 1.58% | 1.92% | 1.68% | 1.72% | 1.54% |
| Net expenses<sup>d,e</sup> | 1.53% | 1.87% | 1.63% | 1.69% | 1.52% |
| Portfolio turnover rate | 187% | 180% | 207% | 163% | 162% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

<sup>e</sup> Excluding interest and dividend expense related to short sales, the net expense ratios for the years presented would be: 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **12/31/22** | **12/31/21** | **12/31/20** | **12/31/19** | **12/31/18** |
| 1.15% | 1.16% | 1.13% | 1.16% | 1.16% |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 61

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**COMMODITIES STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide investment results that correlate, before fees and expenses, to the performance of a benchmark for commodities. The Fund's current benchmark is the S&P Goldman Sachs Commodity Index ("GSCI" or "Index").

For the Reporting Period, Rydex Commodities Strategy Fund returned 22.88%, compared with the 25.99% return of the Index, the Fund's benchmark.

**What factors contributed or detracted from the Fund's performance during the Reporting Period?** 

Commodity prices saw an increase in volatility during 2022 due to unforeseen geopolitical events. In response to the Russian invasion of Ukraine in the first quarter of 2022, there was a strong rally in the agriculture, energy, and industrial metals sectors. After the immediate shock due to supply and demand concerns, commodity prices stabilized, and the Index realized a positive return for the year. The energy sector continued to stay elevated throughout the year due to international sanctions on Russian oil and gas exports along with fears of a cold European winter.

Fifteen of the twenty-four components of the Index had positive returns during the period. The best performing component was Heating Oil, with a return above 110%. Gas Oil, Unleaded Gas, and Nickel also saw strong performance for the year, returning above 90%, 45% and 45%, respectively. Coffee, Aluminum, and Zinc saw the strongest declines for the year, being down more than 20%, 15% and 10%, respectively.

Three of the five Index Sectors experienced positive performance during the period. Energy, agriculture, and livestock were the Index sectors with positive performance. Industrial Metals and Precious Metals were the Index sectors with negative performance.

**How did the Fund use derivatives during the Reporting Period?** 

The Fund used futures contracts to help provide exposure to the composition of the benchmark in the most efficient manner, as well as to provide liquidity. Futures contracts are the primary way in which the Fund gains exposure to the S&P GSCI Index, and therefore most of the Fund's performance is due to these derivatives.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance which is no guarantee of future results.**

62 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(continued) | December 31, 2022 |

---

**Consolidated Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-1_63.jpg)

"Consolidated Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Inception Date:** September 30, 2005<br>

---

| | |
|:---|:---|
| **Largest Holdings** | **(% of Total Net Assets)** |
| Guggenheim Ultra Short Duration Fund — Institutional Class | 17.4% |
| Guggenheim Strategy Fund II | 17.3% |
| Total | 34.7% |
| The Fund invests principally in derivative investments such as futures contracts. <br>"Largest Holdings" excludes any temporary cash or derivative investments. | The Fund invests principally in derivative investments such as futures contracts. <br>"Largest Holdings" excludes any temporary cash or derivative investments. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 63

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-1_64.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Commodities Strategy Fund  | 22.88%  | 5.33%  | (4.49%)  |
| S&P Goldman Sachs Commodity Index  | 25.99%  | 6.46%  | (3.30%)  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P Goldman Sachs Commodity Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

64 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **COMMODITIES STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **MUTUAL FUNDS<sup>†</sup>** **- 34.7%** | **MUTUAL FUNDS<sup>†</sup>** **- 34.7%** | **MUTUAL FUNDS<sup>†</sup>** **- 34.7%** |
| &nbsp;&nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class<sup>1</sup> | 224553 | $2164689 |
| &nbsp;&nbsp;&nbsp;Guggenheim Strategy Fund II<sup>1</sup> | 89740 | 2157353 |
| **Total Mutual Funds** | **Total Mutual Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $4,473,985) |  | 4322042 |
|  | **Face<br> Amount** |  |
| **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 4.0%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 4.0%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 4.0%** |
| Federal Farm Credit Bank | Federal Farm Credit Bank | Federal Farm Credit Bank |
| &nbsp;&nbsp;&nbsp;4.10% due 01/26/23<sup>2</sup> | $500000 | 498576 |
| **Total Federal Agency Discount Notes** | **Total Federal Agency Discount Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $498,576) |  | 498576 |
| **U.S. TREASURY BILLS<sup>††</sup>** **- 2.4%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 2.4%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 2.4%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.80% due 01/17/23<sup>2,3</sup> | 300000 | 299571 |
| **Total U.S. Treasury Bills** | **Total U.S. Treasury Bills** |  |
| &nbsp;&nbsp;&nbsp;(Cost $299,482) |  | 299571 |

---

---

| | | |
|:---|:---|:---|
| **REPURCHASE AGREEMENTS<sup>††,4</sup>** **- 47.9%** | **REPURCHASE AGREEMENTS<sup>††,4</sup>** **- 47.9%** | **REPURCHASE AGREEMENTS<sup>††,4</sup>** **- 47.9%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | 3369807 | 3369807 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 1296080 | 1296080 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 1292066 | 1292066 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $5,957,953) |  | 5957953 |
| **Total Investments - 89.0%** | **Total Investments - 89.0%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $11,229,996) | &nbsp;&nbsp;&nbsp;(Cost $11,229,996) | $11078142 |
| **Other Assets & Liabilities, net - 11.0%** | **Other Assets & Liabilities, net - 11.0%** | 1372559 |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $12450701 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation\*\*** |
| **Commodity Futures Contracts Purchased<sup>†</sup>** | **Commodity Futures Contracts Purchased<sup>†</sup>** | **Commodity Futures Contracts Purchased<sup>†</sup>** | **Commodity Futures Contracts Purchased<sup>†</sup>** | **Commodity Futures Contracts Purchased<sup>†</sup>** |
| Goldman Sachs Commodity Index Futures Contracts | 80 | Jan 2023 | $12243000 | $662513 |

---

---

| | |
|:---|:---|
| \*\* | &nbsp;&nbsp;&nbsp;Includes cumulative appreciation (depreciation). Variation margin is reported within the Consolidated Statement of Assets and Liabilities. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Affiliated issuer. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as futures collateral at December 31, 2022. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 65

---

| | |
|:---|:---|
| **CONSOLIDATED SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **COMMODITIES STRATEGY FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Consolidated Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Mutual Funds | $4322042 | $— | $— | $4322042 |
| Federal Agency Discount Notes |  | 498576 |  | 498576 |
| U.S. Treasury Bills |  | 299571 |  | 299571 |
| Repurchase Agreements |  | 5957953 |  | 5957953 |
| Commodity Futures Contracts\*\* | 662513 |  |  | 662513 |
| Total Assets | $4984555 | $6756100 | $— | $11740655 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $2232735 | $— | $— | $— | $(75382) | $2157353 | 89740 | $61345 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 2227564 |  |  |  | (62875) | 2164689 | 224553 | 49155 |
|  | $4460299 | $— | $— | $— | $(138257) | $4322042 |  | $110500 |

---

66 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

**COMMODITIES STRATEGY FUND**<br>

---

| |
|:---|
| **CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments in unaffiliated issuers, at value (cost $798,058) | $798147 |
| Investments in affiliated issuers, at value (cost $4,473,985) | 4322042 |
| Repurchase agreements, at value (cost $5,957,953) | 5957953 |
| Cash | 772 |
| Segregated cash with broker | 1142004 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 169000 |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 92192 |
| &nbsp;&nbsp;&nbsp;Dividends | 16704 |
| &nbsp;&nbsp;&nbsp;Interest | 1406 |
| Other assets | 1850 |
| **Total assets** | 12502070 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Professional fees | 24691 |
| &nbsp;&nbsp;&nbsp;Management fees | 7092 |
| &nbsp;&nbsp;&nbsp;Printing fees | 6583 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 3969 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 2433 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 1509 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 383 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 161 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 4548 |
| **Total liabilities** | 51369 |
| **Net assets** | $12450701 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $18276422 |
| Total distributable earnings (loss) | (5825721) |
| Net assets | $12450701 |
| Capital shares outstanding | 122656 |
| Net asset value per share | $101.51 |

---

---

| |
|:---|
| **CONSOLIDATED STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of affiliated issuers | $110500 |
| Interest | 161910 |
| &nbsp;&nbsp;&nbsp;Total investment income | 272410 |
| **Expenses:** | **Expenses:** |
| Management fees | 153886 |
| Investor service fees | 43575 |
| Transfer agent fees | 47071 |
| Professional fees | 40079 |
| Portfolio accounting and administration fees | 21363 |
| Custodian fees | 2611 |
| Trustees' fees\* | 2083 |
| Miscellaneous | 16227 |
| &nbsp;&nbsp;&nbsp;Total expenses | 326895 |
| Less: | Less: |
| Expenses waived by Adviser | (28363) |
| Net expenses | 298532 |
| Net investment loss | (26122) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Futures contracts | 2396693 |
| Net realized gain | 2396693 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | 204 |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (138257) |
| &nbsp;&nbsp;&nbsp;Futures contracts | 328169 |
| Net change in unrealized appreciation (depreciation) | 190116 |
| Net realized and unrealized gain | 2586809 |
| **Net increase in net assets resulting from operations** | $2560687 |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 67

**COMMODITIES STRATEGY FUND**<br>

**CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment loss | $(26122) | $(95443) |
| Net realized gain on investments | 2396693 | 987963 |
| Net change in unrealized appreciation (depreciation) on investments | 190116 | 167817 |
| Net increase in net assets resulting from operations | 2560687 | 1060337 |
| Distributions to shareholders | (868839) |  |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 47179380 | 70892284 |
| Distributions reinvested | 868839 |  |
| Cost of shares redeemed | (46056125) | (66690436) |
| Net increase from capital share transactions | 1992094 | 4201848 |
| Net increase in net assets | 3683942 | 5262185 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 8766759 | 3504574 |
| &nbsp;&nbsp;&nbsp;End of year | $12450701 | $8766759 |
| **Capital share activity:** |  |  |
| Shares sold | 430268 | 860618 |
| Shares issued from reinvestment of distributions | 8045 |  |
| Shares redeemed | (416319) | (816101) |
| Net increase in shares | 21994 | 44517 |

---

68 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

**COMMODITIES STRATEGY FUND**<br>

**CONSOLIDATED FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $87.09 | $62.42 | $81.37 | $71.69 | $87.44 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | (.17) | (.96) | (.47) | .61 | .67 |
| Net gain (loss) on investments (realized and unrealized) | 20.44 | 25.63 | (18.06) | 10.26 | (13.34) |
| Total from investment operations | 20.27 | 24.67 | (18.53) | 10.87 | (12.67) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (5.85) |  | (.42) | (1.19) | (3.08) |
| Total distributions | (5.85) |  | (.42) | (1.19) | (3.08) |
| Net asset value, end of period | $101.51 | $87.09 | $62.42 | $81.37 | $71.69 |
| **Total Return<sup>b</sup>** | **22.88%** | **39.52%** | **(22.72** **%)** | **15.25%** | **(15.12** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $12451 | $8767 | $3505 | $3193 | $3099 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | (0.15%) | (1.20%) | (0.82%) | 0.77% | 0.75% |
| Total expenses<sup>c</sup> | 1.88% | 1.86% | 1.88% | 1.98% | 1.81% |
| Net expenses<sup>d</sup> | 1.71% | 1.67% | 1.69% | 1.78% | 1.69% |
| Portfolio turnover rate |  | 92% | 123% | 128% | 187% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 69

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** <br>

**Note 1 – Organization, Consolidation of Subsidiaries and Significant Accounting Policies** 

**Organization** 

The Rydex Variable Trust (the "Trust"), a Delaware statutory trust, is registered with the U.S. Securities and Exchange Commission (the "SEC") under the Investment Company Act of 1940 ("1940 Act"), as an open-ended investment company of the series type. Each series, in effect, is representing a separate fund (each, a "Fund"). The Trust may issue an unlimited number of authorized shares. The Trust accounts for the assets of each Fund separately. At December 31, 2022, the Trust consisted of forty-nine Funds. The Trust offers shares of the Funds to insurance companies for their variable annuity and variable life insurance contracts.

This report covers each Fund listed below (collectively, the "Funds").

---

| | |
|:---|:---|
| **Fund Name** | **Investment<br> Company Type** |
| Long Short Equity Fund | Non-diversified |
| Global Managed Futures Strategy Fund | Diversified |
| Multi-Hedge Strategies Fund | Diversified |
| Commodities Strategy Fund | Non-diversified |

---

The Commodities Strategy Fund is designed and operated to accommodate frequent trading by shareholders and, unlike most mutual funds, offers unlimited exchange privileges with no minimum holding periods or transactions fees, which may cause the Fund to experience high portfolio turnover.

Security Investors, LLC (the "Adviser"), which operates under the name Guggenheim Investments ("GI"), provides advisory services. Guggenheim Funds Distributors, LLC ("GFD") acts as principal underwriter for the Trust. GI and GFD are affiliated entities.

**Consolidation of Subsidiary** 

The consolidated financial statements of each of the Global Managed Futures Strategy Fund, Multi-Hedge Strategies Fund and Commodities Strategy Fund include the accounts of a wholly-owned and controlled Cayman Islands subsidiary (each, a "Subsidiary" and collectively, the "Subsidiaries). Significant inter-company accounts and transactions have been eliminated in consolidation for the Funds.

Each Fund may invest up to 25% of its total assets in its Subsidiary, which acts as an investment vehicle in order to effect certain investments consistent with the Fund's investment objective and policies.

A summary of each Fund's investment in its respective Subsidiary is as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Fund** | **Inception <br> Date of <br> Subsidiary** | **Subsidiary <br> Net Assets at <br> December 31, <br> 2022** | **% of Net <br> Assets of the <br> Fund at <br> December 31, <br> 2022** |
| Global Managed Futures Strategy Fund | 11/07/08 | 1805360 | 8.6% |
| Multi-Hedge Strategies Fund | 04/15/09 | 1315455 | 2.6% |
| Commodities Strategy Fund | 07/21/09 | 2316836 | 18.6% |

---

**Significant Accounting Policies** 

The Funds operate as investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All time references are based on Eastern Time.

The net asset value per share ("NAV") of a fund is calculated by dividing the market value of the fund's securities and other assets, less all liabilities, by the number of outstanding shares of that Fund.

**(a) Valuation of Investments** 

The Board of Trustees of the Funds (the "Board") has adopted policies and procedures for the valuation of the Funds' investments (the "Valuation Procedures"). The SEC adopted Rule 2a-5 under the 1940 Act ("Rule 2a-5") which establishes requirements for determining fair value in good faith and became effective September 8, 2022. Rule 2a-5 also defines "readily available market quotations" for purposes of the 1940 Act and establishes requirements for determining whether a fund must fair value a security in good faith.

Pursuant to Rule 2a-5, the Board has designated the Adviser as the valuation designee to perform fair valuation determinations for the Funds with respect to all Fund investments and/or other assets. As the Funds' valuation designee pursuant to

70 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** (continued)<br>

Rule 2a-5, the Adviser has adopted separate procedures (the "Valuation Designee Procedures") reasonably designed to prevent violations of the requirements of Rule 2a-5 and Rule 31a-4. The Adviser, in its role as valuation designee, utilizes the assistance of a valuation committee, consisting of representatives from Guggenheim's investment management, fund administration, legal and compliance departments (the "Valuation Committee"), in determining the fair value of the Funds' securities and other assets.

Valuations of the Funds' securities and other assets are supplied primarily by pricing services appointed pursuant to the processes set forth in the Valuation Procedures. The Adviser, with the assistance of the Valuation Committee, convenes monthly, or more frequently as needed, to review the valuation of all assets which have been fair valued for reasonableness. The Adviser, consistent with the monitoring and review responsibilities set forth in the Valuation Designee Procedures, regularly reviews the appropriateness of the inputs, methods, models and assumptions employed by the pricing services. If the pricing service cannot or does not provide a valuation for a particular investment or such valuation is deemed unreliable, the investment is fair valued by the Adviser.

Equity securities listed or traded on a recognized U.S. securities exchange or the National Association of Securities Dealers Automated Quotations ("NASDAQ") National Market System shall generally be valued on the basis of the last sale price on the primary U.S. exchange or market on which the security is listed or traded; provided, however, that securities listed on NASDAQ will be valued at the NASDAQ official closing price, which may not necessarily represent the last sale price.

Open-end investment companies are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds and closed-end investment companies are generally valued at the last quoted sale price.

U.S. Government securities are valued by independent pricing services, the last traded fill price, or at the reported bid price at the close of business.

Commercial paper and discount notes with a maturity of greater than 60 days at acquisition are valued at prices that reflect broker-dealer supplied valuations or are obtained from independent pricing services, which may consider the trade activity, treasury spreads, yields or price of bonds of comparable quality, coupon, maturity, and type, as well as prices quoted by dealers who make markets in such securities. Commercial paper and discount notes with a maturity of 60 days or less at acquisition are valued at amortized cost, unless the Adviser concludes that amortized cost does not represent the fair value of the applicable asset in which case it will be valued using an independent pricing service.

Repurchase agreements are generally valued at amortized cost, provided such amounts approximate market value.

The value of futures contracts are valued on the basis of the last sale price at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the official settlement price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The value of swap agreements entered into by a fund will generally be valued using an evaluated price provided by a third-party pricing vendor.

Investments for which market quotations are not readily available are fair valued as determined in good faith by the Adviser. Valuations in accordance with these methods are intended to reflect each security's (or asset's or liability's) "fair value". Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over U.S. Treasury securities, and other information analysis. In connection with futures contracts and other derivative investments, such factors may include obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

**(b) U.S. Government and Agency Obligations** 

Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Consolidated Schedules of Investments reflect the effective rates paid at the time of purchase by the Funds. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

**(c) Short Sales** 

When a Fund engages in a short sale of a security, an amount equal to the proceeds is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale.

Fees, if any, paid to brokers to borrow securities in connection with short sales are recorded as interest expense. In addition, the Fund must pay out the dividend rate of the equity or coupon rate of the obligation to the lender and record this as an expense.

THE RYDEX FUNDS ANNUAL REPORT \| 71

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** (continued)<br>

Short dividend or interest expense is a cost associated with the investment objective of short sales transactions, rather than an operational cost associated with the day-to-day management of any mutual fund. The Fund may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short.

**(d) Futures Contracts** 

Upon entering into a futures contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

**(e) Swap Agreements** 

Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized appreciation or depreciation. Payments received or made as a result of an agreement or termination of an agreement are recognized as realized gains or losses.

Upon entering into certain centrally-cleared swap transactions, a Fund is required to deposit with its clearing broker an amount of cash or securities as an initial margin. Subsequent variation margin receipts or payments are received or made by the Fund depending on fluctuations in the fair value of the reference entity and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

**(f) Currency Translations** 

The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at prevailing exchange rates. Purchases and sales of investment securities, dividend and interest income, and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Funds. Foreign investments may also subject the Funds to foreign government exchange restrictions, expropriation, taxation, or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments.

The Funds do not isolate that portion of the results of operations resulting from changes in the foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized gain or loss and unrealized appreciation or depreciation on investments.

Reported net realized foreign exchange gains and losses arise from sales of foreign currencies and currency gains or losses realized between the trade and settlement dates on investment transactions. Net unrealized appreciation and depreciation arise from changes in the fair values of assets and liabilities other than investments in securities at the fiscal period end, resulting from changes in exchange rates.

**(g) Foreign Taxes** 

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and reflected in their Consolidated Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income and foreign taxes on capital gains from sales of investments are included with the net realized gain (loss) on investments. Foreign taxes payable or deferred as of December 31, 2022, if any, are disclosed in the Funds' Consolidated Statements of Assets and Liabilities.

**(h) Security Transactions** 

Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as a reduction to cost if the securities are still held and as realized gains if no longer held in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries, if any. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from Real Estate Investment Trusts ("REITs") is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to realized gains. The actual amounts of income, return of capital, and realized gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

72 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** (continued)<br>

**(i) Distributions** 

Distributions of net investment income and net realized gains, if any, are declared and paid at least annually. Normally, all distributions of a Fund will automatically be reinvested without charge in additional shares of the same Fund. Distributions are recorded on the ex-dividend date and are determined in accordance with U.S. federal income tax regulations which may differ from U.S. GAAP.

**(j) Cash** 

The Funds may leave cash overnight in their cash account with the custodian. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate, which was 4.33% at December 31, 2022.

**(k) Indemnifications** 

Under the Funds' organizational documents, the Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

**Note 2 – Financial Instruments and Derivatives** 

As part of their investment strategy, the Funds may utilize short sales and a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of amounts recognized on the Funds' Consolidated Statements of Assets and Liabilities. Valuation and accounting treatment of these instruments can be found under Significant Accounting Policies in Note 1 of these Notes to Consolidated Financial Statements.

**Short Sales** 

A short sale is a transaction in which a Fund sells a security it does not own. If the security sold short decreases in price between the time the Fund sells the security and closes its short position, the Fund will realize a gain on the transaction. Conversely, if the security increases in price during the period, the Fund will realize a loss on the transaction. The risk of such price increases is the principal risk of engaging in short sales.

**Derivatives** 

Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to increase investment flexibility (including to maintain cash reserves while maintaining exposure to certain other assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Derivative instruments may also be used to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund's financial position and results of operations.

The Funds may utilize derivatives for the following purposes:

**Duration:** the use of an instrument to manage the interest rate risk of a portfolio.

**Hedge:** an investment made in order to reduce the risk of adverse price movements in a security, by taking an offsetting position to protect against broad market moves.

**Index Exposure:** the use of an instrument to obtain exposure to a listed or other type of index.

**Leverage:** gaining total exposure to equities or other assets on the long and short sides at greater than 100% of invested capital.

**Liquidity:** the ability to buy or sell exposure with little price/market impact.

**Speculation:** the use of an instrument to express macro-economic and other investment views.

For any Fund whose investment strategy consistently involves applying leverage, the value of the Fund's shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index or other asset. In addition, because an investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, an opportunity for increased net income is created; but, at the same time, leverage risk will increase. The Fund's use of leverage, through borrowings or instruments such as derivatives, may cause an investment in the Fund to be more volatile and riskier than if the Fund had not been leveraged.

THE RYDEX FUNDS ANNUAL REPORT \| 73

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** (continued)<br>

**Futures Contracts** 

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund's use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to a Fund because futures are exchange-traded and the exchange's clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as segregated cash with broker on the Funds' Consolidated Statements of Assets and Liabilities; securities held as collateral are noted on the Consolidated Schedules of Investments.

The following table represents the Funds' use and volume of futures on a monthly basis:

---

| | | | |
|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Average Notional Amount** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Average Notional Amount** |
| <br>**Fund** | <br>**Use** | **Long** | **Short** |
| Global Managed Futures Strategy Fund | Hedge, Leverage, Liquidity, Speculation | $20431911 | $40032519 |
| Multi-Hedge Strategies Fund | Duration, Hedge, Index exposure, Leverage, Liquidity, Speculation | 36007325 | 35498040 |
| Commodities Strategy Fund | Index exposure, Liquidity | 17618615 |  |

---

**Swap Agreements** 

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. When utilizing over-the-counter ("OTC") swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing and are executed on a multi-lateral or other trade facility platform, such as a registered exchange. There is limited counterparty credit risk with respect to centrally-cleared swaps as the transaction is facilitated through a central clearinghouse, much like exchange-traded futures contracts. For a fund utilizing centrally-cleared swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. There is no guarantee that a fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

Custom basket swaps involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset (such as a custom basket of securities) for a fixed or variable interest rate. Custom basket swaps will usually be computed based on the current value of the reference asset as of the close of regular trading on the NYSE or other exchange, with the swap value being adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreement. When utilizing custom basket swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying reference asset declines in value.

The following table represents the Funds' use and volume of custom basket swaps on a monthly basis:

---

| | | | |
|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Average Notional Amount** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Average Notional Amount** |
| <br>**Fund** | <br>**Use** | **Long** | **Short** |
| Long Short Equity Fund | Index exposure, Liquidity | $21658110 | $23982102 |
| Multi-Hedge Strategies Fund | Hedge, Index exposure, Leverage, Liquidity, Speculation | 25182292 | 21058393 |

---

74 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** (continued)<br>

**Derivative Investment Holdings Categorized by Risk Exposure** 

The following is a summary of the location of derivative investments on the Funds' Consolidated Statements of Assets and Liabilities as of December 31, 2022:

---

| | | |
|:---|:---|:---|
| **Derivative Investment Type** | **Asset Derivatives** | **Liability Derivatives** |
| Commodity/currency/equity/interest rate futures contracts  | Variation margin on futures contracts  | Variation margin on futures contracts  |
| Equity swap contracts  | Unrealized appreciation on OTC swap agreements | Unrealized depreciation on OTC swap agreements |

---

The following tables set forth the fair value of the Funds' derivative investments categorized by primary risk exposure at December 31, 2022:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Asset Derivative Investments Value** | **Asset Derivative Investments Value** | **Asset Derivative Investments Value** | **Asset Derivative Investments Value** | **Asset Derivative Investments Value** | **Asset Derivative Investments Value** | **Asset Derivative Investments Value** |
| **Fund** | **Futures <br> Equity <br> Risk\*** | **Swaps <br> Equity <br> Risk** | **Futures <br> Foreign <br> Currency<br> Exchange <br> Risk\*** | **Futures<br> Interest <br> Rate <br> Risk\*** | **Futures <br> Commodity <br> Risk\*** | **Total Value at <br> December 31, <br> 2022** |
| Long Short Equity Fund | $— | $1551097 | $— | $— | $— | $1551097 |
| Global Managed Futures Strategy Fund | 34190 |  | 55120 | 516530 | 407131 | 1012971 |
| Multi-Hedge Strategies Fund | 48954 | 2593238 | 63250 | 97681 | 548328 | 3351451 |
| Commodities Strategy Fund |  |  |  |  | 662513 | 662513 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Liability Derivative Investments Value** | **Liability Derivative Investments Value** | **Liability Derivative Investments Value** | **Liability Derivative Investments Value** | **Liability Derivative Investments Value** | **Liability Derivative Investments Value** | **Liability Derivative Investments Value** |
| **Fund** | **Futures <br> Equity <br> Risk\*** | **Swaps <br> Equity <br> Risk** | **Futures <br> Foreign <br> Currency<br> Exchange <br> Risk\*** | **Futures<br> Interest <br> Rate <br> Risk\*** | **Futures <br> Commodity <br> Risk\*** | **Total Value at <br> December 31, <br> 2022** |
| Global Managed Futures Strategy Fund | $99917 | $— | $56640 | $1809 | $126839 | $285205 |
| Multi-Hedge Strategies Fund | 209265 | 81024 | 105166 | 11396 | 268798 | 675649 |

---

\* Includes cumulative appreciation (depreciation) of exchange-traded, OTC and centrally-cleared derivatives contracts as reported on the Funds' Consolidated Schedules of Investments. For exchange-traded and centrally-cleared derivatives, variation margin is reported within the Funds' Consolidated Statements of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Funds' Consolidated Statements of Operations for the year ended December 31, 2022:

---

| | |
|:---|:---|
| **Derivative Investment Type** | **Location of Gain (Loss) on Derivatives** |
| Commodity/currency/equity/interest rate futures contracts | Net realized gain (loss) on futures contracts |
|  | Net change in unrealized appreciation (depreciation) on futures contracts |
| Equity swap contracts | Net realized gain (loss) on swap agreements |
|  | Net change in unrealized appreciation (depreciation) on swap agreements  |

---

THE RYDEX FUNDS ANNUAL REPORT \| 75

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** (continued)<br>

The following is a summary of the Funds' realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Funds' Consolidated Statements of Operations categorized by primary risk exposure for the year ended December 31, 2022:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Realized Gain (Loss) on Derivative Investments Recognized on the Consolidated Statements of Operations** | **Realized Gain (Loss) on Derivative Investments Recognized on the Consolidated Statements of Operations** | **Realized Gain (Loss) on Derivative Investments Recognized on the Consolidated Statements of Operations** | **Realized Gain (Loss) on Derivative Investments Recognized on the Consolidated Statements of Operations** | **Realized Gain (Loss) on Derivative Investments Recognized on the Consolidated Statements of Operations** | **Realized Gain (Loss) on Derivative Investments Recognized on the Consolidated Statements of Operations** | **Realized Gain (Loss) on Derivative Investments Recognized on the Consolidated Statements of Operations** |
| **Fund** | **Futures <br> Equity <br> Risk** | **Swaps <br> Equity <br> Risk** | **Futures <br> Foreign <br> Currency <br> Exchange <br> Risk** | **Futures <br> Interest <br> Rate <br> Risk** | **Futures <br> Commodity <br> Risk** | **Total** |
| Long Short Equity Fund | $— | $(388639) | $— | $— | $— | $(388639) |
| Global Managed Futures Strategy Fund | (724397) |  | 542333 | 1104061 | (903590) | 18407 |
| Multi-Hedge Strategies Fund | (490697) | (1464624) | (119282) | 306196 | 27480 | (1740927) |
| Commodities Strategy Fund |  |  |  |  | 2396693 | 2396693 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Consolidated Statements of Operations** | **Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Consolidated Statements of Operations** | **Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Consolidated Statements of Operations** | **Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Consolidated Statements of Operations** | **Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Consolidated Statements of Operations** | **Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Consolidated Statements of Operations** | **Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Consolidated Statements of Operations** |
| **Fund** | **Futures <br> Equity <br> Risk** | **Swaps <br> Equity <br> Risk** | **Futures <br> Foreign <br> Currency <br> Exchange <br> Risk** | **Futures <br> Interest <br> Rate <br> Risk** | **Futures <br> Commodity <br> Risk** | **Total** |
| Long Short Equity Fund | $— | $(264318) | $— | $— | $— | $(264318) |
| Global Managed Futures Strategy Fund | (101597) |  | 76880 | 531037 | 257996 | 764316 |
| Multi-Hedge Strategies Fund | (194271) | (113893) | 70118 | 200342 | 272553 | 234849 |
| Commodities Strategy Fund |  |  |  |  | 328169 | 328169 |

---

In conjunction with short sales and the use of derivative instruments, the Funds are required to maintain collateral in various forms. Depending on the financial instrument utilized and the broker involved, the Funds use margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or repurchase agreements allocated to the Funds as collateral.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

**Note 3 – Offsetting** 

In the normal course of business, the Funds enter into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Funds to counteract the exposure to a specific counterparty with collateral received from or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, are reported separately on the Funds' Consolidated Statements of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Cash and/or securities pledged or received as collateral by the Funds in connection with an OTC derivative subject to an ISDA Master Agreement generally may not be invested, sold or rehypothecated by the counterparty or the Funds, as applicable, absent an event of default under such agreement, in which case such collateral generally may be applied towards obligations due to and payable by such counterparty or the Funds, as applicable. Generally, the amount of

76 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** (continued)<br>

collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Funds' Consolidated Statements of Assets and Liabilities.

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **Gross Amounts Not Offset <br> in the Consolidated Statements <br> of Assets and Liabilities** | **Gross Amounts Not Offset <br> in the Consolidated Statements <br> of Assets and Liabilities** | |
| <br>**Fund** | <br>**Instrument** | <br>**Gross <br> Amounts of <br> Recognized <br> Assets<sup>1</sup>** | <br>**Gross <br> Amounts <br> Offset in the <br> Consolidated <br> Statements <br> of Assets and <br> Liabilities** | <br>**Net Amount <br> of Assets <br> Presented <br> on the <br> Consolidated <br> Statements <br> of Assets and <br> Liabilities** | **Financial <br> Instruments** | **Cash <br> Collateral <br> Received** | <br>**Net <br> Amount** |
| Long Short Equity Fund | Custom basket swap agreements | $1551097 | $— | $1551097 | $— | $— | $1551097 |
| Multi-Hedge Strategies Fund | Custom basket swap agreements | 2593238 |  | 2593238 | (81024) |  | 2512214 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **Gross Amounts Not Offset <br> in the Consolidated Statements <br> of Assets and Liabilities** | **Gross Amounts Not Offset <br> in the Consolidated Statements <br> of Assets and Liabilities** | |
| <br>**Fund** | <br>**Instrument** | <br>**Gross <br> Amounts of <br> Recognized <br> Liabilities<sup>1</sup>** | <br>**Gross <br> Amounts <br> Offset in the <br> Consolidated <br> Statements <br> of Assets and <br> Liabilities** | <br>**Net Amount <br> of Liabilities <br> Presented <br> on the <br> Consolidated <br> Statements <br> of Assets and <br> Liabilities** | **Financial <br> Instruments** | **Cash <br> Collateral <br> Pledged** | <br>**Net <br> Amount** |
| Multi-Hedge Strategies Fund | Custom basket swap agreements | $81024 | $— | $81024 | $(81024) | $— | $— |

---

<sup>1</sup> Exchange-traded or centrally-cleared derivatives are excluded from these reported amounts.

The Funds have the right to offset deposits against any related derivative liabilities outstanding with each counterparty with the exception of exchange-traded or centrally-cleared derivatives. The following table presents deposits held by others in connection with derivative investments as of December 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund** | **Counterparty** | **Asset Type** | **Cash Pledged** | **Cash Received** |
| Global Managed Futures Strategy Fund | Goldman Sachs International | Futures contracts | $764721 | $— |
| Multi-Hedge Strategies Fund | Goldman Sachs International | Futures contracts | 584284 |  |
| Commodities Strategy Fund | Goldman Sachs International | Futures contracts | 1142004 |  |

---

THE RYDEX FUNDS ANNUAL REPORT \| 77

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** (continued)<br>

**Note 4 – Fair Value Measurement** 

In accordance with U.S. GAAP, fair value is defined as the price that the Funds would receive to sell an investment or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a three-tier fair value hierarchy based on the types of inputs used to value assets and liabilities and requires corresponding disclosure. The hierarchy and the corresponding inputs are summarized below:

Level 1 — unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 — significant other observable inputs (for example quoted prices for securities that are similar based on characteristics such as interest rates, prepayment speeds, credit risk, etc.).

Level 3 — significant unobservable inputs based on the best information available under the circumstances, to the extent observable inputs are not available, which may include assumptions.

Rule 2a-5 sets forth a definition of "readily available market quotations," which is consistent with the definition of a Level 1 input under U.S. GAAP. Rule 2a-5 provides that "a market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable."

Securities for which market quotations are not readily available must be valued at fair value as determined in good faith. Accordingly, any security priced using inputs other than Level 1 inputs will be subject to fair value requirements. The types of inputs available depend on a variety of factors, such as the type of security and the characteristics of the markets in which it trades, if any. Fair valuation determinations that rely on fewer or no observable inputs require greater judgment. Accordingly, fair value determinations for Level 3 securities require the greatest amount of judgment.

The inputs or methodologies selected and applied for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The suitability, appropriateness and accuracy of the techniques, methodologies and sources employed to determine fair valuation are periodically reviewed and subject to change.

**Note 5 – Investment Advisory Agreement and Other Agreements** 

Under the terms of an investment advisory contract, the Funds pay GI investment advisory fees calculated at the annualized rates below, based on the average daily net assets of the Funds:

---

| | |
|:---|:---|
| **Fund** | **Management Fees<br> (as a % of Net Assets)** |
| Long Short Equity Fund | 0.90% |
| Global Managed Futures Strategy Fund | 0.90% |
| Multi-Hedge Strategies Fund | 1.15% |
| Commodities Strategy Fund | 0.75% |

---

GI has contractually agreed to waive the management fee it receives from each Subsidiary in an amount equal to the management fee paid to GI by the Subsidiary. This undertaking will continue in effect for so long as the Funds invest in the Subsidiaries, and may not be terminated by GI unless GI obtains the prior approval of the Funds' Board for such termination. Fees waived under this arrangement are not subject to reimbursement to GI. For the year ended December 31, 2022, the Global Managed Futures Strategy Fund, Multi-Hedge Strategies Fund and Commodities Strategy Fund waived $18,531, $19,323 and $22,908, respectively, related to advisory fees in its respective Subsidiary.

As part of its agreement with the Trust, GI will pay all expenses of the Multi-Hedge Strategies Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except interest expense, taxes (expected to be de minimis), brokerage commissions and other expenses connected with execution of portfolio transactions, short dividend expenses, subsidiary expenses and extraordinary expenses.

78 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** (continued)<br>

GI pays operating expenses on behalf of the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, among others, on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

The Board has adopted an Investor Services Plan under which GFD and other firms that provide investor services ("Service Providers") may receive compensation. The Funds will pay investor service fees to GFD at an annual rate not to exceed 0.25% of average daily net assets. GFD, in turn, will compensate Service Providers for providing such services, while retaining a portion of such payments to compensate itself for investor services it performs.

If a Fund invests in a fund that is advised by the same adviser or an affiliated adviser, the investing Fund's adviser has agreed to waive fees at the investing Fund level to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. Fee waivers will be calculated at the investing Fund level without regard to any expense cap in effect for the investing Fund. Fees waived under this arrangement are not subject to reimbursement to GI. For the year ended December 31, 2022, the following Funds waived fees related to investments in affiliated funds:

---

| | |
|:---|:---|
| **Fund** | **Amount Waived** |
| Global Managed Futures Strategy Fund | $177 |
| Multi-Hedge Strategies Fund | 6266 |
| Commodities Strategy Fund | 5455 |

---

Certain trustees and officers of the Trust are also officers of GI and/or GFD. The Trust does not compensate its officers or trustees who are officers, directors and/or employees of GI or GFD.

MUFG Investor Services (US), LLC ("MUIS") acts as the Funds' administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS maintains the books and records of the Funds' securities and cash. U.S. Bank, N.A. ("U.S. Bank") acts as the Funds' custodian. As custodian, U.S. Bank is responsible for the custody of the Funds' assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of each Fund's average daily net assets and out of pocket expenses.

**Note 6 – Repurchase Agreements** 

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The joint account includes other Funds in the Guggenheim complex not covered in this report. The collateral is in the possession of the Funds' custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At December 31, 2022, the repurchase agreements in the joint account were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Counterparty and <br> Terms of Agreement** | **Face Value** | **Repurchase Price** | **Collateral** | **Par Value** | **Fair Value** |
| J.P. Morgan Securities LLC |  |  | U.S. Treasury Note |  |  |
| &nbsp;&nbsp;4.26% |  |  | &nbsp;&nbsp;2.25% |  |  |
| &nbsp;&nbsp;Due 01/03/23 | $60091722 | $60113055 | &nbsp;&nbsp;Due 11/15/24 | $63635200 | $61293613 |
| BofA Securities, Inc. |  |  | U.S. Treasury Note |  |  |
| &nbsp;&nbsp;4.25% |  |  | &nbsp;&nbsp;0.75% |  |  |
| &nbsp;&nbsp;Due 01/03/23 | 23112201 | 23120387 | &nbsp;&nbsp;Due 04/30/26 | 26301500 | 23574458 |
| Barclays Capital, Inc. |  |  | U.S. Treasury Inflation Indexed Bond |  |  |
| &nbsp;&nbsp;4.21% |  |  | &nbsp;&nbsp;0.13% |  |  |
| &nbsp;&nbsp;Due 01/03/23 | 23040622 | 23048705 | &nbsp;&nbsp;Due 01/15/31 | 26575915 | 23501502 |

---

THE RYDEX FUNDS ANNUAL REPORT \| 79

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** (continued)<br>

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

**Note 7 – Portfolio Securities Loaned** 

The Funds may lend their securities to approved brokers to earn additional income. Securities lending income shown on the Funds' Consolidated Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds' securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund — Class X. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

At December 31, 2022, the following Funds participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Gross Amounts Not Offset in the <br> Consolidated Statements of Assets and Liabilities** | **Gross Amounts Not Offset in the <br> Consolidated Statements of Assets and Liabilities** | **Gross Amounts Not Offset in the <br> Consolidated Statements of Assets and Liabilities** | **Securities Lending Collateral** | **Securities Lending Collateral** | **Securities Lending Collateral** |
| <br>**Fund** | **Value of <br> Securities<br> Loaned** | **Collateral<br> Received<sup>(a)</sup>** | **Net<br> Amount** | **Cash<br> Collateral<br> Invested** | **Cash<br> Collateral<br> Uninvested** | **Total<br> Collateral** |
| Multi-Hedge Strategies Fund | $19209 | $(19209) | $— | $21038 | $— | $21038 |

---

<sup>(a)</sup> Actual collateral received by the Fund is generally greater than the amount shown due to overcollateralization.

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers to evaluate potential risks.

**Note 8 – Federal Income Tax Information** 

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code, as amended (the "Internal Revenue Code"), applicable to regulated investment companies and will distribute substantially all taxable net investment income and capital gains sufficient to relieve the Funds from all, or substantially all, federal income, excise and state income taxes. Therefore, no provision for federal or state income tax or federal excise tax is required.

Tax positions taken or expected to be taken in the course of preparing the Funds' tax returns are evaluated to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds' tax positions taken, or to be taken, on U.S. federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Funds' consolidated financial statements. The Funds' U.S. federal income tax returns are subject to examination by the Internal Revenue Service ("IRS") for a period of three years after they are filed.

80 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** (continued)<br>

The Global Managed Futures Strategy Fund, Multi-Hedge Strategies Fund, and Commodities Strategy Fund intend to invest up to 25% of their assets in the respective Subsidiary which is expected to provide the Funds with exposure to the commodities markets within the limitations of the U.S. federal income tax requirements under Subchapter M of the Internal Revenue Code. The Funds have received a private letter ruling from the IRS that concludes that the income the Funds receive from the Subsidiary will constitute qualifying income for purposes of Subchapter M of the Internal Revenue Code. The Subsidiary will be classified as a corporation for U.S. federal income tax purposes. A foreign corporation, such as the Subsidiary, will generally not be subject to U.S. federal income taxation unless it is deemed to be engaged in a U.S. trade or business. If, during a taxable year, the Subsidiary's taxable losses (and other deductible items) exceed its income and gains, the net loss will not pass through to the Fund as a deductible amount for U.S. federal income tax purposes and cannot be carried forward to reduce future income from the Subsidiary in subsequent years.

The tax character of distributions paid during the year ended December 31, 2022 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Fund** | **Ordinary <br> Income** | **Long-Term <br> Capital Gain** | **Total<br> Distributions** |
| Long Short Equity Fund | $114913 | $— | $114913 |
| Global Managed Futures Strategy Fund | 577535 |  | 577535 |
| Multi-Hedge Strategies Fund | 622161 | 540528 | 1162689 |
| Commodities Strategy Fund | 868839 |  | 868839 |

---

The tax character of distributions paid during the year ended December 31, 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Fund** | **Ordinary <br> Income** | **Long-Term <br> Capital Gain** | **Total<br> Distributions** |
| Long Short Equity Fund | $164195 | $— | $164195 |
| Global Managed Futures Strategy Fund | 30985 | 128711 | 159696 |
| Multi-Hedge Strategies Fund |  | 1077383 | 1077383 |

---

Note: For U.S. federal income tax purposes, short-term capital gain distributions are treated as ordinary income distributions.

The tax components of distributable earnings/(loss) as of December 31, 2022 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Fund** | **Undistributed <br> Ordinary <br> Income** | **Undistributed <br> Long-Term <br> Capital Gain** | **Net Unrealized <br> Appreciation <br> (Depreciation)** | **Accumulated <br> Capital and <br> Other Losses** | **Total** |
| Long Short Equity Fund | $68972 | $— | $1736514 | $(2287078) | $(481592) |
| Global Managed Futures Strategy Fund | 661323 | 335488 | (2068564) |  | (1071753) |
| Multi-Hedge Strategies Fund | 1350876 |  | (640278) | (2235705) | (1525107) |
| Commodities Strategy Fund | 969331 |  | (6715261) |  | (5745930) |

---

For U.S. federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward and applied against future capital gains. The Funds are permitted to carry forward capital losses for an unlimited period and such capital loss carryforwards retain their character as either short-term or long-term capital losses. As of December 31, 2022, capital loss carryforwards for the Funds were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Unlimited** | **Unlimited** | |
| <br>**Fund** | **Short-Term** | **Long-Term**  | <br>**Total<br> Capital Loss <br> Carryforward** |
| Long Short Equity Fund | $(2287078) | $— | $(2287078) |
| Multi-Hedge Strategies Fund | (1988079) | (234435) | (2222514) |

---

THE RYDEX FUNDS ANNUAL REPORT \| 81

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** (continued)<br>

For the year ended December 31, 2022, the following capital loss carryforward amounts were utilized:

---

| | |
|:---|:---|
| **Fund** | **Utilized** |
| Commodities Strategy Fund | $27168 |

---

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to investments in subsidiaries and real estate investment trusts, the "mark-to-market" of certain derivatives, foreign currency gains and losses, losses deferred due to wash sales, investments in securities sold short, special dividends, distributions in connection with redemption of fund shares, investments in swap agreements, and the "mark-to-market," recharacterization, or disposition of certain Passive Foreign Investment Companies (PFICs). To the extent these differences are permanent and would require a reclassification between Paid in Capital and Total Distributable Earnings (Loss), such reclassifications are made in the period that the differences arise. These reclassifications have no effect on net assets or NAV per share.

The following adjustments were made on the Funds' Consolidated Statements of Assets and Liabilities as of December 31, 2022 for permanent book/tax differences:

---

| | | |
|:---|:---|:---|
| **Fund** | **Paid In <br> Capital** | **Total <br> Distributable <br> Earnings/(Loss)** |
| Global Managed Futures Strategy Fund | $(397933) | $397933 |
| Multi-Hedge Strategies Fund | 7671 | (7671) |
| Commodities Strategy Fund | 5562589 | (5562589) |

---

At December 31, 2022, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund** | **Tax <br> Cost** | **Tax <br> Unrealized <br> Appreciation** | **Tax <br> Unrealized <br> Depreciation** | **Net Tax <br> Unrealized <br> Appreciation/ <br> (Depreciation)** |
| Long Short Equity Fund | $20661030 | $2623218 | $(886704) | $1736514 |
| Global Managed Futures Strategy Fund | 23226569 | 1085870 | (3154671) | (2068801) |
| Multi-Hedge Strategies Fund | 44189964 | 2146182 | (2785265) | (639083) |
| Commodities Strategy Fund | 19810669 | 2012331 | (8727592) | (6715261) |

---

**Note 9 – Securities Transactions** 

For the year ended December 31, 2022, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

---

| | | |
|:---|:---|:---|
| **Fund** | **Purchases** | **Sales** |
| Long Short Equity Fund | $66401479 | $67286815 |
| Global Managed Futures Strategy Fund |  |  |
| Multi-Hedge Strategies Fund | 71032415 | 68289208 |
| Commodities Strategy Fund |  |  |

---

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the year ended December 31, 2022, the Funds did not engage in purchases and sales of securities pursuant to Rule 17a-7 of the 1940 Act.

82 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** (concluded)<br>

**Note 10 – Line of Credit** 

The Trust, along with other affiliated trusts, secured an uncommitted $150,000,000 line of credit from U.S. Bank, N.A., which was increased to $200,000,000 on February 10, 2021. On June 6, 2022, the line of credit agreement was renewed and expires on June 5, 2023. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 2.82% for the year ended December 31, 2022. The Funds did not have any borrowings outstanding under this agreement at December 31, 2022.

The average daily balances borrowed for the year ended December 31, 2022, were as follows:

---

| | |
|:---|:---|
| **Fund** | **Average Daily Balance** |
| Long Short Equity Fund | $90 |

---

**Note 11 – Market Risks** 

The value of, or income generated by, the investments held by the Funds are subject to the possibility of rapid and unpredictable fluctuation, and loss that may result from various factors. These factors include, among others, developments affecting individual companies, or from broader influences, including real or perceived changes in prevailing interest rates (which have since risen and may continue to rise), changes in inflation rates or expectations about inflation rates (which are currently elevated relative to normal conditions), adverse investor confidence or sentiment, changing economic, political (including geopolitical), social or financial market conditions, increased instability or general uncertainty, environmental disasters, governmental actions, public health emergencies (such as the spread of infectious diseases, pandemics and epidemics), debt crises, actual or threatened wars or other armed conflicts (such as the current Russia-Ukraine conflict and its risk of expansion or collateral economic and other effects) or ratings downgrades, and other similar events, each of which may be temporary or last for extended periods. Moreover, changing economic, political, geopolitical, social, financial market or other conditions in one country or geographic region could adversely affect the value, yield and return of the investments held by the Funds in a different country or geographic region, economy, and market because of the increasingly interconnected global economies and financial markets. The duration and extent of the foregoing types of factors or conditions are highly uncertain and difficult to predict and have in the past, and may in the future, cause volatility and distress in economies and financial markets or other adverse circumstances, which may negatively affect the value of the Funds' investments and performance of the Funds.

**Note 12 – Subsequent Events** 

The Funds evaluated subsequent events through the date the consolidated financial statements were available for issue and determined there were no material events that would require adjustment to or disclosure in the Funds' consolidated financial statements.

THE RYDEX FUNDS ANNUAL REPORT \| 83

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** <br>

To the Shareholders of Guggenheim Long Short Equity Fund, Global Managed Futures Strategy Fund, Multi-Hedge Strategies Fund and Rydex Commodities Strategy Fund and the Board of Trustees of Rydex Variable Trust

**Opinion on the Financial Statements** 

We have audited the accompanying statements of assets and liabilities of Guggenheim Long Short Equity Fund, Global Managed Futures Strategy Fund (consolidated), Multi-Hedge Strategies Fund (consolidated) and Rydex Commodities Strategy Fund (consolidated) (collectively referred to as the "Funds"), (four of the funds constituting Rydex Variable Trust (the "Trust")), including the schedules of investments, as of December 31, 2022, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated, where applicable, financial position of each of the Funds (four of the funds constituting Rydex Variable Trust) at December 31, 2022, the consolidated, where applicable, results of their operations for the year then ended, the consolidated, where applicable, changes in their net assets for each of the two years in the period then ended and their consolidated, where applicable, financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion** 

These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on each of the Funds' financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, transfer agent, and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](fp0081230-1_84.jpg)

We have served as the auditor of one or more Guggenheim investment companies since 1979.

Tysons, Virginia<br> February 24, 2023

84 \| THE RYDEX FUNDS ANNUAL REPORT

**OTHER INFORMATION** (Unaudited)<br>

**Federal Income Tax Information** 

This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.

In January 2023, shareholders will be advised on IRS Form 1099 DIV or substitute 1099 DIV as to the federal tax status of the distributions received by shareholders in the calendar year 2022.

The Funds' investment income (dividend income plus short-term capital gains, if any) qualifies as follows:

Of the taxable ordinary income distributions paid during the fiscal year ended December 31, 2022, the following Funds had the corresponding percentages qualify for the dividends received deduction for corporations.

---

| | |
|:---|:---|
| **Fund** | **Dividend <br> Received <br> Deduction** |
| Long Short Equity Fund | 100.00% |
| Global Managed Futures Strategy Fund | 0.00% |
| Multi-Hedge Strategies Fund | 72.07% |
| Commodities Strategy Fund | 0.00% |

---

With respect to the taxable year ended December 31, 2022, the Funds hereby designate as capital gain dividends the amounts listed below, or, if subsequently determined to be different, the net capital gain of such year:

---

| | | |
|:---|:---|:---|
| **Fund** | **From <br> long-term <br> capital gain:** | **From long-term capital <br> gain, using proceeds <br> from shareholder <br> redemptions:** |
| Global Managed Futures Strategy Fund | $— | $509327 |
| Multi-Hedge Strategies Fund | 540528 |  |

---

**Delivery of Shareholder Reports** 

Paper copies of the Funds' annual and semi-annual shareholder reports are not sent by mail, unless you specifically request paper copies of the reports from a Fund or from your financial intermediary. Instead, the reports are made available on a website, and you are notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future shareholder reports in paper free of charge. If you hold shares of a Fund directly, you can inform the Fund that you wish to receive paper copies of reports by calling 800.820.0888. If you hold shares of a Fund through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive reports in paper may apply to all Guggenheim Funds in which you are invested and may apply to all Guggenheim Funds held with your financial intermediary.

**Proxy Voting Information** 

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds' portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC's website at https://www.sec.gov.

Information regarding how the Funds' voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC's website at https://www.sec.gov.

THE RYDEX FUNDS ANNUAL REPORT \| 85

**OTHER INFORMATION** (Unaudited) (concluded)<br>

**Sector Classification** 

Information in the Consolidated Schedule of Investments is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. Each Fund's registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Funds usually classify sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

**Quarterly Portfolio Schedules Information** 

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds' Forms N-PORT and N-Q are available on the SEC's website at https://www.sec.gov. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

86 \| THE RYDEX FUNDS ANNUAL REPORT

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited) <br>

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Funds' Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by visiting guggenheiminvestments.com or by calling 800.820.0888.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** | **Number of <br> Portfolios <br> in Fund <br> Complex <br> Overseen**  | **Other <br> Directorships Held <br> by Trustees\*\*\*** |
| **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** |  |  |  |
| **Randall C. Barnes** <br>(1951) | &nbsp;&nbsp;&nbsp;Trustee and Chair of the Valuation Oversight Committee | Since 2019 (Trustee) <br>Since 2020 (Chair of the Valuation Oversight Committee) | &nbsp;&nbsp;&nbsp;Current: Private Investor (2001-present). <br>Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990). | 155 | &nbsp;&nbsp;&nbsp;Current: Advent Convertible and Income Fund (2005-present); Purpose Investments Funds (2013-present). <br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2004-2022); Guggenheim Enhanced Equity Income Fund (2005-2021); Guggenheim Credit Allocation Fund (2013-2021). |
| **Angela Brock-Kyle** <br>(1959) | &nbsp;&nbsp;&nbsp;Trustee | Since 2016 | &nbsp;&nbsp;&nbsp;Current: Founder and Chief Executive Officer, B.O.A.R.D.S. (2013-present); Director, Mutual Fund Directors Forum (2022-present). <br>Former: Senior Leader, TIAA (1987-2012). | 154 | &nbsp;&nbsp;&nbsp;Current: Bowhead Insurance GP, LLC (2020-present); Hunt Companies, Inc. (2019-present). <br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2019-2022); Guggenheim Enhanced Equity Income Fund (2019-2021); Guggenheim Credit Allocation Fund (2019-2021); Infinity Property & Casualty Corp. (2014-2018). |

---

THE RYDEX FUNDS ANNUAL REPORT \| 87

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(continued)<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** | **Number of <br> Portfolios <br> in Fund <br> Complex <br> Overseen**  | **Other <br> Directorships Held <br> by Trustees\*\*\*** |
| **INDEPENDENT TRUSTEES - continued** | **INDEPENDENT TRUSTEES - continued** | **INDEPENDENT TRUSTEES - continued** | **INDEPENDENT TRUSTEES - continued** |  |  |
| **Thomas F. Lydon, Jr.** <br>(1960) | &nbsp;&nbsp;&nbsp;Trustee and Chair of the Contracts Review Committee | Since 2005 (Trustee) <br>Since 2020 (Chair of the Contracts Review Committee) | &nbsp;&nbsp;&nbsp;Current: President, Global Trends Investments (1996-present); Chief Executive Officer, ETF Flows, LLC (2019-present); Chief Executive Officer, Lydon Media (2016-present); Director, GDX Index Partners, LLC (2021-present); Vice Chairman, VettaFi (2022-present). | 154 | &nbsp;&nbsp;&nbsp;Current: US Global Investors, Inc. (GROW) (1995-present). <br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2019-2022); Guggenheim Enhanced Equity Income Fund (2019-2021); Guggenheim Credit Allocation Fund (2019-2021); Harvest Volatility Edge Trust (3) (2017-2019). |
| **Ronald A. Nyberg** <br>(1953) | &nbsp;&nbsp;&nbsp;Trustee and Chair of the Nominating and Governance Committee | Since 2019 | &nbsp;&nbsp;&nbsp;Current: Of Counsel, Momkus LLP (2016-present). <br>Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999). | 155 | &nbsp;&nbsp;&nbsp;Current: Advent Convertible and Income Fund (2003-present); PPM Funds (2) (2018-present); NorthShore-Edward-Elmhurst Health (2012-present). <br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2004-2022); Guggenheim Enhanced Equity Income Fund (2005-2021); Guggenheim Credit Allocation Fund (2013-2021); Western Asset Inflation-Linked Opportunities & Income Fund (2004-2020); Western Asset Inflation-Linked Income Fund (2003-2020). |

---

88 \| THE RYDEX FUNDS ANNUAL REPORT

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(continued)<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** | **Number of <br> Portfolios <br> in Fund <br> Complex <br> Overseen**  | **Other <br> Directorships Held <br> by Trustees\*\*\*** |
| **INDEPENDENT TRUSTEES - concluded** | **INDEPENDENT TRUSTEES - concluded** | **INDEPENDENT TRUSTEES - concluded** | **INDEPENDENT TRUSTEES - concluded** |  |  |
| **Sandra G. Sponem** <br>(1958) | &nbsp;&nbsp;&nbsp;Trustee and Chair of the Audit Committee | Since 2016 (Trustee) <br>Since 2019 (Chair of the Audit Committee) | &nbsp;&nbsp;&nbsp;Current: Retired. <br>Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson-Companies, Inc. (2007-2017). | 154 | &nbsp;&nbsp;&nbsp;Current: SPDR Series Trust (81) (2018-present); SPDR Index Shares Funds (30) (2018-present); SSGA Active Trust (14) (2018-present). <br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2019-2022); Guggenheim Enhanced Equity Income Fund (2019-2021); Guggenheim Credit Allocation Fund (2019-2021); SSGA Master Trust (1) (2018-2020). |
| **Ronald E. Toupin, Jr.** <br>(1958)  | &nbsp;&nbsp;&nbsp;Trustee, Chair of the Board and Chair of the Executive Committee | Since 2019 | &nbsp;&nbsp;&nbsp;Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present). <br>Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999). | 154 | &nbsp;&nbsp;&nbsp;Former: Fiduciary/Claymore Energy Infrastructure Fund (2004-2022); Guggenheim Enhanced Equity Income Fund (2005-2021); Guggenheim Credit Allocation Fund (2013-2021); Western Asset Inflation-Linked Opportunities & Income Fund (2004-2020); Western Asset Inflation-Linked Income Fund (2003-2020). |

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THE RYDEX FUNDS ANNUAL REPORT \| 89

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(continued)<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** | **Number of <br> Portfolios <br> in Fund <br> Complex <br> Overseen**  | **Other <br> Directorships Held <br> by Trustees\*\*\*** |
| **INTERESTED TRUSTEE**  | **INTERESTED TRUSTEE**  |  |  |  |  |
| **Amy J. Lee\*\*\*\*** <br>(1961) | &nbsp;&nbsp;&nbsp;Trustee, Vice President and Chief Legal Officer | Since 2019 | &nbsp;&nbsp;&nbsp;Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present). <br>Former: President and Chief Executive Officer, certain other funds in the Fund Complex (2017-2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012). | 154 | &nbsp;&nbsp;&nbsp;Former: Fiduciary/Claymore Energy Infrastructure Fund (2018-2022); Guggenheim Enhanced Equity Income Fund (2018-2021); Guggenheim Credit Allocation Fund (2018-2021). |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The business address of each Trustee is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606. |
| \*\* | &nbsp;&nbsp;&nbsp;Each Trustee serves an indefinite term, until his or her successor is elected and qualified.  |
| \*\*\* | &nbsp;&nbsp;&nbsp;Each Trustee also serves on the Boards of Trustees of Guggenheim Funds Trust, Guggenheim Variable Funds Trust, Guggenheim Strategy Funds Trust, Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust, Guggenheim Strategic Opportunities Fund, Guggenheim Energy & Income Fund, Guggenheim Active Allocation Fund, Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust and Transparent Value Trust. Messrs. Barnes and Nyberg also serve on the Board of Trustees of Advent Convertible & Income Fund. |
| \*\*\*\* | &nbsp;&nbsp;&nbsp;This Trustee is deemed to be an "interested person" of the Funds under the 1940 Act by reason of her position with the Adviser and/or the parent of the Adviser. |

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90 \| THE RYDEX FUNDS ANNUAL REPORT

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(continued)<br>

---

| | | | |
|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** |
| **OFFICERS** |  |  |  |
| **Brian E. Binder** <br>(1972) | &nbsp;&nbsp;&nbsp;President and Chief Executive Officer | Since 2019 | &nbsp;&nbsp;&nbsp;Current: President, Mutual Fund Boards, Guggenheim Investments (2022-present); President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President, Chief Executive Officer and Chairman of the Board of Managers, Guggenheim Funds Investment Advisors, LLC (2018-present); President and Chief Executive Officer, Security Investors, LLC (2018-present); Board Member, Guggenheim Partners Investment Funds plc (2022-present); Board Member, Guggenheim Global Investments plc (2022-present); Board Member, Guggenheim Partners Fund Management (Europe) Limited (2018-present). <br>Former: Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-2022); Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Chairman of North American Executive Committee and Head of Business Management and Consulting, Invesco Ltd. (2010-2012). |
| **James M. Howley** <br>(1972) | &nbsp;&nbsp;&nbsp;Chief Financial Officer, Chief Accounting Officer and Treasurer | Since 2022 | &nbsp;&nbsp;&nbsp;Current: Managing Director, Guggenheim Investments (2004-present); Chief Financial Officer, Chief Accounting Officer, and Treasurer, certain other funds in the Fund Complex (2022-present). <br>Former: Assistant Treasurer, certain other funds in the Fund Complex (2006-2022); Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004). |
| **Mark E. Mathiasen** <br>(1978)  | &nbsp;&nbsp;&nbsp;Secretary | Since 2017 | &nbsp;&nbsp;&nbsp;Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present). |
| **Glenn McWhinnie** <br>(1969)  | &nbsp;&nbsp;&nbsp;Assistant Treasurer | Since 2016 | &nbsp;&nbsp;&nbsp;Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present). |
| **Michael P. Megaris** <br>(1984)  | &nbsp;&nbsp;&nbsp;Assistant Secretary | Since 2018 | &nbsp;&nbsp;&nbsp;Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Managing Director, Guggenheim Investments (2012-present). |
| **Elisabeth Miller** <br>(1968)  | &nbsp;&nbsp;&nbsp;Chief Compliance Officer | Since 2012 | &nbsp;&nbsp;&nbsp;Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present); Vice President, Guggenheim Funds Distributors, LLC (2014-present). <br>Former: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014). |
| **Margaux Misantone** <br>(1978)  | &nbsp;&nbsp;&nbsp;AML Officer  | Since 2017  | &nbsp;&nbsp;&nbsp;Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC and certain other funds in the Fund Complex (2017-present); Managing Director, Guggenheim Investments (2015-present). <br>Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018). |

---

THE RYDEX FUNDS ANNUAL REPORT \| 91

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(concluded)<br>

---

| | | | |
|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** |
| **OFFICERS - concluded** | **OFFICERS - concluded** | **OFFICERS - concluded** |  |
| **Kimberly J. Scott** <br>(1974)  | &nbsp;&nbsp;&nbsp;Assistant Treasurer | Since 2016 | &nbsp;&nbsp;&nbsp;Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). <br>Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009). |
| **Bryan Stone** <br>(1979)  | &nbsp;&nbsp;&nbsp;Vice President | Since 2019 | &nbsp;&nbsp;&nbsp;Current: Vice President, certain other funds in the Fund Complex (2014-present); Managing Director, Guggenheim Investments (2013-present). <br>Former: Senior Vice President, Neuberger Berman Group LLC (2009-2013); Vice President, Morgan Stanley (2002-2009). |
| **Jon Szafran** <br>(1989)  | &nbsp;&nbsp;&nbsp;Assistant Treasurer | Since 2017 | &nbsp;&nbsp;&nbsp;Current: Director, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present). <br>Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. ("HGINA"), (2017); Senior Analyst of US Fund Administration, HGINA (2014–2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013). |

---

\* The business address of each officer is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606. <br> \*\* Each officer serves an indefinite term, until his or her successor is duly elected and qualified.

92 \| THE RYDEX FUNDS ANNUAL REPORT

**GUGGENHEIM INVESTMENTS PRIVACY NOTICE** (Unaudited)<br>

**Who We Are** 

This Privacy Notice describes the data protection practices of Guggenheim Investments. Guggenheim Investments as used herein refers to the affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Guggenheim Investment Advisors (Europe) Limited, Guggenheim Real Estate, LLC, GS Gamma Advisors, LLC, Guggenheim Partners India Management, LLC, Guggenheim Partners Europe Limited, as well as the funds in the Guggenheim Funds complex (the "Funds") ("Guggenheim Investments," "we," "us," or "our").

Guggenheim Partners Investment Management Holdings, LLC, located at 330 Madison Avenue, New York, New York 10017, is the data controller for your information. The affiliates who are also controllers of certain of your information are: Guggenheim Investment Advisors (Europe) Limited, Guggenheim Partners Europe Limited, Guggenheim Partners, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC and Security Investors, LLC, as well as the Funds.

**Our Commitment to You** 

Guggenheim Investments considers your privacy our utmost concern. When you become our client or investor, you entrust us with not only your hard-earned money but also with your personal and financial information. Because we have access to your private information, we hold ourselves to the highest standards in its safekeeping and use. We strictly limit how we share your information with others, whether you are a current or former Guggenheim Investments client or investor.

**The Information We Collect About You** 

We collect certain nonpublic personal information about you from information you provide on applications, other forms, our website, and/or from third parties including investment advisors. This information includes Social Security or other tax identification number, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, bank account information, marital status, family relationships, information that we collect on our website through the use of "cookies," and other personal information that you or others provide to us. We may also collect such information through your inquiries by mail, e-mail or telephone. We may also collect customer due diligence information, as required by applicable law and regulation, through third party service providers.

**How We Handle Your Personal Information** 

The legal basis for using your information as set out in this Privacy Notice is as follows: (a) use of your personal data is necessary to perform our obligations under any contract with you (such as a contract for us to provide financial services to you); or (b) where use of your personal data is not necessary for performance of a contract, use of your personal data is necessary for our legitimate interests or the legitimate interests of others (for example, to enforce the legal terms governing our services, operate and market our website and other services we offer, ensure safe environments for our personnel and others, make and receive payments, prevent fraud and to know the customer to whom we are providing the services). Some processing is done to comply with applicable law.

In addition to the specific uses described above, we also use your information in the following manner:

● We use your information in connection with servicing your accounts.

● We use information to respond to your requests or questions. For example, we might use your information to respond to your customer feedback.

● We use information to improve our products and services. We may use your information to make our website and products better. We may use your information to customize your experience with us.

● We use information for security purposes. We may use your information to protect our company and our customers.

● We use information to communicate with you. For example, we will communicate with you about your account or our relationship. We may contact you about your feedback. We might also contact you about this Privacy Notice. We may also enroll you in our email newsletter.

THE RYDEX FUNDS ANNUAL REPORT \| 93

**GUGGENHEIM INVESTMENTS PRIVACY NOTICE** (Unaudited)(continued)<br>

● We use information as otherwise permitted by law, as we may notify you.

● Aggregate/Anonymous Data. We may aggregate and/or anonymize any information collected through the website so that such information can no longer be linked to you or your device ("Aggregate/Anonymous Information"). We may use Aggregate/Anonymous Information for any purpose, including without limitation for research and marketing purposes, and may also share such data with any third parties, including advertisers, promotional partners, and sponsors.

We do not sell information about current or former clients or their accounts to third parties. Nor do we share this information, except when necessary to complete transactions at your request, to make you aware of investment products and services that we or our affiliates offer, or as permitted or required by law.

We provide information about you to companies and individuals not affiliated with Guggenheim Investments to complete certain transactions or account changes, or to perform services for us related to your account. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we must provide certain information about you to that company to complete the transaction. We provide the third party with only the information necessary to carry out its responsibilities and only for that purpose. And we require these third parties to treat your private information with the same high degree of confidentiality that we do. To alert you to other Guggenheim Investments products and services, we share your information within our family of affiliated companies. You may limit our sharing with affiliated companies as set out below. We may also share information with any successor to all or part of our business, or in connection with steps leading up to a merger or acquisition. For example, if part of our business was sold we may give customer information as part of that transaction. We may also share information about you with your consent.

We will release information about you if you direct us to do so, if we are compelled by law to do so, or in other circumstances as permitted by law (for example, to protect your account from fraud).

If you close your account(s) or become an inactive client or investor, we will continue to adhere to the privacy policies and practices described in this notice.

**Opt-Out Provisions and Your Data Choices** 

The law allows you to "opt out" of certain kinds of information sharing with third parties. We do not share personal information about you with any third parties that triggers this opt-out right. This means YOU ARE ALREADY OPTED OUT.

When you are no longer our client or investor, we continue to share your information as described in this notice, and you may contact us at any time to limit our sharing by sending an email to CorporateDataPrivacy@GuggenheimPartners.com.

European Union Data Subjects and certain others: In addition to the choices set forth above, residents of the European Union and certain other jurisdictions have certain rights to (1) request access to or rectification or deletion of information we collect about them, (2) request a restriction on the processing of their information, (3) object to the processing of their information, or (4) request the portability of certain information. To exercise these or other rights, please contact us using the contact information below. We will consider all requests and provide our response within the time period stated by applicable law. Please note, however, that certain information may be exempt from such requests in some circumstances, which may include if we need to keep processing your information for our legitimate interests or to comply with a legal obligation. We may request you provide us with information necessary to confirm your identity before responding to your request.

Residents of France and certain other jurisdictions may also provide us with instructions regarding the manner in which we may continue to store, erase and share your information after your death, and where applicable, the person you have designated to exercise these rights after your death.

**How We Protect Privacy Online** 

We take steps to protect your privacy when you use our web site – www.guggenheiminvestments.com – by using secure forms of online communication, including encryption technology, Secure Socket Layer (SSL) protocol, firewalls and user names and passwords. These safeguards vary based on the sensitivity of the information that we collect and store. However, we cannot and do not guarantee that these measures will prevent every unauthorized attempt to access, use, or disclose your information since despite our efforts, no Internet and/or other

94 \| THE RYDEX FUNDS ANNUAL REPORT

**GUGGENHEIM INVESTMENTS PRIVACY NOTICE** (Unaudited)(concluded)<br>

**How We Safeguard Your Personal Information and Data Retention** 

We restrict access to nonpublic personal information about you to our employees and in some cases to third parties (for example, the service providers described above) as permitted by law. We maintain strict physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

We keep your information for no longer than necessary for the purposes for which it is processed. The length of time for which we retain information depends on the purposes for which we collected and use it and/or as required to comply with applicable laws. Information may persist in copies made for backup and business continuity purposes for additional time.

**International Visitors** 

If you are not a resident of the United States, please be aware that your information may be transferred to, stored and processed in the United States where our servers are located and our databases are operated. The data protection and other laws of the United States and other countries might not be as comprehensive as those in your country.

In such cases, we ensure that a legal basis for such a transfer exists and that adequate protection is provided as required by applicable law, for example, by using standard contractual clauses or by transferring your data to a jurisdiction that has obtained an adequacy finding. Individuals whose data may be transferred on the basis of standard contractual clauses may contact us as described below.

**We'll Keep You Informed** 

If you have any questions or concerns about how we treat your personal data, we encourage you to consult with us first. You may also contact the relevant supervisory authority.

We reserve the right to modify this policy at any time and will inform you promptly of material changes. You may access our privacy policy from our web site at www.guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us by email at CorporateDataPrivacy@GuggenheimPartners.com.

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![](fp0081230-5_i.jpg)<br>

**12.31.2022** 

**Rydex Variable Trust Funds Annual Report**

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| |
|:---|
| &nbsp;&nbsp;**Sector Funds** |
| &nbsp;&nbsp;**Banking Fund** |
| &nbsp;&nbsp;**Basic Materials Fund** |
| &nbsp;&nbsp;**Biotechnology Fund** |
| &nbsp;&nbsp;**Consumer Products Fund** |
| &nbsp;&nbsp;**Electronics Fund** |
| &nbsp;&nbsp;**Energy Fund** |
| &nbsp;&nbsp;**Energy Services Fund** |
| &nbsp;&nbsp;**Financial Services Fund** |
| &nbsp;&nbsp;**Health Care Fund** |
| &nbsp;&nbsp;**Internet Fund** |
| &nbsp;&nbsp;**Leisure Fund** |
| &nbsp;&nbsp;**Precious Metals Fund** |
| &nbsp;&nbsp;**Real Estate Fund** |
| &nbsp;&nbsp;**Retailing Fund** |
| &nbsp;&nbsp;**Technology Fund** |
| &nbsp;&nbsp;**Telecommunications Fund** |
| &nbsp;&nbsp;**Transportation Fund** |
| &nbsp;&nbsp;**Utilities Fund** |

---

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| | |
|:---|:---|
| **GuggenheimInvestments.com** | &nbsp;&nbsp;RVASECF-ANN-1222x1223 |

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![](fp0081230-5_ii.jpg)

**TABLE OF CONTENTS** <br>

---

| | |
|:---|:---|
| DEAR SHAREHOLDER  | 2 |
| ECONOMIC AND MARKET OVERVIEW  | 3 |
| ABOUT SHAREHOLDERS' FUND EXPENSES  | 5 |
| BANKING FUND  | 7 |
| BASIC MATERIALS FUND  | 14 |
| BIOTECHNOLOGY FUND  | 21 |
| CONSUMER PRODUCTS FUND  | 28 |
| ELECTRONICS FUND  | 35 |
| ENERGY FUND  | 42 |
| ENERGY SERVICES FUND  | 49 |
| FINANCIAL SERVICES FUND  | 56 |
| HEALTH CARE FUND  | 64 |
| INTERNET FUND  | 71 |
| LEISURE FUND  | 78 |
| PRECIOUS METALS FUND  | 85 |
| REAL ESTATE FUND  | 92 |
| RETAILING FUND  | 100 |
| TECHNOLOGY FUND  | 107 |
| TELECOMMUNICATIONS FUND  | 115 |
| TRANSPORTATION FUND  | 122 |
| UTILITIES FUND  | 129 |
| NOTES TO FINANCIAL STATEMENTS  | 136 |
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  | 146 |
| OTHER INFORMATION  | 147 |
| INFORMATION ON BOARD OF TRUSTEES AND OFFICERS  | 149 |
| GUGGENHEIM INVESTMENTS PRIVACY NOTICE  | 155 |

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THE RYDEX FUNDS ANNUAL REPORT \| 1

  <u>December 31, 2022</u>

**Dear Shareholder:** 

Security Investors, LLC (the "Investment Adviser") is pleased to present the annual shareholder report for 18 of our Funds (the "Funds") that are part of the Rydex Variable Trust. This report covers performance of the Funds for the annual period ended December 31, 2022 (the "Reporting Period").

In December 2022, Guggenheim Partners announced the untimely and unexpected death of Scott Minerd, one of Guggenheim's Managing Partners and its Global Chief Investment Officer. He joined Guggenheim as a Managing Partner shortly after the firm was formed. He was a frequent commentator on markets and investments, both on television and via social media. He also was one of the designers of the organization, systems and processes that make Guggenheim Investments a strong, robust and scalable leader in the asset management business.

Guggenheim has implemented its succession plan, which is designed to deal with unexpected events. There has been and will continue to be no disruption of service to our clients, no change in the daily management of client portfolios and no change in the process of selecting investment assets, all of which continue to be handled by the longstanding committees and long-tenured investment professionals who, every day, implement our investment processes.

Guggenheim Investments continues to be led by its Co-Presidents, Dina DiLorenzo and David Rone, and by Anne B. Walsh, a Managing Partner and Chief Investment Officer of Guggenheim Partners Investment Management.

The Investment Adviser is a part of Guggenheim Investments, which represents the investment management businesses of Guggenheim Partners, LLC ("Guggenheim"), a global, diversified financial services firm.

Guggenheim Funds Distributors, LLC is the distributor of the Funds. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim and the Investment Adviser.

We encourage you to read the Economic and Market Overview section of the report, which follows this letter, and then the Performance Report and Fund Profile for each Fund.

We are committed to providing innovative investment solutions and appreciate the trust you place in us.

Sincerely,

Security Investors, LLC

January 31, 2023

***Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at guggenheiminvestments.com or call 800.820.0888.***

***This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.***

**Sector funds may not be suitable for all investors.** Investing in sector funds is more volatile than investing in broadly diversified funds, as there is a greater risk due to the concentration of the Funds' holdings in issuers of the same or similar offerings. Certain of the sector funds are considered non-diversified and can invest a greater portion of their 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.

2 \| THE RYDEX FUNDS ANNUAL REPORT

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| | |
|:---|:---|
| **ECONOMIC AND MARKET OVERVIEW** (Unaudited) | December 31, 2022 |

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Helped by lower energy prices, real economic growth reaccelerated in the fourth quarter of 2022. Amid this continued strong growth, the Federal Reserve (the "Fed") is explicitly targeting a weaker labor market, and several leading indicators point to rising unemployment by the middle of the year. Consumption also faces headwinds from dwindling excess savings buffers and a sharply negative wealth shock as financial asset and home prices fall. Business investment also appears to be weakening due to the sharp tightening in financial conditions and more challenging outlook for economic growth. The housing sector could subtract further from gross domestic product ("GDP") as the spike in mortgage rates has adversely impacted demand.

Because private sector balance sheets are generally healthy in the aggregate and the economy lacks major imbalances, we do not expect a particularly deep recession. But the likelihood of a limited monetary and fiscal policy response means the economic recovery could be weak, and certain highly levered companies may suffer.

Moderation in goods prices as supply chains normalize should bring inflation lower over the next several months, and shelter inflation should roll over by mid-2023. Services inflation outside of shelter is the main concern for the Fed, but a softening labor market and cooling wage growth may keep this category contained. As a result, core inflation could fall below 3 percent by the end of the year.

The Fed's continued rate hike campaign may cause the front end of the yield curve to remain elevated in the near term. But should the economic cycle roll over later this year, Treasury yields may see a significant decline. Weakening corporate earnings growth and an emerging recession would present downside risk to equity returns later in 2023 but, given corporate fundamentals remain solid, high quality fixed income and carefully selected high yield issuers should provide attractive returns.

For the Reporting Period, the S&P 500<sup>®</sup> Index\* returned -18.11%. The MSCI Europe-Australasia-Far East ("EAFE") Index\* returned -14.45%. The return of the MSCI Emerging Markets Index\* was -20.09%.

In the bond market, the Bloomberg U.S. Aggregate Bond Index\* posted a -13.01% return for the Reporting Period, while the Bloomberg U.S. Corporate High Yield Index\* returned -11.19%. The return of the ICE Bank of America ("BofA") 3-Month U.S. Treasury Bill Index\* was 1.47% for the Reporting Period.

*The opinions and forecasts expressed may not actually come to pass. This information is subject to change at any time, based on market and other conditions, and should not be construed as a recommendation of any specific security or strategy.*

THE RYDEX FUNDS ANNUAL REPORT \| 3

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| | |
|:---|:---|
| **ECONOMIC AND MARKET OVERVIEW** (Unaudited)(concluded) | December 31, 2022 |

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**\*Index Definitions:**

The following indices are referenced throughout this report. Indices are unmanaged and not available for direct investment. Index performance does not reflect transaction costs, fees, or expenses.

**Bloomberg U.S. Aggregate Bond Index** is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, mortgage-backed securities or "MBS" (agency fixed-rate and hybrid adjustable-rate mortgage, or "ARM", pass-throughs), asset-backed securities ("ABS"), and commercial mortgage-backed securities ("CMBS") (agency and non-agency).

**Bloomberg U.S. Corporate High Yield Index** measures the U.S. dollar-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody's, Fitch, and S&P is Ba1/BB +/BB + or below.

**ICE BofA 3-Month U.S. Treasury Bill Index** is an unmanaged market Index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income.

**MSCI EAFE Index** is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

**MSCI Emerging Markets Index** is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets.

**MSCI U.S. REIT Index** is a free float market capitalization weighted index that is comprised of equity real estate investment trust ("REIT") securities that belong to the MSCI U.S. Investable Market 2500 Index. The MSCI U.S. REIT Index includes only REIT securities that are of reasonable size in terms of full and free float-adjusted market capitalization to ensure that the performance of the equity REIT universe can be captured and replicated in actual institutional and retail portfolios of different sizes.

**S&P 500**<sup>®</sup> **Index** is a broad-based index, the performance of which is based on the performance of 500 widely held common stocks chosen for market size, liquidity, and industry group representation.

**S&P 500**<sup>®</sup> **Consumer Discretionary Index** is a sub-index of the S&P 500<sup>®</sup>. The Consumer Discretionary index includes companies in the following industries: automobiles and components, consumer durables, apparel, hotels, restaurants, leisure, media and retailing.

**S&P 500**<sup>®</sup> **Consumer Staples Index** is a sub-index of the S&P 500<sup>®</sup>. The Consumer Staples index comprises companies whose businesses are less sensitive to economic cycles. It includes manufacturers and distributors of food, beverages and tobacco and producers of non-durable household goods and personal products. It also includes food & drug retailing companies as well as hypermarkets and consumer super centers.

**S&P 500**<sup>®</sup> **Energy Index** is a sub-index of the S&P 500<sup>®</sup>. The Energy index comprises companies whose businesses are dominated by either of the following activities: The construction or provision of oil rigs, drilling equipment and other energy-related equipment and services, including seismic data collection; companies engaged in the exploration, production, marketing, refining and/or transportation of oil and gas products, coal and other consumable fuels.

**S&P 500**<sup>®</sup> **Financials Index** is a sub-index of the S&P 500<sup>®</sup>. The Financials index contains companies involved in activities such as banking, mortgage finance, consumer finance, specialized finance, investment banking and brokerage, asset management and custody, corporate lending, insurance, and financial investment, and real estate, including REITs.

**S&P 500**<sup>®</sup> **Health Care Index** is a sub-index of the S&P 500<sup>®</sup>. The Health Care index encompasses two main industry groups. The first includes companies who manufacture health care equipment and supplies or provide health care related services, including distributors of health care products, providers of basic health-care services, and owners and operators of health care facilities and organizations. The first group also includes companies operating in the health care technology industry. The second group includes companies primarily involved in the research, development, production and marketing of pharmaceuticals, biotechnology and life sciences products.

**S&P 500**<sup>®</sup> **Industrials Index** is a sub-index of the S&P 500<sup>®</sup>. The Industrials index includes companies whose businesses are dominated by one of the following activities: the manufacture and distribution of capital goods, including aerospace & defense, construction, engineering & building products, electrical equipment and industrial machinery; the provision of commercial services and supplies, including printing, environmental, office and security services; the provision of professional services, including employment and research & consulting services; or the provision of transportation services, including airlines, couriers, marine, road & rail and transportation infrastructure.

**S&P 500**<sup>®</sup> **Information Technology Index** is a sub-index of the S&P 500<sup>®</sup>. The Information Technology index covers the following general areas: technology software & services, including companies that primarily develop software in various fields such as the Internet, applications, systems, databases management and/or home entertainment, and companies that provide information technology consulting and services, as well as data processing and outsourced services; secondly, technology hardware & equipment, including manufacturers and distributors of communications equipment, computers & peripherals, electronic equipment and related instruments; and thirdly, semiconductors & semiconductor equipment manufacturers.

**S&P 500**<sup>®</sup> **Materials Index** is a sub-index of the S&P 500<sup>®</sup>. The Materials index encompasses a wide range of commodity-related manufacturing industries. Included in this sector are companies that manufacture chemicals, construction materials, glass, paper, forest products and related packaging products, and metals, minerals and mining companies, including producers of steel.

**S&P 500**<sup>®</sup> **Telecommunications Services Index** is a sub-index of the S&P 500<sup>®</sup>. The Telecommunications Services index contains companies that provide communications services primarily through a fixed-line, cellular, wireless, high bandwidth and/or fiber optic cable network.

**S&P 500**<sup>®</sup> **Utilities Index** is a sub-index of the S&P 500<sup>®</sup>. The Utilities index encompasses those companies considered electric, gas or water utilities, or companies that operate as independent producers and/or distributors of power.

4 \| THE RYDEX FUNDS ANNUAL REPORT

**ABOUT SHAREHOLDERS' FUND EXPENSES** (Unaudited)<br>

All mutual funds have operating expenses, and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, other distributions, and exchange fees, and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund's gross income and reduce the investment return of the fund.

A fund's expenses are expressed as a percentage of its average net assets, which is known as the expense ratio. The following examples are intended to help investors understand the ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning June 30, 2022 and ending December 31, 2022.

The following tables illustrate the Funds' costs in two ways:

**Table 1. Based on actual Fund return:** This section helps investors estimate the actual expenses paid over the period. The "Ending Account Value" shown is derived from the Fund's actual return, and the fifth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund's account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number provided under the heading "Expenses Paid During Period."

**Table 2. Based on hypothetical 5% return:** This section is intended to help investors compare a fund's cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the "SEC") requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a fund's costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchase payments, and contingent deferred sales charges ("CDSC") on redemptions, if any. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

More information about the Funds' expenses, including annual expense ratios for periods up to five years (subject to the Fund's inception date), can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

THE RYDEX FUNDS ANNUAL REPORT \| 5

**ABOUT SHAREHOLDERS' FUND EXPENSES** (Unaudited)(concluded)<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Expense <br> Ratio<sup>1</sup>** | **Fund <br> Return**  | **Beginning <br> Account Value <br> June 30, 2022** | **Ending <br> Account Value <br> December 31, 2022** | **Expenses <br> Paid During <br> Period<sup>2</sup>** |
| **Table 1. Based on actual Fund return<sup>3</sup>** |  |  |  |  |  |
| Banking Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;3.25% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1032.50 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$9.12 |
| Basic Materials Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;6.26% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1062.60 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.25 |
| Biotechnology Fund | &nbsp;&nbsp;1.77% | &nbsp;&nbsp;7.26% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1072.60 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.25 |
| Consumer Products Fund | &nbsp;&nbsp;1.77% | &nbsp;&nbsp;3.77% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1037.70 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.09 |
| Electronics Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;1.35% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1013.50 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.03 |
| Energy Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;20.62% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1206.20 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.90 |
| Energy Services Fund | &nbsp;&nbsp;1.77% | &nbsp;&nbsp;26.65% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1266.50 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11 |
| Financial Services Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;2.41% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1024.10 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.08 |
| Health Care Fund | &nbsp;&nbsp;1.77% | &nbsp;&nbsp;5.28% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1052.80 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.16 |
| Internet Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;(4.37%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;956.30 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.78 |
| Leisure Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;3.07% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1030.70 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.11 |
| Precious Metals Fund | &nbsp;&nbsp;1.67% | &nbsp;&nbsp;9.52% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1095.20 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.82 |
| Real Estate Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;(7.39%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;926.10 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.64 |
| Retailing Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;7.30% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1073.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.30 |
| Technology Fund | &nbsp;&nbsp;1.77% | &nbsp;&nbsp;(3.78%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;962.20 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.75 |
| Telecommunications Fund | &nbsp;&nbsp;1.79% | &nbsp;&nbsp;(6.79%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;932.10 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.72 |
| Transportation Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;(7.32%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;926.80 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.64 |
| Utilities Fund | &nbsp;&nbsp;1.77% | &nbsp;&nbsp;1.80% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1018.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.00 |
| **Table 2. Based on hypothetical 5% return (before expenses)** | **Table 2. Based on hypothetical 5% return (before expenses)** | **Table 2. Based on hypothetical 5% return (before expenses)** | **Table 2. Based on hypothetical 5% return (before expenses)** | **Table 2. Based on hypothetical 5% return (before expenses)** | **Table 2. Based on hypothetical 5% return (before expenses)** |
| Banking Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1016.23 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$9.05 |
| Basic Materials Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.23 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.05 |
| Biotechnology Fund | &nbsp;&nbsp;1.77% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.28 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.00 |
| Consumer Products Fund | &nbsp;&nbsp;1.77% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.28 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.00 |
| Electronics Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.23 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.05 |
| Energy Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.23 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.05 |
| Energy Services Fund | &nbsp;&nbsp;1.77% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.28 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.00 |
| Financial Services Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.23 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.05 |
| Health Care Fund | &nbsp;&nbsp;1.77% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.28 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.00 |
| Internet Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.23 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.05 |
| Leisure Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.23 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.05 |
| Precious Metals Fund | &nbsp;&nbsp;1.67% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.79 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.49 |
| Real Estate Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.23 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.05 |
| Retailing Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.23 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.05 |
| Technology Fund | &nbsp;&nbsp;1.77% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.28 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.00 |
| Telecommunications Fund | &nbsp;&nbsp;1.79% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.18 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10 |
| Transportation Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.23 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.05 |
| Utilities Fund | &nbsp;&nbsp;1.77% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.28 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.00 |

---

<sup>1</sup> Annualized and excludes expenses of the underlying funds in which the Funds invest, if any.

<sup>2</sup> Expenses are equal to the Funds' annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses shown do not include fees charged by insurance companies.

<sup>3</sup> Actual cumulative return at net asset value for the period June 30, 2022 to December 31, 2022.

6 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**BANKING FUND** 

**OBJECTIVE:** Seeks to provide capital appreciation by investing in companies that are involved in the banking sector, including commercial banks (and their holding companies) and savings and loan institutions ("Banking Companies").

For the Reporting Period, Banking Fund returned -17.02%, compared with the S&P 500 Index, which returned -18.11%. The S&P 500 Financials Index returned -10.53%.

No industries contributed for the period. The industries that detracted most from performance were regional banks, diversified banks, and consumer finance.

First Horizon Corp., ICICI Bank Ltd. ADR, and United Bankshares, Inc. were the holdings that contributed the most to the Fund's return for the period. SVB Financial Group, Signature Bank, and Capital One Financial Corp. detracted the most from return.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-5_7.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** May 2, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| Bank of America Corp. | 4.1% |
| JPMorgan Chase & Co. | 4.1% |
| Wells Fargo & Co. | 3.9% |
| Citigroup, Inc. | 3.3% |
| U.S. Bancorp | 2.9% |
| PNC Financial Services Group, Inc. | 2.9% |
| Truist Financial Corp. | 2.7% |
| Apollo Global Management, Inc. | 2.2% |
| Bank of New York Mellon Corp. | 2.1% |
| Capital One Financial Corp. | 2.1% |
| Top Ten Total | 30.3% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 7

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-5_8.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Banking Fund  | (17.02%)  | 1.02%  | 6.71%  |
| S&P 500 Financials Index  | (10.53%)  | 6.42%  | 12.16%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Financials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

8 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **BANKING FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.4%** | **COMMON STOCKS<sup>†</sup>** **- 99.4%** | **COMMON STOCKS<sup>†</sup>** **- 99.4%** |
| **Banks - 91.3%** | **Banks - 91.3%** | **Banks - 91.3%** |
| &nbsp;&nbsp;&nbsp;Bank of America Corp. | 4519 | $149669 |
| &nbsp;&nbsp;&nbsp;JPMorgan Chase & Co. | 1104 | 148046 |
| &nbsp;&nbsp;&nbsp;Wells Fargo & Co. | 3455 | 142657 |
| &nbsp;&nbsp;&nbsp;Citigroup, Inc. | 2702 | 122211 |
| &nbsp;&nbsp;&nbsp;U.S. Bancorp | 2415 | 105318 |
| &nbsp;&nbsp;&nbsp;PNC Financial Services Group, Inc. | 663 | 104714 |
| &nbsp;&nbsp;&nbsp;Truist Financial Corp. | 2318 | 99744 |
| &nbsp;&nbsp;&nbsp;Bank of New York Mellon Corp. | 1703 | 77521 |
| &nbsp;&nbsp;&nbsp;State Street Corp. | 851 | 66012 |
| &nbsp;&nbsp;&nbsp;M&T Bank Corp. | 452 | 65567 |
| &nbsp;&nbsp;&nbsp;First Republic Bank | 516 | 62895 |
| &nbsp;&nbsp;&nbsp;Fifth Third Bancorp | 1888 | 61945 |
| &nbsp;&nbsp;&nbsp;Regions Financial Corp. | 2673 | 57630 |
| &nbsp;&nbsp;&nbsp;Huntington Bancshares, Inc. | 4066 | 57331 |
| &nbsp;&nbsp;&nbsp;Citizens Financial Group, Inc. | 1436 | 56535 |
| &nbsp;&nbsp;&nbsp;Northern Trust Corp. | 628 | 55572 |
| &nbsp;&nbsp;&nbsp;KeyCorp | 3033 | 52835 |
| &nbsp;&nbsp;&nbsp;SVB Financial Group\* | 209 | 48099 |
| &nbsp;&nbsp;&nbsp;First Citizens BancShares, Inc. — Class A | 61 | 46260 |
| &nbsp;&nbsp;&nbsp;First Horizon Corp. | 1859 | 45545 |
| &nbsp;&nbsp;&nbsp;ICICI Bank Ltd. ADR | 2000 | 43780 |
| &nbsp;&nbsp;&nbsp;HDFC Bank Ltd. ADR | 627 | 42893 |
| &nbsp;&nbsp;&nbsp;Toronto-Dominion Bank | 656 | 42483 |
| &nbsp;&nbsp;&nbsp;HSBC Holdings plc ADR | 1325 | 41287 |
| &nbsp;&nbsp;&nbsp;Popular, Inc. | 621 | 41185 |
| &nbsp;&nbsp;&nbsp;Royal Bank of Canada | 430 | 40429 |
| &nbsp;&nbsp;&nbsp;Bank of Nova Scotia | 819 | 40115 |
| &nbsp;&nbsp;&nbsp;East West Bancorp, Inc. | 595 | 39210 |
| &nbsp;&nbsp;&nbsp;Comerica, Inc. | 586 | 39174 |
| &nbsp;&nbsp;&nbsp;Webster Financial Corp. | 816 | 38629 |
| &nbsp;&nbsp;&nbsp;Bank of Montreal | 426 | 38596 |
| &nbsp;&nbsp;&nbsp;UBS Group AG | 2049 | 38255 |
| &nbsp;&nbsp;&nbsp;Commerce Bancshares, Inc. | 557 | 37888 |
| &nbsp;&nbsp;&nbsp;Cullen/Frost Bankers, Inc. | 278 | 37169 |
| &nbsp;&nbsp;&nbsp;Zions Bancorp North America | 745 | 36624 |
| &nbsp;&nbsp;&nbsp;Canadian Imperial Bank of Commerce | 880 | 35596 |
| &nbsp;&nbsp;&nbsp;Signature Bank | 307 | 35373 |
| &nbsp;&nbsp;&nbsp;BOK Financial Corp. | 326 | 33835 |
| &nbsp;&nbsp;&nbsp;Prosperity Bancshares, Inc. | 460 | 33433 |
| &nbsp;&nbsp;&nbsp;Western Alliance Bancorporation | 561 | 33413 |
| &nbsp;&nbsp;&nbsp;Valley National Bancorp | 2758 | 31193 |
| &nbsp;&nbsp;&nbsp;Pinnacle Financial Partners, Inc. | 419 | 30755 |
| &nbsp;&nbsp;&nbsp;SouthState Corp. | 397 | 30315 |
| &nbsp;&nbsp;&nbsp;United Bankshares, Inc. | 734 | 29720 |
| &nbsp;&nbsp;&nbsp;Synovus Financial Corp. | 789 | 29627 |
| &nbsp;&nbsp;&nbsp;Old National Bancorp | 1638 | 29451 |
| &nbsp;&nbsp;&nbsp;Wintrust Financial Corp. | 341 | 28821 |
| &nbsp;&nbsp;&nbsp;Glacier Bancorp, Inc. | 583 | 28812 |
| &nbsp;&nbsp;&nbsp;Bank OZK | 693 | 27762 |
| &nbsp;&nbsp;&nbsp;First Financial Bankshares, Inc. | 807 | 27761 |
| &nbsp;&nbsp;&nbsp;First Interstate BancSystem, Inc. — Class A | 712 | 27519 |
| &nbsp;&nbsp;&nbsp;FNB Corp. | 2107 | 27496 |
| &nbsp;&nbsp;&nbsp;Home BancShares, Inc. | 1195 | 27234 |
| &nbsp;&nbsp;&nbsp;Cadence Bank | 1092 | 26929 |
| &nbsp;&nbsp;&nbsp;UMB Financial Corp. | 313 | 26142 |
| &nbsp;&nbsp;&nbsp;Umpqua Holdings Corp. | 1421 | 25365 |
| &nbsp;&nbsp;&nbsp;Hancock Whitney Corp. | 520 | 25163 |
| &nbsp;&nbsp;&nbsp;Independent Bank Corp. | 294 | 24822 |
| &nbsp;&nbsp;&nbsp;ServisFirst Bancshares, Inc. | 355 | 24463 |
| &nbsp;&nbsp;&nbsp;First Hawaiian, Inc. | 928 | 24165 |
| &nbsp;&nbsp;&nbsp;Associated Banc-Corp. | 1045 | 24129 |
| &nbsp;&nbsp;&nbsp;United Community Banks, Inc. | 706 | 23863 |
| &nbsp;&nbsp;&nbsp;Community Bank System, Inc. | 378 | 23795 |
| &nbsp;&nbsp;&nbsp;CVB Financial Corp. | 923 | 23767 |
| &nbsp;&nbsp;&nbsp;Texas Capital Bancshares, Inc.\* | 381 | 22978 |
| &nbsp;&nbsp;&nbsp;Bank of Hawaii Corp. | 293 | 22725 |
| &nbsp;&nbsp;&nbsp;Ameris Bancorp | 477 | 22486 |
| &nbsp;&nbsp;&nbsp;Cathay General Bancorp | 537 | 21904 |
| &nbsp;&nbsp;&nbsp;Simmons First National Corp. — Class A | 1014 | 21882 |
| &nbsp;&nbsp;&nbsp;Eastern Bankshares, Inc. | 1257 | 21683 |
| &nbsp;&nbsp;&nbsp;Fulton Financial Corp. | 1282 | 21576 |
| &nbsp;&nbsp;&nbsp;PacWest Bancorp | 904 | 20747 |
| &nbsp;&nbsp;&nbsp;BankUnited, Inc. | 597 | 20280 |
| &nbsp;&nbsp;&nbsp;Atlantic Union Bankshares Corp. | 568 | 19959 |
| &nbsp;&nbsp;&nbsp;Columbia Banking System, Inc. | 659 | 19856 |
| &nbsp;&nbsp;&nbsp;Hilltop Holdings, Inc. | 605 | 18156 |
| &nbsp;&nbsp;&nbsp;Triumph Financial, Inc.\* | 277 | 13537 |
| &nbsp;&nbsp;&nbsp;Customers Bancorp, Inc.\* | 431 | 12214 |
| &nbsp;&nbsp;&nbsp;Silvergate Capital Corp. — Class A\*<sup>,1</sup> | 495 | 8613 |
| **Total Banks** |  | 3333138 |
| **Diversified Financial Services - 4.3%** | **Diversified Financial Services - 4.3%** | **Diversified Financial Services - 4.3%** |
| &nbsp;&nbsp;&nbsp;Apollo Global Management, Inc. | 1257 | 80184 |
| &nbsp;&nbsp;&nbsp;Capital One Financial Corp. | 822 | 76413 |
| **Total Diversified Financial Services** |  | 156597 |
| **Insurance - 2.5%** | **Insurance - 2.5%** | **Insurance - 2.5%** |
| &nbsp;&nbsp;&nbsp;Equitable Holdings, Inc. | 1413 | 40553 |
| &nbsp;&nbsp;&nbsp;Voya Financial, Inc. | 505 | 31053 |
| &nbsp;&nbsp;&nbsp;Jackson Financial, Inc. — Class A | 613 | 21326 |
| **Total Insurance** |  | 92932 |
| **Savings & Loans - 1.3%** | **Savings & Loans - 1.3%** | **Savings & Loans - 1.3%** |
| &nbsp;&nbsp;&nbsp;New York Community Bancorp, Inc. | 3045 | 26187 |
| &nbsp;&nbsp;&nbsp;Pacific Premier Bancorp, Inc. | 673 | 21240 |
| **Total Savings & Loans** |  | 47427 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $2,169,123) |  | 3630094 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 9

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **BANKING FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Face<br> Amount** | **Value** |
| **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.8%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.8%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.8%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | $15601 | 15601 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 6001 | 6001 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 5982 | 5982 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $27,584) |  | 27584 |
|  | **Shares** |  |
| **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.2%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.2%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.2%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>4</sup> | 6347 | 6347 |
| **Total Securities Lending Collateral** | **Total Securities Lending Collateral** |  |
| &nbsp;&nbsp;&nbsp;(Cost $6,347) |  | 6347 |
| **Total Investments - 100.4%** | **Total Investments - 100.4%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $2,203,054) | &nbsp;&nbsp;&nbsp;(Cost $2,203,054) | $3664025 |
| **Other Assets & Liabilities, net - (0.4)%** | **Other Assets & Liabilities, net - (0.4)%** | (13844) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $3650181 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $3630094 | $— | $— | $3630094 |
| Repurchase Agreements |  | 27584 |  | 27584 |
| Securities Lending Collateral | 6347 |  |  | 6347 |
| Total Assets | $3636441 | $27584 | $— | $3664025 |

---

10 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**BANKING FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value - including $6,455 of securities loaned (cost $2,175,470) | $3636441 |
| Repurchase agreements, at value (cost $27,584) | 27584 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 8771 |
| &nbsp;&nbsp;&nbsp;Foreign tax reclaims | 502 |
| &nbsp;&nbsp;&nbsp;Interest | 7 |
| **Total assets** | 3673305 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Professional fees | 7637 |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 6347 |
| &nbsp;&nbsp;&nbsp;Printing fees | 2036 |
| &nbsp;&nbsp;&nbsp;Management fees | 2872 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 1179 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 1025 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 845 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 524 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 57 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 602 |
| **Total liabilities** | 23124 |
| **Net assets** | $3650181 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $3409136 |
| Total distributable earnings (loss) | 241045 |
| Net assets | $3650181 |
| Capital shares outstanding | 38359 |
| Net asset value per share | $95.16 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $2,118) | $145852 |
| Interest | 478 |
| Income from securities lending, net | 190 |
| &nbsp;&nbsp;&nbsp;Total investment income | 146520 |
| **Expenses:** | **Expenses:** |
| Management fees | 45827 |
| Investor service fees | 13478 |
| Transfer agent fees | 16018 |
| Professional fees | 9275 |
| Portfolio accounting and administration fees | 6544 |
| Trustees' fees\* | 1077 |
| Custodian fees | 979 |
| Miscellaneous | 2116 |
| &nbsp;&nbsp;&nbsp;Total expenses | 95314 |
| Net investment income | 51206 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | (55458) |
| Net realized loss | (55458) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (1610204) |
| Net change in unrealized appreciation (depreciation) | (1610204) |
| Net realized and unrealized loss | (1665662) |
| **Net decrease in net assets resulting from operations** | $(1614456) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 11

**BANKING FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income | $51206 | $65582 |
| Net realized loss on investments | (55458) | (102535) |
| Net change in unrealized appreciation (depreciation) on investments | (1610204) | 1501081 |
| Net increase (decrease) in net assets resulting from operations | (1614456) | 1464128 |
| Distributions to shareholders | (65582) | (53477) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 20272120 | 34567355 |
| Distributions reinvested | 65582 | 53477 |
| Cost of shares redeemed | (21914174) | (33358697) |
| Net increase (decrease) from capital share transactions | (1576472) | 1262135 |
| Net increase (decrease) in net assets | (3256510) | 2672786 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 6906691 | 4233905 |
| &nbsp;&nbsp;&nbsp;End of year | $3650181 | $6906691 |
| **Capital share activity:** |  |  |
| Shares sold | 182383 | 314611 |
| Shares issued from reinvestment of distributions | 678 | 509 |
| Shares redeemed | (203900) | (304012) |
| Net increase (decrease) in shares | (20839) | 11108 |

---

12 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**BANKING FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $116.67 | $88.04 | $97.20 | $76.46 | $95.19 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | 1.01 | .82 | 1.18 | .94 | .56 |
| Net gain (loss) on investments (realized and unrealized) | (20.83) | 28.58 | (9.63) | 20.67 | (18.70) |
| Total from investment operations | (19.82) | 29.40 | (8.45) | 21.61 | (18.14) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (1.69) | (.77) | (.71) | (.87) | (.56) |
| Net realized gains |  |  |  |  | (.03) |
| Total distributions | (1.69) | (.77) | (.71) | (.87) | (.59) |
| Net asset value, end of period | $95.16 | $116.67 | $88.04 | $97.20 | $76.46 |
| **Total Return<sup>b</sup>** | **(17.02** **%)** | **33.49%** | **(8.46** **%)** | **28.39%** | **(19.19** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $3650 | $6907 | $4234 | $5838 | $5548 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.95% | 0.73% | 1.60% | 1.07% | 0.59% |
| Total expenses | 1.77% | 1.69% | 1.82% | 1.82% | 1.71% |
| Portfolio turnover rate | 375% | 351% | 529% | 246% | 320% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 13

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**BASIC MATERIALS FUND** 

**OBJECTIVE:** Seeks to provide capital appreciation by investing in companies engaged in the mining, manufacture, or sale of basic materials, such as lumber, steel, iron, aluminum, concrete, chemicals, and other basic building and manufacturing materials ("Basic Materials Companies").

For the Reporting Period, Basic Materials Fund returned -9.65%, compared with a return of -18.11% for the S&P 500 Index. The S&P 500 Materials Index returned -12.27%.

The steel industry was the largest contributor to the Fund's return for the period, followed by the fertilizer & agricultural chemicals industry and the diversified metals & mining industry. The specialty chemicals industry detracted the most from the Fund's return for the period, followed by the metal & glass containers industry and the paper packaging industry.

The top-performing holdings were Steel Dynamics, Inc., Corteva, Inc., and Nucor Corp. The worst-performing holdings included Ecolab, Inc., Sherwin-Williams Co., and Ball Corp.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-5_14.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** May 2, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| Air Products and Chemicals, Inc. | 3.2% |
| Sherwin-Williams Co. | 3.0% |
| Freeport-McMoRan, Inc. | 2.8% |
| Ecolab, Inc. | 2.5% |
| Corteva, Inc. | 2.5% |
| Newmont Corp. | 2.4% |
| Dow, Inc. | 2.3% |
| DuPont de Nemours, Inc. | 2.3% |
| Nucor Corp. | 2.2% |
| PPG Industries, Inc. | 2.2% |
| Top Ten Total | 25.4% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

14 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-5_15.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Basic Materials Fund  | (9.65%)  | 5.92%  | 5.71%  |
| S&P 500 Materials Index  | (12.27%)  | 7.45%  | 9.80%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Materials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 15

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **BASIC MATERIALS FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.0%** | **COMMON STOCKS<sup>†</sup>** **- 99.0%** | **COMMON STOCKS<sup>†</sup>** **- 99.0%** |
| **Chemicals - 46.7%** | **Chemicals - 46.7%** | **Chemicals - 46.7%** |
| &nbsp;&nbsp;&nbsp;Air Products and Chemicals, Inc. | 835 | $257397 |
| &nbsp;&nbsp;&nbsp;Sherwin-Williams Co. | 1024 | 243026 |
| &nbsp;&nbsp;&nbsp;Ecolab, Inc. | 1397 | 203347 |
| &nbsp;&nbsp;&nbsp;Dow, Inc. | 3710 | 186947 |
| &nbsp;&nbsp;&nbsp;DuPont de Nemours, Inc. | 2646 | 181595 |
| &nbsp;&nbsp;&nbsp;PPG Industries, Inc. | 1382 | 173773 |
| &nbsp;&nbsp;&nbsp;LyondellBasell Industries N.V. — Class A | 2037 | 169132 |
| &nbsp;&nbsp;&nbsp;International Flavors & Fragrances, Inc. | 1526 | 159986 |
| &nbsp;&nbsp;&nbsp;Linde plc | 481 | 156893 |
| &nbsp;&nbsp;&nbsp;Albemarle Corp. | 711 | 154187 |
| &nbsp;&nbsp;&nbsp;FMC Corp. | 1010 | 126048 |
| &nbsp;&nbsp;&nbsp;CF Industries Holdings, Inc. | 1412 | 120302 |
| &nbsp;&nbsp;&nbsp;Mosaic Co. | 2692 | 118098 |
| &nbsp;&nbsp;&nbsp;Westlake Corp. | 1093 | 112076 |
| &nbsp;&nbsp;&nbsp;RPM International, Inc. | 1130 | 110119 |
| &nbsp;&nbsp;&nbsp;Celanese Corp. — Class A | 1066 | 108988 |
| &nbsp;&nbsp;&nbsp;Nutrien Ltd. | 1452 | 106040 |
| &nbsp;&nbsp;&nbsp;Eastman Chemical Co. | 1198 | 97565 |
| &nbsp;&nbsp;&nbsp;Olin Corp. | 1596 | 84492 |
| &nbsp;&nbsp;&nbsp;Valvoline, Inc. | 2336 | 76270 |
| &nbsp;&nbsp;&nbsp;Ashland, Inc. | 709 | 76239 |
| &nbsp;&nbsp;&nbsp;Axalta Coating Systems Ltd.\* | 2972 | 75697 |
| &nbsp;&nbsp;&nbsp;Huntsman Corp. | 2586 | 71063 |
| &nbsp;&nbsp;&nbsp;Chemours Co. | 2246 | 68773 |
| &nbsp;&nbsp;&nbsp;Element Solutions, Inc. | 3583 | 65175 |
| &nbsp;&nbsp;&nbsp;Balchem Corp. | 509 | 62154 |
| &nbsp;&nbsp;&nbsp;HB Fuller Co. | 852 | 61020 |
| &nbsp;&nbsp;&nbsp;Cabot Corp. | 907 | 60624 |
| &nbsp;&nbsp;&nbsp;Livent Corp.\* | 2883 | 57285 |
| &nbsp;&nbsp;&nbsp;Avient Corp. | 1689 | 57021 |
| &nbsp;&nbsp;&nbsp;Sensient Technologies Corp. | 768 | 56003 |
| &nbsp;&nbsp;&nbsp;Ingevity Corp.\* | 728 | 51280 |
| &nbsp;&nbsp;&nbsp;Trinseo plc | 1237 | 28092 |
| **Total Chemicals** |  | 3736707 |
| **Mining - 16.3%** | **Mining - 16.3%** | **Mining - 16.3%** |
| &nbsp;&nbsp;&nbsp;Freeport-McMoRan, Inc. | 5960 | 226480 |
| &nbsp;&nbsp;&nbsp;Newmont Corp. | 4104 | 193709 |
| &nbsp;&nbsp;&nbsp;Rio Tinto plc ADR | 1490 | 106088 |
| &nbsp;&nbsp;&nbsp;BHP Group Ltd. ADR | 1658 | 102879 |
| &nbsp;&nbsp;&nbsp;Teck Resources Ltd. — Class B | 2588 | 97878 |
| &nbsp;&nbsp;&nbsp;Agnico Eagle Mines Ltd. | 1835 | 95402 |
| &nbsp;&nbsp;&nbsp;Alcoa Corp. | 1969 | 89530 |
| &nbsp;&nbsp;&nbsp;Royal Gold, Inc. | 771 | 86907 |
| &nbsp;&nbsp;&nbsp;Wheaton Precious Metals Corp. | 2202 | 86054 |
| &nbsp;&nbsp;&nbsp;Franco-Nevada Corp. | 558 | 76156 |
| &nbsp;&nbsp;&nbsp;MP Materials Corp.\* | 2422 | 58806 |
| &nbsp;&nbsp;&nbsp;Arconic Corp.\* | 2170 | 45917 |
| &nbsp;&nbsp;&nbsp;Compass Minerals International, Inc. | 911 | 37351 |
| **Total Mining** |  | 1303157 |
| **Packaging & Containers - 12.1%** | **Packaging & Containers - 12.1%** | **Packaging & Containers - 12.1%** |
| &nbsp;&nbsp;&nbsp;Ball Corp. | 2421 | 123810 |
| &nbsp;&nbsp;&nbsp;Packaging Corporation of America | 830 | 106165 |
| &nbsp;&nbsp;&nbsp;Crown Holdings, Inc. | 1229 | 101036 |
| &nbsp;&nbsp;&nbsp;Westrock Co. | 2666 | 93737 |
| &nbsp;&nbsp;&nbsp;Berry Global Group, Inc. | 1425 | 86113 |
| &nbsp;&nbsp;&nbsp;AptarGroup, Inc. | 782 | 86004 |
| &nbsp;&nbsp;&nbsp;Sealed Air Corp. | 1686 | 84098 |
| &nbsp;&nbsp;&nbsp;Graphic Packaging Holding Co. | 3664 | 81524 |
| &nbsp;&nbsp;&nbsp;Sonoco Products Co. | 1282 | 77830 |
| &nbsp;&nbsp;&nbsp;Silgan Holdings, Inc. | 1455 | 75427 |
| &nbsp;&nbsp;&nbsp;O-I Glass, Inc.\* | 3085 | 51119 |
| **Total Packaging & Containers** |  | 966863 |
| **Iron & Steel - 9.7%** | **Iron & Steel - 9.7%** | **Iron & Steel - 9.7%** |
| &nbsp;&nbsp;&nbsp;Nucor Corp. | 1323 | 174385 |
| &nbsp;&nbsp;&nbsp;Steel Dynamics, Inc. | 1261 | 123200 |
| &nbsp;&nbsp;&nbsp;Reliance Steel & Aluminum Co. | 536 | 108508 |
| &nbsp;&nbsp;&nbsp;Cleveland-Cliffs, Inc.\* | 5577 | 89845 |
| &nbsp;&nbsp;&nbsp;United States Steel Corp. | 2982 | 74699 |
| &nbsp;&nbsp;&nbsp;Commercial Metals Co. | 1530 | 73899 |
| &nbsp;&nbsp;&nbsp;ArcelorMittal S.A. | 2724 | 71423 |
| &nbsp;&nbsp;&nbsp;ATI, Inc.\* | 2014 | 60138 |
| **Total Iron & Steel** |  | 776097 |
| **Building Materials - 7.0%** | **Building Materials - 7.0%** | **Building Materials - 7.0%** |
| &nbsp;&nbsp;&nbsp;Vulcan Materials Co. | 857 | 150069 |
| &nbsp;&nbsp;&nbsp;Martin Marietta Materials, Inc. | 421 | 142285 |
| &nbsp;&nbsp;&nbsp;MDU Resources Group, Inc. | 2567 | 77883 |
| &nbsp;&nbsp;&nbsp;Eagle Materials, Inc. | 524 | 69613 |
| &nbsp;&nbsp;&nbsp;Louisiana-Pacific Corp. | 1030 | 60976 |
| &nbsp;&nbsp;&nbsp;Summit Materials, Inc. — Class A\* | 1989 | 56467 |
| **Total Building Materials** |  | 557293 |
| **Biotechnology - 2.5%** | **Biotechnology - 2.5%** | **Biotechnology - 2.5%** |
| &nbsp;&nbsp;&nbsp;Corteva, Inc. | 3381 | 198735 |
| **Household Products & Housewares - 1.5%** | **Household Products & Housewares - 1.5%** | **Household Products & Housewares - 1.5%** |
| &nbsp;&nbsp;&nbsp;Avery Dennison Corp. | 687 | 124347 |
| **Forest Products & Paper - 1.4%** | **Forest Products & Paper - 1.4%** | **Forest Products & Paper - 1.4%** |
| &nbsp;&nbsp;&nbsp;International Paper Co. | 3113 | 107803 |
| **Coal - 1.1%** | **Coal - 1.1%** | **Coal - 1.1%** |
| &nbsp;&nbsp;&nbsp;Alpha Metallurgical Resources, Inc. | 323 | 47284 |
| &nbsp;&nbsp;&nbsp;Warrior Met Coal, Inc. | 1224 | 42399 |
| **Total Coal** |  | 89683 |
| **Housewares - 0.7%** | **Housewares - 0.7%** | **Housewares - 0.7%** |
| &nbsp;&nbsp;&nbsp;Scotts Miracle-Gro Co. — Class A | 1076 | 52283 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $4,213,500) |  | 7912968 |
| **EXCHANGE-TRADED FUNDS<sup>†</sup>** **- 0.8%** | **EXCHANGE-TRADED FUNDS<sup>†</sup>** **- 0.8%** | **EXCHANGE-TRADED FUNDS<sup>†</sup>** **- 0.8%** |
| &nbsp;&nbsp;&nbsp;VanEck Junior Gold Miners ETF | 1963 | 69981 |
| **Total Exchange-Traded Funds** | **Total Exchange-Traded Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $81,307) |  | 69981 |

---

16 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **BASIC MATERIALS FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Face<br> Amount** | **Value** |
| **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.7%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.7%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.7%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | $30153 | 30153 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 11597 | 11597 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 11561 | 11561 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $53,311) |  | 53311 |
| **Total Investments - 100.5%** | **Total Investments - 100.5%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $4,348,118) | &nbsp;&nbsp;&nbsp;(Cost $4,348,118) | $8036260 |
| **Other Assets & Liabilities, net - (0.5)%** | **Other Assets & Liabilities, net - (0.5)%** | (41650) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $7994610 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $7912968 | $— | $— | $7912968 |
| Exchange-Traded Funds | 69981 |  |  | 69981 |
| Repurchase Agreements |  | 53311 |  | 53311 |
| Total Assets | $7982949 | $53311 | $— | $8036260 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 17

**BASIC MATERIALS FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value (cost $4,294,807) | $7982949 |
| Repurchase agreements, at value (cost $53,311) | 53311 |
| Cash | 416 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 12158 |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 144 |
| &nbsp;&nbsp;&nbsp;Interest | 12 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 12 |
| **Total assets** | 8049002 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Deferred foreign capital gain taxes | 19016 |
| &nbsp;&nbsp;&nbsp;Professional fees | 13217 |
| &nbsp;&nbsp;&nbsp;Management fees | 6338 |
| &nbsp;&nbsp;&nbsp;Printing fees | 3524 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 2373 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 1864 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 1156 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 537 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 127 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 6240 |
| **Total liabilities** | 54392 |
| **Net assets** | $7994610 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $5468297 |
| Total distributable earnings (loss) | 2526313 |
| Net assets | $7994610 |
| Capital shares outstanding | 85779 |
| Net asset value per share | $93.20 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $1,744) | $227153 |
| Interest | 1254 |
| Income from securities lending, net | 486 |
| &nbsp;&nbsp;&nbsp;Total investment income | 228893 |
| **Expenses:** | **Expenses:** |
| Management fees | 79303 |
| Investor service fees | 23324 |
| Transfer agent fees | 25622 |
| Professional fees | 14465 |
| Portfolio accounting and administration fees | 11529 |
| Custodian fees | 1512 |
| Trustees' fees\* | 1322 |
| Miscellaneous | 7986 |
| &nbsp;&nbsp;&nbsp;Total expenses | 165063 |
| Net investment income | 63830 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | (233063) |
| Net realized loss | (233063) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (1244132) |
| Net change in unrealized appreciation (depreciation) | (1244132) |
| Net realized and unrealized loss | (1477195) |
| **Net decrease in net assets resulting from operations** | $(1413365) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

18 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**BASIC MATERIALS FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income | $63830 | $30679 |
| Net realized gain (loss) on investments | (233063) | 613915 |
| Net change in unrealized appreciation (depreciation) on investments | (1244132) | 950336 |
| Net increase (decrease) in net assets resulting from operations | (1413365) | 1594930 |
| Distributions to shareholders | (211818) | (317591) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 17160930 | 14236263 |
| Distributions reinvested | 211818 | 317591 |
| Cost of shares redeemed | (17002352) | (14854725) |
| Net increase (decrease) from capital share transactions | 370396 | (300871) |
| Net increase (decrease) in net assets | (1254787) | 976468 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 9249397 | 8272929 |
| &nbsp;&nbsp;&nbsp;End of year | $7994610 | $9249397 |
| **Capital share activity:** |  |  |
| Shares sold | 166003 | 138290 |
| Shares issued from reinvestment of distributions | 2382 | 3279 |
| Shares redeemed | (169900) | (147173) |
| Net decrease in shares | (1515) | (5604) |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 19

**BASIC MATERIALS FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $105.96 | $89.05 | $75.99 | $65.42 | $81.27 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .67 | .34 | .22 | .35 | .05 |
| Net gain (loss) on investments (realized and unrealized) | (11.01) | 19.78 | 14.43 | 13.55 | (13.91) |
| Total from investment operations | (10.34) | 20.12 | 14.65 | 13.90 | (13.86) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (.56) | (.59) | (.97) |  | (.42) |
| Net realized gains | (1.86) | (2.62) | (.62) | (3.33) | (1.57) |
| Total distributions | (2.42) | (3.21) | (1.59) | (3.33) | (1.99) |
| Net asset value, end of period | $93.20 | $105.96 | $89.05 | $75.99 | $65.42 |
| **Total Return<sup>b</sup>** | **(9.65** **%)** | **22.94%** | **19.75%** | **21.43%** | **(17.44** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $7995 | $9249 | $8273 | $6550 | $6168 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.68% | 0.33% | 0.31% | 0.49% | 0.06% |
| Total expenses<sup>c</sup> | 1.77% | 1.69% | 1.82% | 1.82% | 1.73% |
| Portfolio turnover rate | 185% | 149% | 194% | 88% | 83% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

20 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**BIOTECHNOLOGY FUND** 

**OBJECTIVE:** Seeks to provide capital appreciation by investing in companies that are involved in the biotechnology industry, including companies involved in research and development, genetic, or other biological engineering, and in the design, manufacture, or sale of related biotechnology products or services ("Biotechnology Companies").

For the Reporting Period, Biotechnology Fund returned -13.31%, compared with the S&P 500 Index, which returned -18.11%. The S&P 500 Health Care Index returned -1.95%.

Companies in the fertilizers & agricultural chemicals industry contributed the most to return, followed by the pharmaceuticals industry. The life sciences tools & services industry detracted the most from return for the period, followed by the biotechnology industry and the health care services industry.

The best-performing holdings in the Fund were AbbVie, Inc., Gilead Sciences, Inc., and Amgen, Inc. The worst-performing holdings in the Fund included Illumina, Inc., Novavax, Inc., and Guardant Health, Inc.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-5_21.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** May 2, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| AbbVie, Inc. | 8.4% |
| Amgen, Inc. | 5.7% |
| Gilead Sciences, Inc. | 5.1% |
| Regeneron Pharmaceuticals, Inc. | 4.3% |
| Moderna, Inc. | 4.1% |
| Vertex Pharmaceuticals, Inc. | 4.1% |
| Corteva, Inc. | 3.2% |
| Biogen, Inc. | 3.2% |
| AstraZeneca plc ADR | 2.9% |
| Horizon Therapeutics plc | 2.9% |
| Top Ten Total | 43.9% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 21

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-5_22.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Biotechnology Fund  | (13.31%)  | 3.79%  | 10.76%  |
| S&P 500 Health Care Index  | (1.95%)  | 12.53%  | 15.05%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Health Care Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

22 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **BIOTECHNOLOGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.5%** | **COMMON STOCKS<sup>†</sup>** **- 99.5%** | **COMMON STOCKS<sup>†</sup>** **- 99.5%** |
| **Biotechnology - 73.7%** | **Biotechnology - 73.7%** | **Biotechnology - 73.7%** |
| &nbsp;&nbsp;&nbsp;Amgen, Inc. | 3601 | $945767 |
| &nbsp;&nbsp;&nbsp;Gilead Sciences, Inc. | 9894 | 849400 |
| &nbsp;&nbsp;&nbsp;Regeneron Pharmaceuticals, Inc.\* | 988 | 712832 |
| &nbsp;&nbsp;&nbsp;Moderna, Inc.\* | 3809 | 684173 |
| &nbsp;&nbsp;&nbsp;Vertex Pharmaceuticals, Inc.\* | 2345 | 677189 |
| &nbsp;&nbsp;&nbsp;Corteva, Inc. | 9034 | 531019 |
| &nbsp;&nbsp;&nbsp;Biogen, Inc.\* | 1899 | 525871 |
| &nbsp;&nbsp;&nbsp;Horizon Therapeutics plc\* | 4152 | 472498 |
| &nbsp;&nbsp;&nbsp;Illumina, Inc.\* | 2312 | 467486 |
| &nbsp;&nbsp;&nbsp;Alnylam Pharmaceuticals, Inc.\* | 1886 | 448208 |
| &nbsp;&nbsp;&nbsp;Seagen, Inc.\* | 3205 | 411875 |
| &nbsp;&nbsp;&nbsp;Royalty Pharma plc — Class A | 10149 | 401088 |
| &nbsp;&nbsp;&nbsp;BioMarin Pharmaceutical, Inc.\* | 3545 | 366872 |
| &nbsp;&nbsp;&nbsp;Incyte Corp.\* | 4258 | 342003 |
| &nbsp;&nbsp;&nbsp;Sarepta Therapeutics, Inc.\* | 2309 | 299200 |
| &nbsp;&nbsp;&nbsp;United Therapeutics Corp.\* | 1071 | 297834 |
| &nbsp;&nbsp;&nbsp;Halozyme Therapeutics, Inc.\* | 4067 | 231412 |
| &nbsp;&nbsp;&nbsp;Karuna Therapeutics, Inc.\* | 1163 | 228529 |
| &nbsp;&nbsp;&nbsp;BioNTech SE ADR | 1382 | 207604 |
| &nbsp;&nbsp;&nbsp;Apellis Pharmaceuticals, Inc.\* | 3950 | 204254 |
| &nbsp;&nbsp;&nbsp;Cytokinetics, Inc.\* | 4457 | 204220 |
| &nbsp;&nbsp;&nbsp;Arrowhead Pharmaceuticals, Inc.\* | 4917 | 199434 |
| &nbsp;&nbsp;&nbsp;Ionis Pharmaceuticals, Inc.\* | 5244 | 198066 |
| &nbsp;&nbsp;&nbsp;Mirati Therapeutics, Inc.\* | 4339 | 196600 |
| &nbsp;&nbsp;&nbsp;Exelixis, Inc.\* | 11909 | 191020 |
| &nbsp;&nbsp;&nbsp;CRISPR Therapeutics AG\* | 4390 | 178453 |
| &nbsp;&nbsp;&nbsp;Maravai LifeSciences Holdings, Inc. — Class A\* | 11793 | 168758 |
| &nbsp;&nbsp;&nbsp;Denali Therapeutics, Inc.\* | 5744 | 159741 |
| &nbsp;&nbsp;&nbsp;Ultragenyx Pharmaceutical, Inc.\* | 3353 | 155344 |
| &nbsp;&nbsp;&nbsp;Intellia Therapeutics, Inc.\* | 4261 | 148666 |
| &nbsp;&nbsp;&nbsp;BioCryst Pharmaceuticals, Inc.\* | 11974 | 137462 |
| &nbsp;&nbsp;&nbsp;Blueprint Medicines Corp.\* | 3040 | 133182 |
| &nbsp;&nbsp;&nbsp;Beam Therapeutics, Inc.\* | 3397 | 132857 |
| &nbsp;&nbsp;&nbsp;Guardant Health, Inc.\* | 4045 | 110024 |
| &nbsp;&nbsp;&nbsp;Veracyte, Inc.\* | 4445 | 105480 |
| &nbsp;&nbsp;&nbsp;Twist Bioscience Corp.\* | 3982 | 94811 |
| &nbsp;&nbsp;&nbsp;Iovance Biotherapeutics, Inc.\* | 11899 | 76035 |
| &nbsp;&nbsp;&nbsp;Fate Therapeutics, Inc.\* | 6165 | 62205 |
| &nbsp;&nbsp;&nbsp;Editas Medicine, Inc.\* | 6992 | 62019 |
| &nbsp;&nbsp;&nbsp;Emergent BioSolutions, Inc.\* | 5036 | 59475 |
| &nbsp;&nbsp;&nbsp;Novavax, Inc.\*<sup>,1</sup> | 5538 | 56931 |
| &nbsp;&nbsp;&nbsp;Biohaven Ltd.\* | 3450 | 47886 |
| **Total Biotechnology** |  | 12183783 |
| **Pharmaceuticals - 17.2%** | **Pharmaceuticals - 17.2%** | **Pharmaceuticals - 17.2%** |
| &nbsp;&nbsp;&nbsp;AbbVie, Inc. | 8595 | 1389038 |
| &nbsp;&nbsp;&nbsp;AstraZeneca plc ADR | 7150 | 484770 |
| &nbsp;&nbsp;&nbsp;Viatris, Inc. | 28069 | 312408 |
| &nbsp;&nbsp;&nbsp;Neurocrine Biosciences, Inc.\* | 2389 | 285342 |
| &nbsp;&nbsp;&nbsp;Jazz Pharmaceuticals plc\* | 1614 | 257127 |
| &nbsp;&nbsp;&nbsp;Ironwood Pharmaceuticals, Inc. — Class A\* | 9590 | 118820 |
| **Total Pharmaceuticals** |  | 2847505 |
| **Healthcare-Products - 4.9%** | **Healthcare-Products - 4.9%** | **Healthcare-Products - 4.9%** |
| &nbsp;&nbsp;&nbsp;Bio-Techne Corp. | 3714 | 307816 |
| &nbsp;&nbsp;&nbsp;Exact Sciences Corp.\* | 5133 | 254135 |
| &nbsp;&nbsp;&nbsp;Natera, Inc.\* | 4530 | 181970 |
| &nbsp;&nbsp;&nbsp;CareDx, Inc.\* | 5458 | 62276 |
| **Total Healthcare-Products** |  | 806197 |
| **Healthcare-Services - 3.7%** | **Healthcare-Services - 3.7%** | **Healthcare-Services - 3.7%** |
| &nbsp;&nbsp;&nbsp;ICON plc\* | 1212 | 235431 |
| &nbsp;&nbsp;&nbsp;Medpace Holdings, Inc.\* | 1017 | 216021 |
| &nbsp;&nbsp;&nbsp;Syneos Health, Inc.\* | 4553 | 167004 |
| **Total Healthcare-Services** |  | 618456 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $8,471,252) |  | 16455941 |
|  | **Face<br> Amount** |  |
| **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.9%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.9%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.9%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | $82632 | 82632 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 31781 | 31781 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 31683 | 31683 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $146,096) |  | 146096 |
|  | **Shares** |  |
| **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.2%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.2%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.2%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>4</sup> | 27008 | 27008 |
| **Total Securities Lending Collateral** | **Total Securities Lending Collateral** |  |
| &nbsp;&nbsp;&nbsp;(Cost $27,008) |  | 27008 |
| **Total Investments - 100.6%** | **Total Investments - 100.6%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $8,644,356) | &nbsp;&nbsp;&nbsp;(Cost $8,644,356) | $16629045 |
| **Other Assets & Liabilities, net - (0.6)%** | **Other Assets & Liabilities, net - (0.6)%** | (98204) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $16530841 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 23

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **BIOTECHNOLOGY FUND** |  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $16455941 | $— | $— | $16455941 |
| Repurchase Agreements |  | 146096 |  | 146096 |
| Securities Lending Collateral | 27008 |  |  | 27008 |
| Total Assets | $16482949 | $146096 | $— | $16629045 |

---

24 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**BIOTECHNOLOGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value - including $27,592 of securities loaned (cost $8,498,260) | $16482949 |
| Repurchase agreements, at value (cost $146,096) | 146096 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Foreign tax reclaims | 476 |
| &nbsp;&nbsp;&nbsp;Interest | 34 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 14 |
| **Total assets** | 16629569 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 27008 |
| &nbsp;&nbsp;&nbsp;Professional fees | 23023 |
| &nbsp;&nbsp;&nbsp;Management fees | 12141 |
| &nbsp;&nbsp;&nbsp;Printing fees | 6139 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 4902 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 4829 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 3571 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 2214 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 242 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 14659 |
| **Total liabilities** | 98728 |
| **Net assets** | $16530841 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $10904607 |
| Total distributable earnings (loss) | 5626234 |
| Net assets | $16530841 |
| Capital shares outstanding | 208282 |
| Net asset value per share | $79.37 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $705) | $162746 |
| Interest | 1824 |
| Income from securities lending, net | 8699 |
| &nbsp;&nbsp;&nbsp;Total investment income | 173269 |
| **Expenses:** | **Expenses:** |
| Management fees | 138145 |
| Investor service fees | 40631 |
| Transfer agent fees | 44327 |
| Professional fees | 22397 |
| Portfolio accounting and administration fees | 20749 |
| Trustees' fees\* | 2579 |
| Custodian fees | 2523 |
| Line of credit fees | 50 |
| Miscellaneous | 15878 |
| &nbsp;&nbsp;&nbsp;Total expenses | 287279 |
| Net investment loss | (114010) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | (1180019) |
| Net realized loss | (1180019) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (1632959) |
| Net change in unrealized appreciation (depreciation) | (1632959) |
| Net realized and unrealized loss | (2812978) |
| **Net decrease in net assets resulting from operations** | $(2926988) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 25

**BIOTECHNOLOGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment loss | $(114010) | $(228552) |
| Net realized gain (loss) on investments | (1180019) | 3333603 |
| Net change in unrealized appreciation (depreciation) on investments | (1632959) | (3062492) |
| Net increase (decrease) in net assets resulting from operations | (2926988) | 42559 |
| Distributions to shareholders | (1396614) | (2020352) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 15586092 | 25386431 |
| Distributions reinvested | 1396614 | 2020352 |
| Cost of shares redeemed | (18754544) | (27424512) |
| Net decrease from capital share transactions | (1771838) | (17729) |
| Net decrease in net assets | (6095440) | (1995522) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 22626281 | 24621803 |
| &nbsp;&nbsp;&nbsp;End of year | $16530841 | $22626281 |
| **Capital share activity:** |  |  |
| Shares sold | 194819 | 236660 |
| Shares issued from reinvestment of distributions | 17860 | 19449 |
| Shares redeemed | (232747) | (257856) |
| Net decrease in shares | (20068) | (1747) |

---

26 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**BIOTECHNOLOGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $99.09 | $107.01 | $94.84 | $78.16 | $86.53 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | (.57) | (1.04) | (.91) | (.83) | (.96) |
| Net gain (loss) on investments (realized and unrealized) | (12.71) | 3.01 | 20.68 | 19.81 | (7.17) |
| Total from investment operations | (13.28) | 1.97 | 19.77 | 18.98 | (8.13) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net realized gains | (6.44) | (9.89) | (7.60) | (2.30) | (.24) |
| Total distributions | (6.44) | (9.89) | (7.60) | (2.30) | (.24) |
| Net asset value, end of period | $79.37 | $99.09 | $107.01 | $94.84 | $78.16 |
| **Total Return<sup>b</sup>** | **(13.31** **%)** | **1.42%** | **21.31%** | **24.67%** | **(9.44** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $16531 | $22626 | $24622 | $21687 | $21000 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | (0.70%) | (0.98%) | (0.94%) | (0.95%) | (1.08%) |
| Total expenses | 1.77% | 1.69% | 1.82% | 1.82% | 1.72% |
| Portfolio turnover rate | 116% | 118% | 160% | 105% | 109% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 27

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**CONSUMER PRODUCTS FUND** 

**OBJECTIVE:** Seeks to provide capital appreciation by investing in companies engaged in manufacturing finished goods and services both domestically and internationally ("Consumer Products Companies").

For the Reporting Period, Consumer Products Fund returned -0.91%, compared with a return of -18.11% for the S&P 500 Index. The S&P 500 Consumer Staples Index returned -0.62%.

The soft drinks industry was the largest contributor to the Fund's return for the period, followed by the packaged foods & meats industry and the agricultural products industry. The personal products industry detracted the most from return for the period, followed by the household products industry and the distillers & vintners industry.

Fund performance for the year got the biggest boost from Archer-Daniels-Midland Co., General Mills, Inc., and Coca-Cola Co. The Fund's weakest performers during the year were Estee Lauder Companies, Inc. - Class A, Tyson Foods, Inc. - Class A, and Herbalife Nutrition Ltd.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-5_28.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** May 29, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| Procter & Gamble Co. | 6.6% |
| Coca-Cola Co. | 5.8% |
| PepsiCo, Inc. | 5.5% |
| Philip Morris International, Inc. | 4.4% |
| Estee Lauder Companies, Inc. — Class A | 3.3% |
| Mondelez International, Inc. — Class A | 3.3% |
| Altria Group, Inc. | 3.1% |
| Colgate-Palmolive Co. | 2.9% |
| Monster Beverage Corp. | 2.6% |
| Archer-Daniels-Midland Co. | 2.5% |
| Top Ten Total | 40.0% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

28 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-5_29.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Consumer Products Fund  | (0.91%)  | 4.86%  | 8.62%  |
| S&P 500 Consumer Staples Index  | (0.62%)  | 8.83%  | 11.03%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Consumer Staples Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 29

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **CONSUMER PRODUCTS FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.3%** | **COMMON STOCKS<sup>†</sup>** **- 99.3%** | **COMMON STOCKS<sup>†</sup>** **- 99.3%** |
| **Food - 36.8%** | **Food - 36.8%** | **Food - 36.8%** |
| &nbsp;&nbsp;&nbsp;Mondelez International, Inc. — Class A | 6408 | $427093 |
| &nbsp;&nbsp;&nbsp;Kraft Heinz Co. | 7776 | 316561 |
| &nbsp;&nbsp;&nbsp;General Mills, Inc. | 3683 | 308819 |
| &nbsp;&nbsp;&nbsp;Hershey Co. | 1294 | 299652 |
| &nbsp;&nbsp;&nbsp;Sysco Corp. | 3509 | 268263 |
| &nbsp;&nbsp;&nbsp;Kroger Co. | 5515 | 245859 |
| &nbsp;&nbsp;&nbsp;Kellogg Co. | 3072 | 218849 |
| &nbsp;&nbsp;&nbsp;Hormel Foods Corp. | 4789 | 218139 |
| &nbsp;&nbsp;&nbsp;Tyson Foods, Inc. — Class A | 3410 | 212272 |
| &nbsp;&nbsp;&nbsp;McCormick & Company, Inc. | 2518 | 208717 |
| &nbsp;&nbsp;&nbsp;Conagra Brands, Inc. | 4988 | 193036 |
| &nbsp;&nbsp;&nbsp;J M Smucker Co. | 1166 | 184764 |
| &nbsp;&nbsp;&nbsp;Campbell Soup Co. | 3194 | 181259 |
| &nbsp;&nbsp;&nbsp;Lamb Weston Holdings, Inc. | 1838 | 164244 |
| &nbsp;&nbsp;&nbsp;Albertsons Companies, Inc. — Class A | 6978 | 144724 |
| &nbsp;&nbsp;&nbsp;Performance Food Group Co.\* | 2289 | 133655 |
| &nbsp;&nbsp;&nbsp;US Foods Holding Corp.\* | 3610 | 122812 |
| &nbsp;&nbsp;&nbsp;Ingredion, Inc. | 1162 | 113795 |
| &nbsp;&nbsp;&nbsp;Flowers Foods, Inc. | 3852 | 110706 |
| &nbsp;&nbsp;&nbsp;Post Holdings, Inc.\* | 1151 | 103889 |
| &nbsp;&nbsp;&nbsp;Sprouts Farmers Market, Inc.\* | 2472 | 80019 |
| &nbsp;&nbsp;&nbsp;Grocery Outlet Holding Corp.\* | 2683 | 78317 |
| &nbsp;&nbsp;&nbsp;TreeHouse Foods, Inc.\* | 1573 | 77675 |
| &nbsp;&nbsp;&nbsp;Hostess Brands, Inc.\* | 3338 | 74905 |
| &nbsp;&nbsp;&nbsp;United Natural Foods, Inc.\* | 1915 | 74130 |
| &nbsp;&nbsp;&nbsp;Cal-Maine Foods, Inc. | 1299 | 70730 |
| &nbsp;&nbsp;&nbsp;Hain Celestial Group, Inc.\* | 3317 | 53669 |
| &nbsp;&nbsp;&nbsp;Beyond Meat, Inc.\*<sup>,1</sup> | 2611 | 32141 |
| **Total Food** |  | 4718694 |
| **Beverages - 26.2%** | **Beverages - 26.2%** | **Beverages - 26.2%** |
| &nbsp;&nbsp;&nbsp;Coca-Cola Co. | 11728 | 746018 |
| &nbsp;&nbsp;&nbsp;PepsiCo, Inc. | 3905 | 705477 |
| &nbsp;&nbsp;&nbsp;Monster Beverage Corp.\* | 3249 | 329871 |
| &nbsp;&nbsp;&nbsp;Keurig Dr Pepper, Inc. | 8667 | 309065 |
| &nbsp;&nbsp;&nbsp;Constellation Brands, Inc. — Class A | 1254 | 290614 |
| &nbsp;&nbsp;&nbsp;Brown-Forman Corp. — Class B | 3914 | 257072 |
| &nbsp;&nbsp;&nbsp;Molson Coors Beverage Co. — Class B | 2962 | 152602 |
| &nbsp;&nbsp;&nbsp;Coca-Cola Europacific Partners plc | 2469 | 136585 |
| &nbsp;&nbsp;&nbsp;Celsius Holdings, Inc.\* | 1141 | 118710 |
| &nbsp;&nbsp;&nbsp;Anheuser-Busch InBev S.A. ADR | 1963 | 117859 |
| &nbsp;&nbsp;&nbsp;Fomento Economico Mexicano SAB de CV ADR | 1370 | 107024 |
| &nbsp;&nbsp;&nbsp;Boston Beer Company, Inc. — Class A\* | 271 | 89300 |
| **Total Beverages** |  | 3360197 |
| **Agriculture - 13.5%** | **Agriculture - 13.5%** | **Agriculture - 13.5%** |
| &nbsp;&nbsp;&nbsp;Philip Morris International, Inc. | 5617 | 568497 |
| &nbsp;&nbsp;&nbsp;Altria Group, Inc. | 8837 | 403939 |
| &nbsp;&nbsp;&nbsp;Archer-Daniels-Midland Co. | 3444 | 319775 |
| &nbsp;&nbsp;&nbsp;Bunge Ltd. | 1766 | 176194 |
| &nbsp;&nbsp;&nbsp;Darling Ingredients, Inc.\* | 2298 | 143832 |
| &nbsp;&nbsp;&nbsp;British American Tobacco plc ADR | 3060 | 122339 |
| **Total Agriculture** |  | 1734576 |
| **Cosmetics & Personal Care - 13.2%** | **Cosmetics & Personal Care - 13.2%** | **Cosmetics & Personal Care - 13.2%** |
| &nbsp;&nbsp;&nbsp;Procter & Gamble Co. | 5603 | 849191 |
| &nbsp;&nbsp;&nbsp;Estee Lauder Companies, Inc. — Class A | 1723 | 427493 |
| &nbsp;&nbsp;&nbsp;Colgate-Palmolive Co. | 4648 | 366216 |
| &nbsp;&nbsp;&nbsp;Beauty Health Co.\* | 5099 | 46401 |
| **Total Cosmetics & Personal Care** |  | 1689301 |
| **Household Products & Housewares - 5.9%** | **Household Products & Housewares - 5.9%** | **Household Products & Housewares - 5.9%** |
| &nbsp;&nbsp;&nbsp;Kimberly-Clark Corp. | 2239 | 303944 |
| &nbsp;&nbsp;&nbsp;Church & Dwight Company, Inc. | 2494 | 201042 |
| &nbsp;&nbsp;&nbsp;Clorox Co. | 1285 | 180324 |
| &nbsp;&nbsp;&nbsp;Spectrum Brands Holdings, Inc. | 1238 | 75419 |
| **Total Household Products & Housewares** |  | 760729 |
| **Retail - 2.0%** | **Retail - 2.0%** | **Retail - 2.0%** |
| &nbsp;&nbsp;&nbsp;Casey's General Stores, Inc. | 537 | 120476 |
| &nbsp;&nbsp;&nbsp;Freshpet, Inc.\* | 1299 | 68548 |
| &nbsp;&nbsp;&nbsp;Nu Skin Enterprises, Inc. — Class A | 1577 | 66487 |
| **Total Retail** |  | 255511 |
| **Pharmaceuticals - 1.2%** | **Pharmaceuticals - 1.2%** | **Pharmaceuticals - 1.2%** |
| &nbsp;&nbsp;&nbsp;BellRing Brands, Inc.\* | 3331 | 85407 |
| &nbsp;&nbsp;&nbsp;Herbalife Nutrition Ltd.\* | 4610 | 68597 |
| **Total Pharmaceuticals** |  | 154004 |
| **Electrical Components & Equipment - 0.5%** | **Electrical Components & Equipment - 0.5%** | **Electrical Components & Equipment - 0.5%** |
| &nbsp;&nbsp;&nbsp;Energizer Holdings, Inc. | 2052 | 68845 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $7,217,803) |  | 12741857 |
|  | **Face<br> Amount** |  |
| **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.7%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.7%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.7%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | $49715 | 49715 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 19121 | 19121 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 19062 | 19062 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $87,898) |  | 87898 |

---

30 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **CONSUMER PRODUCTS FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.2%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.2%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.2%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>4</sup> | 25121 | $25121 |
| **Total Securities Lending Collateral** | **Total Securities Lending Collateral** |  |
| &nbsp;&nbsp;&nbsp;(Cost $25,121) |  | 25121 |
| **Total Investments - 100.2%** | **Total Investments - 100.2%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $7,330,822) | &nbsp;&nbsp;&nbsp;(Cost $7,330,822) | $12854876 |
| **Other Assets & Liabilities, net - (0.2)%** | **Other Assets & Liabilities, net - (0.2)%** | (22323) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $12832553 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $12741857 | $— | $— | $12741857 |
| Repurchase Agreements |  | 87898 |  | 87898 |
| Securities Lending Collateral | 25121 |  |  | 25121 |
| Total Assets | $12766978 | $87898 | $— | $12854876 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 31

**CONSUMER PRODUCTS FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value - including $24,103 of securities loaned (cost $7,242,924) | $12766978 |
| Repurchase agreements, at value (cost $87,898) | 87898 |
| Cash | 114 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 66267 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 1291 |
| &nbsp;&nbsp;&nbsp;Interest | 21 |
| **Total assets** | 12922569 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 25121 |
| &nbsp;&nbsp;&nbsp;Professional fees | 18845 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 11571 |
| &nbsp;&nbsp;&nbsp;Management fees | 9699 |
| &nbsp;&nbsp;&nbsp;Printing fees | 5025 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 3738 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 2853 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 1768 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 194 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 11202 |
| **Total liabilities** | 90016 |
| **Net assets** | $12832553 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $8199354 |
| Total distributable earnings (loss) | 4633199 |
| Net assets | $12832553 |
| Capital shares outstanding | 178328 |
| Net asset value per share | $71.96 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends | $350461 |
| Interest | 1220 |
| Income from securities lending, net | 29264 |
| &nbsp;&nbsp;&nbsp;Total investment income | 380945 |
| **Expenses:** | **Expenses:** |
| Management fees | 113074 |
| Investor service fees | 33257 |
| Transfer agent fees | 35874 |
| Professional fees | 20490 |
| Portfolio accounting and administration fees | 16760 |
| Custodian fees | 2075 |
| Trustees' fees\* | 1850 |
| Line of credit fees | 22 |
| Miscellaneous | 11798 |
| &nbsp;&nbsp;&nbsp;Total expenses | 235200 |
| Net investment income | 145745 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | 671922 |
| Net realized gain | 671922 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (1400905) |
| Net change in unrealized appreciation (depreciation) | (1400905) |
| Net realized and unrealized loss | (728983) |
| **Net decrease in net assets resulting from operations** | $(583238) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

32 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**CONSUMER PRODUCTS FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income | $145745 | $91455 |
| Net realized gain on investments | 671922 | 1789286 |
| Net change in unrealized appreciation (depreciation) on investments | (1400905) | (468090) |
| Net increase (decrease) in net assets resulting from operations | (583238) | 1412651 |
| Distributions to shareholders | (830901) | (128528) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 20022209 | 22101455 |
| Distributions reinvested | 830901 | 128528 |
| Cost of shares redeemed | (22281430) | (23626148) |
| Net decrease from capital share transactions | (1428320) | (1396165) |
| Net decrease in net assets | (2842459) | (112042) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 15675012 | 15787054 |
| &nbsp;&nbsp;&nbsp;End of year | $12832553 | $15675012 |
| **Capital share activity:** |  |  |
| Shares sold | 264550 | 295678 |
| Shares issued from reinvestment of distributions | 11885 | 1717 |
| Shares redeemed | (299900) | (318343) |
| Net decrease in shares | (23465) | (20948) |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 33

**CONSUMER PRODUCTS FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $77.68 | $70.88 | $67.43 | $55.78 | $66.30 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .81 | .50 | .51 | .56 | .70 |
| Net gain (loss) on investments (realized and unrealized) | (1.66) | 7.00 | 4.44 | 11.84 | (8.51) |
| Total from investment operations | (.85) | 7.50 | 4.95 | 12.40 | (7.81) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (.54) | (.64) | (.59) | (.60) | (.45) |
| Net realized gains | (4.33) | (.06) | (.91) | (.15) | (2.26) |
| Total distributions | (4.87) | (.70) | (1.50) | (.75) | (2.71) |
| Net asset value, end of period | $71.96 | $77.68 | $70.88 | $67.43 | $55.78 |
| **Total Return<sup>b</sup>** | **(0.91** **%)** | **10.62%** | **7.58%** | **22.33%** | **(12.12** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $12833 | $15675 | $15787 | $18606 | $13121 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 1.10% | 0.68% | 0.79% | 0.88% | 1.14% |
| Total expenses | 1.77% | 1.69% | 1.82% | 1.82% | 1.72% |
| Portfolio turnover rate | 149% | 162% | 155% | 177% | 176% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

34 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**ELECTRONICS FUND** 

**OBJECTIVE:** Seeks to provide capital appreciation by investing in companies that are involved in the electronics sector, including semiconductor manufacturers and distributors, and makers and vendors of other electronic components and devices ("Electronics Companies").

For the Reporting Period, Electronics Fund returned -32.70%, compared with a return of -18.11% for the S&P 500 Index. The S&P 500 Information Technology Index returned -28.19%.

No industry contributed to return. The semiconductors group was the largest detractor from return, followed by the semiconductor equipment industry.

Fund performance got the biggest boost from Enphase Energy, Inc., First Solar, Inc., and GlobalFoundries Inc. Detracting the most from the Fund's performance for the period were NVIDIA Corp., Advanced Micro Devices, Inc., and Intel Corp.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-5_35.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** August 3, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| NVIDIA Corp. | 8.0% |
| Broadcom, Inc. | 7.1% |
| Texas Instruments, Inc. | 5.4% |
| QUALCOMM, Inc. | 4.9% |
| Intel Corp. | 4.6% |
| Advanced Micro Devices, Inc. | 4.6% |
| Analog Devices, Inc. | 4.1% |
| Applied Materials, Inc. | 3.9% |
| Lam Research Corp. | 3.3% |
| KLA Corp. | 3.2% |
| Top Ten Total | 49.1% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 35

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-5_36.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Electronics Fund  | (32.70%)  | 15.07%  | 18.82%  |
| S&P 500 Information Technology Index  | (28.19%)  | 15.81%  | 18.33%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

36 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **ELECTRONICS FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.7%** | **COMMON STOCKS<sup>†</sup>** **- 99.7%** | **COMMON STOCKS<sup>†</sup>** **- 99.7%** |
| **Semiconductors - 90.0%** | **Semiconductors - 90.0%** | **Semiconductors - 90.0%** |
| &nbsp;&nbsp;&nbsp;NVIDIA Corp. | 5922 | $865441 |
| &nbsp;&nbsp;&nbsp;Broadcom, Inc. | 1369 | 765449 |
| &nbsp;&nbsp;&nbsp;Texas Instruments, Inc. | 3539 | 584714 |
| &nbsp;&nbsp;&nbsp;QUALCOMM, Inc. | 4785 | 526063 |
| &nbsp;&nbsp;&nbsp;Intel Corp. | 18982 | 501694 |
| &nbsp;&nbsp;&nbsp;Advanced Micro Devices, Inc.\* | 7728 | 500543 |
| &nbsp;&nbsp;&nbsp;Analog Devices, Inc. | 2683 | 440092 |
| &nbsp;&nbsp;&nbsp;Applied Materials, Inc. | 4333 | 421948 |
| &nbsp;&nbsp;&nbsp;Lam Research Corp. | 855 | 359356 |
| &nbsp;&nbsp;&nbsp;KLA Corp. | 921 | 347245 |
| &nbsp;&nbsp;&nbsp;Micron Technology, Inc. | 6840 | 341863 |
| &nbsp;&nbsp;&nbsp;Taiwan Semiconductor Manufacturing Company Ltd. ADR | 4549 | 338855 |
| &nbsp;&nbsp;&nbsp;Microchip Technology, Inc. | 4164 | 292521 |
| &nbsp;&nbsp;&nbsp;Marvell Technology, Inc. | 7315 | 270948 |
| &nbsp;&nbsp;&nbsp;NXP Semiconductor N.V. | 1676 | 264858 |
| &nbsp;&nbsp;&nbsp;GLOBALFOUNDRIES, Inc.\*<sup>,1</sup> | 4609 | 248379 |
| &nbsp;&nbsp;&nbsp;ON Semiconductor Corp.\* | 3818 | 238129 |
| &nbsp;&nbsp;&nbsp;ASML Holding N.V. — Class G | 412 | 225117 |
| &nbsp;&nbsp;&nbsp;Monolithic Power Systems, Inc. | 540 | 190949 |
| &nbsp;&nbsp;&nbsp;Skyworks Solutions, Inc. | 2003 | 182533 |
| &nbsp;&nbsp;&nbsp;Teradyne, Inc. | 1976 | 172604 |
| &nbsp;&nbsp;&nbsp;STMicroelectronics N.V. — Class Y | 4540 | 161488 |
| &nbsp;&nbsp;&nbsp;Entegris, Inc. | 2305 | 151185 |
| &nbsp;&nbsp;&nbsp;Qorvo, Inc.\* | 1567 | 142033 |
| &nbsp;&nbsp;&nbsp;Lattice Semiconductor Corp.\* | 2136 | 138584 |
| &nbsp;&nbsp;&nbsp;Wolfspeed, Inc.\* | 1872 | 129243 |
| &nbsp;&nbsp;&nbsp;MKS Instruments, Inc. | 1395 | 118198 |
| &nbsp;&nbsp;&nbsp;Amkor Technology, Inc. | 4775 | 114504 |
| &nbsp;&nbsp;&nbsp;Silicon Laboratories, Inc.\* | 736 | 99853 |
| &nbsp;&nbsp;&nbsp;Power Integrations, Inc. | 1376 | 98687 |
| &nbsp;&nbsp;&nbsp;Cirrus Logic, Inc.\* | 1271 | 94664 |
| &nbsp;&nbsp;&nbsp;Synaptics, Inc.\* | 971 | 92400 |
| &nbsp;&nbsp;&nbsp;Ambarella, Inc.\* | 1080 | 88808 |
| &nbsp;&nbsp;&nbsp;MaxLinear, Inc. — Class A\* | 2344 | 79579 |
| &nbsp;&nbsp;&nbsp;SiTime Corp.\* | 694 | 70524 |
| &nbsp;&nbsp;&nbsp;Semtech Corp.\* | 2314 | 66389 |
| **Total Semiconductors** |  | 9725440 |
| **Energy-Alternate Sources - 6.7%** | **Energy-Alternate Sources - 6.7%** | **Energy-Alternate Sources - 6.7%** |
| &nbsp;&nbsp;&nbsp;Enphase Energy, Inc.\* | 1036 | 274499 |
| &nbsp;&nbsp;&nbsp;First Solar, Inc.\* | 1342 | 201018 |
| &nbsp;&nbsp;&nbsp;SolarEdge Technologies, Inc.\* | 574 | 162597 |
| &nbsp;&nbsp;&nbsp;SunPower Corp. — Class A\* | 4509 | 81297 |
| **Total Energy-Alternate Sources** |  | 719411 |
| **Chemicals - 1.1%** | **Chemicals - 1.1%** | **Chemicals - 1.1%** |
| &nbsp;&nbsp;&nbsp;Daqo New Energy Corp. ADR\* | 3115 | 120270 |
| **Electrical Components & Equipment - 1.0%** | **Electrical Components & Equipment - 1.0%** | **Electrical Components & Equipment - 1.0%** |
| &nbsp;&nbsp;&nbsp;Universal Display Corp. | 982 | 106095 |
| **Healthcare-Products - 0.9%** | **Healthcare-Products - 0.9%** | **Healthcare-Products - 0.9%** |
| &nbsp;&nbsp;&nbsp;Azenta, Inc.\* | 1740 | 101303 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $6,041,416) |  | 10772519 |
|  | **Face<br> Amount** |  |
| **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.7%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.7%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.7%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | 42811 | 42811 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 16465 | 16465 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 16415 | 16415 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $75,691) |  | 75691 |
|  | **Shares** |  |
| **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 1.8%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 1.8%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 1.8%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>4</sup> | 191273 | 191273 |
| **Total Securities Lending Collateral** | **Total Securities Lending Collateral** |  |
| &nbsp;&nbsp;&nbsp;(Cost $191,273) |  | 191273 |
| **Total Investments - 102.2%** | **Total Investments - 102.2%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $6,308,380) | &nbsp;&nbsp;&nbsp;(Cost $6,308,380) | $11039483 |
| **Other Assets & Liabilities, net - (2.2)%** | **Other Assets & Liabilities, net - (2.2)%** | (232946) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $10806537 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 37

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **ELECTRONICS FUND** |  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $10772519 | $— | $— | $10772519 |
| Repurchase Agreements |  | 75691 |  | 75691 |
| Securities Lending Collateral | 191273 |  |  | 191273 |
| Total Assets | $10963792 | $75691 | $— | $11039483 |

---

38 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**ELECTRONICS FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value - including $186,244 of securities loaned (cost $6,232,689) | $10963792 |
| Repurchase agreements, at value (cost $75,691) | 75691 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 5616 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 300 |
| &nbsp;&nbsp;&nbsp;Interest | 18 |
| **Total assets** | 11045417 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 191273 |
| &nbsp;&nbsp;&nbsp;Management fees | 8286 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 2660 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 2443 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 2437 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 1511 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 167 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 30103 |
| **Total liabilities** | 238880 |
| **Net assets** | $10806537 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $5896288 |
| Total distributable earnings (loss) | 4910249 |
| Net assets | $10806537 |
| Capital shares outstanding | 79996 |
| Net asset value per share | $135.09 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $826) | $109579 |
| Interest | 1091 |
| Income from securities lending, net | 1517 |
| &nbsp;&nbsp;&nbsp;Total investment income | 112187 |
| **Expenses:** | **Expenses:** |
| Management fees | 83366 |
| Investor service fees | 24519 |
| Transfer agent fees | 28347 |
| Professional fees | 19810 |
| Portfolio accounting and administration fees | 12171 |
| Trustees' fees\* | 1923 |
| Custodian fees | 1625 |
| Miscellaneous | 1481 |
| &nbsp;&nbsp;&nbsp;Total expenses | 173242 |
| Net investment loss | (61055) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | 1725567 |
| Net realized gain | 1725567 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (6311752) |
| Net change in unrealized appreciation (depreciation) | (6311752) |
| Net realized and unrealized loss | (4586185) |
| **Net decrease in net assets resulting from operations** | $(4647240) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 39

**ELECTRONICS FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment loss | $(61055) | $(109172) |
| Net realized gain on investments | 1725567 | 1250221 |
| Net change in unrealized appreciation (depreciation) on investments | (6311752) | 2866316 |
| Net increase (decrease) in net assets resulting from operations | (4647240) | 4007365 |
| Distributions to shareholders | (371881) | (697974) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 11568962 | 27913509 |
| Distributions reinvested | 371881 | 697974 |
| Cost of shares redeemed | (12678763) | (27507903) |
| Net increase (decrease) from capital share transactions | (737920) | 1103580 |
| Net increase (decrease) in net assets | (5757041) | 4412971 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 16563578 | 12150607 |
| &nbsp;&nbsp;&nbsp;End of year | $10806537 | $16563578 |
| **Capital share activity:** |  |  |
| Shares sold | 77122 | 148931 |
| Shares issued from reinvestment of distributions | 2554 | 4117 |
| Shares redeemed | (78267) | (149285) |
| Net increase in shares | 1409 | 3763 |

---

40 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**ELECTRONICS FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $210.77 | $162.39 | $105.84 | $67.30 | $79.89 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | (.99) | (1.50) | (.73) | (.20) | (.07) |
| Net gain (loss) on investments (realized and unrealized) | (67.42) | 60.92 | 59.27 | 39.89 | (9.54) |
| Total from investment operations | (68.41) | 59.42 | 58.54 | 39.69 | (9.61) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net realized gains | (7.27) | (11.04) | (1.99) | (1.15) | (2.98) |
| Total distributions | (7.27) | (11.04) | (1.99) | (1.15) | (2.98) |
| Net asset value, end of period | $135.09 | $210.77 | $162.39 | $105.84 | $67.30 |
| **Total Return<sup>b</sup>** | **(32.70** **%)** | **38.25%** | **55.96%** | **59.28%** | **(12.71** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $10807 | $16564 | $12151 | $11293 | $4860 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | (0.62%) | (0.82%) | (0.62%) | (0.23%) | (0.09%) |
| Total expenses | 1.77% | 1.70% | 1.82% | 1.82% | 1.71% |
| Portfolio turnover rate | 115% | 197% | 158% | 208% | 248% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 41

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**ENERGY FUND** 

**OBJECTIVE:** Seeks to provide capital appreciation by investing in companies involved in the energy field, including the exploration, production, and development of oil, gas, coal, and alternative sources of energy ("Energy Companies").

For the Reporting Period, Energy Fund returned 48.29%, compared with the -18.11% return of the S&P 500 Index. The S&P 500 Energy Index returned 65.72%.

The oil & gas exploration & production industry was the leading contributor to return for the period, followed by the integrated oil & gas industry and the oil & gas refining & marketing industry. The electrical components & equipment industry was the leading detractor from return for the period, followed by the construction & engineering industry and the heavy electrical equipment industry.

Exxon Mobil Corp., Chevron Corp., and Occidental Petroleum Corp. contributed the most to the Fund's return for the year. Holdings detracting the most from performance were Plug Power, Inc., Sunrun, Inc., and Ameresco, Inc. - Class A

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-5_42.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** May 29, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| Exxon Mobil Corp. | 6.6% |
| Chevron Corp. | 5.8% |
| ConocoPhillips | 3.8% |
| EOG Resources, Inc. | 2.8% |
| Schlumberger Ltd. | 2.7% |
| Marathon Petroleum Corp. | 2.4% |
| Occidental Petroleum Corp. | 2.3% |
| Pioneer Natural Resources Co. | 2.3% |
| Valero Energy Corp. | 2.2% |
| Phillips 66 | 2.2% |
| Top Ten Total | 33.1% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

42 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-5_43.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Energy Fund  | 48.29%  | 3.17%  | 0.09%  |
| S&P 500 Energy Index  | 65.72%  | 9.25%  | 5.97%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Energy Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 43

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **ENERGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.6%** | **COMMON STOCKS<sup>†</sup>** **- 99.6%** | **COMMON STOCKS<sup>†</sup>** **- 99.6%** |
| **Oil & Gas - 67.4%** | **Oil & Gas - 67.4%** | **Oil & Gas - 67.4%** |
| &nbsp;&nbsp;&nbsp;Exxon Mobil Corp. | 14135 | $1559091 |
| &nbsp;&nbsp;&nbsp;Chevron Corp. | 7564 | 1357662 |
| &nbsp;&nbsp;&nbsp;ConocoPhillips | 7632 | 900576 |
| &nbsp;&nbsp;&nbsp;EOG Resources, Inc. | 5031 | 651615 |
| &nbsp;&nbsp;&nbsp;Marathon Petroleum Corp. | 4736 | 551223 |
| &nbsp;&nbsp;&nbsp;Occidental Petroleum Corp. | 8743 | 550722 |
| &nbsp;&nbsp;&nbsp;Pioneer Natural Resources Co. | 2355 | 537858 |
| &nbsp;&nbsp;&nbsp;Valero Energy Corp. | 4144 | 525708 |
| &nbsp;&nbsp;&nbsp;Phillips 66 | 4873 | 507182 |
| &nbsp;&nbsp;&nbsp;Hess Corp. | 3467 | 491690 |
| &nbsp;&nbsp;&nbsp;Devon Energy Corp. | 7305 | 449331 |
| &nbsp;&nbsp;&nbsp;Diamondback Energy, Inc. | 2681 | 366707 |
| &nbsp;&nbsp;&nbsp;Petroleo Brasileiro S.A. ADR | 30035 | 319873 |
| &nbsp;&nbsp;&nbsp;Coterra Energy, Inc. — Class A | 13001 | 319435 |
| &nbsp;&nbsp;&nbsp;Texas Pacific Land Corp. | 133 | 311783 |
| &nbsp;&nbsp;&nbsp;BP plc ADR | 8898 | 310807 |
| &nbsp;&nbsp;&nbsp;Marathon Oil Corp. | 11219 | 303698 |
| &nbsp;&nbsp;&nbsp;APA Corp. | 6212 | 289976 |
| &nbsp;&nbsp;&nbsp;Ovintiv, Inc. | 5292 | 268357 |
| &nbsp;&nbsp;&nbsp;Chesapeake Energy Corp. | 2696 | 254422 |
| &nbsp;&nbsp;&nbsp;Equities Corp. | 7452 | 252101 |
| &nbsp;&nbsp;&nbsp;Shell plc ADR | 4319 | 245967 |
| &nbsp;&nbsp;&nbsp;HF Sinclair Corp. | 4649 | 241237 |
| &nbsp;&nbsp;&nbsp;Suncor Energy, Inc. | 6904 | 219064 |
| &nbsp;&nbsp;&nbsp;Matador Resources Co. | 3382 | 193586 |
| &nbsp;&nbsp;&nbsp;PBF Energy, Inc. — Class A | 4659 | 189994 |
| &nbsp;&nbsp;&nbsp;Murphy Oil Corp. | 4410 | 189674 |
| &nbsp;&nbsp;&nbsp;Canadian Natural Resources Ltd. | 3387 | 188080 |
| &nbsp;&nbsp;&nbsp;PDC Energy, Inc. | 2833 | 179839 |
| &nbsp;&nbsp;&nbsp;Range Resources Corp. | 7122 | 178192 |
| &nbsp;&nbsp;&nbsp;Chord Energy Corp. | 1297 | 177443 |
| &nbsp;&nbsp;&nbsp;Helmerich & Payne, Inc. | 3499 | 173445 |
| &nbsp;&nbsp;&nbsp;Valaris Ltd.\* | 2527 | 170876 |
| &nbsp;&nbsp;&nbsp;Magnolia Oil & Gas Corp. — Class A | 7259 | 170224 |
| &nbsp;&nbsp;&nbsp;Civitas Resources, Inc. | 2893 | 167591 |
| &nbsp;&nbsp;&nbsp;Equinor ASA ADR | 4678 | 167519 |
| &nbsp;&nbsp;&nbsp;Noble Corporation plc\* | 4371 | 164830 |
| &nbsp;&nbsp;&nbsp;Denbury, Inc.\* | 1751 | 152372 |
| &nbsp;&nbsp;&nbsp;SM Energy Co. | 4350 | 151511 |
| &nbsp;&nbsp;&nbsp;Patterson-UTI Energy, Inc. | 8698 | 146474 |
| &nbsp;&nbsp;&nbsp;Comstock Resources, Inc. | 10517 | 144188 |
| &nbsp;&nbsp;&nbsp;Weatherford International plc\* | 2821 | 143645 |
| &nbsp;&nbsp;&nbsp;CVR Energy, Inc. | 4368 | 136893 |
| &nbsp;&nbsp;&nbsp;California Resources Corp. | 3081 | 134054 |
| &nbsp;&nbsp;&nbsp;CNX Resources Corp.\* | 7692 | 129533 |
| &nbsp;&nbsp;&nbsp;Callon Petroleum Co.\* | 3085 | 114423 |
| &nbsp;&nbsp;&nbsp;Northern Oil and Gas, Inc. | 3645 | 112339 |
| &nbsp;&nbsp;&nbsp;Delek US Holdings, Inc. | 3736 | 100872 |
| &nbsp;&nbsp;&nbsp;Par Pacific Holdings, Inc.\* | 3935 | 91489 |
| &nbsp;&nbsp;&nbsp;Talos Energy, Inc.\* | 4767 | 90001 |
| &nbsp;&nbsp;&nbsp;Laredo Petroleum, Inc.\* | 1391 | 71525 |
| **Total Oil & Gas** |  | 15816697 |
| **Pipelines - 11.8%** | **Pipelines - 11.8%** | **Pipelines - 11.8%** |
| &nbsp;&nbsp;&nbsp;Kinder Morgan, Inc. | 25822 | 466862 |
| &nbsp;&nbsp;&nbsp;Williams Companies, Inc. | 13893 | 457080 |
| &nbsp;&nbsp;&nbsp;Cheniere Energy, Inc. | 2810 | 421387 |
| &nbsp;&nbsp;&nbsp;ONEOK, Inc. | 5961 | 391638 |
| &nbsp;&nbsp;&nbsp;Targa Resources Corp. | 4220 | 310170 |
| &nbsp;&nbsp;&nbsp;New Fortress Energy, Inc. | 4958 | 210318 |
| &nbsp;&nbsp;&nbsp;Enbridge, Inc. | 5159 | 201717 |
| &nbsp;&nbsp;&nbsp;DT Midstream, Inc. | 2973 | 164288 |
| &nbsp;&nbsp;&nbsp;TC Energy Corp. | 3942 | 157128 |
| **Total Pipelines** |  | 2780588 |
| **Oil & Gas Services - 8.1%** | **Oil & Gas Services - 8.1%** | **Oil & Gas Services - 8.1%** |
| &nbsp;&nbsp;&nbsp;Schlumberger Ltd. | 11959 | 639328 |
| &nbsp;&nbsp;&nbsp;Halliburton Co. | 11801 | 464369 |
| &nbsp;&nbsp;&nbsp;Baker Hughes Co. | 13488 | 398301 |
| &nbsp;&nbsp;&nbsp;NOV, Inc. | 10162 | 212284 |
| &nbsp;&nbsp;&nbsp;ChampionX Corp. | 6150 | 178289 |
| **Total Oil & Gas Services** |  | 1892571 |
| **Energy-Alternate Sources - 6.6%** | **Energy-Alternate Sources - 6.6%** | **Energy-Alternate Sources - 6.6%** |
| &nbsp;&nbsp;&nbsp;Enphase Energy, Inc.\* | 1481 | 392406 |
| &nbsp;&nbsp;&nbsp;First Solar, Inc.\* | 1919 | 287447 |
| &nbsp;&nbsp;&nbsp;SolarEdge Technologies, Inc.\* | 888 | 251544 |
| &nbsp;&nbsp;&nbsp;Plug Power, Inc.\* | 15372 | 190151 |
| &nbsp;&nbsp;&nbsp;Sunrun, Inc.\* | 6271 | 150629 |
| &nbsp;&nbsp;&nbsp;Enviva, Inc. | 2477 | 131207 |
| &nbsp;&nbsp;&nbsp;Green Plains, Inc.\* | 3418 | 104249 |
| &nbsp;&nbsp;&nbsp;TPI Composites, Inc.\* | 4944 | 50132 |
| **Total Energy-Alternate Sources** |  | 1557765 |
| **Coal - 1.5%** | **Coal - 1.5%** | **Coal - 1.5%** |
| &nbsp;&nbsp;&nbsp;Peabody Energy Corp.\* | 5102 | 134795 |
| &nbsp;&nbsp;&nbsp;Arch Resources, Inc. | 785 | 112090 |
| &nbsp;&nbsp;&nbsp;CONSOL Energy, Inc. | 1580 | 102700 |
| **Total Coal** |  | 349585 |
| **Retail - 1.1%** | **Retail - 1.1%** | **Retail - 1.1%** |
| &nbsp;&nbsp;&nbsp;Murphy USA, Inc. | 609 | 170240 |
| &nbsp;&nbsp;&nbsp;World Fuel Services Corp. | 3419 | 93441 |
| **Total Retail** |  | 263681 |
| **Mining - 0.8%** | **Mining - 0.8%** | **Mining - 0.8%** |
| &nbsp;&nbsp;&nbsp;Cameco Corp. | 8805 | 199609 |
| **Metal Fabricate & Hardware - 0.6%** | **Metal Fabricate & Hardware - 0.6%** | **Metal Fabricate & Hardware - 0.6%** |
| &nbsp;&nbsp;&nbsp;Tenaris S.A. ADR | 4161 | 146301 |
| **Machinery-Diversified - 0.6%** | **Machinery-Diversified - 0.6%** | **Machinery-Diversified - 0.6%** |
| &nbsp;&nbsp;&nbsp;Cactus, Inc. — Class A | 2821 | 141783 |
| **Electrical Components & Equipment - 0.6%** | **Electrical Components & Equipment - 0.6%** | **Electrical Components & Equipment - 0.6%** |
| &nbsp;&nbsp;&nbsp;EnerSys | 1667 | 123091 |
| **Electric - 0.5%** | **Electric - 0.5%** | **Electric - 0.5%** |
| &nbsp;&nbsp;&nbsp;Ameresco, Inc. — Class A\* | 2078 | 118737 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $10,669,995) |  | 23390408 |

---

44 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **ENERGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Face<br> Amount** | **Value** |
| **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.7%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.7%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.7%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | $93228 | 93228 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 35857 | 35857 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 35746 | 35746 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $164,831) |  | 164831 |
| **Total Investments - 100.3%** | **Total Investments - 100.3%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $10,834,826) | &nbsp;&nbsp;&nbsp;(Cost $10,834,826) | $23555239 |
| **Other Assets & Liabilities, net - (0.3)%** | **Other Assets & Liabilities, net - (0.3)%** | (78617) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $23476622 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $23390408 | $— | $— | $23390408 |
| Repurchase Agreements |  | 164831 |  | 164831 |
| Total Assets | $23390408 | $164831 | $— | $23555239 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 45

**ENERGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value (cost $10,669,995) | $23390408 |
| Repurchase agreements, at value (cost $164,831) | 164831 |
| Cash | 34 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 35393 |
| &nbsp;&nbsp;&nbsp;Interest | 39 |
| **Total assets** | 23590705 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Professional fees | 52332 |
| &nbsp;&nbsp;&nbsp;Management fees | 18306 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 12675 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 8392 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 5384 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 3338 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 362 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 13294 |
| **Total liabilities** | 114083 |
| **Net assets** | $23476622 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $17051727 |
| Total distributable earnings (loss) | 6424895 |
| Net assets | $23476622 |
| Capital shares outstanding | 93290 |
| Net asset value per share | $251.65 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $11,731) | $1530000 |
| Interest | 3077 |
| Income from securities lending, net | 1169 |
| &nbsp;&nbsp;&nbsp;Total investment income | 1534246 |
| **Expenses:** | **Expenses:** |
| Management fees | 314017 |
| Investor service fees | 92358 |
| Transfer agent fees | 100161 |
| Professional fees | 64507 |
| Portfolio accounting and administration fees | 45164 |
| Custodian fees | 5395 |
| Trustees' fees\* | 4385 |
| Line of credit fees | 519 |
| Miscellaneous | 28195 |
| &nbsp;&nbsp;&nbsp;Total expenses | 654701 |
| Net investment income | 879545 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | 3864436 |
| Net realized gain | 3864436 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | 6337069 |
| Net change in unrealized appreciation (depreciation) | 6337069 |
| Net realized and unrealized gain | 10201505 |
| **Net increase in net assets resulting from operations** | $11081050 |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

46 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**ENERGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income | $879545 | $254804 |
| Net realized gain (loss) on investments | 3864436 | (493190) |
| Net change in unrealized appreciation (depreciation) on investments | 6337069 | 3819634 |
| Net increase in net assets resulting from operations | 11081050 | 3581248 |
| Distributions to shareholders | (270279) | (124279) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 104825503 | 55684057 |
| Distributions reinvested | 270279 | 124279 |
| Cost of shares redeemed | (109143920) | (48739993) |
| Net increase (decrease) from capital share transactions | (4048138) | 7068343 |
| Net increase in net assets | 6762633 | 10525312 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 16713989 | 6188677 |
| &nbsp;&nbsp;&nbsp;End of year | $23476622 | $16713989 |
| **Capital share activity:** |  |  |
| Shares sold | 480215 | 355095 |
| Shares issued from reinvestment of distributions | 1271 | 841 |
| Shares redeemed | (485469) | (312482) |
| Net increase (decrease) in shares | (3983) | 43454 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 47

**ENERGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020<sup>c</sup>** | **Year Ended <br> December 31, <br> 2019<sup>c</sup>** | **Year Ended <br> December 31, <br> 2018<sup>c</sup>** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $171.83 | $114.99 | $176.90 | $165.96 | $223.73 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | 5.48 | 2.42 | .96 | 1.71 | .12 |
| Net gain (loss) on investments (realized and unrealized) | 77.00 | 55.43 | (62.41) | 9.62 | (56.84) |
| Total from investment operations | 82.48 | 57.85 | (61.45) | 11.33 | (56.72) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (2.66) | (1.01) | (.46) | (.39) | (1.05) |
| Total distributions | (2.66) | (1.01) | (.46) | (.39) | (1.05) |
| Net asset value, end of period | $251.65 | $171.83 | $114.99 | $176.90 | $165.96 |
| **Total Return<sup>b</sup>** | **48.29%** | **50.46%** | **(34.17** **%)** | **6.81%** | **(25.49** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $23477 | $16714 | $6189 | $9766 | $9672 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 2.38% | 1.51% | 2.04% | 0.97% | 0.06% |
| Total expenses | 1.77% | 1.69% | 1.82% | 1.83% | 1.72% |
| Portfolio turnover rate | 307% | 316% | 317% | 114% | 490% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Reverse share split — Per share amounts for the years presented through December 31, 2020 have been restated to reflect a 1:3 reverse share split effective August 24, 2020.

48 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**ENERGY SERVICES FUND** 

**OBJECTIVE:** Seeks to provide capital appreciation by investing in companies that are involved in the energy services field, including those that provide services and equipment in the areas of oil, coal, and gas exploration and production ("Energy Services Companies").

For the Reporting Period, Energy Services Fund returned 42.56%, compared with the S&P 500 Index, which returned -18.11%. The S&P 500 Energy Index returned 65.72%.

The oil & gas equipment & services industry contributed the most to return for the period, followed by the oil & gas drilling industry and trading companies & distributors group. The electrical components & equipment industry was the leading detractor from return for the period, followed by the semiconductor equipment industry and the construction & engineering industry.

Schlumberger Ltd., Halliburton Co., and Helmerich & Payne, Inc. were the Fund's best-performing holdings for the year. The Fund's worst-performing holdings included Aspen Aerogels, Inc., Sunrun, Inc., and DMC Global Inc.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-5_49.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** May 2, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| Schlumberger Ltd. | 13.1% |
| Halliburton Co. | 9.5% |
| Baker Hughes Co. | 8.1% |
| SolarEdge Technologies, Inc. | 4.7% |
| NOV, Inc. | 4.3% |
| ChampionX Corp. | 3.7% |
| Helmerich & Payne, Inc. | 3.6% |
| Valaris Ltd. | 3.5% |
| Noble Corporation plc | 3.4% |
| ProFrac Holding Corp. — Class A | 3.1% |
| Top Ten Total | 57.0% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 49

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-5_50.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Energy Services Fund  | 42.56%  | (10.63%)  | (10.18%)  |
| S&P 500 Energy Index  | 65.72%  | 9.25%  | 5.97%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Energy Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

50 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **ENERGY SERVICES FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.9%** | **COMMON STOCKS<sup>†</sup>** **- 99.9%** | **COMMON STOCKS<sup>†</sup>** **- 99.9%** |
| **Oil & Gas Services - 65.6%** | **Oil & Gas Services - 65.6%** | **Oil & Gas Services - 65.6%** |
| &nbsp;&nbsp;&nbsp;Schlumberger Ltd. | 42947 | $2295947 |
| &nbsp;&nbsp;&nbsp;Halliburton Co. | 42300 | 1664505 |
| &nbsp;&nbsp;&nbsp;Baker Hughes Co. | 48342 | 1427539 |
| &nbsp;&nbsp;&nbsp;NOV, Inc. | 36427 | 760960 |
| &nbsp;&nbsp;&nbsp;ChampionX Corp. | 22122 | 641317 |
| &nbsp;&nbsp;&nbsp;ProFrac Holding Corp. — Class A\* | 21855 | 550746 |
| &nbsp;&nbsp;&nbsp;Liberty Energy, Inc. — Class A | 28789 | 460912 |
| &nbsp;&nbsp;&nbsp;Expro Group Holdings N.V.\* | 22678 | 411152 |
| &nbsp;&nbsp;&nbsp;Tidewater, Inc.\* | 10284 | 378965 |
| &nbsp;&nbsp;&nbsp;Oceaneering International, Inc.\* | 21622 | 378169 |
| &nbsp;&nbsp;&nbsp;Archrock, Inc. | 34967 | 314004 |
| &nbsp;&nbsp;&nbsp;NOW, Inc.\* | 23954 | 304216 |
| &nbsp;&nbsp;&nbsp;ProPetro Holding Corp.\* | 28645 | 297049 |
| &nbsp;&nbsp;&nbsp;Core Laboratories N.V. | 14524 | 294401 |
| &nbsp;&nbsp;&nbsp;Dril-Quip, Inc.\* | 10134 | 275341 |
| &nbsp;&nbsp;&nbsp;US Silica Holdings, Inc.\* | 20983 | 262287 |
| &nbsp;&nbsp;&nbsp;Bristow Group, Inc.\* | 8619 | 233833 |
| &nbsp;&nbsp;&nbsp;National Energy Services Reunited Corp.\* | 31307 | 217271 |
| &nbsp;&nbsp;&nbsp;Solaris Oilfield Infrastructure, Inc. — Class A | 18074 | 179475 |
| &nbsp;&nbsp;&nbsp;DMC Global, Inc.\* | 8849 | 172024 |
| **Total Oil & Gas Services** |  | 11520113 |
| **Oil & Gas - 18.3%** | **Oil & Gas - 18.3%** | **Oil & Gas - 18.3%** |
| &nbsp;&nbsp;&nbsp;Helmerich & Payne, Inc. | 12556 | 622401 |
| &nbsp;&nbsp;&nbsp;Valaris Ltd.\* | 9060 | 612637 |
| &nbsp;&nbsp;&nbsp;Noble Corporation plc\* | 15677 | 591180 |
| &nbsp;&nbsp;&nbsp;Patterson-UTI Energy, Inc. | 31062 | 523084 |
| &nbsp;&nbsp;&nbsp;Weatherford International plc\* | 10119 | 515259 |
| &nbsp;&nbsp;&nbsp;Nabors Industries Ltd.\* | 2202 | 341024 |
| **Total Oil & Gas** |  | 3205585 |
| **Energy-Alternate Sources - 7.8%** | **Energy-Alternate Sources - 7.8%** | **Energy-Alternate Sources - 7.8%** |
| &nbsp;&nbsp;&nbsp;SolarEdge Technologies, Inc.\* | 2905 | 822899 |
| &nbsp;&nbsp;&nbsp;Sunrun, Inc.\* | 22547 | 541579 |
| **Total Energy-Alternate Sources** |  | 1364478 |
| **Machinery-Diversified - 2.9%** | **Machinery-Diversified - 2.9%** | **Machinery-Diversified - 2.9%** |
| &nbsp;&nbsp;&nbsp;Cactus, Inc. — Class A | 10122 | 508732 |
| **Metal Fabricate & Hardware - 2.5%** | **Metal Fabricate & Hardware - 2.5%** | **Metal Fabricate & Hardware - 2.5%** |
| &nbsp;&nbsp;&nbsp;Tenaris S.A. ADR | 12412 | 436406 |
| **Distribution & Wholesale - 1.4%** | **Distribution & Wholesale - 1.4%** | **Distribution & Wholesale - 1.4%** |
| &nbsp;&nbsp;&nbsp;MRC Global, Inc.\* | 21868 | 253231 |
| **Retail - 1.4%** | **Retail - 1.4%** | **Retail - 1.4%** |
| &nbsp;&nbsp;&nbsp;Aspen Aerogels, Inc.\* | 20110 | 237097 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $13,511,558) |  | 17525642 |
|  | **Face<br> Amount** |  |
| **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.6%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.6%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.6%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | $59268 | 59268 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 22796 | 22796 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 22725 | 22725 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $104,789) |  | 104789 |
| **Total Investments - 100.5%** | **Total Investments - 100.5%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $13,616,347) | &nbsp;&nbsp;&nbsp;(Cost $13,616,347) | $17630431 |
| **Other Assets & Liabilities, net - (0.5)%** | **Other Assets & Liabilities, net - (0.5)%** | (83996) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $17546435 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 51

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **ENERGY SERVICES FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $17525642 | $— | $— | $17525642 |
| Repurchase Agreements |  | 104789 |  | 104789 |
| Total Assets | $17525642 | $104789 | $— | $17630431 |

---

52 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**ENERGY SERVICES FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value (cost $13,511,558) | $17525642 |
| Repurchase agreements, at value (cost $104,789) | 104789 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 6695 |
| &nbsp;&nbsp;&nbsp;Investment Adviser | 96 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 62 |
| &nbsp;&nbsp;&nbsp;Interest | 25 |
| **Total assets** | 17637309 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 34938 |
| &nbsp;&nbsp;&nbsp;Professional fees | 20554 |
| &nbsp;&nbsp;&nbsp;Management fees | 10478 |
| &nbsp;&nbsp;&nbsp;Printing fees | 5480 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 3082 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 2826 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 1910 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 207 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 11399 |
| **Total liabilities** | 90874 |
| **Net assets** | $17546435 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $25860486 |
| Total distributable earnings (loss) | (8314051) |
| Net assets | $17546435 |
| Capital shares outstanding | 55731 |
| Net asset value per share | $314.84 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $45) | $93360 |
| Interest | 1189 |
| Income from securities lending, net | 180 |
| &nbsp;&nbsp;&nbsp;Total investment income | 94729 |
| **Expenses:** | **Expenses:** |
| Management fees | 83026 |
| Investor service fees | 24419 |
| Transfer agent fees | 26709 |
| Professional fees | 16473 |
| Portfolio accounting and administration fees | 12076 |
| Custodian fees | 1585 |
| Trustees' fees\* | 1439 |
| Line of credit fees | 23 |
| Miscellaneous | 7137 |
| &nbsp;&nbsp;&nbsp;Total expenses | 172887 |
| Net investment loss | (78158) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | 102329 |
| Net realized gain | 102329 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | 1971965 |
| Net change in unrealized appreciation (depreciation) | 1971965 |
| Net realized and unrealized gain | 2074294 |
| **Net increase in net assets resulting from operations** | $1996136 |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 53

**ENERGY SERVICES FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income (loss) | $(78158) | $15025 |
| Net realized gain (loss) on investments | 102329 | (717341) |
| Net change in unrealized appreciation (depreciation) on investments | 1971965 | 796674 |
| Net increase in net assets resulting from operations | 1996136 | 94358 |
| Distributions to shareholders |  | (13358) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 39664101 | 33842067 |
| Distributions reinvested |  | 13358 |
| Cost of shares redeemed | (32806369) | (29068949) |
| Net increase from capital share transactions | 6857732 | 4786476 |
| Net increase in net assets | 8853868 | 4867476 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 8692567 | 3825091 |
| &nbsp;&nbsp;&nbsp;End of year | $17546435 | $8692567 |
| **Capital share activity:** |  |  |
| Shares sold | 137579 | 144829 |
| Shares issued from reinvestment of distributions |  | 61 |
| Shares redeemed | (121210) | (125851) |
| Net increase in shares | 16369 | 19039 |

---

54 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**ENERGY SERVICES FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020<sup>c</sup>** | **Year Ended <br> December 31, <br> 2019<sup>c</sup>** | **Year Ended <br> December 31, <br> 2018<sup>c</sup>** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $220.84 | $188.21 | $302.92 | $303.11 | $575.98 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | (2.27) | .37 | .11 | 1.50 | (.70) |
| Net gain (loss) on investments (realized and unrealized) | 96.27 | 32.56 | (114.69) | (1.69) | (254.57) |
| Total from investment operations | 94.00 | 32.93 | (114.58) | (.19) | (255.27) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  | (.30) | (.13) |  | (17.60) |
| Total distributions |  | (.30) | (.13) |  | (17.60) |
| Net asset value, end of period | $314.84 | $220.84 | $188.21 | $302.92 | $303.11 |
| **Total Return<sup>b</sup>** | **42.56%** | **17.50%** | **(37.33** **%)** | **(0.07** **%)** | **(45.65** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $17546 | $8693 | $3825 | $3245 | $3492 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | (0.80%) | 0.16% | 0.44% | 0.45% | (0.13%) |
| Total expenses | 1.77% | 1.69% | 1.82% | 1.83% | 1.71% |
| Portfolio turnover rate | 337% | 301% | 817% | 423% | 331% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Reverse share split — Per share amounts for the years presented through December 31, 2020 have been restated to reflect a 1:10 reverse share split effective August 24, 2020.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 55

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**FINANCIAL SERVICES FUND** 

**OBJECTIVE:** Seeks to provide capital appreciation by investing in companies that are involved in the financial services sector ("Financial Services Companies").

For the Reporting Period, Financial Services Fund returned -18.11%, while the S&P 500 Index returned -18.11% over the same period. The S&P 500 Financials Index returned -10.53%.

The property & casualty insurance industry contributed the most to return for the period, followed by the life & health insurance industry and the reinsurance industry. The regional banks industry was the leading detractor from return for the period, followed by the asset management & custody bank industry and the financial exchanges & data industry.

Progressive Corp., Aflac, Inc., and First Horizon Corp. were the holdings that contributed the most to the Fund's return for the period. Coinbase Global, Inc. - Class A, Blackstone, Inc., and SVB Financial Group detracted the most from return.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-5_56.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** July 20, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| Berkshire Hathaway, Inc. — Class B | 3.3% |
| JPMorgan Chase & Co. | 2.5% |
| Bank of America Corp. | 2.2% |
| Wells Fargo & Co. | 1.6% |
| Charles Schwab Corp. | 1.6% |
| Morgan Stanley | 1.5% |
| Goldman Sachs Group, Inc. | 1.4% |
| BlackRock, Inc. — Class A | 1.4% |
| S&P Global, Inc. | 1.3% |
| American Express Co. | 1.3% |
| Top Ten Total | 18.1% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

56 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-5_57.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Financial Services Fund  | (18.11%)  | 4.45%  | 8.66%  |
| S&P 500 Financials Index  | (10.53%)  | 6.42%  | 12.16%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Financials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 57

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **FINANCIAL SERVICES FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.5%** | **COMMON STOCKS<sup>†</sup>** **- 99.5%** | **COMMON STOCKS<sup>†</sup>** **- 99.5%** |
| **REITS - 27.5%** | **REITS - 27.5%** | **REITS - 27.5%** |
| &nbsp;&nbsp;&nbsp;American Tower Corp. — Class A | 624 | $132201 |
| &nbsp;&nbsp;&nbsp;Prologis, Inc. | 1133 | 127723 |
| &nbsp;&nbsp;&nbsp;Equinix, Inc. | 154 | 100875 |
| &nbsp;&nbsp;&nbsp;Crown Castle, Inc. | 732 | 99288 |
| &nbsp;&nbsp;&nbsp;Public Storage | 314 | 87980 |
| &nbsp;&nbsp;&nbsp;Simon Property Group, Inc. | 700 | 82236 |
| &nbsp;&nbsp;&nbsp;Realty Income Corp. | 1257 | 79732 |
| &nbsp;&nbsp;&nbsp;Welltower, Inc. | 1126 | 73809 |
| &nbsp;&nbsp;&nbsp;SBA Communications Corp. | 258 | 72320 |
| &nbsp;&nbsp;&nbsp;VICI Properties, Inc. | 2219 | 71896 |
| &nbsp;&nbsp;&nbsp;Digital Realty Trust, Inc. | 687 | 68885 |
| &nbsp;&nbsp;&nbsp;Alexandria Real Estate Equities, Inc. | 447 | 65114 |
| &nbsp;&nbsp;&nbsp;AvalonBay Communities, Inc. | 385 | 62185 |
| &nbsp;&nbsp;&nbsp;Weyerhaeuser Co. | 1976 | 61256 |
| &nbsp;&nbsp;&nbsp;Equity Residential | 1007 | 59413 |
| &nbsp;&nbsp;&nbsp;Extra Space Storage, Inc. | 383 | 56370 |
| &nbsp;&nbsp;&nbsp;Sun Communities, Inc. | 392 | 56056 |
| &nbsp;&nbsp;&nbsp;Mid-America Apartment Communities, Inc. | 353 | 55417 |
| &nbsp;&nbsp;&nbsp;Ventas, Inc. | 1215 | 54736 |
| &nbsp;&nbsp;&nbsp;WP Carey, Inc. | 688 | 53767 |
| &nbsp;&nbsp;&nbsp;Invitation Homes, Inc. | 1768 | 52404 |
| &nbsp;&nbsp;&nbsp;Essex Property Trust, Inc. | 231 | 48954 |
| &nbsp;&nbsp;&nbsp;Gaming and Leisure Properties, Inc. | 913 | 47558 |
| &nbsp;&nbsp;&nbsp;Healthpeak Properties, Inc. | 1871 | 46906 |
| &nbsp;&nbsp;&nbsp;Kimco Realty Corp. | 2187 | 46321 |
| &nbsp;&nbsp;&nbsp;Equity LifeStyle Properties, Inc. | 710 | 45866 |
| &nbsp;&nbsp;&nbsp;STORE Capital Corp. | 1424 | 45653 |
| &nbsp;&nbsp;&nbsp;Camden Property Trust | 407 | 45535 |
| &nbsp;&nbsp;&nbsp;UDR, Inc. | 1169 | 45275 |
| &nbsp;&nbsp;&nbsp;Boston Properties, Inc. | 658 | 44468 |
| &nbsp;&nbsp;&nbsp;Rexford Industrial Realty, Inc. | 783 | 42783 |
| &nbsp;&nbsp;&nbsp;Lamar Advertising Co. — Class A | 447 | 42197 |
| &nbsp;&nbsp;&nbsp;Host Hotels & Resorts, Inc. | 2616 | 41987 |
| &nbsp;&nbsp;&nbsp;Regency Centers Corp. | 669 | 41813 |
| &nbsp;&nbsp;&nbsp;Annaly Capital Management, Inc. | 1899 | 40031 |
| &nbsp;&nbsp;&nbsp;American Homes 4 Rent — Class A | 1323 | 39875 |
| &nbsp;&nbsp;&nbsp;National Retail Properties, Inc. | 822 | 37615 |
| &nbsp;&nbsp;&nbsp;Federal Realty Investment Trust | 366 | 36981 |
| &nbsp;&nbsp;&nbsp;CubeSmart | 915 | 36829 |
| &nbsp;&nbsp;&nbsp;Life Storage, Inc. | 368 | 36248 |
| &nbsp;&nbsp;&nbsp;Americold Realty Trust, Inc. | 1242 | 35161 |
| &nbsp;&nbsp;&nbsp;Healthcare Realty Trust, Inc. | 1805 | 34782 |
| &nbsp;&nbsp;&nbsp;Brixmor Property Group, Inc. | 1484 | 33642 |
| &nbsp;&nbsp;&nbsp;First Industrial Realty Trust, Inc. | 684 | 33010 |
| &nbsp;&nbsp;&nbsp;Medical Properties Trust, Inc. | 2960 | 32974 |
| &nbsp;&nbsp;&nbsp;Agree Realty Corp. | 458 | 32486 |
| &nbsp;&nbsp;&nbsp;Omega Healthcare Investors, Inc. | 1145 | 32003 |
| &nbsp;&nbsp;&nbsp;AGNC Investment Corp. | 3090 | 31981 |
| &nbsp;&nbsp;&nbsp;Spirit Realty Capital, Inc. | 763 | 30467 |
| &nbsp;&nbsp;&nbsp;Kilroy Realty Corp. | 740 | 28616 |
| &nbsp;&nbsp;&nbsp;Vornado Realty Trust | 1282 | 26678 |
| &nbsp;&nbsp;&nbsp;Independence Realty Trust, Inc. | 1427 | 24059 |
| &nbsp;&nbsp;&nbsp;Park Hotels & Resorts, Inc. | 1763 | 20786 |
| &nbsp;&nbsp;&nbsp;SL Green Realty Corp. | 606 | 20434 |
| **Total REITS** |  | 2803637 |
| **Banks - 25.6%** | **Banks - 25.6%** | **Banks - 25.6%** |
| &nbsp;&nbsp;&nbsp;JPMorgan Chase & Co. | 1930 | 258813 |
| &nbsp;&nbsp;&nbsp;Bank of America Corp. | 6745 | 223394 |
| &nbsp;&nbsp;&nbsp;Wells Fargo & Co. | 4011 | 165614 |
| &nbsp;&nbsp;&nbsp;Morgan Stanley | 1807 | 153631 |
| &nbsp;&nbsp;&nbsp;Goldman Sachs Group, Inc. | 429 | 147310 |
| &nbsp;&nbsp;&nbsp;Citigroup, Inc. | 2760 | 124835 |
| &nbsp;&nbsp;&nbsp;PNC Financial Services Group, Inc. | 694 | 109610 |
| &nbsp;&nbsp;&nbsp;U.S. Bancorp | 2466 | 107542 |
| &nbsp;&nbsp;&nbsp;Truist Financial Corp. | 2366 | 101809 |
| &nbsp;&nbsp;&nbsp;Bank of New York Mellon Corp. | 1737 | 79068 |
| &nbsp;&nbsp;&nbsp;M&T Bank Corp. | 477 | 69194 |
| &nbsp;&nbsp;&nbsp;State Street Corp. | 869 | 67408 |
| &nbsp;&nbsp;&nbsp;First Republic Bank | 542 | 66064 |
| &nbsp;&nbsp;&nbsp;Fifth Third Bancorp | 1929 | 63291 |
| &nbsp;&nbsp;&nbsp;Regions Financial Corp. | 2730 | 58859 |
| &nbsp;&nbsp;&nbsp;Huntington Bancshares, Inc. | 4151 | 58529 |
| &nbsp;&nbsp;&nbsp;Northern Trust Corp. | 658 | 58226 |
| &nbsp;&nbsp;&nbsp;Citizens Financial Group, Inc. | 1467 | 57756 |
| &nbsp;&nbsp;&nbsp;ICICI Bank Ltd. ADR | 2550 | 55820 |
| &nbsp;&nbsp;&nbsp;HDFC Bank Ltd. ADR | 798 | 54591 |
| &nbsp;&nbsp;&nbsp;KeyCorp | 3097 | 53950 |
| &nbsp;&nbsp;&nbsp;Royal Bank of Canada | 540 | 50771 |
| &nbsp;&nbsp;&nbsp;SVB Financial Group\* | 220 | 50631 |
| &nbsp;&nbsp;&nbsp;Bank of Nova Scotia | 999 | 48931 |
| &nbsp;&nbsp;&nbsp;First Horizon Corp. | 1899 | 46526 |
| &nbsp;&nbsp;&nbsp;East West Bancorp, Inc. | 624 | 41122 |
| &nbsp;&nbsp;&nbsp;Comerica, Inc. | 614 | 41046 |
| &nbsp;&nbsp;&nbsp;Webster Financial Corp. | 833 | 39434 |
| &nbsp;&nbsp;&nbsp;Zions Bancorp North America | 780 | 38345 |
| &nbsp;&nbsp;&nbsp;Signature Bank | 323 | 37216 |
| &nbsp;&nbsp;&nbsp;Western Alliance Bancorporation | 588 | 35021 |
| &nbsp;&nbsp;&nbsp;Synovus Financial Corp. | 826 | 31016 |
| &nbsp;&nbsp;&nbsp;Silvergate Capital Corp. — Class A\*<sup>,1</sup> | 521 | 9065 |
| **Total Banks** |  | 2604438 |
| **Insurance - 22.4%** | **Insurance - 22.4%** | **Insurance - 22.4%** |
| &nbsp;&nbsp;&nbsp;Berkshire Hathaway, Inc. — Class B\* | 1102 | 340408 |
| &nbsp;&nbsp;&nbsp;Marsh & McLennan Companies, Inc. | 711 | 117656 |
| &nbsp;&nbsp;&nbsp;Chubb Ltd. | 512 | 112947 |
| &nbsp;&nbsp;&nbsp;Progressive Corp. | 855 | 110902 |
| &nbsp;&nbsp;&nbsp;Aon plc — Class A | 347 | 104149 |
| &nbsp;&nbsp;&nbsp;MetLife, Inc. | 1344 | 97265 |
| &nbsp;&nbsp;&nbsp;American International Group, Inc. | 1407 | 88979 |
| &nbsp;&nbsp;&nbsp;Travelers Companies, Inc. | 469 | 87933 |
| &nbsp;&nbsp;&nbsp;Aflac, Inc. | 1219 | 87695 |
| &nbsp;&nbsp;&nbsp;Arthur J Gallagher & Co. | 443 | 83523 |
| &nbsp;&nbsp;&nbsp;Prudential Financial, Inc. | 809 | 80463 |
| &nbsp;&nbsp;&nbsp;Allstate Corp. | 590 | 80004 |
| &nbsp;&nbsp;&nbsp;Willis Towers Watson plc | 272 | 66526 |
| &nbsp;&nbsp;&nbsp;Hartford Financial Services Group, Inc. | 839 | 63621 |
| &nbsp;&nbsp;&nbsp;Principal Financial Group, Inc. | 693 | 58157 |
| &nbsp;&nbsp;&nbsp;Markel Corp.\* | 43 | 56652 |

---

58 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **FINANCIAL SERVICES FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| &nbsp;&nbsp;&nbsp;Cincinnati Financial Corp. | 520 | $53243 |
| &nbsp;&nbsp;&nbsp;Brown & Brown, Inc. | 913 | 52014 |
| &nbsp;&nbsp;&nbsp;RenaissanceRe Holdings Ltd. | 280 | 51584 |
| &nbsp;&nbsp;&nbsp;Loews Corp. | 840 | 48997 |
| &nbsp;&nbsp;&nbsp;Globe Life, Inc. | 384 | 46291 |
| &nbsp;&nbsp;&nbsp;American Financial Group, Inc. | 332 | 45577 |
| &nbsp;&nbsp;&nbsp;Equitable Holdings, Inc. | 1443 | 41414 |
| &nbsp;&nbsp;&nbsp;Fidelity National Financial, Inc. | 1097 | 41269 |
| &nbsp;&nbsp;&nbsp;Reinsurance Group of America, Inc. — Class A | 287 | 40780 |
| &nbsp;&nbsp;&nbsp;Unum Group | 926 | 37994 |
| &nbsp;&nbsp;&nbsp;Old Republic International Corp. | 1442 | 34824 |
| &nbsp;&nbsp;&nbsp;Assurant, Inc. | 265 | 33141 |
| &nbsp;&nbsp;&nbsp;Voya Financial, Inc. | 530 | 32590 |
| &nbsp;&nbsp;&nbsp;Lincoln National Corp. | 1033 | 31734 |
| &nbsp;&nbsp;&nbsp;First American Financial Corp. | 584 | 30566 |
| &nbsp;&nbsp;&nbsp;MGIC Investment Corp. | 1940 | 25220 |
| **Total Insurance** |  | 2284118 |
| **Diversified Financial Services - 16.3%** | **Diversified Financial Services - 16.3%** | **Diversified Financial Services - 16.3%** |
| &nbsp;&nbsp;&nbsp;Charles Schwab Corp. | 1988 | 165521 |
| &nbsp;&nbsp;&nbsp;BlackRock, Inc. — Class A | 195 | 138183 |
| &nbsp;&nbsp;&nbsp;American Express Co. | 898 | 132680 |
| &nbsp;&nbsp;&nbsp;CME Group, Inc. — Class A | 592 | 99551 |
| &nbsp;&nbsp;&nbsp;Intercontinental Exchange, Inc. | 960 | 98486 |
| &nbsp;&nbsp;&nbsp;Apollo Global Management, Inc. | 1284 | 81906 |
| &nbsp;&nbsp;&nbsp;Capital One Financial Corp. | 839 | 77993 |
| &nbsp;&nbsp;&nbsp;Ameriprise Financial, Inc. | 243 | 75663 |
| &nbsp;&nbsp;&nbsp;Nasdaq, Inc. | 1163 | 71350 |
| &nbsp;&nbsp;&nbsp;Discover Financial Services | 684 | 66916 |
| &nbsp;&nbsp;&nbsp;Raymond James Financial, Inc. | 587 | 62721 |
| &nbsp;&nbsp;&nbsp;&nbsp;T. Rowe Price Group, Inc. | 572 | 62382 |
| &nbsp;&nbsp;&nbsp;LPL Financial Holdings, Inc. | 259 | 55988 |
| &nbsp;&nbsp;&nbsp;Tradeweb Markets, Inc. — Class A | 790 | 51295 |
| &nbsp;&nbsp;&nbsp;Synchrony Financial | 1467 | 48206 |
| &nbsp;&nbsp;&nbsp;Cboe Global Markets, Inc. | 384 | 48180 |
| &nbsp;&nbsp;&nbsp;Franklin Resources, Inc. | 1763 | 46508 |
| &nbsp;&nbsp;&nbsp;Invesco Ltd. | 2057 | 37005 |
| &nbsp;&nbsp;&nbsp;Jefferies Financial Group, Inc. | 1057 | 36234 |
| &nbsp;&nbsp;&nbsp;Ally Financial, Inc. | 1438 | 35159 |
| &nbsp;&nbsp;&nbsp;Coinbase Global, Inc. — Class A\*<sup>,1</sup> | 971 | 34364 |
| &nbsp;&nbsp;&nbsp;Stifel Financial Corp. | 571 | 33329 |
| &nbsp;&nbsp;&nbsp;Evercore, Inc. — Class A | 259 | 28252 |
| &nbsp;&nbsp;&nbsp;SLM Corp. | 1592 | 26427 |
| &nbsp;&nbsp;&nbsp;OneMain Holdings, Inc. | 790 | 26315 |
| &nbsp;&nbsp;&nbsp;Upstart Holdings, Inc.\*<sup>,1</sup> | 924 | 12215 |
| &nbsp;&nbsp;&nbsp;Brookfield Asset Management Ltd. — Class A\* | 295 | 8458 |
| **Total Diversified Financial Services** |  | 1661287 |
| **Private Equity - 3.4%** | **Private Equity - 3.4%** | **Private Equity - 3.4%** |
| &nbsp;&nbsp;&nbsp;Blackstone, Inc. — Class A | 1633 | 121152 |
| &nbsp;&nbsp;&nbsp;KKR & Company, Inc. — Class A | 1785 | 82860 |
| &nbsp;&nbsp;&nbsp;Ares Management Corp. — Class A | 859 | 58790 |
| &nbsp;&nbsp;&nbsp;Carlyle Group, Inc. | 1496 | 44640 |
| &nbsp;&nbsp;&nbsp;Brookfield Corp. | 1143 | 35959 |
| **Total Private Equity** |  | 343401 |
| **Commercial Services - 2.7%** | **Commercial Services - 2.7%** | **Commercial Services - 2.7%** |
| &nbsp;&nbsp;&nbsp;S&P Global, Inc. | 405 | 135651 |
| &nbsp;&nbsp;&nbsp;Moody's Corp. | 339 | 94452 |
| &nbsp;&nbsp;&nbsp;MarketAxess Holdings, Inc. | 151 | 42112 |
| **Total Commercial Services** |  | 272215 |
| **Software - 0.8%** | **Software - 0.8%** | **Software - 0.8%** |
| &nbsp;&nbsp;&nbsp;MSCI, Inc. — Class A | 170 | 79079 |
| **Media - 0.5%** | **Media - 0.5%** | **Media - 0.5%** |
| &nbsp;&nbsp;&nbsp;FactSet Research Systems, Inc. | 124 | 49750 |
| **Savings & Loans - 0.3%** | **Savings & Loans - 0.3%** | **Savings & Loans - 0.3%** |
| &nbsp;&nbsp;&nbsp;New York Community Bancorp, Inc. | 3108 | 26729 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $5,655,581) |  | 10124654 |
|  | **Face<br> Amount** |  |
| **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.7%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.7%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.7%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | $40635 | 40635 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 15629 | 15629 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 15581 | 15581 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $71,845) |  | 71845 |
|  | **Shares** |  |
| **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.4%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.4%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.4%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>4</sup> | 42092 | 42092 |
| **Total Securities Lending Collateral** | **Total Securities Lending Collateral** |  |
| &nbsp;&nbsp;&nbsp;(Cost $42,092) |  | 42092 |
| **Total Investments - 100.6%** | **Total Investments - 100.6%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $5,769,518) | &nbsp;&nbsp;&nbsp;(Cost $5,769,518) | $10238591 |
| **Other Assets & Liabilities, net - (0.6)%** | **Other Assets & Liabilities, net - (0.6)%** | (59509) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $10179082 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 59

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **FINANCIAL SERVICES FUND** |  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;REIT — Real Estate Investment Trust |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $10124654 | $— | $— | $10124654 |
| Repurchase Agreements |  | 71845 |  | 71845 |
| Securities Lending Collateral | 42092 |  |  | 42092 |
| Total Assets | $10166746 | $71845 | $— | $10238591 |

---

60 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**FINANCIAL SERVICES FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value - including $41,711 of securities loaned (cost $5,697,673) | $10166746 |
| Repurchase agreements, at value (cost $71,845) | 71845 |
| Cash | 236 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 26133 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 217 |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 105 |
| &nbsp;&nbsp;&nbsp;Interest | 17 |
| **Total assets** | 10265299 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 42092 |
| &nbsp;&nbsp;&nbsp;Professional fees | 18847 |
| &nbsp;&nbsp;&nbsp;Management fees | 7576 |
| &nbsp;&nbsp;&nbsp;Printing fees | 5025 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 3190 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 2530 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 2228 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 1382 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 149 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 3198 |
| **Total liabilities** | 86217 |
| **Net assets** | $10179082 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $7444515 |
| Total distributable earnings (loss) | 2734567 |
| Net assets | $10179082 |
| Capital shares outstanding | 121272 |
| Net asset value per share | $83.94 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $1,056) | $321669 |
| Interest | 1273 |
| Income from securities lending, net | 1787 |
| &nbsp;&nbsp;&nbsp;Total investment income | 324729 |
| **Expenses:** | **Expenses:** |
| Management fees | 113086 |
| Investor service fees | 33260 |
| Transfer agent fees | 38385 |
| Professional fees | 23765 |
| Portfolio accounting and administration fees | 16395 |
| Trustees' fees\* | 2419 |
| Custodian fees | 2124 |
| Line of credit fees | 35 |
| Miscellaneous | 5603 |
| &nbsp;&nbsp;&nbsp;Total expenses | 235072 |
| Net investment income | 89657 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | 120713 |
| Net realized gain | 120713 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (3347333) |
| Net change in unrealized appreciation (depreciation) | (3347333) |
| Net realized and unrealized loss | (3226620) |
| **Net decrease in net assets resulting from operations** | $(3136963) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 61

**FINANCIAL SERVICES FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income | $89657 | $69942 |
| Net realized gain on investments | 120713 | 821848 |
| Net change in unrealized appreciation (depreciation) on investments | (3347333) | 3960827 |
| Net increase (decrease) in net assets resulting from operations | (3136963) | 4852617 |
| Distributions to shareholders | (1038828) | (391114) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 14196324 | 35921090 |
| Distributions reinvested | 1038828 | 391114 |
| Cost of shares redeemed | (19020715) | (33000299) |
| Net increase (decrease) from capital share transactions | (3785563) | 3311905 |
| Net increase (decrease) in net assets | (7961354) | 7773408 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 18140436 | 10367028 |
| &nbsp;&nbsp;&nbsp;End of year | $10179082 | $18140436 |
| **Capital share activity:** |  |  |
| Shares sold | 139320 | 347660 |
| Shares issued from reinvestment of distributions | 12232 | 3811 |
| Shares redeemed | (191186) | (311790) |
| Net increase (decrease) in shares | (39634) | 39681 |

---

62 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**FINANCIAL SERVICES FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $112.74 | $85.52 | $89.79 | $73.46 | $84.47 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .65 | .40 | .70 | .70 | .45 |
| Net gain (loss) on investments (realized and unrealized) | (20.97) | 29.49 | (1.47) | 19.67 | (10.74) |
| Total from investment operations | (20.32) | 29.89 | (.77) | 20.37 | (10.29) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (.58) | (.38) | (.74) | (.71) | (.72) |
| Net realized gains | (7.90) | (2.29) | (2.76) | (3.33) |  |
| Total distributions | (8.48) | (2.67) | (3.50) | (4.04) | (.72) |
| Net asset value, end of period | $83.94 | $112.74 | $85.52 | $89.79 | $73.46 |
| **Total Return<sup>b</sup>** | **(18.11** **%)** | **35.26%** | **(0.11** **%)** | **28.08%** | **(12.28** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $10179 | $18140 | $10367 | $11327 | $7098 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.67% | 0.39% | 0.92% | 0.83% | 0.54% |
| Total expenses | 1.77% | 1.69% | 1.82% | 1.82% | 1.72% |
| Portfolio turnover rate | 101% | 170% | 339% | 218% | 403% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 63

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**HEALTH CARE FUND** 

**OBJECTIVE:** Seeks to provide capital appreciation by investing in companies that are involved in the health care industry ("Health Care Companies").

For the Reporting Period, Health Care Fund returned -12.00%, compared with a -18.11% return for the S&P 500 Index. The S&P 500 Health Care Index returned -1.95%.

The health care distributors industry contributed the most to return for the period, followed by the managed health care industry and the biotechnology industry. The life sciences tools & services industry was the largest detractor from return for the period, followed by the health care equipment industry and the health care supplies industry.

The best-performing holdings in the Fund were Merck & Co., Inc., Eli Lilly and Co., and AbbVie, Inc. The worst-performing holdings in the Fund included Align Technology, Inc., Zoetis, Inc. - Class A, and Edwards Lifesciences Corp.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-5_64.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** June 19, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| UnitedHealth Group, Inc. | 3.5% |
| Johnson & Johnson | 3.5% |
| Eli Lilly & Co. | 3.0% |
| Pfizer, Inc. | 2.7% |
| Merck & Company, Inc. | 2.7% |
| AbbVie, Inc. | 2.7% |
| Thermo Fisher Scientific, Inc. | 2.3% |
| Abbott Laboratories | 2.3% |
| Danaher Corp. | 2.2% |
| Bristol-Myers Squibb Co. | 1.9% |
| Top Ten Total | 26.8% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

64 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-5_65.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Health Care Fund  | (12.00%)  | 9.02%  | 12.18%  |
| S&P 500 Health Care Index  | (1.95%)  | 12.53%  | 15.05%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Health Care Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 65

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **HEALTH CARE FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.4%** | **COMMON STOCKS<sup>†</sup>** **- 99.4%** | **COMMON STOCKS<sup>†</sup>** **- 99.4%** |
| **Pharmaceuticals - 32.4%** | **Pharmaceuticals - 32.4%** | **Pharmaceuticals - 32.4%** |
| &nbsp;&nbsp;&nbsp;Johnson & Johnson | 3417 | $603613 |
| &nbsp;&nbsp;&nbsp;Eli Lilly & Co. | 1430 | 523151 |
| &nbsp;&nbsp;&nbsp;Pfizer, Inc. | 9177 | 470229 |
| &nbsp;&nbsp;&nbsp;Merck & Company, Inc. | 4234 | 469762 |
| &nbsp;&nbsp;&nbsp;AbbVie, Inc. | 2888 | 466730 |
| &nbsp;&nbsp;&nbsp;Bristol-Myers Squibb Co. | 4614 | 331977 |
| &nbsp;&nbsp;&nbsp;CVS Health Corp. | 3144 | 292989 |
| &nbsp;&nbsp;&nbsp;Cigna Corp. | 838 | 277663 |
| &nbsp;&nbsp;&nbsp;Becton Dickinson and Co. | 961 | 244382 |
| &nbsp;&nbsp;&nbsp;Zoetis, Inc. | 1560 | 228618 |
| &nbsp;&nbsp;&nbsp;McKesson Corp. | 539 | 202190 |
| &nbsp;&nbsp;&nbsp;AstraZeneca plc ADR | 2814 | 190789 |
| &nbsp;&nbsp;&nbsp;Dexcom, Inc.\* | 1544 | 174843 |
| &nbsp;&nbsp;&nbsp;AmerisourceBergen Corp. — Class A | 981 | 162561 |
| &nbsp;&nbsp;&nbsp;Jazz Pharmaceuticals plc\* | 793 | 126333 |
| &nbsp;&nbsp;&nbsp;GSK plc ADR | 3592 | 126223 |
| &nbsp;&nbsp;&nbsp;Novartis AG ADR | 1366 | 123924 |
| &nbsp;&nbsp;&nbsp;Cardinal Health, Inc. | 1595 | 122608 |
| &nbsp;&nbsp;&nbsp;Perrigo Company plc | 3457 | 117849 |
| &nbsp;&nbsp;&nbsp;Viatris, Inc. | 9431 | 104967 |
| &nbsp;&nbsp;&nbsp;Neurocrine Biosciences, Inc.\* | 802 | 95791 |
| &nbsp;&nbsp;&nbsp;Henry Schein, Inc.\* | 1153 | 92090 |
| &nbsp;&nbsp;&nbsp;Elanco Animal Health, Inc.\* | 5528 | 67552 |
| &nbsp;&nbsp;&nbsp;Bausch Health Companies, Inc.\* | 6224 | 39087 |
| **Total Pharmaceuticals** |  | 5655921 |
| **Healthcare-Products - 30.1%** | **Healthcare-Products - 30.1%** | **Healthcare-Products - 30.1%** |
| &nbsp;&nbsp;&nbsp;Thermo Fisher Scientific, Inc. | 731 | 402554 |
| &nbsp;&nbsp;&nbsp;Abbott Laboratories | 3609 | 396232 |
| &nbsp;&nbsp;&nbsp;Danaher Corp. | 1450 | 384859 |
| &nbsp;&nbsp;&nbsp;Medtronic plc | 4062 | 315699 |
| &nbsp;&nbsp;&nbsp;Intuitive Surgical, Inc.\* | 1006 | 266942 |
| &nbsp;&nbsp;&nbsp;Stryker Corp. | 1083 | 264783 |
| &nbsp;&nbsp;&nbsp;Boston Scientific Corp.\* | 4952 | 229129 |
| &nbsp;&nbsp;&nbsp;Edwards Lifesciences Corp.\* | 2636 | 196672 |
| &nbsp;&nbsp;&nbsp;IDEXX Laboratories, Inc.\* | 394 | 160736 |
| &nbsp;&nbsp;&nbsp;ResMed, Inc. | 736 | 153184 |
| &nbsp;&nbsp;&nbsp;Zimmer Biomet Holdings, Inc. | 1126 | 143565 |
| &nbsp;&nbsp;&nbsp;Insulet Corp.\* | 480 | 141307 |
| &nbsp;&nbsp;&nbsp;Baxter International, Inc. | 2743 | 139811 |
| &nbsp;&nbsp;&nbsp;Waters Corp.\* | 370 | 126755 |
| &nbsp;&nbsp;&nbsp;Align Technology, Inc.\* | 582 | 122744 |
| &nbsp;&nbsp;&nbsp;Hologic, Inc.\* | 1629 | 121865 |
| &nbsp;&nbsp;&nbsp;STERIS plc | 647 | 119494 |
| &nbsp;&nbsp;&nbsp;West Pharmaceutical Services, Inc. | 502 | 118146 |
| &nbsp;&nbsp;&nbsp;Cooper Companies, Inc. | 351 | 116065 |
| &nbsp;&nbsp;&nbsp;PerkinElmer, Inc. | 816 | 114420 |
| &nbsp;&nbsp;&nbsp;Avantor, Inc.\* | 5002 | 105492 |
| &nbsp;&nbsp;&nbsp;Bio-Techne Corp. | 1248 | 103434 |
| &nbsp;&nbsp;&nbsp;Teleflex, Inc. | 388 | 96856 |
| &nbsp;&nbsp;&nbsp;Bruker Corp. | 1316 | 89949 |
| &nbsp;&nbsp;&nbsp;Repligen Corp.\* | 516 | 87364 |
| &nbsp;&nbsp;&nbsp;Exact Sciences Corp.\* | 1724 | 85355 |
| &nbsp;&nbsp;&nbsp;Masimo Corp.\* | 552 | 81668 |
| &nbsp;&nbsp;&nbsp;Inspire Medical Systems, Inc.\* | 310 | 78083 |
| &nbsp;&nbsp;&nbsp;Dentsply Sirona, Inc. | 2395 | 76257 |
| &nbsp;&nbsp;&nbsp;Shockwave Medical, Inc.\* | 347 | 71347 |
| &nbsp;&nbsp;&nbsp;Envista Holdings Corp.\* | 2021 | 68047 |
| &nbsp;&nbsp;&nbsp;QuidelOrtho Corp.\* | 743 | 63653 |
| &nbsp;&nbsp;&nbsp;Natera, Inc.\* | 1522 | 61139 |
| &nbsp;&nbsp;&nbsp;10X Genomics, Inc. — Class A\* | 1601 | 58340 |
| &nbsp;&nbsp;&nbsp;Tandem Diabetes Care, Inc.\* | 1051 | 47242 |
| &nbsp;&nbsp;&nbsp;Nevro Corp.\* | 833 | 32987 |
| **Total Healthcare-Products** |  | 5242175 |
| **Biotechnology - 17.3%** | **Biotechnology - 17.3%** | **Biotechnology - 17.3%** |
| &nbsp;&nbsp;&nbsp;Amgen, Inc. | 1210 | 317794 |
| &nbsp;&nbsp;&nbsp;Gilead Sciences, Inc. | 3324 | 285365 |
| &nbsp;&nbsp;&nbsp;Regeneron Pharmaceuticals, Inc.\* | 333 | 240256 |
| &nbsp;&nbsp;&nbsp;Moderna, Inc.\* | 1280 | 229914 |
| &nbsp;&nbsp;&nbsp;Vertex Pharmaceuticals, Inc.\* | 788 | 227559 |
| &nbsp;&nbsp;&nbsp;Biogen, Inc.\* | 638 | 176675 |
| &nbsp;&nbsp;&nbsp;Horizon Therapeutics plc\* | 1396 | 158865 |
| &nbsp;&nbsp;&nbsp;Illumina, Inc.\* | 777 | 157109 |
| &nbsp;&nbsp;&nbsp;Alnylam Pharmaceuticals, Inc.\* | 632 | 150195 |
| &nbsp;&nbsp;&nbsp;Seagen, Inc.\* | 1078 | 138534 |
| &nbsp;&nbsp;&nbsp;Royalty Pharma plc — Class A | 3410 | 134763 |
| &nbsp;&nbsp;&nbsp;BioMarin Pharmaceutical, Inc.\* | 1192 | 123360 |
| &nbsp;&nbsp;&nbsp;Incyte Corp.\* | 1430 | 114858 |
| &nbsp;&nbsp;&nbsp;BioNTech SE ADR | 688 | 103351 |
| &nbsp;&nbsp;&nbsp;Sarepta Therapeutics, Inc.\* | 775 | 100425 |
| &nbsp;&nbsp;&nbsp;United Therapeutics Corp.\* | 360 | 100112 |
| &nbsp;&nbsp;&nbsp;Apellis Pharmaceuticals, Inc.\* | 1328 | 68671 |
| &nbsp;&nbsp;&nbsp;Mirati Therapeutics, Inc.\* | 1459 | 66107 |
| &nbsp;&nbsp;&nbsp;Intellia Therapeutics, Inc.\* | 1432 | 49963 |
| &nbsp;&nbsp;&nbsp;Guardant Health, Inc.\* | 1360 | 36992 |
| &nbsp;&nbsp;&nbsp;Fate Therapeutics, Inc.\* | 2071 | 20896 |
| &nbsp;&nbsp;&nbsp;Novavax, Inc.\*<sup>,1</sup> | 1860 | 19121 |
| **Total Biotechnology** |  | 3020885 |
| **Healthcare-Services - 16.6%** | **Healthcare-Services - 16.6%** | **Healthcare-Services - 16.6%** |
| &nbsp;&nbsp;&nbsp;UnitedHealth Group, Inc. | 1142 | 605466 |
| &nbsp;&nbsp;&nbsp;Elevance Health, Inc. | 589 | 302139 |
| &nbsp;&nbsp;&nbsp;HCA Healthcare, Inc. | 952 | 228442 |
| &nbsp;&nbsp;&nbsp;Humana, Inc. | 424 | 217169 |
| &nbsp;&nbsp;&nbsp;Centene Corp.\* | 2232 | 183046 |
| &nbsp;&nbsp;&nbsp;IQVIA Holdings, Inc.\* | 845 | 173132 |
| &nbsp;&nbsp;&nbsp;Laboratory Corporation of America Holdings | 548 | 129043 |
| &nbsp;&nbsp;&nbsp;Quest Diagnostics, Inc. | 772 | 120772 |
| &nbsp;&nbsp;&nbsp;Molina Healthcare, Inc.\* | 361 | 119209 |
| &nbsp;&nbsp;&nbsp;ICON plc\* | 596 | 115773 |
| &nbsp;&nbsp;&nbsp;Charles River Laboratories International, Inc.\* | 442 | 96312 |
| &nbsp;&nbsp;&nbsp;Universal Health Services, Inc. — Class B | 648 | 91297 |
| &nbsp;&nbsp;&nbsp;Catalent, Inc.\* | 1903 | 85654 |
| &nbsp;&nbsp;&nbsp;DaVita, Inc.\* | 960 | 71683 |
| &nbsp;&nbsp;&nbsp;Encompass Health Corp. | 1176 | 70336 |
| &nbsp;&nbsp;&nbsp;Tenet Healthcare Corp.\* | 1398 | 68208 |
| &nbsp;&nbsp;&nbsp;Oak Street Health, Inc.\* | 2984 | 64186 |
| &nbsp;&nbsp;&nbsp;Syneos Health, Inc.\* | 1529 | 56084 |

---

66 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **HEALTH CARE FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;Teladoc Health, Inc.\* | 2266 | $| 53591 |
| &nbsp;&nbsp;&nbsp;Amedisys, Inc.\* | 555 |  | 46365 |
| **Total Healthcare-Services** |  |  | 2897907 |
| **Electronics - 1.9%** | **Electronics - 1.9%** | **Electronics - 1.9%** | **Electronics - 1.9%** |
| &nbsp;&nbsp;&nbsp;Agilent Technologies, Inc. | 1210 |  | 181077 |
| &nbsp;&nbsp;&nbsp;Mettler-Toledo International, Inc.\* | 109 |  | 157554 |
| **Total Electronics** |  |  | 338631 |
| **Software - 1.1%** | **Software - 1.1%** | **Software - 1.1%** | **Software - 1.1%** |
| &nbsp;&nbsp;&nbsp;Veeva Systems, Inc. — Class A\* | 843 |  | 136044 |
| &nbsp;&nbsp;&nbsp;Doximity, Inc. — Class A\* | 2068 |  | 69402 |
| **Total Software** |  |  | 205446 |
| **Total Common Stocks** | **Total Common Stocks** |  |  |
| &nbsp;&nbsp;&nbsp;(Cost $7,312,744) |  |  | 17360965 |
| **RIGHTS<sup>†</sup>** **- 0.0%** | **RIGHTS<sup>†</sup>** **- 0.0%** | **RIGHTS<sup>†</sup>** **- 0.0%** | **RIGHTS<sup>†</sup>** **- 0.0%** |
| **- 0.0%** | **- 0.0%** | **- 0.0%** | **- 0.0%** |
| &nbsp;&nbsp;&nbsp;Johnson & Johnson\* | 307 |  |  |
| **Total Rights** | **Total Rights** |  |  |
| &nbsp;&nbsp;&nbsp;(Cost $—) |  |  |  |

---

---

| | | |
|:---|:---|:---|
|  | **Face<br> Amount** |  |
| **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.8%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.8%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.8%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | $75013 | 75013 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 28851 | 28851 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 28762 | 28762 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $132,626) |  | 132626 |
|  | **Shares** |  |
| **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.1%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.1%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.1%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>4</sup> | 14148 | 14148 |
| **Total Securities Lending Collateral** | **Total Securities Lending Collateral** |  |
| &nbsp;&nbsp;&nbsp;(Cost $14,148) |  | 14148 |
| **Total Investments - 100.3%** | **Total Investments - 100.3%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $7,459,518) | &nbsp;&nbsp;&nbsp;(Cost $7,459,518) | $17507739 |
| **Other Assets & Liabilities, net - (0.3)%** | **Other Assets & Liabilities, net - (0.3)%** | (60770) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $17446969 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $17360965 | $— | $— | $17360965 |
| Rights | — \* |  |  |  |
| Repurchase Agreements |  | 132626 |  | 132626 |
| Securities Lending Collateral | 14148 |  |  | 14148 |
| Total Assets | $17375113 | $132626 | $— | $17507739 |

---

\* Security has a market value of $0.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 67

**HEALTH CARE FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value - including $14,454 of securities loaned (cost $7,326,892) | $17375113 |
| Repurchase agreements, at value (cost $132,626) | 132626 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Securities sold | 140629 |
| &nbsp;&nbsp;&nbsp;Dividends | 13538 |
| &nbsp;&nbsp;&nbsp;Foreign tax reclaims | 491 |
| &nbsp;&nbsp;&nbsp;Interest | 31 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 5 |
| **Total assets** | 17662433 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 123006 |
| &nbsp;&nbsp;&nbsp;Professional fees | 26395 |
| &nbsp;&nbsp;&nbsp;Management fees | 14184 |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 14148 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 5488 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 4172 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 2586 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 285 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 25200 |
| **Total liabilities** | 215464 |
| **Net assets** | $17446969 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $9568383 |
| Total distributable earnings (loss) | 7878586 |
| Net assets | $17446969 |
| Capital shares outstanding | 217074 |
| Net asset value per share | $80.37 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $(5356)) | $219487 |
| Interest | 2083 |
| Income from securities lending, net | 1870 |
| &nbsp;&nbsp;&nbsp;Total investment income | 223440 |
| **Expenses:** | **Expenses:** |
| Management fees | 158380 |
| Investor service fees | 46582 |
| Transfer agent fees | 50715 |
| Professional fees | 31655 |
| Portfolio accounting and administration fees | 23709 |
| Trustees' fees\* | 2881 |
| Custodian fees | 2857 |
| Line of credit fees | 50 |
| Miscellaneous | 12568 |
| &nbsp;&nbsp;&nbsp;Total expenses | 329397 |
| Net investment loss | (105957) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | 488988 |
| Net realized gain | 488988 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (3229043) |
| Net change in unrealized appreciation (depreciation) | (3229043) |
| Net realized and unrealized loss | (2740055) |
| **Net decrease in net assets resulting from operations** | $(2846012) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

68 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**HEALTH CARE FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment loss | $(105957) | $(134251) |
| Net realized gain on investments | 488988 | 2291794 |
| Net change in unrealized appreciation (depreciation) on investments | (3229043) | 1272751 |
| Net increase (decrease) in net assets resulting from operations | (2846012) | 3430294 |
| Distributions to shareholders | (999573) | (1193289) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 30077636 | 21856082 |
| Distributions reinvested | 999573 | 1193289 |
| Cost of shares redeemed | (33625404) | (22494170) |
| Net increase (decrease) from capital share transactions | (2548195) | 555201 |
| Net increase (decrease) in net assets | (6393780) | 2792206 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 23840749 | 21048543 |
| &nbsp;&nbsp;&nbsp;End of year | $17446969 | $23840749 |
| **Capital share activity:** |  |  |
| Shares sold | 367346 | 233391 |
| Shares issued from reinvestment of distributions | 12730 | 12958 |
| Shares redeemed | (409848) | (243009) |
| Net increase (decrease) in shares | (29772) | 3340 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 69

**HEALTH CARE FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $96.58 | $86.44 | $74.88 | $62.38 | $62.43 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | (.47) | (.61) | (.55) | (.40) | (.48) |
| Net gain (loss) on investments (realized and unrealized) | (11.24) | 16.61 | 14.32 | 14.35 | 1.33 <sup>c</sup> |
| Total from investment operations | (11.71) | 16.00 | 13.77 | 13.95 | .85 |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net realized gains | (4.50) | (5.86) | (2.21) | (1.45) | (.90) |
| Total distributions | (4.50) | (5.86) | (2.21) | (1.45) | (.90) |
| Net asset value, end of period | $80.37 | $96.58 | $86.44 | $74.88 | $62.38 |
| **Total Return<sup>b</sup>** | **(12.00** **%)** | **18.84%** | **18.68%** | **22.57%** | **1.25%** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $17447 | $23841 | $21049 | $19042 | $20437 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | (0.57%) | (0.66%) | (0.71%) | (0.58%) | (0.72 %) |
| Total expenses | 1.77% | 1.69% | 1.82% | 1.82% | 1.72% |
| Portfolio turnover rate | 158% | 114% | 171% | 150% | 194% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> The amount shown for a share outstanding throughout the period does not agree with the aggregate net loss on investments for the year because of the sales and purchases of fund shares in relation to fluctuating market value of the investments of the Fund.

70 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**INTERNET FUND** 

**OBJECTIVE:** Seeks to provide capital appreciation by investing in companies that provide products or services designed for or related to the Internet ("Internet Companies").

For the Reporting Period, Internet Fund returned -44.84%, compared with a return of -18.11% for the S&P 500 Index. The S&P 500 Information Technology Index returned -28.19%.

The research & consulting services industry contributed the most to return for the period, followed by the education services industry. The interactive media & services industry detracted the most from return, followed by Internet & direct marketing retail industry and the Internet services & infrastructure industry.

Pinduoduo, Inc. ADR, Twitter, Inc., and Trip.com Group Ltd. ADR added the most to Fund performance for the year. Detracting the most from the Fund's return for the period were Amazon.com, Inc., Meta Platforms, Inc. - Class A, and Alphabet, Inc. - Class A.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Inception Date:** May 24, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| Alphabet, Inc. — Class A | 8.1% |
| Amazon.com, Inc. | 6.9% |
| Meta Platforms, Inc. — Class A | 4.5% |
| Cisco Systems, Inc. | 3.3% |
| Adobe, Inc. | 3.0% |
| Salesforce, Inc. | 2.9% |
| Netflix, Inc. | 2.7% |
| Booking Holdings, Inc. | 2.1% |
| PayPal Holdings, Inc. | 2.1% |
| Activision Blizzard, Inc. | 1.9% |
| Top Ten Total | 37.5% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-5_71.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

THE RYDEX FUNDS ANNUAL REPORT \| 71

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-5_72.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Internet Fund  | (44.84%)  | 0.46%  | 9.11%  |
| S&P 500 Information Technology Index  | (28.19%)  | 15.81%  | 18.33%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

72 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **INTERNET FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.4%** | **COMMON STOCKS<sup>†</sup>** **- 99.4%** | **COMMON STOCKS<sup>†</sup>** **- 99.4%** |
| **Internet - 55.2%** | **Internet - 55.2%** | **Internet - 55.2%** |
| &nbsp;&nbsp;&nbsp;Alphabet, Inc. — Class A\* | 4048 | $357155 |
| &nbsp;&nbsp;&nbsp;Amazon.com, Inc.\* | 3625 | 304500 |
| &nbsp;&nbsp;&nbsp;Meta Platforms, Inc. — Class A\* | 1660 | 199764 |
| &nbsp;&nbsp;&nbsp;Netflix, Inc.\* | 406 | 119721 |
| &nbsp;&nbsp;&nbsp;Booking Holdings, Inc.\* | 47 | 94718 |
| &nbsp;&nbsp;&nbsp;Airbnb, Inc. — Class A\* | 893 | 76351 |
| &nbsp;&nbsp;&nbsp;Uber Technologies, Inc.\* | 3002 | 74239 |
| &nbsp;&nbsp;&nbsp;Alibaba Group Holding Ltd. ADR\* | 745 | 65627 |
| &nbsp;&nbsp;&nbsp;MercadoLibre, Inc.\* | 61 | 51621 |
| &nbsp;&nbsp;&nbsp;VeriSign, Inc.\* | 249 | 51155 |
| &nbsp;&nbsp;&nbsp;eBay, Inc. | 1196 | 49598 |
| &nbsp;&nbsp;&nbsp;Pinduoduo, Inc. ADR\* | 602 | 49093 |
| &nbsp;&nbsp;&nbsp;Baidu, Inc. ADR\* | 428 | 48955 |
| &nbsp;&nbsp;&nbsp;Shopify, Inc. — Class A\* | 1389 | 48212 |
| &nbsp;&nbsp;&nbsp;JD.com, Inc. ADR | 851 | 47767 |
| &nbsp;&nbsp;&nbsp;Pinterest, Inc. — Class A\* | 1924 | 46715 |
| &nbsp;&nbsp;&nbsp;DoorDash, Inc. — Class A\* | 897 | 43792 |
| &nbsp;&nbsp;&nbsp;Snap, Inc. — Class A\* | 4634 | 41474 |
| &nbsp;&nbsp;&nbsp;Chewy, Inc. — Class A\*<sup>,1</sup> | 1109 | 41122 |
| &nbsp;&nbsp;&nbsp;Spotify Technology S.A.\* | 519 | 40975 |
| &nbsp;&nbsp;&nbsp;Sea Ltd. ADR\* | 774 | 40271 |
| &nbsp;&nbsp;&nbsp;Expedia Group, Inc.\* | 457 | 40033 |
| &nbsp;&nbsp;&nbsp;Etsy, Inc.\* | 329 | 39408 |
| &nbsp;&nbsp;&nbsp;Trip.com Group Ltd. ADR\* | 1138 | 39147 |
| &nbsp;&nbsp;&nbsp;GoDaddy, Inc. — Class A\* | 493 | 36886 |
| &nbsp;&nbsp;&nbsp;Match Group, Inc.\* | 887 | 36802 |
| &nbsp;&nbsp;&nbsp;Okta, Inc.\* | 538 | 36762 |
| &nbsp;&nbsp;&nbsp;Wix.com Ltd.\* | 416 | 31961 |
| &nbsp;&nbsp;&nbsp;F5, Inc.\* | 213 | 30568 |
| &nbsp;&nbsp;&nbsp;Zillow Group, Inc. — Class C\* | 915 | 29472 |
| &nbsp;&nbsp;&nbsp;Zillow Group, Inc. — Class A\* | 940 | 29337 |
| &nbsp;&nbsp;&nbsp;Coupang, Inc.\* | 1964 | 28890 |
| &nbsp;&nbsp;&nbsp;Roku, Inc.\* | 597 | 24298 |
| &nbsp;&nbsp;&nbsp;Lyft, Inc. — Class A\* | 1989 | 21919 |
| &nbsp;&nbsp;&nbsp;IAC, Inc.\* | 487 | 21623 |
| &nbsp;&nbsp;&nbsp;Bumble, Inc. — Class A\* | 996 | 20966 |
| &nbsp;&nbsp;&nbsp;Wayfair, Inc. — Class A\* | 613 | 20162 |
| &nbsp;&nbsp;&nbsp;Ziff Davis, Inc.\* | 254 | 20091 |
| &nbsp;&nbsp;&nbsp;TripAdvisor, Inc.\* | 963 | 17315 |
| &nbsp;&nbsp;&nbsp;Revolve Group, Inc.\* | 584 | 13000 |
| &nbsp;&nbsp;&nbsp;Overstock.com, Inc.\* | 488 | 9448 |
| **Total Internet** |  | 2440913 |
| **Software - 30.2%** | **Software - 30.2%** | **Software - 30.2%** |
| &nbsp;&nbsp;&nbsp;Adobe, Inc.\* | 401 | 134949 |
| &nbsp;&nbsp;&nbsp;Salesforce, Inc.\* | 980 | 129938 |
| &nbsp;&nbsp;&nbsp;Activision Blizzard, Inc. | 1086 | 83133 |
| &nbsp;&nbsp;&nbsp;Snowflake, Inc. — Class A\* | 514 | 73780 |
| &nbsp;&nbsp;&nbsp;Workday, Inc. — Class A\* | 413 | 69107 |
| &nbsp;&nbsp;&nbsp;Electronic Arts, Inc. | 506 | 61823 |
| &nbsp;&nbsp;&nbsp;Veeva Systems, Inc. — Class A\* | 319 | 51480 |
| &nbsp;&nbsp;&nbsp;Datadog, Inc. — Class A\* | 694 | 51009 |
| &nbsp;&nbsp;&nbsp;Zoom Video Communications, Inc. — Class A\* | 692 | 46876 |
| &nbsp;&nbsp;&nbsp;Take-Two Interactive Software, Inc.\* | 447 | 46546 |
| &nbsp;&nbsp;&nbsp;ROBLOX Corp. — Class A\* | 1502 | 42747 |
| &nbsp;&nbsp;&nbsp;DocuSign, Inc.\* | 745 | 41288 |
| &nbsp;&nbsp;&nbsp;HubSpot, Inc.\* | 139 | 40189 |
| &nbsp;&nbsp;&nbsp;Cloudflare, Inc. — Class A\* | 866 | 39152 |
| &nbsp;&nbsp;&nbsp;NetEase, Inc. ADR | 538 | 39075 |
| &nbsp;&nbsp;&nbsp;ZoomInfo Technologies, Inc. — Class A\* | 1275 | 38390 |
| &nbsp;&nbsp;&nbsp;Akamai Technologies, Inc.\* | 451 | 38019 |
| &nbsp;&nbsp;&nbsp;MongoDB, Inc.\* | 185 | 36415 |
| &nbsp;&nbsp;&nbsp;Bilibili, Inc. ADR\*<sup>,1</sup> | 1451 | 34374 |
| &nbsp;&nbsp;&nbsp;Twilio, Inc. — Class A\* | 694 | 33978 |
| &nbsp;&nbsp;&nbsp;Dropbox, Inc. — Class A\* | 1371 | 30683 |
| &nbsp;&nbsp;&nbsp;Coupa Software, Inc.\* | 368 | 29135 |
| &nbsp;&nbsp;&nbsp;Smartsheet, Inc. — Class A\* | 646 | 25427 |
| &nbsp;&nbsp;&nbsp;Box, Inc. — Class A\* | 761 | 23690 |
| &nbsp;&nbsp;&nbsp;Five9, Inc.\* | 348 | 23615 |
| &nbsp;&nbsp;&nbsp;Nutanix, Inc. — Class A\* | 893 | 23263 |
| &nbsp;&nbsp;&nbsp;New Relic, Inc.\* | 362 | 20435 |
| &nbsp;&nbsp;&nbsp;DigitalOcean Holdings, Inc.\* | 618 | 15740 |
| &nbsp;&nbsp;&nbsp;Fastly, Inc. — Class A\* | 1208 | 9894 |
| **Total Software** |  | 1334150 |
| **Telecommunications - 8.0%** | **Telecommunications - 8.0%** | **Telecommunications - 8.0%** |
| &nbsp;&nbsp;&nbsp;Cisco Systems, Inc. | 3095 | 147446 |
| &nbsp;&nbsp;&nbsp;Motorola Solutions, Inc. | 266 | 68551 |
| &nbsp;&nbsp;&nbsp;Arista Networks, Inc.\* | 536 | 65044 |
| &nbsp;&nbsp;&nbsp;Juniper Networks, Inc. | 1069 | 34165 |
| &nbsp;&nbsp;&nbsp;Ciena Corp.\* | 526 | 26815 |
| &nbsp;&nbsp;&nbsp;CommScope Holding Company, Inc.\* | 1763 | 12958 |
| **Total Telecommunications** |  | 354979 |
| **Commercial Services - 4.6%** | **Commercial Services - 4.6%** | **Commercial Services - 4.6%** |
| &nbsp;&nbsp;&nbsp;PayPal Holdings, Inc.\* | 1318 | 93868 |
| &nbsp;&nbsp;&nbsp;CoStar Group, Inc.\* | 754 | 58269 |
| &nbsp;&nbsp;&nbsp;Paylocity Holding Corp.\* | 182 | 35355 |
| &nbsp;&nbsp;&nbsp;Chegg, Inc.\* | 731 | 18473 |
| **Total Commercial Services** |  | 205965 |
| **Entertainment - 0.5%** | **Entertainment - 0.5%** | **Entertainment - 0.5%** |
| &nbsp;&nbsp;&nbsp;DraftKings, Inc. — Class A\* | 1926 | 21937 |
| **Healthcare-Services - 0.5%** | **Healthcare-Services - 0.5%** | **Healthcare-Services - 0.5%** |
| &nbsp;&nbsp;&nbsp;Teladoc Health, Inc.\* | 856 | 20244 |
| **Computers - 0.4%** | **Computers - 0.4%** | **Computers - 0.4%** |
| &nbsp;&nbsp;&nbsp;Lumentum Holdings, Inc.\* | 367 | 19147 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $3,199,928) |  | 4397335 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 73

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **INTERNET FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Face<br> Amount** | **Value** |
| **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 1.1%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 1.1%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 1.1%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | $26371 | 26371 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 10142 | 10142 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 10111 | 10111 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $46,624) |  | 46624 |
|  | **Shares** |  |
| **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 1.3%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 1.3%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 1.3%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>4</sup> | 59565 | 59565 |
| **Total Securities Lending Collateral** | **Total Securities Lending Collateral** |  |
| &nbsp;&nbsp;&nbsp;(Cost $59,565) |  | 59565 |
| **Total Investments - 101.8%** | **Total Investments - 101.8%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $3,306,117) | &nbsp;&nbsp;&nbsp;(Cost $3,306,117) | $4503524 |
| **Other Assets & Liabilities, net - (1.8)%** | **Other Assets & Liabilities, net - (1.8)%** | (79045) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $4424479 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $4397335 | $— | $— | $4397335 |
| Repurchase Agreements |  | 46624 |  | 46624 |
| Securities Lending Collateral | 59565 |  |  | 59565 |
| Total Assets | $4456900 | $46624 | $— | $4503524 |

---

74 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**INTERNET FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value - including $56,588 of securities loaned (cost $3,259,493) | $4456900 |
| Repurchase agreements, at value (cost $46,624) | 46624 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 234 |
| &nbsp;&nbsp;&nbsp;Interest | 11 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 9 |
| **Total assets** | 4503778 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 59565 |
| &nbsp;&nbsp;&nbsp;Management fees | 3278 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 1750 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 1355 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 964 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 597 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 65 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 11725 |
| **Total liabilities** | 79299 |
| **Net assets** | $4424479 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $4164273 |
| Total distributable earnings (loss) | 260206 |
| Net assets | $4424479 |
| Capital shares outstanding | 76756 |
| Net asset value per share | $57.64 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $181) | $11015 |
| Interest | 598 |
| Income from securities lending, net | 123 |
| &nbsp;&nbsp;&nbsp;Total investment income | 11736 |
| **Expenses:** | **Expenses:** |
| Management fees | 46679 |
| Investor service fees | 13729 |
| Transfer agent fees | 15870 |
| Portfolio accounting and administration fees | 6799 |
| Professional fees | 5531 |
| Trustees' fees\* | 1030 |
| Custodian fees | 989 |
| Miscellaneous | 6493 |
| &nbsp;&nbsp;&nbsp;Total expenses | 97120 |
| Net investment loss | (85384) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | (137501) |
| Net realized loss | (137501) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (3634702) |
| Net change in unrealized appreciation (depreciation) | (3634702) |
| Net realized and unrealized loss | (3772203) |
| **Net decrease in net assets resulting from operations** | $(3857587) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 75

**INTERNET FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment loss | $(85384) | $(176196) |
| Net realized gain (loss) on investments | (137501) | 3098622 |
| Net change in unrealized appreciation (depreciation) on investments | (3634702) | (3296938) |
| Net decrease in net assets resulting from operations | (3857587) | (374512) |
| Distributions to shareholders | (1179293) | (1342952) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 2366432 | 15647805 |
| Distributions reinvested | 1179293 | 1342952 |
| Cost of shares redeemed | (3215751) | (20208229) |
| Net increase (decrease) from capital share transactions | 329974 | (3217472) |
| Net decrease in net assets | (4706906) | (4934936) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 9131385 | 14066321 |
| &nbsp;&nbsp;&nbsp;End of year | $4424479 | $9131385 |
| **Capital share activity:** |  |  |
| Shares sold | 27255 | 92755 |
| Shares issued from reinvestment of distributions | 18338 | 8527 |
| Shares redeemed | (34294) | (121366) |
| Net increase (decrease) in shares | 11299 | (20084) |

---

76 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**INTERNET FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $139.50 | $164.44 | $104.02 | $82.90 | $86.84 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | (1.28) | (2.50) | (1.95) | (1.41) | (1.25) |
| Net gain (loss) on investments (realized and unrealized) | (59.04) | (2.98) | 64.22 | 22.53 | (1.23) |
| Total from investment operations | (60.32) | (5.48) | 62.27 | 21.12 | (2.48) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net realized gains | (21.54) | (19.46) | (1.85) |  | (1.46) |
| Total distributions | (21.54) | (19.46) | (1.85) |  | (1.46) |
| Net asset value, end of period | $57.64 | $139.50 | $164.44 | $104.02 | $82.90 |
| **Total Return<sup>b</sup>** | **(44.84** **%)** | **(4.66** **%)** | **60.21%** | **25.48%** | **(3.20** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $4424 | $9131 | $14066 | $8347 | $8099 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | (1.55%) | (1.53%) | (1.54%) | (1.42%) | (1.29%) |
| Total expenses | 1.77% | 1.69% | 1.82% | 1.82% | 1.72% |
| Portfolio turnover rate | 58% | 139% | 243% | 319% | 485% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 77

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**LEISURE FUND** 

**OBJECTIVE:** Seeks to provide capital appreciation by investing in companies engaged in leisure and entertainment businesses ("Leisure Companies").

For the Reporting Period, Leisure Fund returned -27.57%, compared with a return of -18.11% for the S&P 500 Index. The S&P 500 Consumer Discretionary Index returned -37.03%.

The tobacco industry contributed the most to return, followed by the motorcycle manufacturers industry. The movies & entertainment industry was the largest detractor from return, followed by the hotels/resorts & cruise line industry and the cable & satellite industry.

Holdings that contributed the most to the Fund's return were Las Vegas Sands Corp., Trip.com Group Ltd. ADR, and Philip Morris International, Inc. The holdings detracting the most from return were Walt Disney Co., Sea Ltd. ADR, and Airbnb, Inc. - Class A.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-5_78.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** May 22, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| McDonald's Corp. | 3.7% |
| Philip Morris International, Inc. | 3.5% |
| Walt Disney Co. | 3.4% |
| Comcast Corp. — Class A | 3.4% |
| Netflix, Inc. | 3.1% |
| Starbucks Corp. | 2.9% |
| Booking Holdings, Inc. | 2.5% |
| Altria Group, Inc. | 2.4% |
| Activision Blizzard, Inc. | 2.2% |
| Charter Communications, Inc. — Class A | 2.1% |
| Top Ten Total | 29.2% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

78 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-5_79.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Leisure Fund  | (27.57%)  | (0.20%)  | 7.18%  |
| S&P 500 Consumer Discretionary Index  | (37.03%)  | 6.14%  | 11.74%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Consumer Discretionary Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 79

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **LEISURE FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.5%** | **COMMON STOCKS<sup>†</sup>** **- 99.5%** | **COMMON STOCKS<sup>†</sup>** **- 99.5%** |
| **Retail - 18.5%** | **Retail - 18.5%** | **Retail - 18.5%** |
| &nbsp;&nbsp;&nbsp;McDonald's Corp. | 531 | $139934 |
| &nbsp;&nbsp;&nbsp;Starbucks Corp. | 1085 | 107632 |
| &nbsp;&nbsp;&nbsp;Chipotle Mexican Grill, Inc. — Class A\* | 45 | 62437 |
| &nbsp;&nbsp;&nbsp;Yum! Brands, Inc. | 477 | 61094 |
| &nbsp;&nbsp;&nbsp;Darden Restaurants, Inc. | 301 | 41637 |
| &nbsp;&nbsp;&nbsp;Yum China Holdings, Inc. | 657 | 35905 |
| &nbsp;&nbsp;&nbsp;Domino's Pizza, Inc. | 101 | 34986 |
| &nbsp;&nbsp;&nbsp;Restaurant Brands International, Inc. | 501 | 32400 |
| &nbsp;&nbsp;&nbsp;Texas Roadhouse, Inc. — Class A | 265 | 24102 |
| &nbsp;&nbsp;&nbsp;Wendy's Co. | 972 | 21996 |
| &nbsp;&nbsp;&nbsp;Wingstop, Inc. | 146 | 20093 |
| &nbsp;&nbsp;&nbsp;Papa John's International, Inc. | 212 | 17450 |
| &nbsp;&nbsp;&nbsp;Cracker Barrel Old Country Store, Inc. | 151 | 14306 |
| &nbsp;&nbsp;&nbsp;Dave & Buster's Entertainment, Inc.\* | 400 | 14176 |
| &nbsp;&nbsp;&nbsp;Bloomin' Brands, Inc. | 655 | 13179 |
| &nbsp;&nbsp;&nbsp;Cheesecake Factory, Inc.<sup>1</sup> | 411 | 13033 |
| &nbsp;&nbsp;&nbsp;Shake Shack, Inc. — Class A\* | 307 | 12750 |
| &nbsp;&nbsp;&nbsp;Jack in the Box, Inc. | 179 | 12213 |
| &nbsp;&nbsp;&nbsp;Brinker International, Inc.\* | 340 | 10849 |
| **Total Retail** |  | 690172 |
| **Media - 17.8%** | **Media - 17.8%** | **Media - 17.8%** |
| &nbsp;&nbsp;&nbsp;Walt Disney Co.\* | 1482 | 128756 |
| &nbsp;&nbsp;&nbsp;Comcast Corp. — Class A | 3625 | 126766 |
| &nbsp;&nbsp;&nbsp;Charter Communications, Inc. — Class A\* | 228 | 77315 |
| &nbsp;&nbsp;&nbsp;Warner Bros Discovery, Inc.\* | 5002 | 47419 |
| &nbsp;&nbsp;&nbsp;Fox Corp. — Class A | 1360 | 41303 |
| &nbsp;&nbsp;&nbsp;Paramount Global — Class B | 2053 | 34655 |
| &nbsp;&nbsp;&nbsp;News Corp. — Class A | 1865 | 33943 |
| &nbsp;&nbsp;&nbsp;Liberty Broadband Corp. — Class C\* | 430 | 32796 |
| &nbsp;&nbsp;&nbsp;DISH Network Corp. — Class A\* | 1994 | 27996 |
| &nbsp;&nbsp;&nbsp;Nexstar Media Group, Inc. — Class A | 146 | 25554 |
| &nbsp;&nbsp;&nbsp;New York Times Co. — Class A | 723 | 23469 |
| &nbsp;&nbsp;&nbsp;TEGNA, Inc. | 1081 | 22906 |
| &nbsp;&nbsp;&nbsp;World Wrestling Entertainment, Inc. — Class A | 327 | 22406 |
| &nbsp;&nbsp;&nbsp;Cable One, Inc. | 28 | 19932 |
| **Total Media** |  | 665216 |
| **Internet - 12.5%** | **Internet - 12.5%** | **Internet - 12.5%** |
| &nbsp;&nbsp;&nbsp;Netflix, Inc.\* | 392 | 115593 |
| &nbsp;&nbsp;&nbsp;Booking Holdings, Inc.\* | 46 | 92703 |
| &nbsp;&nbsp;&nbsp;Airbnb, Inc. — Class A\* | 863 | 73786 |
| &nbsp;&nbsp;&nbsp;Sea Ltd. ADR\* | 821 | 42717 |
| &nbsp;&nbsp;&nbsp;Spotify Technology S.A.\* | 516 | 40738 |
| &nbsp;&nbsp;&nbsp;Expedia Group, Inc.\* | 441 | 38631 |
| &nbsp;&nbsp;&nbsp;Trip.com Group Ltd. ADR\* | 1114 | 38322 |
| &nbsp;&nbsp;&nbsp;Roku, Inc.\* | 578 | 23525 |
| **Total Internet** |  | 466015 |
| **Lodging - 10.6%** | **Lodging - 10.6%** | **Lodging - 10.6%** |
| &nbsp;&nbsp;&nbsp;Marriott International, Inc. — Class A | 462 | 68787 |
| &nbsp;&nbsp;&nbsp;Las Vegas Sands Corp.\* | 1266 | 60857 |
| &nbsp;&nbsp;&nbsp;Hilton Worldwide Holdings, Inc. | 464 | 58631 |
| &nbsp;&nbsp;&nbsp;MGM Resorts International | 1044 | 35005 |
| &nbsp;&nbsp;&nbsp;Hyatt Hotels Corp. — Class A\* | 343 | 31024 |
| &nbsp;&nbsp;&nbsp;Wynn Resorts Ltd.\* | 367 | 30266 |
| &nbsp;&nbsp;&nbsp;Wyndham Hotels & Resorts, Inc. | 361 | 25743 |
| &nbsp;&nbsp;&nbsp;Choice Hotels International, Inc. | 217 | 24443 |
| &nbsp;&nbsp;&nbsp;Boyd Gaming Corp. | 433 | 23612 |
| &nbsp;&nbsp;&nbsp;Hilton Grand Vacations, Inc.\* | 557 | 21467 |
| &nbsp;&nbsp;&nbsp;Travel + Leisure Co. | 490 | 17836 |
| **Total Lodging** |  | 397671 |
| **Entertainment - 10.4%** | **Entertainment - 10.4%** | **Entertainment - 10.4%** |
| &nbsp;&nbsp;&nbsp;Warner Music Group Corp. — Class A | 1279 | 44791 |
| &nbsp;&nbsp;&nbsp;Live Nation Entertainment, Inc.\* | 593 | 41356 |
| &nbsp;&nbsp;&nbsp;Vail Resorts, Inc. | 130 | 30985 |
| &nbsp;&nbsp;&nbsp;Churchill Downs, Inc. | 135 | 28543 |
| &nbsp;&nbsp;&nbsp;Caesars Entertainment, Inc.\* | 681 | 28330 |
| &nbsp;&nbsp;&nbsp;Marriott Vacations Worldwide Corp. | 177 | 23822 |
| &nbsp;&nbsp;&nbsp;Madison Square Garden Sports Corp. — Class A | 128 | 23466 |
| &nbsp;&nbsp;&nbsp;Light & Wonder, Inc. — Class A\* | 395 | 23147 |
| &nbsp;&nbsp;&nbsp;Penn Entertainment, Inc.\* | 714 | 21206 |
| &nbsp;&nbsp;&nbsp;DraftKings, Inc. — Class A\* | 1861 | 21197 |
| &nbsp;&nbsp;&nbsp;International Game Technology plc | 933 | 21160 |
| &nbsp;&nbsp;&nbsp;Red Rock Resorts, Inc. — Class A | 504 | 20165 |
| &nbsp;&nbsp;&nbsp;SeaWorld Entertainment, Inc.\* | 364 | 19478 |
| &nbsp;&nbsp;&nbsp;Six Flags Entertainment Corp.\* | 679 | 15787 |
| &nbsp;&nbsp;&nbsp;AMC Entertainment Holdings, Inc. — Class A\*<sup>,1</sup> | 3605 | 14672 |
| &nbsp;&nbsp;&nbsp;Cinemark Holdings, Inc.\* | 1057 | 9154 |
| **Total Entertainment** |  | 387259 |
| **Software - 7.9%** | **Software - 7.9%** | **Software - 7.9%** |
| &nbsp;&nbsp;&nbsp;Activision Blizzard, Inc. | 1049 | 80301 |
| &nbsp;&nbsp;&nbsp;Electronic Arts, Inc. | 489 | 59746 |
| &nbsp;&nbsp;&nbsp;Take-Two Interactive Software, Inc.\* | 432 | 44984 |
| &nbsp;&nbsp;&nbsp;ROBLOX Corp. — Class A\* | 1452 | 41324 |
| &nbsp;&nbsp;&nbsp;NetEase, Inc. ADR | 527 | 38276 |
| &nbsp;&nbsp;&nbsp;Bilibili, Inc. ADR\*<sup>,1</sup> | 1339 | 31721 |
| **Total Software** |  | 296352 |
| **Leisure Time - 7.0%** | **Leisure Time - 7.0%** | **Leisure Time - 7.0%** |
| &nbsp;&nbsp;&nbsp;Norwegian Cruise Line Holdings Ltd.\* | 3806 | 46585 |
| &nbsp;&nbsp;&nbsp;Royal Caribbean Cruises Ltd.\* | 656 | 32426 |
| &nbsp;&nbsp;&nbsp;Carnival Corp.\* | 3939 | 31748 |
| &nbsp;&nbsp;&nbsp;Polaris, Inc. | 253 | 25553 |
| &nbsp;&nbsp;&nbsp;Planet Fitness, Inc. — Class A\* | 310 | 24428 |
| &nbsp;&nbsp;&nbsp;Harley-Davidson, Inc. | 586 | 24378 |
| &nbsp;&nbsp;&nbsp;Brunswick Corp. | 328 | 23642 |
| &nbsp;&nbsp;&nbsp;YETI Holdings, Inc.\* | 460 | 19003 |
| &nbsp;&nbsp;&nbsp;Topgolf Callaway Brands Corp.\* | 932 | 18407 |
| &nbsp;&nbsp;&nbsp;Peloton Interactive, Inc. — Class A\* | 1742 | 13832 |
| **Total Leisure Time** |  | 260002 |

---

80 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **LEISURE FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **Agriculture - 6.8%** | **Agriculture - 6.8%** | **Agriculture - 6.8%** |
| &nbsp;&nbsp;&nbsp;Philip Morris International, Inc. | 1283 | $129852 |
| &nbsp;&nbsp;&nbsp;Altria Group, Inc. | 1991 | 91009 |
| &nbsp;&nbsp;&nbsp;British American Tobacco plc ADR | 793 | 31704 |
| **Total Agriculture** |  | 252565 |
| **Beverages - 5.6%** | **Beverages - 5.6%** | **Beverages - 5.6%** |
| &nbsp;&nbsp;&nbsp;Constellation Brands, Inc. — Class A | 286 | 66281 |
| &nbsp;&nbsp;&nbsp;Brown-Forman Corp. — Class B | 893 | 58652 |
| &nbsp;&nbsp;&nbsp;Molson Coors Beverage Co. — Class B | 677 | 34879 |
| &nbsp;&nbsp;&nbsp;Anheuser-Busch InBev S.A. ADR | 522 | 31341 |
| &nbsp;&nbsp;&nbsp;Boston Beer Company, Inc. — Class A\* | 61 | 20101 |
| **Total Beverages** |  | 211254 |
| **Toys, Games & Hobbies - 1.5%** | **Toys, Games & Hobbies - 1.5%** | **Toys, Games & Hobbies - 1.5%** |
| &nbsp;&nbsp;&nbsp;Hasbro, Inc. | 500 | 30505 |
| &nbsp;&nbsp;&nbsp;Mattel, Inc.\* | 1504 | 26831 |
| **Total Toys, Games & Hobbies** |  | 57336 |
| **Food Service - 0.9%** | **Food Service - 0.9%** | **Food Service - 0.9%** |
| &nbsp;&nbsp;&nbsp;Aramark | 829 | 34271 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $2,365,067) |  | 3718113 |

---

---

| | | |
|:---|:---|:---|
|  | **Face<br> Amount** | |
| **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.7%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.7%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.7%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | $15704 | 15704 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 6040 | 6040 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 6021 | 6021 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $27,765) |  | 27765 |
|  | **Shares** |  |
| **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 1.3%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 1.3%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 1.3%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>4</sup> | 46890 | 46890 |
| **Total Securities Lending Collateral** | **Total Securities Lending Collateral** |  |
| &nbsp;&nbsp;&nbsp;(Cost $46,890) |  | 46890 |
| **Total Investments - 101.5%** | **Total Investments - 101.5%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $2,439,722) | &nbsp;&nbsp;&nbsp;(Cost $2,439,722) | $3792768 |
| **Other Assets & Liabilities, net - (1.5)%** | **Other Assets & Liabilities, net - (1.5)%** | (56458) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $3736310 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $3718113 | $— | $— | $3718113 |
| Repurchase Agreements |  | 27765 |  | 27765 |
| Securities Lending Collateral | 46890 |  |  | 46890 |
| Total Assets | $3765003 | $27765 | $— | $3792768 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 81

**LEISURE FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value - including $44,553 of securities loaned (cost $2,411,957) | $3765003 |
| Repurchase agreements, at value (cost $27,765) | 27765 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 5678 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 207 |
| &nbsp;&nbsp;&nbsp;Interest | 6 |
| **Total assets** | 3798659 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 46890 |
| &nbsp;&nbsp;&nbsp;Management fees | 2783 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 1147 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 819 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 508 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 162 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 55 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 9985 |
| **Total liabilities** | 62349 |
| **Net assets** | $3736310 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $3230060 |
| Total distributable earnings (loss) | 506250 |
| Net assets | $3736310 |
| Capital shares outstanding | 42326 |
| Net asset value per share | $88.27 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $290) | $56870 |
| Interest | 453 |
| Income from securities lending, net | 1191 |
| &nbsp;&nbsp;&nbsp;Total investment income | 58514 |
| **Expenses:** | **Expenses:** |
| Management fees | 37554 |
| Investor service fees | 11045 |
| Transfer agent fees | 12499 |
| Portfolio accounting and administration fees | 5515 |
| Professional fees | 5271 |
| Printing fees | 1773 |
| Custodian fees | 827 |
| Trustees' fees\* | 770 |
| Miscellaneous | 2960 |
| &nbsp;&nbsp;&nbsp;Total expenses | 78214 |
| Net investment loss | (19700) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | (233115) |
| Net realized loss | (233115) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (1448354) |
| Net change in unrealized appreciation (depreciation) | (1448354) |
| Net realized and unrealized loss | (1681469) |
| **Net decrease in net assets resulting from operations** | $(1701169) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

82 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**LEISURE FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment loss | $(19700) | $(81558) |
| Net realized gain (loss) on investments | (233115) | 657993 |
| Net change in unrealized appreciation (depreciation) on investments | (1448354) | (572454) |
| Net increase (decrease) in net assets resulting from operations | (1701169) | 3981 |
| Distributions to shareholders |  | (181459) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 3872140 | 17951157 |
| Distributions reinvested |  | 181459 |
| Cost of shares redeemed | (4538395) | (22672915) |
| Net decrease from capital share transactions | (666255) | (4540299) |
| Net decrease in net assets | (2367424) | (4717777) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 6103734 | 10821511 |
| &nbsp;&nbsp;&nbsp;End of year | $3736310 | $6103734 |
| **Capital share activity:** |  |  |
| Shares sold | 38656 | 136000 |
| Shares issued from reinvestment of distributions |  | 1406 |
| Shares redeemed | (46415) | (175639) |
| Net decrease in shares | (7759) | (38233) |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 83

**LEISURE FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $121.87 | $122.53 | $106.03 | $83.01 | $98.33 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | (.44) | (1.02) | (.56) | (.09) | .23 |
| Net gain (loss) on investments (realized and unrealized) | (33.16) | 2.25 | 21.48 | 24.33 | (13.07) |
| Total from investment operations | (33.60) | 1.23 | 20.92 | 24.24 | (12.84) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  |  | (.24) | (.26) |
| Net realized gains |  | (1.89) | (4.42) | (.98) | (2.22) |
| Total distributions |  | (1.89) | (4.42) | (1.22) | (2.48) |
| Net asset value, end of period | $88.27 | $121.87 | $122.53 | $106.03 | $83.01 |
| **Total Return<sup>b</sup>** | **(27.57** **%)** | **0.92%** | **21.01%** | **29.28%** | **(13.44** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $3736 | $6104 | $10822 | $6536 | $3565 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | (0.45%) | (0.78%) | (0.56%) | (0.09%) | 0.24% |
| Total expenses | 1.77% | 1.69% | 1.82% | 1.83% | 1.71% |
| Portfolio turnover rate | 103% | 194% | 257% | 224% | 239% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

84 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**PRECIOUS METALS FUND** 

**OBJECTIVE:** Seeks to provide capital appreciation by investing in U.S. and foreign companies that are involved in the precious metals sector, including exploration, mining, production and development, and other precious metals-related services ("Precious Metals Companies").

For the Reporting Period, Precious Metals Fund returned -11.08%, compared with the -18.11% return of the S&P 500 Index. The S&P 500 Materials Index returned -12.27%.

The copper industry was the only contributor to return for the period. The leading detractors were the gold industry, silver industry, and precious metals & minerals industry.

The top-performing holdings were Alamos Gold, Inc. - Class A, Yamana Gold, Inc., and Hecla Mining Co. The worst-performing holdings included Newmont Corp., Pan American Silver Corp., and Equinox Gold Corp.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-5_85.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** May 29, 1997<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| Freeport-McMoRan, Inc. | 9.2% |
| Newmont Corp. | 7.9% |
| Barrick Gold Corp. | 7.1% |
| Franco-Nevada Corp. | 6.4% |
| Agnico Eagle Mines Ltd. | 6.2% |
| Wheaton Precious Metals Corp. | 5.3% |
| Gold Fields Ltd. ADR | 3.8% |
| AngloGold Ashanti Ltd. ADR | 3.7% |
| Royal Gold, Inc. | 3.5% |
| Sibanye Stillwater Ltd. ADR | 3.4% |
| Top Ten Total | 56.5% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 85

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-5_86.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Precious Metals Fund  | (11.08%)  | 6.60%  | (2.75%)  |
| S&P 500 Materials Index  | (12.27%)  | 7.45%  | 9.80%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Materials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

86 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **PRECIOUS METALS FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 96.6%** | **COMMON STOCKS<sup>†</sup>** **- 96.6%** | **COMMON STOCKS<sup>†</sup>** **- 96.6%** |
| **Mining - 96.6%** | **Mining - 96.6%** | **Mining - 96.6%** |
| &nbsp;&nbsp;&nbsp;Freeport-McMoRan, Inc. | 60595 | $2302610 |
| &nbsp;&nbsp;&nbsp;Newmont Corp. | 41684 | 1967485 |
| &nbsp;&nbsp;&nbsp;Barrick Gold Corp. | 102654 | 1763596 |
| &nbsp;&nbsp;&nbsp;Franco-Nevada Corp. | 11621 | 1586034 |
| &nbsp;&nbsp;&nbsp;Agnico Eagle Mines Ltd. | 29658 | 1541919 |
| &nbsp;&nbsp;&nbsp;Wheaton Precious Metals Corp. | 33970 | 1327548 |
| &nbsp;&nbsp;&nbsp;Gold Fields Ltd. ADR | 90674 | 938476 |
| &nbsp;&nbsp;&nbsp;AngloGold Ashanti Ltd. ADR | 47056 | 913828 |
| &nbsp;&nbsp;&nbsp;Royal Gold, Inc. | 7704 | 868395 |
| &nbsp;&nbsp;&nbsp;Sibanye Stillwater Ltd. ADR | 80739 | 860678 |
| &nbsp;&nbsp;&nbsp;Yamana Gold, Inc. | 131788 | 731423 |
| &nbsp;&nbsp;&nbsp;Kinross Gold Corp. | 173836 | 710989 |
| &nbsp;&nbsp;&nbsp;B2Gold Corp. | 182437 | 651300 |
| &nbsp;&nbsp;&nbsp;Alamos Gold, Inc. — Class A | 62684 | 633735 |
| &nbsp;&nbsp;&nbsp;Pan American Silver Corp.<sup>1</sup> | 36112 | 590070 |
| &nbsp;&nbsp;&nbsp;SSR Mining, Inc. | 37144 | 582047 |
| &nbsp;&nbsp;&nbsp;Hecla Mining Co. | 104419 | 580570 |
| &nbsp;&nbsp;&nbsp;Osisko Gold Royalties Ltd. | 38443 | 464007 |
| &nbsp;&nbsp;&nbsp;First Majestic Silver Corp. | 54333 | 453137 |
| &nbsp;&nbsp;&nbsp;Harmony Gold Mining Company Ltd. ADR | 132005 | 448817 |
| &nbsp;&nbsp;&nbsp;Novagold Resources, Inc.\* | 74928 | 448069 |
| &nbsp;&nbsp;&nbsp;Sandstorm Gold Ltd. | 75632 | 397824 |
| &nbsp;&nbsp;&nbsp;MAG Silver Corp.\* | 25426 | 397408 |
| &nbsp;&nbsp;&nbsp;Eldorado Gold Corp.\* | 47465 | 396807 |
| &nbsp;&nbsp;&nbsp;IAMGOLD Corp.\* | 153749 | 396672 |
| &nbsp;&nbsp;&nbsp;Seabridge Gold, Inc.\* | 25906 | 325897 |
| &nbsp;&nbsp;&nbsp;Fortuna Silver Mines, Inc.\* | 86418 | 324068 |
| &nbsp;&nbsp;&nbsp;Coeur Mining, Inc.\* | 90799 | 305085 |
| &nbsp;&nbsp;&nbsp;Equinox Gold Corp.\* | 92668 | 303951 |
| &nbsp;&nbsp;&nbsp;SilverCrest Metals, Inc.\* | 46665 | 279990 |
| &nbsp;&nbsp;&nbsp;Endeavour Silver Corp.\* | 75684 | 245216 |
| &nbsp;&nbsp;&nbsp;Silvercorp Metals, Inc. | 78198 | 231466 |
| &nbsp;&nbsp;&nbsp;Gatos Silver, Inc.\* | 40784 | 166807 |
| **Total Mining** |  | 24135924 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $15,749,662) |  | 24135924 |
| **EXCHANGE-TRADED FUNDS<sup>†</sup>** **- 3.0%** | **EXCHANGE-TRADED FUNDS<sup>†</sup>** **- 3.0%** | **EXCHANGE-TRADED FUNDS<sup>†</sup>** **- 3.0%** |
| &nbsp;&nbsp;&nbsp;VanEck Junior Gold Miners ETF | 20590 | 734034 |
| **Total Exchange-Traded Funds** | **Total Exchange-Traded Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $495,045) |  | 734034 |
|  | **Face<br> Amount** |  |
| **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 1.2%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 1.2%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 1.2%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | $163486 | 163486 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 62879 | 62879 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 62685 | 62685 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $289,050) |  | 289050 |
|  | **Shares** |  |
| **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 1.4%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 1.4%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 1.4%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>4</sup> | 357007 | 357007 |
| **Total Securities Lending Collateral** | **Total Securities Lending Collateral** |  |
| &nbsp;&nbsp;&nbsp;(Cost $357,007) |  | 357007 |
| **Total Investments - 102.2%** | **Total Investments - 102.2%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $16,890,764) | &nbsp;&nbsp;&nbsp;(Cost $16,890,764) | $25516015 |
| **Other Assets & Liabilities, net - (2.2)%** | **Other Assets & Liabilities, net - (2.2)%** | (538660) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $24977355 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 87

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **PRECIOUS METALS FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $24135924 | $— | $— | $24135924 |
| Exchange-Traded Funds | 734034 |  |  | 734034 |
| Repurchase Agreements |  | 289050 |  | 289050 |
| Securities Lending Collateral | 357007 |  |  | 357007 |
| Total Assets | $25226965 | $289050 | $— | $25516015 |

---

88 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**PRECIOUS METALS FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value - including $336,065 of securities loaned (cost $16,601,714) | $25226965 |
| Repurchase agreements, at value (cost $289,050) | 289050 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 4735 |
| &nbsp;&nbsp;&nbsp;Foreign tax reclaims | 3750 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 123 |
| &nbsp;&nbsp;&nbsp;Interest | 68 |
| **Total assets** | 25524691 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 357007 |
| &nbsp;&nbsp;&nbsp;Deferred foreign capital gain taxes | 86191 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 19110 |
| &nbsp;&nbsp;&nbsp;Management fees | 14177 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 5500 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 4726 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 2930 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 317 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 57378 |
| **Total liabilities** | 547336 |
| **Net assets** | $24977355 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $38371623 |
| Total distributable earnings (loss) | (13394268) |
| Net assets | $24977355 |
| Capital shares outstanding | 684727 |
| Net asset value per share | $36.48 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $45,879) | $357551 |
| Interest | 3564 |
| Income from securities lending, net | 2312 |
| &nbsp;&nbsp;&nbsp;Total investment income | 363427 |
| **Expenses:** | **Expenses:** |
| Management fees | 151423 |
| Investor service fees | 50474 |
| Transfer agent fees | 55266 |
| Professional fees | 30577 |
| Portfolio accounting and administration fees | 25134 |
| Custodian fees | 3068 |
| Trustees' fees\* | 2936 |
| Line of credit fees | 52 |
| Miscellaneous | 17835 |
| &nbsp;&nbsp;&nbsp;Total expenses | 336765 |
| Net investment income | 26662 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | 673417 |
| Net realized gain | 673417 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (3851299) |
| Net change in unrealized appreciation (depreciation) | (3851299) |
| Net realized and unrealized loss | (3177882) |
| **Net decrease in net assets resulting from operations** | $(3151220) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 89

**PRECIOUS METALS FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income | $26662 | $29095 |
| Net realized gain on investments | 673417 | 88894 |
| Net change in unrealized appreciation (depreciation) on investments | (3851299) | (2373027) |
| Net decrease in net assets resulting from operations | (3151220) | (2255038) |
| Distributions to shareholders | (93847) | (831432) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 48465105 | 34139734 |
| Distributions reinvested | 93847 | 831432 |
| Cost of shares redeemed | (41494209) | (33972997) |
| Net increase from capital share transactions | 7064743 | 998169 |
| Net increase (decrease) in net assets | 3819676 | (2088301) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 21157679 | 23245980 |
| &nbsp;&nbsp;&nbsp;End of year | $24977355 | $21157679 |
| **Capital share activity:** |  |  |
| Shares sold | 1262223 | 783745 |
| Shares issued from reinvestment of distributions | 2950 | 20006 |
| Shares redeemed | (1093320) | (782667) |
| Net increase in shares | 171853 | 21084 |

---

90 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**PRECIOUS METALS FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $41.25 | $47.27 | $36.75 | $24.14 | $30.30 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .05 | .06 | (.37) | (.20) | (.23) |
| Net gain (loss) on investments (realized and unrealized) | (4.64) | (4.40) | 13.03 | 12.81 | (4.68) |
| Total from investment operations | (4.59) | (4.34) | 12.66 | 12.61 | (4.91) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (.18) | (1.68) | (2.14) |  | (1.25) |
| Total distributions | (.18) | (1.68) | (2.14) |  | (1.25) |
| Net asset value, end of period | $36.48 | $41.25 | $47.27 | $36.75 | $24.14 |
| **Total Return<sup>b</sup>** | **(11.08** **%)** | **(9.19** **%)** | **34.30%** | **52.24%** | **(16.61** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $24977 | $21158 | $23246 | $24882 | $16632 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.13% | 0.13% | (0.88%) | (0.69%) | (0.87%) |
| Total expenses<sup>c</sup> | 1.67% | 1.59% | 1.72% | 1.72% | 1.67% |
| Portfolio turnover rate | 188% | 133% | 163% | 180% | 639% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 91

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**REAL ESTATE FUND** 

**OBJECTIVE:** Seeks to provide capital appreciation by investing in companies that are involved in the real estate industry, including real estate investment trusts ("REITs") (collectively, "Real Estate Companies").

For the Reporting Period, Real Estate Fund returned -27.40%, compared to a return of -18.11% for the S&P 500 Index. The MSCI U.S. REIT Index returned -24.51%.

No industry contributed to return for the period. Specialized REITs were the leading detractor from return, followed by residential REITs and office REITs.

VICI Properties, Inc., Gaming and Leisure Properties, Inc., and American Campus Communities, Inc. were the best-performing holdings in the Fund for the year. The worst-performing holdings for the period were Crown Castle, Inc., American Tower Corp. - Class A, and Digital Realty Trust, Inc.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-5_92.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** October 1, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| American Tower Corp. — Class A | 3.2% |
| Prologis, Inc. | 3.2% |
| Equinix, Inc. | 2.4% |
| Crown Castle, Inc. | 2.4% |
| Public Storage | 2.1% |
| Simon Property Group, Inc. | 2.0% |
| Realty Income Corp. | 2.0% |
| Welltower, Inc. | 1.8% |
| SBA Communications Corp. | 1.7% |
| Digital Realty Trust, Inc. | 1.7% |
| Top Ten Total | 22.5% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

92 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-5_93.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Real Estate Fund  | (27.40%)  | 1.12%  | 4.29%  |
| MSCI U.S. REIT Index  | (24.51%)  | 3.69%  | 6.48%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the MSCI U.S. REIT Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 93

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **REAL ESTATE FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.4%** | **COMMON STOCKS<sup>†</sup>** **- 99.4%** | **COMMON STOCKS<sup>†</sup>** **- 99.4%** |
| **REITs - 92.6%** | **REITs - 92.6%** | **REITs - 92.6%** |
| **REITs-DIVERSIFIED - 22.8%** | **REITs-DIVERSIFIED - 22.8%** | **REITs-DIVERSIFIED - 22.8%** |
| &nbsp;&nbsp;&nbsp;American Tower Corp. — Class A | 723 | $153175 |
| &nbsp;&nbsp;&nbsp;Equinix, Inc. | 177 | 115940 |
| &nbsp;&nbsp;&nbsp;Crown Castle, Inc. | 850 | 115294 |
| &nbsp;&nbsp;&nbsp;SBA Communications Corp. | 296 | 82972 |
| &nbsp;&nbsp;&nbsp;Digital Realty Trust, Inc. | 798 | 80015 |
| &nbsp;&nbsp;&nbsp;VICI Properties, Inc. | 2448 | 79315 |
| &nbsp;&nbsp;&nbsp;Weyerhaeuser Co. | 2352 | 72912 |
| &nbsp;&nbsp;&nbsp;WP Carey, Inc. | 798 | 62364 |
| &nbsp;&nbsp;&nbsp;Gaming and Leisure Properties, Inc. | 1084 | 56466 |
| &nbsp;&nbsp;&nbsp;Lamar Advertising Co. — Class A | 515 | 48616 |
| &nbsp;&nbsp;&nbsp;Rayonier, Inc. | 997 | 32861 |
| &nbsp;&nbsp;&nbsp;PotlatchDeltic Corp. | 638 | 28066 |
| &nbsp;&nbsp;&nbsp;Rithm Capital Corp. | 3269 | 26708 |
| &nbsp;&nbsp;&nbsp;Outfront Media, Inc. | 1560 | 25865 |
| &nbsp;&nbsp;&nbsp;LXP Industrial Trust | 2488 | 24930 |
| &nbsp;&nbsp;&nbsp;Broadstone Net Lease, Inc. | 1529 | 24785 |
| &nbsp;&nbsp;&nbsp;EPR Properties | 657 | 24782 |
| &nbsp;&nbsp;&nbsp;Elme Communities | 1031 | 18352 |
| &nbsp;&nbsp;&nbsp;Uniti Group, Inc. | 3151 | 17425 |
| **Total REITs-Diversified** |  | 1090843 |
| **REITs** **-Apartments - 11.3%** | **REITs** **-Apartments - 11.3%** | **REITs** **-Apartments - 11.3%** |
| &nbsp;&nbsp;&nbsp;AvalonBay Communities, Inc. | 443 | 71553 |
| &nbsp;&nbsp;&nbsp;Equity Residential | 1198 | 70682 |
| &nbsp;&nbsp;&nbsp;Mid-America Apartment Communities, Inc. | 407 | 63895 |
| &nbsp;&nbsp;&nbsp;Invitation Homes, Inc. | 2105 | 62392 |
| &nbsp;&nbsp;&nbsp;Essex Property Trust, Inc. | 267 | 56583 |
| &nbsp;&nbsp;&nbsp;UDR, Inc. | 1390 | 53835 |
| &nbsp;&nbsp;&nbsp;Camden Property Trust | 469 | 52472 |
| &nbsp;&nbsp;&nbsp;American Homes 4 Rent — Class A | 1574 | 47440 |
| &nbsp;&nbsp;&nbsp;Apartment Income REIT Corp. | 988 | 33898 |
| &nbsp;&nbsp;&nbsp;Independence Realty Trust, Inc. | 1699 | 28645 |
| **Total REITs-Apartments** |  | 541395 |
| **REITs** **-Health Care - 8.9%** | **REITs** **-Health Care - 8.9%** | **REITs** **-Health Care - 8.9%** |
| &nbsp;&nbsp;&nbsp;Welltower, Inc. | 1338 | 87706 |
| &nbsp;&nbsp;&nbsp;Ventas, Inc. | 1446 | 65142 |
| &nbsp;&nbsp;&nbsp;Healthpeak Properties, Inc. | 2226 | 55806 |
| &nbsp;&nbsp;&nbsp;Healthcare Realty Trust, Inc. | 2147 | 41373 |
| &nbsp;&nbsp;&nbsp;Omega Healthcare Investors, Inc. | 1361 | 38040 |
| &nbsp;&nbsp;&nbsp;Medical Properties Trust, Inc. | 3254 | 36250 |
| &nbsp;&nbsp;&nbsp;Physicians Realty Trust | 1887 | 27305 |
| &nbsp;&nbsp;&nbsp;Sabra Health Care REIT, Inc. | 2054 | 25531 |
| &nbsp;&nbsp;&nbsp;National Health Investors, Inc. | 424 | 22141 |
| &nbsp;&nbsp;&nbsp;CareTrust REIT, Inc. | 1063 | 19751 |
| **Total REITs-Health Care** |  | 419045 |
| **REITs** **-Warehouse/Industries - 8.7%** | **REITs** **-Warehouse/Industries - 8.7%** | **REITs** **-Warehouse/Industries - 8.7%** |
| &nbsp;&nbsp;&nbsp;Prologis, Inc. | 1348 | 151960 |
| &nbsp;&nbsp;&nbsp;Rexford Industrial Realty, Inc. | 908 | 49613 |
| &nbsp;&nbsp;&nbsp;Americold Realty Trust, Inc. | 1479 | 41870 |
| &nbsp;&nbsp;&nbsp;First Industrial Realty Trust, Inc. | 793 | 38270 |
| &nbsp;&nbsp;&nbsp;EastGroup Properties, Inc. | 257 | 38051 |
| &nbsp;&nbsp;&nbsp;STAG Industrial, Inc. | 1129 | 36478 |
| &nbsp;&nbsp;&nbsp;Terreno Realty Corp. | 557 | 31677 |
| &nbsp;&nbsp;&nbsp;Innovative Industrial Properties, Inc. | 237 | 24020 |
| **Total REITs-Warehouse/Industries** |  | 411939 |
| **REITs** **-Office Property - 8.6%** | **REITs** **-Office Property - 8.6%** | **REITs** **-Office Property - 8.6%** |
| &nbsp;&nbsp;&nbsp;Alexandria Real Estate Equities, Inc. | 515 | 75020 |
| &nbsp;&nbsp;&nbsp;Boston Properties, Inc. | 764 | 51631 |
| &nbsp;&nbsp;&nbsp;Kilroy Realty Corp. | 858 | 33179 |
| &nbsp;&nbsp;&nbsp;Vornado Realty Trust | 1525 | 31735 |
| &nbsp;&nbsp;&nbsp;Cousins Properties, Inc. | 1226 | 31006 |
| &nbsp;&nbsp;&nbsp;Highwoods Properties, Inc. | 957 | 26777 |
| &nbsp;&nbsp;&nbsp;Douglas Emmett, Inc. | 1698 | 26625 |
| &nbsp;&nbsp;&nbsp;Corporate Office Properties Trust | 1021 | 26485 |
| &nbsp;&nbsp;&nbsp;Equity Commonwealth | 1002 | 25020 |
| &nbsp;&nbsp;&nbsp;SL Green Realty Corp. | 703 | 23705 |
| &nbsp;&nbsp;&nbsp;JBG SMITH Properties | 1179 | 22377 |
| &nbsp;&nbsp;&nbsp;Hudson Pacific Properties, Inc. | 1909 | 18575 |
| &nbsp;&nbsp;&nbsp;Brandywine Realty Trust | 2603 | 16008 |
| **Total REITs-Office Property** |  | 408143 |
| **REITs** **-Storage - 7.1%** | **REITs** **-Storage - 7.1%** | **REITs** **-Storage - 7.1%** |
| &nbsp;&nbsp;&nbsp;Public Storage | 362 | 101429 |
| &nbsp;&nbsp;&nbsp;Extra Space Storage, Inc. | 441 | 64906 |
| &nbsp;&nbsp;&nbsp;Iron Mountain, Inc. | 1120 | 55832 |
| &nbsp;&nbsp;&nbsp;CubeSmart | 1087 | 43752 |
| &nbsp;&nbsp;&nbsp;Life Storage, Inc. | 424 | 41764 |
| &nbsp;&nbsp;&nbsp;National Storage Affiliates Trust | 858 | 30991 |
| **Total REITs-Storage** |  | 338674 |
| **REITs** **-Shopping Centers - 6.5%** | **REITs** **-Shopping Centers - 6.5%** | **REITs** **-Shopping Centers - 6.5%** |
| &nbsp;&nbsp;&nbsp;Kimco Realty Corp. | 2410 | 51044 |
| &nbsp;&nbsp;&nbsp;Regency Centers Corp. | 775 | 48437 |
| &nbsp;&nbsp;&nbsp;Federal Realty Investment Trust | 422 | 42639 |
| &nbsp;&nbsp;&nbsp;Brixmor Property Group, Inc. | 1766 | 40035 |
| &nbsp;&nbsp;&nbsp;Kite Realty Group Trust | 1535 | 32312 |
| &nbsp;&nbsp;&nbsp;Phillips Edison & Company, Inc. | 968 | 30821 |
| &nbsp;&nbsp;&nbsp;SITE Centers Corp. | 1945 | 26569 |
| &nbsp;&nbsp;&nbsp;Retail Opportunity Investments Corp. | 1354 | 20351 |
| &nbsp;&nbsp;&nbsp;Acadia Realty Trust | 1229 | 17636 |
| **Total REITs-Shopping Centers** |  | 309844 |
| **REITs** **-Single Tenant - 6.1%** | **REITs** **-Single Tenant - 6.1%** | **REITs** **-Single Tenant - 6.1%** |
| &nbsp;&nbsp;&nbsp;Realty Income Corp. | 1494 | 94764 |
| &nbsp;&nbsp;&nbsp;STORE Capital Corp. | 1637 | 52482 |
| &nbsp;&nbsp;&nbsp;National Retail Properties, Inc. | 954 | 43655 |
| &nbsp;&nbsp;&nbsp;Agree Realty Corp. | 529 | 37522 |
| &nbsp;&nbsp;&nbsp;Spirit Realty Capital, Inc. | 884 | 35298 |
| &nbsp;&nbsp;&nbsp;Essential Properties Realty Trust, Inc. | 1198 | 28117 |
| **Total REITs-Single Tenant** |  | 291838 |
| **REITs** **-Hotels - 3.9%** | **REITs** **-Hotels - 3.9%** | **REITs** **-Hotels - 3.9%** |
| &nbsp;&nbsp;&nbsp;Host Hotels & Resorts, Inc. | 2882 | 46256 |
| &nbsp;&nbsp;&nbsp;Ryman Hospitality Properties, Inc. | 380 | 31076 |
| &nbsp;&nbsp;&nbsp;Apple Hospitality REIT, Inc. | 1772 | 27962 |
| &nbsp;&nbsp;&nbsp;Park Hotels & Resorts, Inc. | 2098 | 24735 |
| &nbsp;&nbsp;&nbsp;Sunstone Hotel Investors, Inc. | 2192 | 21175 |

---

94 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **REAL ESTATE FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| &nbsp;&nbsp;&nbsp;RLJ Lodging Trust | 1825 | $19327 |
| &nbsp;&nbsp;&nbsp;Pebblebrook Hotel Trust | 1424 | 19067 |
| **Total REITs-Hotels** |  | 189598 |
| **REITs** **-Mortgage - 3.8%** | **REITs** **-Mortgage - 3.8%** | **REITs** **-Mortgage - 3.8%** |
| &nbsp;&nbsp;&nbsp;Annaly Capital Management, Inc. | 2258 | 47599 |
| &nbsp;&nbsp;&nbsp;Starwood Property Trust, Inc. | 1936 | 35487 |
| &nbsp;&nbsp;&nbsp;AGNC Investment Corp. | 3428 | 35480 |
| &nbsp;&nbsp;&nbsp;Blackstone Mortgage Trust, Inc. — Class A | 1311 | 27754 |
| &nbsp;&nbsp;&nbsp;Arbor Realty Trust, Inc. | 1812 | 23900 |
| &nbsp;&nbsp;&nbsp;Chimera Investment Corp. | 2643 | 14536 |
| **Total REITs-Mortgage** |  | 184756 |
| **REITs** **-Manufactured Homes - 2.4%** | **REITs** **-Manufactured Homes - 2.4%** | **REITs** **-Manufactured Homes - 2.4%** |
| &nbsp;&nbsp;&nbsp;Sun Communities, Inc. | 452 | 64636 |
| &nbsp;&nbsp;&nbsp;Equity LifeStyle Properties, Inc. | 824 | 53230 |
| **Total REITs-Manufactured Homes** |  | 117866 |
| **REITs** **-Regional Malls - 2.5%** | **REITs** **-Regional Malls - 2.5%** | **REITs** **-Regional Malls - 2.5%** |
| &nbsp;&nbsp;&nbsp;Simon Property Group, Inc. | 812 | 95394 |
| &nbsp;&nbsp;&nbsp;Macerich Co. | 1966 | 22137 |
| **Total REITs-Regional Malls** |  | 117531 |
| **Total REITs** |  | 4421472 |
| **Real Estate - 4.1%** | **Real Estate - 4.1%** | **Real Estate - 4.1%** |
| **Real Estate Management/Services - 3.5%** | **Real Estate Management/Services - 3.5%** | **Real Estate Management/Services - 3.5%** |
| &nbsp;&nbsp;&nbsp;CBRE Group, Inc. — Class A\* | 1002 | 77114 |
| &nbsp;&nbsp;&nbsp;Jones Lang LaSalle, Inc.\* | 264 | 42074 |
| &nbsp;&nbsp;&nbsp;Cushman & Wakefield plc\* | 2119 | 26403 |
| &nbsp;&nbsp;&nbsp;eXp World Holdings, Inc. | 1753 | 19423 |
| **Total Real Estate Management/Services** |  | 165014 |
| **Real Estate Operations/Development - 0.6%** | **Real Estate Operations/Development - 0.6%** | **Real Estate Operations/Development - 0.6%** |
| &nbsp;&nbsp;&nbsp;Howard Hughes Corp.\* | 381 | 29116 |
| **Total Real Estate** |  | 194130 |
| **Internet - 1.8%** | **Internet - 1.8%** | **Internet - 1.8%** |
| **E-Commerce/Services - 1.8%** | **E-Commerce/Services - 1.8%** | **E-Commerce/Services - 1.8%** |
| &nbsp;&nbsp;&nbsp;Zillow Group, Inc. — Class C\* | 1318 | 42453 |
| &nbsp;&nbsp;&nbsp;Zillow Group, Inc. — Class A\* | 1354 | 42258 |
| **Total E-Commerce/Services** |  | 84711 |
| **Total Internet** |  | 84711 |
| **Diversified Financial Services - 0.5%** | **Diversified Financial Services - 0.5%** | **Diversified Financial Services - 0.5%** |
| **Finance-Commercial - 0.5%** | **Finance-Commercial - 0.5%** | **Finance-Commercial - 0.5%** |
| &nbsp;&nbsp;&nbsp;Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 800 | 23184 |
| **Telecommunications - 0.4%** | **Telecommunications - 0.4%** | **Telecommunications - 0.4%** |
| **Telecom Services - 0.4%** | **Telecom Services - 0.4%** | **Telecom Services - 0.4%** |
| &nbsp;&nbsp;&nbsp;DigitalBridge Group, Inc. | 1803 | 19725 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $2,512,588) |  | 4743222 |
|  | **Face<br> Amount** |  |
| **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.3%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.3%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.3%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | $9041 | 9041 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 3477 | 3477 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 3467 | 3467 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $15,985) |  | 15985 |
| **Total Investments - 99.7%** | **Total Investments - 99.7%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $2,528,573) | &nbsp;&nbsp;&nbsp;(Cost $2,528,573) | $4759207 |
| **Other Assets & Liabilities, net - 0.3%** | **Other Assets & Liabilities, net - 0.3%** | 12982 |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $4772189 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;REIT — Real Estate Investment Trust |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 95

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **REAL ESTATE FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $4743222 | $— | $— | $4743222 |
| Repurchase Agreements |  | 15985 |  | 15985 |
| Total Assets | $4743222 | $15985 | $— | $4759207 |

---

96 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**REAL ESTATE FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value (cost $2,512,588) | $4743222 |
| Repurchase agreements, at value (cost $15,985) | 15985 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 27721 |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 4729 |
| &nbsp;&nbsp;&nbsp;Interest | 4 |
| **Total assets** | 4791661 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Professional fees | 11171 |
| &nbsp;&nbsp;&nbsp;Management fees | 3547 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 1553 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 1043 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 647 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 76 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 69 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 1366 |
| **Total liabilities** | 19472 |
| **Net assets** | $4772189 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $3344565 |
| Total distributable earnings (loss) | 1427624 |
| Net assets | $4772189 |
| Capital shares outstanding | 137473 |
| Net asset value per share | $34.71 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends | $209555 |
| Interest | 620 |
| Income from securities lending, net | 51 |
| &nbsp;&nbsp;&nbsp;Total investment income | 210226 |
| **Expenses:** | **Expenses:** |
| Management fees | 67028 |
| Investor service fees | 19714 |
| Transfer agent fees | 23365 |
| Professional fees | 12842 |
| Portfolio accounting and administration fees | 9444 |
| Trustees' fees\* | 1463 |
| Custodian fees | 1336 |
| Line of credit fees | 21 |
| Miscellaneous | 4095 |
| &nbsp;&nbsp;&nbsp;Total expenses | 139308 |
| Net investment income | 70918 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | 1141105 |
| Net realized gain | 1141105 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (4132274) |
| Net change in unrealized appreciation (depreciation) | (4132274) |
| Net realized and unrealized loss | (2991169) |
| **Net decrease in net assets resulting from operations** | $(2920251) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 97

**REAL ESTATE FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income | $70918 | $80974 |
| Net realized gain on investments | 1141105 | 393979 |
| Net change in unrealized appreciation (depreciation) on investments | (4132274) | 2764046 |
| Net increase (decrease) in net assets resulting from operations | (2920251) | 3238999 |
| Distributions to shareholders | (419006) | (81373) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 11625641 | 22738199 |
| Distributions reinvested | 419006 | 81373 |
| Cost of shares redeemed | (18638779) | (17790091) |
| Net increase (decrease) from capital share transactions | (6594132) | 5029481 |
| Net increase (decrease) in net assets | (9933389) | 8187107 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 14705578 | 6518471 |
| &nbsp;&nbsp;&nbsp;End of year | $4772189 | $14705578 |
| **Capital share activity:** |  |  |
| Shares sold | 252343 | 506975 |
| Shares issued from reinvestment of distributions | 10830 | 1745 |
| Shares redeemed | (413747) | (390836) |
| Net increase (decrease) in shares | (150574) | 117884 |

---

98 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**REAL ESTATE FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $51.05 | $38.31 | $43.46 | $35.99 | $39.22 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .38 | .31 | .28 | .68 | .64 |
| Net gain (loss) on investments (realized and unrealized) | (14.10) | 12.70 | (3.19) | 8.03 | (3.48) |
| Total from investment operations | (13.72) | 13.01 | (2.91) | 8.71 | (2.84) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (.41) | (.27) | (1.16) | (.83) | (.39) |
| Net realized gains | (2.21) |  | (1.08) | (.41) |  |
| Total distributions | (2.62) | (.27) | (2.24) | (1.24) | (.39) |
| Net asset value, end of period | $34.71 | $51.05 | $38.31 | $43.46 | $35.99 |
| **Total Return<sup>b</sup>** | **(27.40** **%)** | **34.07%** | **(5.82** **%)** | **24.43%** | **(7.33** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $4772 | $14706 | $6518 | $12249 | $12708 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.90% | 0.69% | 0.76% | 1.62% | 1.67% |
| Total expenses | 1.77% | 1.69% | 1.82% | 1.82% | 1.73% |
| Portfolio turnover rate | 134% | 136% | 173% | 225% | 313% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 99

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**RETAILING FUND** 

**OBJECTIVE:** Seeks to provide capital appreciation by investing in companies engaged in merchandising finished goods and services, including department stores, mail order operations, and other companies involved in selling products to consumers ("Retailing Companies").

For the Reporting Period, Retailing Fund returned -26.52%, compared with a return of -18.11% for the S&P 500 Index. The S&P 500 Consumer Discretionary Index returned -37.03%.

No industry contributed to return for the period. The Internet & direct marketing retail industry detracted the most from return, followed by the automotive retail industry and the home improvement retail industry.

Fund performance for the year benefited most from Pinduoduo, Inc. ADR, O'Reilly Automotive, Inc., and TJX Companies, Inc. The largest detractors from the Fund's performance for the period were Amazon.com, Inc., Carvana Co., and DoorDash, Inc. - Class A.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-5_100.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** July 23, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| Amazon.com, Inc. | 7.2% |
| Walmart, Inc. | 6.1% |
| Home Depot, Inc. | 5.4% |
| Lowe's Companies, Inc. | 4.0% |
| Costco Wholesale Corp. | 3.8% |
| TJX Companies, Inc. | 3.5% |
| Booking Holdings, Inc. | 3.3% |
| Target Corp. | 3.0% |
| O'Reilly Automotive, Inc. | 2.7% |
| Dollar General Corp. | 2.6% |
| Top Ten Total | 41.6% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

100 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-5_101.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Retailing Fund  | (26.52%)  | 7.28%  | 8.88%  |
| S&P 500 Consumer Discretionary Index  | (37.03%)  | 6.14%  | 11.74%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Consumer Discretionary Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 101

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **RETAILING FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.7%** | **COMMON STOCKS<sup>†</sup>** **- 99.7%** | **COMMON STOCKS<sup>†</sup>** **- 99.7%** |
| **Retail - 68.6%** | **Retail - 68.6%** | **Retail - 68.6%** |
| &nbsp;&nbsp;&nbsp;Walmart, Inc. | 1378 | $195387 |
| &nbsp;&nbsp;&nbsp;Home Depot, Inc. | 551 | 174039 |
| &nbsp;&nbsp;&nbsp;Lowe's Companies, Inc. | 652 | 129905 |
| &nbsp;&nbsp;&nbsp;Costco Wholesale Corp. | 268 | 122342 |
| &nbsp;&nbsp;&nbsp;TJX Companies, Inc. | 1417 | 112793 |
| &nbsp;&nbsp;&nbsp;Target Corp. | 655 | 97621 |
| &nbsp;&nbsp;&nbsp;O'Reilly Automotive, Inc.\* | 102 | 86091 |
| &nbsp;&nbsp;&nbsp;Dollar General Corp. | 345 | 84956 |
| &nbsp;&nbsp;&nbsp;AutoZone, Inc.\* | 33 | 81384 |
| &nbsp;&nbsp;&nbsp;Ross Stores, Inc. | 642 | 74517 |
| &nbsp;&nbsp;&nbsp;Dollar Tree, Inc.\* | 470 | 66477 |
| &nbsp;&nbsp;&nbsp;Walgreens Boots Alliance, Inc. | 1710 | 63886 |
| &nbsp;&nbsp;&nbsp;Tractor Supply Co. | 265 | 59617 |
| &nbsp;&nbsp;&nbsp;Genuine Parts Co. | 324 | 56217 |
| &nbsp;&nbsp;&nbsp;Ulta Beauty, Inc.\* | 119 | 55819 |
| &nbsp;&nbsp;&nbsp;Best Buy Company, Inc. | 627 | 50292 |
| &nbsp;&nbsp;&nbsp;Burlington Stores, Inc.\* | 212 | 42985 |
| &nbsp;&nbsp;&nbsp;Bath & Body Works, Inc. | 871 | 36704 |
| &nbsp;&nbsp;&nbsp;Five Below, Inc.\* | 205 | 36258 |
| &nbsp;&nbsp;&nbsp;Dick's Sporting Goods, Inc. | 300 | 36087 |
| &nbsp;&nbsp;&nbsp;CarMax, Inc.\* | 591 | 35986 |
| &nbsp;&nbsp;&nbsp;Advance Auto Parts, Inc. | 238 | 34993 |
| &nbsp;&nbsp;&nbsp;BJ's Wholesale Club Holdings, Inc.\* | 514 | 34006 |
| &nbsp;&nbsp;&nbsp;Williams-Sonoma, Inc. | 284 | 32637 |
| &nbsp;&nbsp;&nbsp;Floor & Decor Holdings, Inc. — Class A\* | 442 | 30776 |
| &nbsp;&nbsp;&nbsp;RH\* | 113 | 30193 |
| &nbsp;&nbsp;&nbsp;Murphy USA, Inc. | 102 | 28513 |
| &nbsp;&nbsp;&nbsp;Lithia Motors, Inc. — Class A | 132 | 27026 |
| &nbsp;&nbsp;&nbsp;Macy's, Inc. | 1276 | 26349 |
| &nbsp;&nbsp;&nbsp;AutoNation, Inc.\* | 243 | 26074 |
| &nbsp;&nbsp;&nbsp;GameStop Corp. — Class A\*<sup>,1</sup> | 1381 | 25493 |
| &nbsp;&nbsp;&nbsp;Asbury Automotive Group, Inc.\* | 129 | 23123 |
| &nbsp;&nbsp;&nbsp;Academy Sports & Outdoors, Inc. | 420 | 22067 |
| &nbsp;&nbsp;&nbsp;Foot Locker, Inc. | 571 | 21578 |
| &nbsp;&nbsp;&nbsp;Gap, Inc. | 1870 | 21094 |
| &nbsp;&nbsp;&nbsp;Ollie's Bargain Outlet Holdings, Inc.\* | 438 | 20516 |
| &nbsp;&nbsp;&nbsp;Nordstrom, Inc. | 1198 | 19336 |
| &nbsp;&nbsp;&nbsp;Signet Jewelers Ltd. | 284 | 19312 |
| &nbsp;&nbsp;&nbsp;American Eagle Outfitters, Inc.\* | 1241 | 17324 |
| &nbsp;&nbsp;&nbsp;Victoria's Secret & Co.\* | 480 | 17174 |
| &nbsp;&nbsp;&nbsp;Abercrombie & Fitch Co. — Class A\* | 529 | 12119 |
| &nbsp;&nbsp;&nbsp;Kohl's Corp. | 462 | 11666 |
| &nbsp;&nbsp;&nbsp;Big Lots, Inc. | 480 | 7056 |
| &nbsp;&nbsp;&nbsp;Carvana Co.\*<sup>,1</sup> | 399 | 1891 |
| **Total Retail** |  | 2209679 |
| **Internet - 28.0%** | **Internet - 28.0%** | **Internet - 28.0%** |
| &nbsp;&nbsp;&nbsp;Amazon.com, Inc.\* | 2769 | 232596 |
| &nbsp;&nbsp;&nbsp;Booking Holdings, Inc.\* | 52 | 104795 |
| &nbsp;&nbsp;&nbsp;Alibaba Group Holding Ltd. ADR\* | 694 | 61135 |
| &nbsp;&nbsp;&nbsp;eBay, Inc. | 1317 | 54616 |
| &nbsp;&nbsp;&nbsp;MercadoLibre, Inc.\* | 60 | 50774 |
| &nbsp;&nbsp;&nbsp;Pinduoduo, Inc. ADR\* | 594 | 48441 |
| &nbsp;&nbsp;&nbsp;DoorDash, Inc. — Class A\* | 988 | 48234 |
| &nbsp;&nbsp;&nbsp;JD.com, Inc. ADR | 854 | 47935 |
| &nbsp;&nbsp;&nbsp;Chewy, Inc. — Class A\*<sup>,1</sup> | 1221 | 45275 |
| &nbsp;&nbsp;&nbsp;Expedia Group, Inc.\* | 503 | 44063 |
| &nbsp;&nbsp;&nbsp;Etsy, Inc.\* | 362 | 43360 |
| &nbsp;&nbsp;&nbsp;Trip.com Group Ltd. ADR\* | 1248 | 42931 |
| &nbsp;&nbsp;&nbsp;Coupang, Inc.\* | 2199 | 32347 |
| &nbsp;&nbsp;&nbsp;Wayfair, Inc. — Class A\* | 674 | 22168 |
| &nbsp;&nbsp;&nbsp;Revolve Group, Inc.\* | 643 | 14313 |
| &nbsp;&nbsp;&nbsp;Overstock.com, Inc.\* | 537 | 10396 |
| **Total Internet** |  | 903379 |
| **Distribution & Wholesale - 2.6%** | **Distribution & Wholesale - 2.6%** | **Distribution & Wholesale - 2.6%** |
| &nbsp;&nbsp;&nbsp;LKQ Corp. | 834 | 44544 |
| &nbsp;&nbsp;&nbsp;Pool Corp. | 127 | 38396 |
| **Total Distribution & Wholesale** |  | 82940 |
| **Apparel - 0.5%** | **Apparel - 0.5%** | **Apparel - 0.5%** |
| &nbsp;&nbsp;&nbsp;Urban Outfitters, Inc.\* | 674 | 16075 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,870,296) |  | 3212073 |
|  | **Face<br> Amount** |  |
| **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.6%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.6%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.6%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | $11468 | 11468 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 4411 | 4411 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 4397 | 4397 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $20,276) |  | 20276 |
|  | **Shares** |  |
| **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 1.8%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 1.8%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 1.8%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>4</sup> | 56406 | 56406 |
| **Total Securities Lending Collateral** | **Total Securities Lending Collateral** |  |
| &nbsp;&nbsp;&nbsp;(Cost $56,406) |  | 56406 |
| **Total Investments - 102.1%** | **Total Investments - 102.1%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,946,978) | &nbsp;&nbsp;&nbsp;(Cost $1,946,978) | $3288755 |
| **Other Assets & Liabilities, net - (2.1)%** | **Other Assets & Liabilities, net - (2.1)%** | (68394) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $3220361 |

---

102 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **RETAILING FUND** |  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $3212073 | $— | $— | $3212073 |
| Repurchase Agreements |  | 20276 |  | 20276 |
| Securities Lending Collateral | 56406 |  |  | 56406 |
| Total Assets | $3268479 | $20276 | $— | $3288755 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 103

**RETAILING FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value - including $54,452 of securities loaned (cost $1,926,702) | $3268479 |
| Repurchase agreements, at value (cost $20,276) | 20276 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 2431 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 103 |
| &nbsp;&nbsp;&nbsp;Interest | 5 |
| **Total assets** | 3291294 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 56406 |
| &nbsp;&nbsp;&nbsp;Management fees | 2424 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 1133 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 1124 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 713 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 442 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 48 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 8643 |
| **Total liabilities** | 70933 |
| **Net assets** | $3220361 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $3050714 |
| Total distributable earnings (loss) | 169647 |
| Net assets | $3220361 |
| Capital shares outstanding | 33489 |
| Net asset value per share | $96.16 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $127) | $40703 |
| Interest | 448 |
| Income from securities lending, net | 2411 |
| &nbsp;&nbsp;&nbsp;Total investment income | 43562 |
| **Expenses:** | **Expenses:** |
| Management fees | 33956 |
| Investor service fees | 9987 |
| Transfer agent fees | 11578 |
| Professional fees | 7854 |
| Portfolio accounting and administration fees | 5100 |
| Trustees' fees\* | 848 |
| Custodian fees | 778 |
| Miscellaneous | 626 |
| &nbsp;&nbsp;&nbsp;Total expenses | 70727 |
| Net investment loss | (27165) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | (434030) |
| Net realized loss | (434030) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (1063805) |
| Net change in unrealized appreciation (depreciation) | (1063805) |
| Net realized and unrealized loss | (1497835) |
| **Net decrease in net assets resulting from operations** | $(1525000) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

104 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**RETAILING FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment loss | $(27165) | $(59607) |
| Net realized gain (loss) on investments | (434030) | 737916 |
| Net change in unrealized appreciation (depreciation) on investments | (1063805) | (430362) |
| Net increase (decrease) in net assets resulting from operations | (1525000) | 247947 |
| Distributions to shareholders | (104064) | (452493) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 7032882 | 24090645 |
| Distributions reinvested | 104064 | 452493 |
| Cost of shares redeemed | (8909554) | (24912148) |
| Net decrease from capital share transactions | (1772608) | (369010) |
| Net decrease in net assets | (3401672) | (573556) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 6622033 | 7195589 |
| &nbsp;&nbsp;&nbsp;End of year | $3220361 | $6622033 |
| **Capital share activity:** |  |  |
| Shares sold | 67226 | 170881 |
| Shares issued from reinvestment of distributions | 1066 | 3317 |
| Shares redeemed | (84122) | (180795) |
| Net decrease in shares | (15830) | (6597) |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 105

**RETAILING FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $134.27 | $128.69 | $89.57 | $71.95 | $74.37 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | (.71) | (1.27) | (.95) | (.45) | (.30) |
| Net gain (loss) on investments (realized and unrealized) | (34.86) | 16.53 | 40.07 | 18.07 | (2.11) |
| Total from investment operations | (35.57) | 15.26 | 39.12 | 17.62 | (2.41) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  |  |  | (.01) |
| Net realized gains | (2.54) | (9.68) |  |  |  |
| Total distributions | (2.54) | (9.68) |  |  | (.01) |
| Net asset value, end of period | $96.16 | $134.27 | $128.69 | $89.57 | $71.95 |
| **Total Return<sup>b</sup>** | **(26.52** **%)** | **11.75%** | **43.68%** | **24.49%** | **(3.23** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $3220 | $6622 | $7196 | $3625 | $6788 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | (0.68%) | (0.92%) | (0.91%) | (0.54%) | (0.37%) |
| Total expenses | 1.77% | 1.69% | 1.82% | 1.83% | 1.72% |
| Portfolio turnover rate | 193% | 375% | 250% | 173% | 260% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

106 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**TECHNOLOGY FUND** 

**OBJECTIVE:** Seeks to provide capital appreciation by investing in companies that are involved in the technology sector, including computer software and service companies, semiconductor manufacturers, networking and telecommunications equipment manufacturers, PC hardware, and peripherals companies ("Technology Companies").

For the Reporting Period, Technology Fund returned -36.25%, compared with a return of -18.11% for the S&P 500 Index. The S&P 500 Information Technology Index returned -28.19%.

No industry contributed to return for the period. The application software industry detracted the most return for the period, followed by the interactive media & services industry and semiconductors industry.

Enphase Energy, Inc., First Solar, Inc., and Twitter, Inc. added the most to Fund performance for the year. Meta Platforms, Inc. - Class A, Alphabet, Inc. - Class A, and Apple, Inc. detracted the most from the Fund's return for the period.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-5_107.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** May 2, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| Apple, Inc. | 5.3% |
| Microsoft Corp. | 5.1% |
| Alphabet, Inc. — Class A | 4.0% |
| Visa, Inc. — Class A | 2.6% |
| Meta Platforms, Inc. — Class A | 2.3% |
| Mastercard, Inc. — Class A | 2.2% |
| NVIDIA Corp. | 2.1% |
| Broadcom, Inc. | 1.9% |
| Oracle Corp. | 1.8% |
| Cisco Systems, Inc. | 1.7% |
| Top Ten Total | 29.0% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 107

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-5_108.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Technology Fund  | (36.25%)  | 9.56%  | 13.38%  |
| S&P 500 Information Technology Index  | (28.19%)  | 15.81%  | 18.33%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

108 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **TECHNOLOGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 100.0%** | **COMMON STOCKS<sup>†</sup>** **- 100.0%** | **COMMON STOCKS<sup>†</sup>** **- 100.0%** |
| **Software - 35.5%** | **Software - 35.5%** | **Software - 35.5%** |
| &nbsp;&nbsp;&nbsp;Microsoft Corp. | 3272 | $784691 |
| &nbsp;&nbsp;&nbsp;Oracle Corp. | 3465 | 283229 |
| &nbsp;&nbsp;&nbsp;Adobe, Inc.\* | 702 | 236244 |
| &nbsp;&nbsp;&nbsp;Salesforce, Inc.\* | 1712 | 226994 |
| &nbsp;&nbsp;&nbsp;Intuit, Inc. | 489 | 190329 |
| &nbsp;&nbsp;&nbsp;ServiceNow, Inc.\* | 427 | 165791 |
| &nbsp;&nbsp;&nbsp;Fiserv, Inc.\* | 1500 | 151605 |
| &nbsp;&nbsp;&nbsp;Activision Blizzard, Inc. | 1897 | 145215 |
| &nbsp;&nbsp;&nbsp;VMware, Inc. — Class A\* | 1116 | 137000 |
| &nbsp;&nbsp;&nbsp;Synopsys, Inc.\* | 408 | 130270 |
| &nbsp;&nbsp;&nbsp;Snowflake, Inc. — Class A\* | 897 | 128755 |
| &nbsp;&nbsp;&nbsp;Cadence Design Systems, Inc.\* | 778 | 124978 |
| &nbsp;&nbsp;&nbsp;Workday, Inc. — Class A\* | 721 | 120645 |
| &nbsp;&nbsp;&nbsp;Paychex, Inc. | 1036 | 119720 |
| &nbsp;&nbsp;&nbsp;Fidelity National Information Services, Inc. | 1758 | 119280 |
| &nbsp;&nbsp;&nbsp;Autodesk, Inc.\* | 621 | 116046 |
| &nbsp;&nbsp;&nbsp;Electronic Arts, Inc. | 884 | 108007 |
| &nbsp;&nbsp;&nbsp;Atlassian Corp. — Class A\* | 810 | 104231 |
| &nbsp;&nbsp;&nbsp;Datadog, Inc. — Class A\* | 1212 | 89082 |
| &nbsp;&nbsp;&nbsp;ANSYS, Inc.\* | 358 | 86489 |
| &nbsp;&nbsp;&nbsp;NetEase, Inc. ADR | 1165 | 84614 |
| &nbsp;&nbsp;&nbsp;Zoom Video Communications, Inc. — Class A\* | 1208 | 81830 |
| &nbsp;&nbsp;&nbsp;Take-Two Interactive Software, Inc.\* | 781 | 81326 |
| &nbsp;&nbsp;&nbsp;ROBLOX Corp. — Class A\* | 2623 | 74651 |
| &nbsp;&nbsp;&nbsp;DocuSign, Inc.\* | 1300 | 72046 |
| &nbsp;&nbsp;&nbsp;Broadridge Financial Solutions, Inc. | 536 | 71894 |
| &nbsp;&nbsp;&nbsp;Tyler Technologies, Inc.\* | 221 | 71253 |
| &nbsp;&nbsp;&nbsp;PTC, Inc.\* | 586 | 70343 |
| &nbsp;&nbsp;&nbsp;HubSpot, Inc.\* | 242 | 69969 |
| &nbsp;&nbsp;&nbsp;SS&C Technologies Holdings, Inc. | 1341 | 69812 |
| &nbsp;&nbsp;&nbsp;Splunk, Inc.\* | 807 | 69475 |
| &nbsp;&nbsp;&nbsp;Fair Isaac Corp.\* | 116 | 69435 |
| &nbsp;&nbsp;&nbsp;Cloudflare, Inc. — Class A\* | 1512 | 68358 |
| &nbsp;&nbsp;&nbsp;ZoomInfo Technologies, Inc. — Class A\* | 2226 | 67025 |
| &nbsp;&nbsp;&nbsp;Palantir Technologies, Inc. — Class A\* | 10415 | 66864 |
| &nbsp;&nbsp;&nbsp;Akamai Technologies, Inc.\* | 789 | 66513 |
| &nbsp;&nbsp;&nbsp;Jack Henry & Associates, Inc. | 376 | 66011 |
| &nbsp;&nbsp;&nbsp;MongoDB, Inc.\* | 323 | 63579 |
| &nbsp;&nbsp;&nbsp;Dynatrace, Inc.\* | 1657 | 63463 |
| &nbsp;&nbsp;&nbsp;Bill.com Holdings, Inc.\* | 573 | 62434 |
| &nbsp;&nbsp;&nbsp;Unity Software, Inc.\*<sup>,1</sup> | 2133 | 60982 |
| &nbsp;&nbsp;&nbsp;Ceridian HCM Holding, Inc.\* | 928 | 59531 |
| &nbsp;&nbsp;&nbsp;Twilio, Inc. — Class A\* | 1213 | 59389 |
| &nbsp;&nbsp;&nbsp;Coupa Software, Inc.\* | 708 | 56052 |
| &nbsp;&nbsp;&nbsp;Dropbox, Inc. — Class A\* | 2396 | 53623 |
| &nbsp;&nbsp;&nbsp;UiPath, Inc. — Class A\* | 4028 | 51196 |
| &nbsp;&nbsp;&nbsp;Five9, Inc.\* | 608 | 41259 |
| &nbsp;&nbsp;&nbsp;Elastic N.V.\* | 795 | 40943 |
| &nbsp;&nbsp;&nbsp;RingCentral, Inc. — Class A\* | 976 | 34550 |
| &nbsp;&nbsp;&nbsp;Asana, Inc. — Class A\* | 1849 | 25461 |
| &nbsp;&nbsp;&nbsp;MicroStrategy, Inc. — Class A\*<sup>,1</sup> | 142 | 20103 |
| **Total Software** |  | 5482585 |
| **Semiconductors - 20.9%** | **Semiconductors - 20.9%** | **Semiconductors - 20.9%** |
| &nbsp;&nbsp;&nbsp;NVIDIA Corp. | 2241 | 327500 |
| &nbsp;&nbsp;&nbsp;Broadcom, Inc. | 518 | 289629 |
| &nbsp;&nbsp;&nbsp;Texas Instruments, Inc. | 1339 | 221230 |
| &nbsp;&nbsp;&nbsp;QUALCOMM, Inc. | 1812 | 199211 |
| &nbsp;&nbsp;&nbsp;Intel Corp. | 7184 | 189873 |
| &nbsp;&nbsp;&nbsp;Advanced Micro Devices, Inc.\* | 2925 | 189452 |
| &nbsp;&nbsp;&nbsp;Analog Devices, Inc. | 1015 | 166491 |
| &nbsp;&nbsp;&nbsp;Applied Materials, Inc. | 1639 | 159606 |
| &nbsp;&nbsp;&nbsp;Taiwan Semiconductor Manufacturing Company Ltd. ADR | 1976 | 147192 |
| &nbsp;&nbsp;&nbsp;Lam Research Corp. | 324 | 136177 |
| &nbsp;&nbsp;&nbsp;KLA Corp. | 348 | 131206 |
| &nbsp;&nbsp;&nbsp;Micron Technology, Inc. | 2589 | 129398 |
| &nbsp;&nbsp;&nbsp;NXP Semiconductor N.V. | 757 | 119629 |
| &nbsp;&nbsp;&nbsp;Microchip Technology, Inc. | 1576 | 110714 |
| &nbsp;&nbsp;&nbsp;ASML Holding N.V. — Class G | 190 | 103816 |
| &nbsp;&nbsp;&nbsp;Marvell Technology, Inc. | 2768 | 102527 |
| &nbsp;&nbsp;&nbsp;ON Semiconductor Corp.\* | 1445 | 90125 |
| &nbsp;&nbsp;&nbsp;Monolithic Power Systems, Inc. | 205 | 72490 |
| &nbsp;&nbsp;&nbsp;Skyworks Solutions, Inc. | 758 | 69077 |
| &nbsp;&nbsp;&nbsp;Teradyne, Inc. | 747 | 65251 |
| &nbsp;&nbsp;&nbsp;Entegris, Inc. | 873 | 57260 |
| &nbsp;&nbsp;&nbsp;Qorvo, Inc.\* | 594 | 53840 |
| &nbsp;&nbsp;&nbsp;Lattice Semiconductor Corp.\* | 808 | 52423 |
| &nbsp;&nbsp;&nbsp;Wolfspeed, Inc.\* | 708 | 48880 |
| **Total Semiconductors** |  | 3232997 |
| **Computers - 13.4%** | **Computers - 13.4%** | **Computers - 13.4%** |
| &nbsp;&nbsp;&nbsp;Apple, Inc. | 6275 | 815311 |
| &nbsp;&nbsp;&nbsp;International Business Machines Corp. | 1447 | 203868 |
| &nbsp;&nbsp;&nbsp;Accenture plc — Class A | 513 | 136889 |
| &nbsp;&nbsp;&nbsp;Fortinet, Inc.\* | 2270 | 110980 |
| &nbsp;&nbsp;&nbsp;Dell Technologies, Inc. — Class C | 2520 | 101354 |
| &nbsp;&nbsp;&nbsp;Cognizant Technology Solutions Corp. — Class A | 1765 | 100940 |
| &nbsp;&nbsp;&nbsp;HP, Inc. | 3538 | 95066 |
| &nbsp;&nbsp;&nbsp;Crowdstrike Holdings, Inc. — Class A\* | 876 | 92234 |
| &nbsp;&nbsp;&nbsp;Check Point Software Technologies Ltd.\* | 629 | 79355 |
| &nbsp;&nbsp;&nbsp;Infosys Ltd. ADR | 4380 | 78884 |
| &nbsp;&nbsp;&nbsp;Zscaler, Inc.\* | 676 | 75644 |
| &nbsp;&nbsp;&nbsp;NetApp, Inc. | 1102 | 66186 |
| &nbsp;&nbsp;&nbsp;Seagate Technology Holdings plc | 1124 | 59134 |
| &nbsp;&nbsp;&nbsp;Western Digital Corp.\* | 1778 | 56096 |
| **Total Computers** |  | 2071941 |
| **Internet - 13.0%** | **Internet - 13.0%** | **Internet - 13.0%** |
| &nbsp;&nbsp;&nbsp;Alphabet, Inc. — Class A\* | 7071 | 623874 |
| &nbsp;&nbsp;&nbsp;Meta Platforms, Inc. — Class A\* | 2901 | 349106 |
| &nbsp;&nbsp;&nbsp;Palo Alto Networks, Inc.\* | 824 | 114981 |
| &nbsp;&nbsp;&nbsp;Baidu, Inc. ADR\* | 844 | 96537 |
| &nbsp;&nbsp;&nbsp;Shopify, Inc. — Class A\* | 2700 | 93717 |
| &nbsp;&nbsp;&nbsp;CDW Corp. | 505 | 90183 |
| &nbsp;&nbsp;&nbsp;VeriSign, Inc.\* | 436 | 89572 |
| &nbsp;&nbsp;&nbsp;Pinterest, Inc. — Class A\* | 3359 | 81557 |
| &nbsp;&nbsp;&nbsp;Sea Ltd. ADR\* | 1566 | 81479 |
| &nbsp;&nbsp;&nbsp;Snap, Inc. — Class A\* | 8093 | 72432 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 109

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **TECHNOLOGY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;Gen Digital, Inc. | 3184 | $| 68233 |
| &nbsp;&nbsp;&nbsp;GoDaddy, Inc. — Class A\* | 861 |  | 64420 |
| &nbsp;&nbsp;&nbsp;Match Group, Inc.\* | 1550 |  | 64310 |
| &nbsp;&nbsp;&nbsp;Okta, Inc.\* | 940 |  | 64230 |
| &nbsp;&nbsp;&nbsp;F5, Inc.\* | 373 |  | 53529 |
| **Total Internet** |  |  | 2008160 |
| **Diversified Financial Services - 4.8%** | **Diversified Financial Services - 4.8%** | **Diversified Financial Services - 4.8%** | **Diversified Financial Services - 4.8%** |
| &nbsp;&nbsp;&nbsp;Visa, Inc. — Class A | 1912 |  | 397237 |
| &nbsp;&nbsp;&nbsp;Mastercard, Inc. — Class A | 989 |  | 343905 |
| **Total Diversified Financial Services** |  |  | 741142 |
| **Commercial Services - 4.4%** | **Commercial Services - 4.4%** | **Commercial Services - 4.4%** | **Commercial Services - 4.4%** |
| &nbsp;&nbsp;&nbsp;Automatic Data Processing, Inc. | 755 |  | 180339 |
| &nbsp;&nbsp;&nbsp;PayPal Holdings, Inc.\* | 2302 |  | 163948 |
| &nbsp;&nbsp;&nbsp;Block, Inc. — Class A\* | 1884 |  | 118391 |
| &nbsp;&nbsp;&nbsp;Global Payments, Inc. | 989 |  | 98228 |
| &nbsp;&nbsp;&nbsp;FleetCor Technologies, Inc.\* | 381 |  | 69982 |
| &nbsp;&nbsp;&nbsp;Affirm Holdings, Inc.\* | 3318 |  | 32085 |
| &nbsp;&nbsp;&nbsp;Marathon Digital Holdings, Inc.\*<sup>,1</sup> | 3104 |  | 10616 |
| **Total Commercial Services** |  |  | 673589 |
| **Telecommunications - 3.4%** | **Telecommunications - 3.4%** | **Telecommunications - 3.4%** | **Telecommunications - 3.4%** |
| &nbsp;&nbsp;&nbsp;Cisco Systems, Inc. | 5406 |  | 257542 |
| &nbsp;&nbsp;&nbsp;Arista Networks, Inc.\* | 936 |  | 113584 |
| &nbsp;&nbsp;&nbsp;Corning, Inc. | 2983 |  | 95277 |
| &nbsp;&nbsp;&nbsp;Juniper Networks, Inc. | 1866 |  | 59637 |
| **Total Telecommunications** |  |  | 526040 |
| **Electronics - 1.9%** | **Electronics - 1.9%** | **Electronics - 1.9%** | **Electronics - 1.9%** |
| &nbsp;&nbsp;&nbsp;Amphenol Corp. — Class A | 1616 |  | 123042 |
| &nbsp;&nbsp;&nbsp;TE Connectivity Ltd. | 958 |  | 109979 |
| &nbsp;&nbsp;&nbsp;Trimble, Inc.\* | 1253 |  | 63352 |
| **Total Electronics** |  |  | 296373 |
| **Energy-Alternate Sources - 1.7%** | **Energy-Alternate Sources - 1.7%** | **Energy-Alternate Sources - 1.7%** | **Energy-Alternate Sources - 1.7%** |
| &nbsp;&nbsp;&nbsp;Enphase Energy, Inc.\* | 392 |  | 103864 |
| &nbsp;&nbsp;&nbsp;SolarEdge Technologies, Inc.\* | 284 |  | 80449 |
| &nbsp;&nbsp;&nbsp;First Solar, Inc.\* | 508 |  | 76093 |
| **Total Energy-Alternate Sources** |  |  | 260406 |
| **Advertising - 0.6%** | **Advertising - 0.6%** | **Advertising - 0.6%** | **Advertising - 0.6%** |
| &nbsp;&nbsp;&nbsp;Trade Desk, Inc. — Class A\* | 1968 |  | 88225 |
| **Office & Business Equipment - 0.4%** | **Office & Business Equipment - 0.4%** | **Office & Business Equipment - 0.4%** | **Office & Business Equipment - 0.4%** |
| &nbsp;&nbsp;&nbsp;Zebra Technologies Corp. — Class A\* | 273 |  | 70000 |
| **Total Common Stocks** | **Total Common Stocks** |  |  |
| &nbsp;&nbsp;&nbsp;(Cost $7,388,439) |  |  | 15451458 |

---

---

| | | |
|:---|:---|:---|
|  | **Face<br> Amount** |  |
| **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.4%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.4%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.4%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | $38582 | 38582 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 14839 | 14839 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 14793 | 14793 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $68,214) |  | 68214 |
|  | **Shares** |  |
| **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.4%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.4%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.4%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>4</sup> | 67938 | 67938 |
| **Total Securities Lending Collateral** | **Total Securities Lending Collateral** |  |
| &nbsp;&nbsp;&nbsp;(Cost $67,938) |  | 67938 |
| **Total Investments - 100.8%** | **Total Investments - 100.8%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $7,524,591) | &nbsp;&nbsp;&nbsp;(Cost $7,524,591) | $15587610 |
| **Other Assets & Liabilities, net - (0.8)%** | **Other Assets & Liabilities, net - (0.8)%** | (127418) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $15460192 |

---

110 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **TECHNOLOGY FUND** |  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $15451458 | $— | $— | $15451458 |
| Repurchase Agreements |  | 68214 |  | 68214 |
| Securities Lending Collateral | 67938 |  |  | 67938 |
| Total Assets | $15519396 | $68214 | $— | $15587610 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 111

**TECHNOLOGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value - including $66,543 of securities loaned (cost $7,456,377) | $15519396 |
| Repurchase agreements, at value (cost $68,214) | 68214 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 5704 |
| &nbsp;&nbsp;&nbsp;Foreign tax reclaims | 496 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 494 |
| &nbsp;&nbsp;&nbsp;Interest | 16 |
| **Total assets** | 15594320 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 67938 |
| &nbsp;&nbsp;&nbsp;Professional fees | 26185 |
| &nbsp;&nbsp;&nbsp;Management fees | 11803 |
| &nbsp;&nbsp;&nbsp;Printing fees | 6982 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 4818 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 3471 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 2152 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 1275 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 234 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 9270 |
| **Total liabilities** | 134128 |
| **Net assets** | $15460192 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $9006600 |
| Total distributable earnings (loss) | 6453592 |
| Net assets | $15460192 |
| Capital shares outstanding | 126582 |
| Net asset value per share | $122.14 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $516) | $118864 |
| Interest | 1998 |
| Income from securities lending, net | 2464 |
| &nbsp;&nbsp;&nbsp;Total investment income | 123326 |
| **Expenses:** | **Expenses:** |
| Management fees | 157117 |
| Investor service fees | 46211 |
| Transfer agent fees | 52862 |
| Professional fees | 32436 |
| Portfolio accounting and administration fees | 23087 |
| Trustees' fees\* | 3422 |
| Custodian fees | 2887 |
| Line of credit fees | 15 |
| Miscellaneous | 8512 |
| &nbsp;&nbsp;&nbsp;Total expenses | 326549 |
| Net investment loss | (203223) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | 416671 |
| Net realized gain | 416671 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (9756937) |
| Net change in unrealized appreciation (depreciation) | (9756937) |
| Net realized and unrealized loss | (9340266) |
| **Net decrease in net assets resulting from operations** | $(9543489) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

112 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**TECHNOLOGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment loss | $(203223) | $(243023) |
| Net realized gain on investments | 416671 | 2880692 |
| Net change in unrealized appreciation (depreciation) on investments | (9756937) | 1786174 |
| Net increase (decrease) in net assets resulting from operations | (9543489) | 4423843 |
| Distributions to shareholders | (1319879) | (1638788) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 14712501 | 31440098 |
| Distributions reinvested | 1319879 | 1638788 |
| Cost of shares redeemed | (20097830) | (30707535) |
| Net increase (decrease) from capital share transactions | (4065450) | 2371351 |
| Net increase (decrease) in net assets | (14928818) | 5156406 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 30389010 | 25232604 |
| &nbsp;&nbsp;&nbsp;End of year | $15460192 | $30389010 |
| **Capital share activity:** |  |  |
| Shares sold | 98177 | 155591 |
| Shares issued from reinvestment of distributions | 9773 | 8455 |
| Shares redeemed | (127726) | (154817) |
| Net increase (decrease) in shares | (19776) | 9229 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 113

**TECHNOLOGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $207.63 | $184.01 | $125.88 | $93.07 | $96.71 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | (1.65) | (1.82) | (.99) | (.90) | (.63) |
| Net gain (loss) on investments (realized and unrealized) | (72.52) | 38.58 | 62.21 | 37.66 | (.43) |
| Total from investment operations | (74.17) | 36.76 | 61.22 | 36.76 | (1.06) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net realized gains | (11.32) | (13.14) | (3.09) | (3.95) | (2.58) |
| Total distributions | (11.32) | (13.14) | (3.09) | (3.95) | (2.58) |
| Net asset value, end of period | $122.14 | $207.63 | $184.01 | $125.88 | $93.07 |
| **Total Return<sup>b</sup>** | **(36.25** **%)** | **20.50%** | **49.25%** | **39.75%** | **(1.49** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $15460 | $30389 | $25233 | $22439 | $16061 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | (1.10%) | (0.92%) | (0.69%) | (0.79%) | (0.60%) |
| Total expenses | 1.77% | 1.69% | 1.82% | 1.82% | 1.72% |
| Portfolio turnover rate | 78% | 113% | 192% | 188% | 178% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

114 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**TELECOMMUNICATIONS FUND** 

**OBJECTIVE:** Seeks to provide capital appreciation by investing in companies engaged in the development, manufacture, or sale of communications services or communications equipment ("Telecommunications Companies").

For the Reporting Period, Telecommunications Fund returned -25.85%, compared with a return of -18.11% for the S&P 500 Index. The S&P 500 Telecommunications Services Index returned -39.89%.

The wireless telecommunication services industry was the only contributor to return for the period. The cable & satellite industry was the leading detractor from return for the period, followed by the communications equipment industry and the movies & entertainment industry.

T-Mobile US, Inc., AT&T, Inc., and Iridium Communications, Inc. were the strongest performers for the year. Roku, Inc., Charter Communications, Inc. - Class A, and Comcast Corp. - Class A detracted the most from performance during the year.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-5_115.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** July 27, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| T-Mobile US, Inc. | 9.1% |
| Comcast Corp. — Class A | 8.4% |
| Verizon Communications, Inc. | 8.3% |
| Cisco Systems, Inc. | 7.9% |
| AT&T, Inc. | 7.6% |
| Motorola Solutions, Inc. | 4.4% |
| Arista Networks, Inc. | 4.2% |
| Charter Communications, Inc. — Class A | 4.1% |
| Ubiquiti, Inc. | 2.8% |
| Juniper Networks, Inc. | 2.2% |
| Top Ten Total | 59.0% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 115

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-5_116.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Telecommunications Fund  | (25.85%)  | (1.05%)  | 2.86%  |
| S&P 500 Telecommunication Services Index  | (39.89%)  | 0.95%  | 4.26%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Telecommunication Services Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

116 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **TELECOMMUNICATIONS FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.7%** | **COMMON STOCKS<sup>†</sup>** **- 99.7%** | **COMMON STOCKS<sup>†</sup>** **- 99.7%** |
| **Telecommunications - 71.9%** | **Telecommunications - 71.9%** | **Telecommunications - 71.9%** |
| &nbsp;&nbsp;&nbsp;T-Mobile US, Inc.\* | 1331 | $186340 |
| &nbsp;&nbsp;&nbsp;Verizon Communications, Inc. | 4335 | 170799 |
| &nbsp;&nbsp;&nbsp;Cisco Systems, Inc. | 3398 | 161881 |
| &nbsp;&nbsp;&nbsp;AT&T, Inc. | 8481 | 156135 |
| &nbsp;&nbsp;&nbsp;Motorola Solutions, Inc. | 350 | 90198 |
| &nbsp;&nbsp;&nbsp;Arista Networks, Inc.\* | 705 | 85552 |
| &nbsp;&nbsp;&nbsp;Ubiquiti, Inc. | 208 | 56894 |
| &nbsp;&nbsp;&nbsp;Juniper Networks, Inc. | 1407 | 44968 |
| &nbsp;&nbsp;&nbsp;Iridium Communications, Inc. | 709 | 36443 |
| &nbsp;&nbsp;&nbsp;Frontier Communications Parent, Inc.\* | 1424 | 36284 |
| &nbsp;&nbsp;&nbsp;Ciena Corp.\* | 693 | 35329 |
| &nbsp;&nbsp;&nbsp;Lumen Technologies, Inc.\* | 6181 | 32265 |
| &nbsp;&nbsp;&nbsp;Calix, Inc.\* | 415 | 28398 |
| &nbsp;&nbsp;&nbsp;Vodafone Group plc ADR | 2795 | 28285 |
| &nbsp;&nbsp;&nbsp;BCE, Inc. | 632 | 27776 |
| &nbsp;&nbsp;&nbsp;America Movil SAB de CV — Class L ADR | 1497 | 27245 |
| &nbsp;&nbsp;&nbsp;Rogers Communications, Inc. — Class B<sup>1</sup> | 552 | 25856 |
| &nbsp;&nbsp;&nbsp;Nice Ltd. ADR\* | 133 | 25576 |
| &nbsp;&nbsp;&nbsp;TELUS Corp. | 1271 | 24543 |
| &nbsp;&nbsp;&nbsp;Viasat, Inc.\* | 766 | 24244 |
| &nbsp;&nbsp;&nbsp;Viavi Solutions, Inc.\* | 2015 | 21178 |
| &nbsp;&nbsp;&nbsp;Extreme Networks, Inc.\* | 1116 | 20434 |
| &nbsp;&nbsp;&nbsp;Gogo, Inc.\* | 1272 | 18775 |
| &nbsp;&nbsp;&nbsp;InterDigital, Inc. | 351 | 17367 |
| &nbsp;&nbsp;&nbsp;CommScope Holding Company, Inc.\* | 2323 | 17074 |
| &nbsp;&nbsp;&nbsp;EchoStar Corp. — Class A\* | 1003 | 16730 |
| &nbsp;&nbsp;&nbsp;ADTRAN Holdings, Inc. | 873 | 16404 |
| &nbsp;&nbsp;&nbsp;Clearfield, Inc.\* | 172 | 16192 |
| &nbsp;&nbsp;&nbsp;Telephone & Data Systems, Inc. | 1506 | 15798 |
| &nbsp;&nbsp;&nbsp;NETGEAR, Inc.\* | 515 | 9327 |
| **Total Telecommunications** |  | 1474290 |
| **Media - 20.3%** | **Media - 20.3%** | **Media - 20.3%** |
| &nbsp;&nbsp;&nbsp;Comcast Corp. — Class A | 4951 | 173136 |
| &nbsp;&nbsp;&nbsp;Charter Communications, Inc. — Class A\* | 248 | 84097 |
| &nbsp;&nbsp;&nbsp;Liberty Broadband Corp. — Class C\* | 587 | 44770 |
| &nbsp;&nbsp;&nbsp;DISH Network Corp. — Class A\* | 2716 | 38133 |
| &nbsp;&nbsp;&nbsp;Cable One, Inc. | 40 | 28474 |
| &nbsp;&nbsp;&nbsp;Liberty Global plc — Class C\* | 1464 | 28446 |
| &nbsp;&nbsp;&nbsp;Liberty Latin America Ltd. — Class C\* | 2612 | 19851 |
| **Total Media** |  | 416907 |
| **Internet - 4.7%** | **Internet - 4.7%** | **Internet - 4.7%** |
| &nbsp;&nbsp;&nbsp;F5, Inc.\* | 280 | 40183 |
| &nbsp;&nbsp;&nbsp;Roku, Inc.\* | 787 | 32031 |
| &nbsp;&nbsp;&nbsp;Cogent Communications Holdings, Inc. | 412 | 23517 |
| **Total Internet** |  | 95731 |
| **Computers - 2.3%** | **Computers - 2.3%** | **Computers - 2.3%** |
| &nbsp;&nbsp;&nbsp;Lumentum Holdings, Inc.\* | 483 | 25198 |
| &nbsp;&nbsp;&nbsp;NetScout Systems, Inc.\* | 650 | 21132 |
| **Total Computers** |  | 46330 |
| **Software - 0.5%** | **Software - 0.5%** | **Software - 0.5%** |
| &nbsp;&nbsp;&nbsp;Bandwidth, Inc. — Class A\* | 439 | 10075 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,556,297) |  | 2043333 |
|  | **Face<br> Amount** |  |
| **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.6%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.6%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.6%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | $7322 | 7322 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 2816 | 2816 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 2807 | 2807 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $12,945) |  | 12945 |
|  | **Shares** |  |
| **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.9%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.9%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.9%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>4</sup> | 18793 | 18793 |
| **Total Securities Lending Collateral** | **Total Securities Lending Collateral** |  |
| &nbsp;&nbsp;&nbsp;(Cost $18,793) |  | 18793 |
| **Total Investments - 101.2%** | **Total Investments - 101.2%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,588,035) | &nbsp;&nbsp;&nbsp;(Cost $1,588,035) | $2075071 |
| **Other Assets & Liabilities, net - (1.2)%** | **Other Assets & Liabilities, net - (1.2)%** | (24043) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $2051028 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 117

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **TELECOMMUNICATIONS FUND** |  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $2043333 | $— | $— | $2043333 |
| Repurchase Agreements |  | 12945 |  | 12945 |
| Securities Lending Collateral | 18793 |  |  | 18793 |
| Total Assets | $2062126 | $12945 | $— | $2075071 |

---

118 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**TELECOMMUNICATIONS FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value - including $19,017 of securities loaned (cost $1,575,090) | $2062126 |
| Repurchase agreements, at value (cost $12,945) | 12945 |
| Cash | 583 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 3352 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 23 |
| &nbsp;&nbsp;&nbsp;Interest | 3 |
| **Total assets** | 2079032 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 18793 |
| &nbsp;&nbsp;&nbsp;Management fees | 1528 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 787 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 680 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 449 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 278 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 30 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 5459 |
| **Total liabilities** | 28004 |
| **Net assets** | $2051028 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $2668281 |
| Total distributable earnings (loss) | (617253) |
| Net assets | $2051028 |
| Capital shares outstanding | 38978 |
| Net asset value per share | $52.62 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $608) | $64263 |
| Interest | 258 |
| Income from securities lending, net | 131 |
| &nbsp;&nbsp;&nbsp;Total investment income | 64652 |
| **Expenses:** | **Expenses:** |
| Management fees | 22970 |
| Investor service fees | 6756 |
| Transfer agent fees | 7572 |
| Professional fees | 4646 |
| Portfolio accounting and administration fees | 3362 |
| Custodian fees | 573 |
| Trustees' fees\* | 439 |
| Miscellaneous | 1507 |
| &nbsp;&nbsp;&nbsp;Total expenses | 47825 |
| Net investment income | 16827 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | (493385) |
| Net realized loss | (493385) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (583949) |
| Net change in unrealized appreciation (depreciation) | (583949) |
| Net realized and unrealized loss | (1077334) |
| **Net decrease in net assets resulting from operations** | $(1060507) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 119

**TELECOMMUNICATIONS FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income | $16827 | $20164 |
| Net realized gain (loss) on investments | (493385) | 207636 |
| Net change in unrealized appreciation (depreciation) on investments | (583949) | 85732 |
| Net increase (decrease) in net assets resulting from operations | (1060507) | 313532 |
| Distributions to shareholders | (20013) | (21703) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 2713464 | 11029073 |
| Distributions reinvested | 20013 | 21703 |
| Cost of shares redeemed | (6589223) | (7609452) |
| Net increase (decrease) from capital share transactions | (3855746) | 3441324 |
| Net increase (decrease) in net assets | (4936266) | 3733153 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 6987294 | 3254141 |
| &nbsp;&nbsp;&nbsp;End of year | $2051028 | $6987294 |
| **Capital share activity:** |  |  |
| Shares sold | 46758 | 156204 |
| Shares issued from reinvestment of distributions | 343 | 300 |
| Shares redeemed | (105977) | (107933) |
| Net increase (decrease) in shares | (58876) | 48571 |

---

120 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**TELECOMMUNICATIONS FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $71.41 | $66.03 | $60.85 | $53.75 | $58.48 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .37 | .44 | .48 | .37 | .57 |
| Net gain (loss) on investments (realized and unrealized) | (18.80) | 5.48 | 5.27 <sup>C</sup> | 6.73 | (3.51) |
| Total from investment operations | (18.43) | 5.92 | 5.75 | 7.10 | (2.94) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (.36) | (.54) | (.57) |  | (.47) |
| Net realized gains |  |  |  |  | (1.32) |
| Total distributions | (.36) | (.54) | (.57) |  | (1.79) |
| Net asset value, end of period | $52.62 | $71.41 | $66.03 | $60.85 | $53.75 |
| **Total Return<sup>b</sup>** | **(25.85** **%)** | **8.98%** | **9.49%** | **13.21%** | **(5.29** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $2051 | $6987 | $3254 | $3250 | $3230 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.62% | 0.62% | 0.81% | 0.63% | 0.97% |
| Total expenses | 1.77% | 1.70% | 1.82% | 1.82% | 1.73% |
| Portfolio turnover rate | 113% | 237% | 258% | 263% | 365% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> The amount shown for a share outstanding throughout the period does not agree with the aggregate net loss on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of investments of the Fund.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 121

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**TRANSPORTATION FUND** 

**OBJECTIVE:** Seeks to provide capital appreciation by investing in companies engaged in providing transportation services or companies engaged in the design, manufacture, distribution, or sale of transportation equipment ("Transportation Companies").

For the Reporting Period, Transportation Fund returned -35.03%, compared with a return of -18.11% for the S&P 500 Index. The S&P 500 Industrials Index returned -5.48%.

The motorcycle manufacturers industry was the only contributor to the Fund's return for the period. The automobile manufacturers industry detracted the most from return for the period, followed by the trucking industry and the auto parts & equipment industry.

Visteon Corp., Ryder System, Inc., and Harley-Davidson, Inc. were the biggest contributors to performance for the year. Tesla, Inc., Lucid Group, Inc., and NIO, Inc. ADR detracted the most from performance during the year.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-5_122.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** June 11, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| Tesla, Inc. | 7.8% |
| United Parcel Service, Inc. — Class B | 5.5% |
| Union Pacific Corp. | 5.0% |
| CSX Corp. | 3.5% |
| Norfolk Southern Corp. | 3.4% |
| Uber Technologies, Inc. | 3.1% |
| FedEx Corp. | 3.1% |
| General Motors Co. | 2.9% |
| Ford Motor Co. | 2.9% |
| Old Dominion Freight Line, Inc. | 2.5% |
| Top Ten Total | 39.7% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

122 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-5_123.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Transportation Fund  | (35.03%)  | 1.76%  | 9.34%  |
| S&P 500 Industrials Index  | (5.48%)  | 7.36%  | 11.94%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Industrials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 123

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **TRANSPORTATION FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 100.0%** | **COMMON STOCKS<sup>†</sup>** **- 100.0%** | **COMMON STOCKS<sup>†</sup>** **- 100.0%** |
| **Transportation - 42.5%** | **Transportation - 42.5%** | **Transportation - 42.5%** |
| &nbsp;&nbsp;&nbsp;United Parcel Service, Inc. — Class B | 1053 | $183054 |
| &nbsp;&nbsp;&nbsp;Union Pacific Corp. | 799 | 165449 |
| &nbsp;&nbsp;&nbsp;CSX Corp. | 3787 | 117321 |
| &nbsp;&nbsp;&nbsp;Norfolk Southern Corp. | 463 | 114093 |
| &nbsp;&nbsp;&nbsp;FedEx Corp. | 590 | 102188 |
| &nbsp;&nbsp;&nbsp;Old Dominion Freight Line, Inc. | 297 | 84283 |
| &nbsp;&nbsp;&nbsp;J.B. Hunt Transport Services, Inc. | 362 | 63118 |
| &nbsp;&nbsp;&nbsp;Expeditors International of Washington, Inc. | 586 | 60897 |
| &nbsp;&nbsp;&nbsp;CH Robinson Worldwide, Inc. | 517 | 47337 |
| &nbsp;&nbsp;&nbsp;Canadian Pacific Railway Ltd. | 575 | 42889 |
| &nbsp;&nbsp;&nbsp;ZTO Express Cayman, Inc. ADR | 1592 | 42777 |
| &nbsp;&nbsp;&nbsp;Knight-Swift Transportation Holdings, Inc. | 808 | 42347 |
| &nbsp;&nbsp;&nbsp;Canadian National Railway Co. | 349 | 41489 |
| &nbsp;&nbsp;&nbsp;ZIM Integrated Shipping Services Ltd.<sup>1</sup> | 2204 | 37887 |
| &nbsp;&nbsp;&nbsp;Landstar System, Inc. | 217 | 35349 |
| &nbsp;&nbsp;&nbsp;Saia, Inc.\* | 164 | 34388 |
| &nbsp;&nbsp;&nbsp;Ryder System, Inc. | 368 | 30754 |
| &nbsp;&nbsp;&nbsp;Kirby Corp.\* | 464 | 29858 |
| &nbsp;&nbsp;&nbsp;XPO, Inc.\* | 867 | 28862 |
| &nbsp;&nbsp;&nbsp;Atlas Air Worldwide Holdings, Inc.\* | 248 | 24998 |
| &nbsp;&nbsp;&nbsp;Matson, Inc. | 383 | 23941 |
| &nbsp;&nbsp;&nbsp;Werner Enterprises, Inc. | 573 | 23069 |
| &nbsp;&nbsp;&nbsp;RXO, Inc.\* | 1181 | 20313 |
| &nbsp;&nbsp;&nbsp;ArcBest Corp. | 269 | 18841 |
| **Total Transportation** |  | 1415502 |
| **Auto Manufacturers - 22.9%** | **Auto Manufacturers - 22.9%** | **Auto Manufacturers - 22.9%** |
| &nbsp;&nbsp;&nbsp;Tesla, Inc.\* | 2097 | 258308 |
| &nbsp;&nbsp;&nbsp;General Motors Co. | 2878 | 96816 |
| &nbsp;&nbsp;&nbsp;Ford Motor Co. | 8285 | 96355 |
| &nbsp;&nbsp;&nbsp;Rivian Automotive, Inc. — Class A\* | 2741 | 50517 |
| &nbsp;&nbsp;&nbsp;Lucid Group, Inc.\*<sup>,1</sup> | 6961 | 47544 |
| &nbsp;&nbsp;&nbsp;Li Auto, Inc. ADR\*<sup>,1</sup> | 1941 | 39596 |
| &nbsp;&nbsp;&nbsp;Ferrari N.V. | 183 | 39202 |
| &nbsp;&nbsp;&nbsp;Stellantis N.V. | 2624 | 37261 |
| &nbsp;&nbsp;&nbsp;Toyota Motor Corp. ADR<sup>1</sup> | 271 | 37013 |
| &nbsp;&nbsp;&nbsp;NIO, Inc. ADR\* | 3736 | 36426 |
| &nbsp;&nbsp;&nbsp;Fisker, Inc.\*<sup>,1</sup> | 3084 | 22421 |
| **Total Auto Manufacturers** |  | 761459 |
| **Auto Parts & Equipment - 11.9%** | **Auto Parts & Equipment - 11.9%** | **Auto Parts & Equipment - 11.9%** |
| &nbsp;&nbsp;&nbsp;Aptiv plc\* | 559 | 52060 |
| &nbsp;&nbsp;&nbsp;BorgWarner, Inc. | 1143 | 46006 |
| &nbsp;&nbsp;&nbsp;Lear Corp. | 321 | 39810 |
| &nbsp;&nbsp;&nbsp;Magna International, Inc. | 685 | 38483 |
| &nbsp;&nbsp;&nbsp;Autoliv, Inc. | 497 | 38060 |
| &nbsp;&nbsp;&nbsp;Gentex Corp. | 1366 | 37251 |
| &nbsp;&nbsp;&nbsp;Fox Factory Holding Corp.\* | 309 | 28190 |
| &nbsp;&nbsp;&nbsp;Adient plc\* | 812 | 28168 |
| &nbsp;&nbsp;&nbsp;Visteon Corp.\* | 209 | 27344 |
| &nbsp;&nbsp;&nbsp;Goodyear Tire & Rubber Co.\* | 2416 | 24522 |
| &nbsp;&nbsp;&nbsp;Dana, Inc. | 1393 | 21076 |
| &nbsp;&nbsp;&nbsp;Luminar Technologies, Inc.\*<sup>,1</sup> | 3404 | 16850 |
| **Total Auto Parts & Equipment** |  | 397820 |
| **Airlines - 10.6%** | **Airlines - 10.6%** | **Airlines - 10.6%** |
| &nbsp;&nbsp;&nbsp;Delta Air Lines, Inc.\* | 2065 | 67856 |
| &nbsp;&nbsp;&nbsp;Southwest Airlines Co. | 1868 | 62896 |
| &nbsp;&nbsp;&nbsp;United Airlines Holdings, Inc.\* | 1278 | 48181 |
| &nbsp;&nbsp;&nbsp;American Airlines Group, Inc.\* | 3206 | 40780 |
| &nbsp;&nbsp;&nbsp;Copa Holdings S.A. — Class A\* | 472 | 39256 |
| &nbsp;&nbsp;&nbsp;Alaska Air Group, Inc.\* | 816 | 35039 |
| &nbsp;&nbsp;&nbsp;Spirit Airlines, Inc.\* | 1107 | 21564 |
| &nbsp;&nbsp;&nbsp;JetBlue Airways Corp.\* | 3089 | 20017 |
| &nbsp;&nbsp;&nbsp;Allegiant Travel Co. — Class A\* | 254 | 17269 |
| **Total Airlines** |  | 352858 |
| **Commercial Services - 4.8%** | **Commercial Services - 4.8%** | **Commercial Services - 4.8%** |
| &nbsp;&nbsp;&nbsp;U-Haul Holding Co. | 845 | 46458 |
| &nbsp;&nbsp;&nbsp;Avis Budget Group, Inc.\* | 241 | 39507 |
| &nbsp;&nbsp;&nbsp;GXO Logistics, Inc.\* | 793 | 33853 |
| &nbsp;&nbsp;&nbsp;Hertz Global Holdings, Inc.\* | 2097 | 32273 |
| &nbsp;&nbsp;&nbsp;U-Haul Holding Co. | 96 | 5778 |
| **Total Commercial Services** |  | 157869 |
| **Internet - 4.0%** | **Internet - 4.0%** | **Internet - 4.0%** |
| &nbsp;&nbsp;&nbsp;Uber Technologies, Inc.\* | 4134 | 102234 |
| &nbsp;&nbsp;&nbsp;Lyft, Inc. — Class A\* | 2740 | 30195 |
| **Total Internet** |  | 132429 |
| **Home Builders - 2.2%** | **Home Builders - 2.2%** | **Home Builders - 2.2%** |
| &nbsp;&nbsp;&nbsp;Thor Industries, Inc. | 411 | 31026 |
| &nbsp;&nbsp;&nbsp;LCI Industries | 247 | 22835 |
| &nbsp;&nbsp;&nbsp;Winnebago Industries, Inc. | 365 | 19236 |
| **Total Home Builders** |  | 73097 |
| **Leisure Time - 1.1%** | **Leisure Time - 1.1%** | **Leisure Time - 1.1%** |
| &nbsp;&nbsp;&nbsp;Harley-Davidson, Inc. | 851 | 35402 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,748,127) |  | 3326436 |
|  | **Face<br> Amount** |  |
| **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.4%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.4%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.4%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | $8450 | 8450 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 3250 | 3250 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 3240 | 3240 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $14,940) |  | 14940 |

---

124 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **TRANSPORTATION FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 4.4%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 4.4%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 4.4%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>4</sup> | 146482 | $146482 |
| **Total Securities Lending Collateral** | **Total Securities Lending Collateral** |  |
| &nbsp;&nbsp;&nbsp;(Cost $146,482) |  | 146482 |
| **Total Investments - 104.8%** | **Total Investments - 104.8%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,909,549) | &nbsp;&nbsp;&nbsp;(Cost $1,909,549) | $3487858 |
| **Other Assets & Liabilities, net - (4.8)%** | **Other Assets & Liabilities, net - (4.8)%** | (159165) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $3328693 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $3326436 | $— | $— | $3326436 |
| Repurchase Agreements |  | 14940 |  | 14940 |
| Securities Lending Collateral | 146482 |  |  | 146482 |
| Total Assets | $3472918 | $14940 | $— | $3487858 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 125

**TRANSPORTATION FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value - including $141,545 of securities loaned (cost $1,894,609) | $3472918 |
| Repurchase agreements, at value (cost $14,940) | 14940 |
| Cash | 81 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 1356 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 454 |
| &nbsp;&nbsp;&nbsp;Interest | 4 |
| **Total assets** | 3489753 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 146482 |
| &nbsp;&nbsp;&nbsp;Management fees | 2598 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 1157 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 764 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 474 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 229 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 51 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 9305 |
| **Total liabilities** | 161060 |
| **Net assets** | $3328693 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $2627266 |
| Total distributable earnings (loss) | 701427 |
| Net assets | $3328693 |
| Capital shares outstanding | 46646 |
| Net asset value per share | $71.36 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $7,323) | $66995 |
| Interest | 500 |
| Income from securities lending, net | 7478 |
| &nbsp;&nbsp;&nbsp;Total investment income | 74973 |
| **Expenses:** | **Expenses:** |
| Management fees | 39810 |
| Investor service fees | 11709 |
| Transfer agent fees | 13448 |
| Professional fees | 7261 |
| Portfolio accounting and administration fees | 5816 |
| Custodian fees | 866 |
| Trustees' fees\* | 848 |
| Miscellaneous | 3137 |
| &nbsp;&nbsp;&nbsp;Total expenses | 82895 |
| Net investment loss | (7922) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | (237027) |
| Net realized loss | (237027) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (2336630) |
| Net change in unrealized appreciation (depreciation) | (2336630) |
| Net realized and unrealized loss | (2573657) |
| **Net decrease in net assets resulting from operations** | $(2581579) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

126 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**TRANSPORTATION FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment loss | $(7922) | $(1388) |
| Net realized gain (loss) on investments | (237027) | 1334033 |
| Net change in unrealized appreciation (depreciation) on investments | (2336630) | 180980 |
| Net increase (decrease) in net assets resulting from operations | (2581579) | 1513625 |
| Distributions to shareholders | (439796) | (355469) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 15420224 | 24446599 |
| Distributions reinvested | 439796 | 355469 |
| Cost of shares redeemed | (16382298) | (26987754) |
| Net decrease from capital share transactions | (522278) | (2185686) |
| Net decrease in net assets | (3543653) | (1027530) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 6872346 | 7899876 |
| &nbsp;&nbsp;&nbsp;End of year | $3328693 | $6872346 |
| **Capital share activity:** |  |  |
| Shares sold | 149441 | 205665 |
| Shares issued from reinvestment of distributions | 5339 | 3211 |
| Shares redeemed | (163187) | (226056) |
| Net decrease in shares | (8407) | (17180) |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 127

**TRANSPORTATION FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $124.83 | $109.37 | $80.67 | $66.01 | $86.15 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | (.16) | (.02) | (.72) | .09 | (.16) |
| Net gain (loss) on investments (realized and unrealized) | (42.05) | 23.27 | 32.30 | 14.60 | (16.55) |
| Total from investment operations | (42.21) | 23.25 | 31.58 | 14.69 | (16.71) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  | (.14) |  |  |
| Net realized gains | (11.26) | (7.79) | (2.74) | (.03) | (3.43) |
| Total distributions | (11.26) | (7.79) | (2.88) | (.03) | (3.43) |
| Net asset value, end of period | $71.36 | $124.83 | $109.37 | $80.67 | $66.01 |
| **Total Return<sup>b</sup>** | **(35.03** **%)** | **22.17%** | **40.62%** | **22.24%** | **(20.05** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $3329 | $6872 | $7900 | $4723 | $4167 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | (0.17%) | (0.02%) | (0.86%) | 0.11% | (0.19%) |
| Total expenses | 1.77% | 1.70% | 1.82% | 1.83% | 1.72% |
| Portfolio turnover rate | 343% | 326% | 373% | 277% | 237% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

128 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**UTILITIES FUND** 

**OBJECTIVE:** Seeks to provide capital appreciation by investing in companies that operate public utilities ("Utilities Companies").

For the Reporting Period, Utilities Fund returned 1.04%, compared with a return of -18.11% for the S&P 500 Index. The S&P 500 Utilities Index returned 1.57%.

The electric utilities industry was the largest contributor to return for the period, followed by the gas utilities industry and the multi-utilities industry. The water utilities industry was the leading detractor from return for the period, followed by the renewable electricity industry.

Constellation Energy Corp., PG&E Corp., and Sempra Energy were the best-performing holdings over the one-year period. Dominion Energy, Inc., NextEra Energy, Inc., and American Water Works Company, Inc. were the main detractors.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-5_129.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** May 2, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| NextEra Energy, Inc. | 5.8% |
| Duke Energy Corp. | 4.1% |
| Southern Co. | 4.1% |
| Dominion Energy, Inc. | 3.5% |
| Sempra Energy | 3.2% |
| American Electric Power Company, Inc. | 3.1% |
| Exelon Corp. | 3.1% |
| Xcel Energy, Inc. | 2.9% |
| PG&E Corp. | 2.7% |
| Consolidated Edison, Inc. | 2.7% |
| Top Ten Total | 35.2% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 129

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-5_130.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Utilities Fund  | 1.04%  | 6.28%  | 8.52%  |
| S&P 500 Utilities Index  | 1.57%  | 9.58%  | 11.09%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P Utilities Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

130 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **UTILITIES FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.1%** | **COMMON STOCKS<sup>†</sup>** **- 99.1%** | **COMMON STOCKS<sup>†</sup>** **- 99.1%** |
| **Electric - 84.2%** | **Electric - 84.2%** | **Electric - 84.2%** |
| &nbsp;&nbsp;&nbsp;NextEra Energy, Inc. | 11982 | $1001695 |
| &nbsp;&nbsp;&nbsp;Duke Energy Corp. | 6907 | 711352 |
| &nbsp;&nbsp;&nbsp;Southern Co. | 9828 | 701817 |
| &nbsp;&nbsp;&nbsp;Dominion Energy, Inc. | 9658 | 592229 |
| &nbsp;&nbsp;&nbsp;Sempra Energy | 3530 | 545526 |
| &nbsp;&nbsp;&nbsp;American Electric Power Company, Inc. | 5668 | 538177 |
| &nbsp;&nbsp;&nbsp;Exelon Corp. | 12162 | 525763 |
| &nbsp;&nbsp;&nbsp;Xcel Energy, Inc. | 6991 | 490139 |
| &nbsp;&nbsp;&nbsp;PG&E Corp.\* | 28748 | 467442 |
| &nbsp;&nbsp;&nbsp;Consolidated Edison, Inc. | 4785 | 456058 |
| &nbsp;&nbsp;&nbsp;Public Service Enterprise Group, Inc. | 7295 | 446965 |
| &nbsp;&nbsp;&nbsp;WEC Energy Group, Inc. | 4554 | 426983 |
| &nbsp;&nbsp;&nbsp;Eversource Energy | 5068 | 424901 |
| &nbsp;&nbsp;&nbsp;Constellation Energy Corp. | 4776 | 411739 |
| &nbsp;&nbsp;&nbsp;FirstEnergy Corp. | 9212 | 386351 |
| &nbsp;&nbsp;&nbsp;Edison International | 6049 | 384837 |
| &nbsp;&nbsp;&nbsp;Ameren Corp. | 4293 | 381734 |
| &nbsp;&nbsp;&nbsp;DTE Energy Co. | 3182 | 373980 |
| &nbsp;&nbsp;&nbsp;PPL Corp. | 12644 | 369458 |
| &nbsp;&nbsp;&nbsp;Entergy Corp. | 3283 | 369338 |
| &nbsp;&nbsp;&nbsp;AES Corp. | 12292 | 353518 |
| &nbsp;&nbsp;&nbsp;CenterPoint Energy, Inc. | 11429 | 342756 |
| &nbsp;&nbsp;&nbsp;CMS Energy Corp. | 5345 | 338499 |
| &nbsp;&nbsp;&nbsp;Avangrid, Inc. | 7598 | 326562 |
| &nbsp;&nbsp;&nbsp;Evergy, Inc. | 4687 | 294953 |
| &nbsp;&nbsp;&nbsp;Alliant Energy Corp. | 5309 | 293110 |
| &nbsp;&nbsp;&nbsp;Vistra Corp. | 10362 | 240398 |
| &nbsp;&nbsp;&nbsp;NRG Energy, Inc. | 7452 | 237123 |
| &nbsp;&nbsp;&nbsp;Pinnacle West Capital Corp. | 3025 | 230021 |
| &nbsp;&nbsp;&nbsp;OGE Energy Corp. | 5579 | 220649 |
| &nbsp;&nbsp;&nbsp;Clearway Energy, Inc. — Class C | 6306 | 200972 |
| &nbsp;&nbsp;&nbsp;IDACORP, Inc. | 1721 | 185610 |
| &nbsp;&nbsp;&nbsp;Portland General Electric Co. | 3599 | 176351 |
| &nbsp;&nbsp;&nbsp;Ormat Technologies, Inc. | 2022 | 174863 |
| &nbsp;&nbsp;&nbsp;Hawaiian Electric Industries, Inc. | 4118 | 172338 |
| &nbsp;&nbsp;&nbsp;Black Hills Corp. | 2423 | 170434 |
| &nbsp;&nbsp;&nbsp;PNM Resources, Inc. | 3320 | 161983 |
| &nbsp;&nbsp;&nbsp;NorthWestern Corp. | 2483 | 147341 |
| &nbsp;&nbsp;&nbsp;Avista Corp. | 3259 | 144504 |
| **Total Electric** |  | 14418469 |
| **Gas - 10.3%** | **Gas - 10.3%** | **Gas - 10.3%** |
| &nbsp;&nbsp;&nbsp;Atmos Energy Corp. | 2734 | 306399 |
| &nbsp;&nbsp;&nbsp;NiSource, Inc. | 9571 | 262437 |
| &nbsp;&nbsp;&nbsp;UGI Corp. | 5873 | 217712 |
| &nbsp;&nbsp;&nbsp;National Fuel Gas Co. | 3066 | 194078 |
| &nbsp;&nbsp;&nbsp;New Jersey Resources Corp. | 3457 | 171536 |
| &nbsp;&nbsp;&nbsp;South Jersey Industries, Inc. | 4605 | 163616 |
| &nbsp;&nbsp;&nbsp;ONE Gas, Inc. | 2052 | 155377 |
| &nbsp;&nbsp;&nbsp;Spire, Inc. | 2192 | 150941 |
| &nbsp;&nbsp;&nbsp;Southwest Gas Holdings, Inc. | 2411 | 149193 |
| **Total Gas** |  | 1771289 |
| **Water - 4.0%** | **Water - 4.0%** | **Water - 4.0%** |
| &nbsp;&nbsp;&nbsp;American Water Works Company, Inc. | 2705 | 412296 |
| &nbsp;&nbsp;&nbsp;Essential Utilities, Inc. | 5846 | 279030 |
| **Total Water** |  | 691326 |
| **Energy-Alternate Sources - 0.6%** | **Energy-Alternate Sources - 0.6%** | **Energy-Alternate Sources - 0.6%** |
| &nbsp;&nbsp;&nbsp;Sunnova Energy International, Inc.\* | 6148 | 110726 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $9,891,278) |  | 16991810 |
|  | **Face<br> Amount** |  |
| **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 1.0%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 1.0%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 1.0%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | $95407 | 95407 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 36695 | 36695 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 36581 | 36581 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $168,683) |  | 168683 |
| **Total Investments - 100.1%** | **Total Investments - 100.1%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $10,059,961) | &nbsp;&nbsp;&nbsp;(Cost $10,059,961) | $17160493 |
| **Other Assets & Liabilities, net - (0.1)%** | **Other Assets & Liabilities, net - (0.1)%** | (23897) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $17136596 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 131

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **UTILITIES FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $16991810 | $— | $— | $16991810 |
| Repurchase Agreements |  | 168683 |  | 168683 |
| Total Assets | $16991810 | $168683 | $— | $17160493 |

---

132 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**UTILITIES FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value (cost $9,891,278) | $16991810 |
| Repurchase agreements, at value (cost $168,683) | 168683 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 28454 |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 16362 |
| &nbsp;&nbsp;&nbsp;Interest | 40 |
| **Total assets** | 17205349 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Professional Fees | 27941 |
| &nbsp;&nbsp;&nbsp;Management fees | 11911 |
| &nbsp;&nbsp;&nbsp;Printing Fees | 7450 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 6352 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 3503 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 2215 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 2172 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 234 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 6975 |
| **Total liabilities** | 68753 |
| **Net assets** | $17136596 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $18502206 |
| Total distributable earnings (loss) | (1365610) |
| Net assets | $17136596 |
| Capital shares outstanding | 494599 |
| Net asset value per share | $34.65 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends | $511050 |
| Interest | 2129 |
| Income from securities lending, net | 51 |
| &nbsp;&nbsp;&nbsp;Total investment income | 513230 |
| **Expenses:** | **Expenses:** |
| Management fees | 167652 |
| Investor service fees | 49309 |
| Transfer agent fees | 49722 |
| Portfolio accounting and administration fees | 25962 |
| Professional fees | 32341 |
| Custodian fees | 2937 |
| Trustees' fees\* | 2158 |
| Line of credit fees | 154 |
| Miscellaneous | 18630 |
| &nbsp;&nbsp;&nbsp;Total expenses | 348865 |
| Net investment income | 164365 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | (7415230) |
| Net realized loss | (7415230) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | 150803 |
| Net change in unrealized appreciation (depreciation) | 150803 |
| Net realized and unrealized loss | (7264427) |
| **Net decrease in net assets resulting from operations** | $(7100062) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 133

**UTILITIES FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income | $164365 | $149399 |
| Net realized gain (loss) on investments | (7415230) | 611686 |
| Net change in unrealized appreciation (depreciation) on investments | 150803 | 696275 |
| Net increase (decrease) in net assets resulting from operations | (7100062) | 1457360 |
| Distributions to shareholders | (247060) | (183488) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 90927663 | 15145146 |
| Distributions reinvested | 247060 | 183488 |
| Cost of shares redeemed | (80135234) | (14959733) |
| Net increase from capital share transactions | 11039489 | 368901 |
| Net increase in net assets | 3692367 | 1642773 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 13444229 | 11801456 |
| &nbsp;&nbsp;&nbsp;End of year | $17136596 | $13444229 |
| **Capital share activity:** |  |  |
| Shares sold | 2552843 | 464990 |
| Shares issued from reinvestment of distributions | 7331 | 5730 |
| Shares redeemed | (2451249) | (466596) |
| Net increase in shares | 108925 | 4124 |

---

134 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**UTILITIES FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $34.86 | $30.93 | $33.76 | $28.43 | $27.97 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .29 | .43 | .41 | .39 | .43 |
| Net gain (loss) on investments (realized and unrealized) | .07 | 4.02 | (2.20) | 5.01 | .62 <sup>c</sup> |
| Total from investment operations | .36 | 4.45 | (1.79) | 5.40 | 1.05 |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (.31) | (.52) | (.55) | (.07) | (.46) |
| Net realized gains | (.26) |  | (.49) |  | (.13) |
| Total distributions | (.57) | (.52) | (1.04) | (.07) | (.59) |
| Net asset value, end of period | $34.65 | $34.86 | $30.93 | $33.76 | $28.43 |
| **Total Return<sup>b</sup>** | **1.04%** | **14.52%** | **(5.13** **%)** | **19.01%** | **3.78%** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $17137 | $13444 | $11801 | $16035 | $19320 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.83% | 1.32% | 1.34% | 1.22% | 1.54% |
| Total expenses | 1.77% | 1.69% | 1.82% | 1.82% | 1.73% |
| Portfolio turnover rate | 387% | 110% | 151% | 144% | 299% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> The amount shown for a share outstanding throughout the period does not agree with the aggregate net loss on investments for the year because of the sale and repurchase of fund shares in relation to fluctuating market value of investments of the Fund.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 135

**NOTES TO FINANCIAL STATEMENTS** <br>

**Note 1 – Organization and Significant Accounting Policies** 

**Organization** 

The Rydex Variable Trust (the "Trust"), a Delaware statutory trust, is registered with the U.S. Securities and Exchange Commission (the "SEC") under the Investment Company Act of 1940 ("1940 Act"), as an open-ended investment company of the series type. Each series, in effect, is representing a separate fund (each, a "Fund"). The Trust may issue an unlimited number of authorized shares. The Trust accounts for the assets of each Fund separately. At December 31, 2022, the Trust consisted of forty-nine Funds. The Trust offers shares of the Funds to insurance companies for their variable annuity and variable life insurance contracts.

This report covers the following funds (collectively, the "Funds"):

---

| | |
|:---|:---|
| **Fund Name** | **Investment<br> Company Type** |
| Banking Fund | Diversified |
| Basic Materials Fund | Diversified |
| Biotechnology Fund | Non-diversified |
| Consumer Products Fund | Diversified |
| Electronics Fund | Non-diversified |
| Energy Fund | Diversified |
| Energy Services Fund | Non-diversified |
| Financial Services Fund | Diversified |
| Health Care Fund | Diversified |
| Internet Fund | Diversified |
| Leisure Fund | Diversified |
| Precious Metals Fund | Non-diversified |
| Real Estate Fund | Diversified |
| Retailing Fund | Diversified |
| Technology Fund | Diversified |
| Telecommunications Fund | Non-diversified |
| Transportation Fund | Diversified |
| Utilities Fund | Diversified |

---

The Funds invest in a specific industry sector. To the extent that investments are concentrated in a single sector, the Funds are subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting such sector.

The Funds seek capital appreciation and invest substantially all of their assets in equity securities of companies involved in their sector.

The Funds are designed and operated to accommodate frequent trading by shareholders and, unlike most mutual funds, offer unlimited exchange privileges with no minimum holding periods or transactions fees, which may cause the Funds to experience high portfolio turnover.

Security Investors, LLC (the "Adviser"), which operates under the name Guggenheim Investments ("GI"), provides advisory services. Guggenheim Funds Distributors, LLC ("GFD") acts as principal underwriter for the Trust. GI and GFD are affiliated entities.

**Significant Accounting Policies** 

The Funds operate as investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All time references are based on Eastern Time.

The net asset value per share ("NAV") of each Fund is calculated by dividing the market value of the Fund's securities and other assets, less all liabilities, by the number of outstanding shares of that Fund.

**(a) Valuation of Investments** 

The Board of Trustees of the Funds (the "Board") has adopted policies and procedures for the valuation of the Funds' investments (the "Valuation Procedures"). The SEC adopted Rule 2a-5 under the 1940 Act ("Rule 2a-5") which establishes requirements for determining fair value in good faith and became effective September 8, 2022. Rule 2a-5 also defines "readily available market quotations" for purposes of the 1940 Act and establishes requirements for determining whether a fund must fair value a security in good faith.

Pursuant to Rule 2a-5, the Board has designated the Adviser as the valuation designee to perform fair valuation determinations for the Funds with respect to all Fund investments and other assets. As the Funds' valuation designee pursuant to Rule 2a-5, the Adviser has adopted separate procedures (the "Valuation Designee Procedures") reasonably designed to prevent violations of the requirements of Rule 2a-5 and Rule 31a-4. The Adviser, in its role as valuation designee, utilizes the assistance of a valuation committee, consisting of representatives from Guggenheim's investment management, fund administration, legal and compliance departments (the "Valuation Committee"), in determining the fair value of the Funds' securities and/or other assets.

136 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

Valuations of the Funds' securities and other assets are supplied primarily by pricing services appointed pursuant to the processes set forth in the Valuation Procedures. The Adviser, with the assistance of the Valuation Committee, convenes monthly, or more frequently as needed, to review the valuation of all assets which have been fair valued for reasonableness. The Adviser, consistent with the monitoring and review responsibilities set forth in the Valuation Designee Procedures, regularly reviews the appropriateness of the inputs, methods, models and assumptions employed by the pricing services.

If the pricing service cannot or does not provide a valuation for a particular investment or such valuation is deemed unreliable, the investment is fair valued by the Adviser.

Equity securities listed or traded on a recognized U.S. securities exchange or the National Association of Securities Dealers Automated Quotations ("NASDAQ") National Market System shall generally be valued on the basis of the last sale price on the primary U.S. exchange or market on which the security is listed or traded; provided, however, that securities listed on NASDAQ will be valued at the NASDAQ official closing price, which may not necessarily represent the last sale price.

Open-end investment companies are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds and closed-end investment companies are generally valued at the last quoted sale price.

Repurchase agreements are generally valued at amortized cost, provided such amounts approximate market value.

Investments for which market quotations are not readily available are fair valued as determined in good faith by the Adviser. Valuations in accordance with these methods are intended to reflect each security's (or asset's or liability's) "fair value". Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over U.S. Treasury securities, and other information analysis.

**(b) Currency Translations** 

The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at prevailing exchange rates. Purchases and sales of investment securities, dividend and interest income, and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Funds. Foreign investments may also subject the Funds to foreign government exchange restrictions, expropriation, taxation, or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments.

The Funds do not isolate that portion of the results of operations resulting from changes in the foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized gain or loss and unrealized appreciation or depreciation on investments.

Reported net realized foreign exchange gains and losses arise from sales of foreign currencies and currency gains or losses realized between the trade and settlement dates on investment transactions. Net unrealized appreciation and depreciation arise from changes in the fair values of assets and liabilities other than investments in securities at the fiscal period end, resulting from changes in exchange rates.

**(c) Foreign Taxes** 

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and reflected in the Funds' Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income and foreign taxes on capital gains from sales of investments are included with the net realized gain (loss) on investments. Foreign taxes payable or deferred as of December 31, 2022, if any, are disclosed in the Funds' Statements of Assets and Liabilities.

**(d) Security Transactions** 

Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as a reduction to cost if the securities are still held and as realized gains if no longer held in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries, if any. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from Real Estate Investment Trusts ("REITs") is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when

THE RYDEX FUNDS ANNUAL REPORT \| 137

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to realized gains. The actual amounts of income, return of capital, and realized gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

**(e) Distributions** 

Distributions of net investment income and net realized gains, if any, are declared and paid at least annually. Normally, all distributions of a Fund will automatically be reinvested without charge in additional shares of the same Fund. Distributions are recorded on the ex-dividend date and are determined in accordance with U.S. federal income tax regulations which may differ from U.S. GAAP.

**(f) Cash** 

The Funds may leave cash overnight in their cash account with the custodian. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate, which was 4.33% at December 31, 2022.

**(g) Indemnifications** 

Under the Funds' organizational documents, the Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

**Note 2 – Investment Advisory Agreement and Other Agreements** 

Under the terms of an investment advisory contract, the Funds pay GI investment advisory fees calculated at the annualized rates below, based on the average daily net assets of the Funds:

---

| | |
|:---|:---|
| **Fund** | **Management Fees<br> (as a % of Net Assets)** |
| Banking Fund | 0.85% |
| Basic Materials Fund | 0.85% |
| Biotechnology Fund | 0.85% |
| Consumer Products Fund | 0.85% |
| Electronics Fund | 0.85% |
| Energy Fund | 0.85% |
| Energy Services Fund | 0.85% |
| Financial Services Fund | 0.85% |
| Health Care Fund | 0.85% |
| Internet Fund | 0.85% |
| Leisure Fund | 0.85% |
| Precious Metals Fund | 0.75% |
| Real Estate Fund | 0.85% |
| Retailing Fund | 0.85% |
| Technology Fund | 0.85% |
| Telecommunications Fund | 0.85% |
| Transportation Fund | 0.85% |
| Utilities Fund | 0.85% |

---

GI pays operating expenses on behalf of the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, among others, on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

The Board has adopted an Investor Services Plan under which GFD and other firms that provide investor services ("Service Providers") may receive compensation. The Funds will pay investor service fees to GFD at an annual rate not to exceed 0.25% of average daily net assets. GFD, in turn, will compensate Service Providers for providing such services, while retaining a portion of such payments to compensate itself for investor services it performs.

Certain trustees and officers of the Trust are also officers of GI and/or GFD. The Trust does not compensate its officers or trustees who are officers, directors and/or employees of GI or GFD.

MUFG Investor Services (US), LLC ("MUIS") acts as the Funds' administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS maintains the books and records of the Funds' securities and cash. U.S. Bank, N.A. ("U.S. Bank") acts as the Funds' custodian. As custodian, U.S. Bank is responsible for the custody of the Funds' assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of each Fund's average daily net assets and out of pocket expenses.

138 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

**Note 3 – Federal Income Tax Information** 

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"), applicable to regulated investment companies and will distribute substantially all taxable net investment income and capital gains sufficient to relieve the Funds from all, or substantially all, federal income, excise and state income taxes. Therefore, no provision for federal or state income tax or federal excise tax is required.

Tax positions taken or expected to be taken in the course of preparing the Funds' tax returns are evaluated to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds' tax positions taken, or to be taken, on U.S. federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Funds' financial statements. The Funds' U.S. federal income tax returns are subject to examination by the Internal Revenue Service ("IRS") for a period of three years after they are filed.

The tax character of distributions paid during the year ended December 31, 2022 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Fund** | **Ordinary <br> Income**  | **Long-Term<br> Capital Gain** | **Total <br> Distributions** |
| Banking Fund | $65582 | $— | $65582 |
| Basic Materials Fund | 211818 |  | 211818 |
| Biotechnology Fund |  | 1396614 | 1396614 |
| Consumer Products Fund | 253942 | 576959 | 830901 |
| Electronics Fund | 326501 | 45380 | 371881 |
| Energy Fund | 270279 |  | 270279 |
| Financial Services Fund | 927317 | 111511 | 1038828 |
| Health Care Fund | 325376 | 674197 | 999573 |
| Internet Fund |  | 1179293 | 1179293 |
| Precious Metals Fund | 93847 |  | 93847 |
| Real Estate Fund | 328350 | 90656 | 419006 |
| Retailing Fund | 104064 |  | 104064 |
| Technology Fund | 346875 | 973004 | 1319879 |
| Telecommunications Fund | 20013 |  | 20013 |
| Transportation Fund | 439796 |  | 439796 |
| Utilities Fund | 137068 | 109992 | 247060 |

---

The tax character of distributions paid during the year ended December 31, 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Fund** | **Ordinary <br> Income**  | **Long-Term<br> Capital Gain** | **Total <br> Distributions** |
| Banking Fund | $53477 | $— | $53477 |
| Basic Materials Fund | 317591 |  | 317591 |
| Biotechnology Fund | 1075198 | 945154 | 2020352 |
| Consumer Products Fund | 128528 |  | 128528 |
| Electronics Fund | 362868 | 335106 | 697974 |
| Energy Fund | 124279 |  | 124279 |
| Energy Services Fund | 13358 |  | 13358 |
| Financial Services Fund | 97600 | 293514 | 391114 |
| Health Care Fund | 399429 | 793860 | 1193289 |
| Internet Fund | 932998 | 409954 | 1342952 |
| Leisure Fund | 176601 | 4858 | 181459 |
| Precious Metals Fund | 831432 |  | 831432 |
| Real Estate Fund | 81373 |  | 81373 |
| Retailing Fund | 443462 | 9031 | 452493 |
| Technology Fund | 796319 | 842469 | 1638788 |
| Telecommunications Fund | 21703 |  | 21703 |
| Transportation Fund | 355469 |  | 355469 |
| Utilities Fund | 183488 |  | 183488 |

---

THE RYDEX FUNDS ANNUAL REPORT \| 139

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

Note: For U.S. federal income tax purposes, short-term capital gain distributions are treated as ordinary income distributions.

The tax components of distributable earnings/(loss) as of December 31, 2022 were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Fund**  | **Undistributed <br> Ordinary <br> Income**  | **Undistributed <br> Long-Term <br> Capital Gain**  | **Net Unrealized <br> Appreciation<br> (Depreciation)** | **Accumulated<br> Capital and<br> Other Losses** | **Other <br> Temporary <br> Differences** | **Total** |
| Banking Fund | $51206 | $— | $697999 | $(508160) | $— | $241045 |
| Basic Materials Fund |  |  | 2526313 |  |  | 2526313 |
| Biotechnology Fund |  | 132244 | 5493990 |  |  | 5626234 |
| Consumer Products Fund | 145745 | 54334 | 4433120 |  |  | 4633199 |
| Electronics Fund |  | 745906 | 4164343 |  |  | 4910249 |
| Energy Fund | 882712 |  | 9600901 | (4058718) |  | 6424895 |
| Energy Services Fund |  |  | 1818238 | (10132289) |  | (8314051) |
| Financial Services Fund |  |  | 2726431 |  | 8136 | 2734567 |
| Health Care Fund | 14823 | 562511 | 7301252 |  |  | 7878586 |
| Internet Fund |  |  | 345324 | (85118) |  | 260206 |
| Leisure Fund |  |  | 683348 | (177098) |  | 506250 |
| Precious Metals Fund | 57952 |  | 575815 | (13941843) | (86192) | (13394268) |
| Real Estate Fund | 68848 | 190105 | 1168671 |  |  | 1427624 |
| Retailing Fund |  |  | 857598 | (687951) |  | 169647 |
| Technology Fund |  | 367393 | 6086199 |  |  | 6453592 |
| Telecommunications Fund | 18108 |  | (111485) | (523876) |  | (617253) |
| Transportation Fund |  |  | 1109185 | (407758) |  | 701427 |
| Utilities Fund | 180615 |  | 5294237 | (6840462) |  | (1365610) |

---

For U.S. federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward and applied against future capital gains. The Funds are permitted to carry forward capital losses for an unlimited period and such capital loss carryforwards retain their character as either short-term or long-term capital losses. As of December 31, 2022, capital loss carryforwards for the Funds were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Unlimited** | **Unlimited** | |
| <br>**Fund**  | **Short-Term** | **Long-Term** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total<br> Capital Loss** <br>**Carryforward** |
| Banking Fund | $(508160) | $— | $(508160) |
| Energy Fund |  | (4058718) | (4058718) |
| Energy Services Fund | (1685073) | (8447216) | (10132289) |
| Internet Fund | (85118) |  | (85118) |
| Leisure Fund | (177098) |  | (177098) |
| Precious Metals Fund | (4038816) | (9903027) | (13941843) |
| Retailing Fund | (687951) |  | (687951) |
| Telecommunications Fund | (386818) | (137058) | (523876) |
| Transportation Fund | (407758) |  | (407758) |
| Utilities Fund | (6775364) | (65098) | (6840462) |

---

For the year ended December 31, 2022, the following capital loss carryforward amounts were utilized:

---

| | |
|:---|:---|
| **Fund** | **Utilized** |
| Energy Fund | $4088301 |
| Precious Metals Fund | 608423 |

---

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to investments in real estate investment trusts, losses deferred due to wash sales, distributions in connection with redemption of fund shares, return of capital distributions received, and the "mark-to-market," recharacterization, or disposition of certain Passive Foreign Investment Companies (PFICs). Additional differences may result from the tax

140 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

treatment of net operating losses, foreign capital gains taxes, and corporate actions. To the extent these differences are permanent and would require a reclassification between Paid in Capital and Total Distributable Earnings (Loss), such reclassifications are made in the period that the differences arise. These reclassifications have no effect on net assets or NAV per share.

The following adjustments were made on the Statements of Assets and Liabilities as of December 31, 2022 for permanent book/tax differences:

---

| | | |
|:---|:---|:---|
| **Fund**  | **Paid In<br> Capital** | **Total<br> Distributable<br> Earnings/(Loss)** |
| Basic Materials Fund | $173665 | $(173665) |
| Biotechnology Fund | (114884) | 114884 |
| Consumer Products Fund | 849337 | (849337) |
| Electronics Fund | 608436 | (608436) |
| Energy Services Fund | (63133) | 63133 |
| Financial Services Fund | 449549 | (449549) |
| Health Care Fund | 1218878 | (1218878) |
| Internet Fund | (91979) | 91979 |
| Leisure Fund | (19713) | 19713 |
| Real Estate Fund | 535804 | (535804) |
| Retailing Fund | (27165) | 27165 |
| Technology Fund | 1030889 | (1030889) |
| Transportation Fund | (7922) | 7922 |
| Utilities Fund | (10694) | 10694 |

---

At December 31, 2022, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund**  | **Tax<br> Cost** | **Tax<br> Unrealized<br> Appreciation** | **Tax<br> Unrealized<br> Depreciation** | **Net Tax Unrealized<br> Appreciation/<br> (Depreciation)** |
| Banking Fund | $2966026 | $727633 | $(29634) | $697999 |
| Basic Materials Fund | 5509947 | 2611215 | (84902) | 2526313 |
| Biotechnology Fund | 11135055 | 6410321 | (916331) | 5493990 |
| Consumer Products Fund | 8421756 | 4574237 | (141117) | 4433120 |
| Electronics Fund | 6875140 | 4235002 | (70659) | 4164343 |
| Energy Fund | 13954338 | 9688152 | (87251) | 9600901 |
| Energy Services Fund | 15812193 | 1832648 | (14410) | 1818238 |
| Financial Services Fund | 7512160 | 2983996 | (257565) | 2726431 |
| Health Care Fund | 10206487 | 7507735 | (206483) | 7301252 |
| Internet Fund | 4158200 | 1289369 | (944045) | 345324 |
| Leisure Fund | 3109420 | 943622 | (260274) | 683348 |
| Precious Metals Fund | 24940200 | 787228 | (211413) | 575815 |
| Real Estate Fund | 3590536 | 1377372 | (208701) | 1168671 |
| Retailing Fund | 2431157 | 942896 | (85298) | 857598 |
| Technology Fund | 9501411 | 6852791 | (766592) | 6086199 |
| Telecommunications Fund | 2186556 | 169531 | (281016) | (111485) |
| Transportation Fund | 2378673 | 1352660 | (243475) | 1109185 |
| Utilities Fund | 11866256 | 5350972 | (56735) | 5294237 |

---

THE RYDEX FUNDS ANNUAL REPORT \| 141

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

**Note 4 – Fair Value Measurement** 

In accordance with U.S. GAAP, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a three-tier fair value hierarchy based on the types of inputs used to value assets and liabilities and requires corresponding disclosure. U.S. GAAP establishes a three-tier fair value hierarchy based on the types of inputs used to value assets and liabilities and requires corresponding disclosure. The hierarchy and the corresponding inputs are summarized below:

Level 1 — unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 — significant other observable inputs (for example quoted prices for securities that are similar based on characteristics such as interest rates, prepayment speeds, credit risk, etc.).

Level 3 — significant unobservable inputs based on the best information available under the circumstances, to the extent observable inputs are not available, which may include assumptions.

Rule 2a-5 sets forth a definition of "readily available market quotations," which is consistent with the definition of a Level 1 input under U.S. GAAP. Rule 2a-5 provides that "a market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable."

Securities for which market quotations are not readily available must be valued at fair value as determined in good faith. Accordingly, any security priced using inputs other than Level 1 inputs will be subject to fair value requirements. The types of inputs available depend on a variety of factors, such as the type of security and the characteristics of the markets in which it trades, if any. Fair valuation determinations that rely on fewer or no observable inputs require greater judgment. Accordingly, fair value determinations for Level 3 securities require the greatest amount of judgment.

The inputs or methodologies selected and applied for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The suitability, appropriateness and accuracy of the techniques, methodologies and sources employed to determine fair valuation are periodically reviewed and subject to change.

**Note 5 – Securities Transactions** 

For the year ended December 31, 2022, the cost of purchases and proceeds from sales of investment securities, excluding short-term investments, were as follows:

---

| | | |
|:---|:---|:---|
| **Fund** | **Purchases** | **Sales** |
| Banking Fund | $19925396 | $21514626 |
| Basic Materials Fund | 17459527 | 17223083 |
| Biotechnology Fund | 18877002 | 22134209 |
| Consumer Products Fund | 19878155 | 22076962 |
| Electronics Fund | 11468551 | 12584964 |
| Energy Fund | 108127292 | 110971337 |
| Energy Services Fund | 39360967 | 33051610 |
| Financial Services Fund | 13466103 | 18152406 |
| Health Care Fund | 29561607 | 33059096 |
| Internet Fund | 3225690 | 4161729 |
| Leisure Fund | 4536039 | 5212348 |
| Precious Metals Fund | 44732006 | 37710110 |
| Real Estate Fund | 10965717 | 17766744 |
| Retailing Fund | 7643800 | 9497523 |
| Technology Fund | 14734299 | 20153360 |
| Telecommunications Fund | 3114889 | 6949338 |
| Transportation Fund | 15566902 | 16513446 |
| Utilities Fund | 86481874 | 75547003 |

---

142 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the year ended December 31, 2022, the Funds engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Fund** | **Purchases** | **Sales** | **Realized Gain (Loss)** |
| Banking Fund | $3642148 | $2112871 | $31163 |
| Basic Materials Fund | 3005839 | 1831177 | 10352 |
| Biotechnology Fund | 2157636 | 1297421 | (40286) |
| Consumer Products Fund | 3140785 | 2143245 | 22831 |
| Electronics Fund | 1790298 | 3020112 | 280952 |
| Energy Fund | 16708554 | 11196005 | 58534 |
| Energy Services Fund | 7197941 | 3459883 | 345034 |
| Financial Services Fund | 2575073 | 2417807 | 47403 |
| Health Care Fund | 4879827 | 3294551 | 29392 |
| Internet Fund | 564040 | 404676 | (434) |
| Leisure Fund | 592698 | 780228 | (45189) |
| Precious Metals Fund | 5828278 | 2821218 | (23295) |
| Real Estate Fund | 950563 | 1753814 | 120555 |
| Retailing Fund | 977585 | 1078021 | 28846 |
| Technology Fund | 1736270 | 852610 | 73215 |
| Telecommunications Fund | 349521 | 788222 | (39727) |
| Transportation Fund | 976474 | 701750 | 8173 |
| Utilities Fund | 11019845 | 4691480 | (228089) |

---

**Note 6 – Repurchase Agreements** 

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The joint account includes other Funds in the Guggenheim complex not covered in this report. The collateral is in the possession of the Funds' custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At December 31, 2022, the repurchase agreements in the joint account were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Counterparty and <br> Terms of Agreement** | **Face Value** | **Repurchase Price** | **Collateral** | **Par Value** | **Fair Value** |
| J.P. Morgan Securities LLC |  |  | U.S. Treasury Note |  |  |
| &nbsp;&nbsp;4.26% |  |  | &nbsp;&nbsp;2.25% |  |  |
| &nbsp;&nbsp;Due 01/03/23 | $60091722 | $60113055 | &nbsp;&nbsp;Due 11/15/24 | $63635200 | $61293613 |
| BofA Securities, Inc. |  |  | U.S. Treasury Note |  |  |
| &nbsp;&nbsp;4.25% |  |  | &nbsp;&nbsp;0.75% |  |  |
| &nbsp;&nbsp;Due 01/03/23 | 23112201 | 23120387 | &nbsp;&nbsp;Due 04/30/26 | 26301500 | 23574458 |
| Barclays Capital, Inc. |  |  | U.S. Treasury Inflation Indexed Bond |  |  |
| &nbsp;&nbsp;4.21% |  |  | &nbsp;&nbsp;0.13% |  |  |
| &nbsp;&nbsp;Due 01/03/23 | 23040622 | 23048705 | &nbsp;&nbsp;Due 01/15/31 | 26575915 | 23501502 |

---

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

THE RYDEX FUNDS ANNUAL REPORT \| 143

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

**Note 7 – Portfolio Securities Loaned** 

The Funds may lend their securities to approved brokers to earn additional income. Securities lending income shown on the Funds' Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds' securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund — Class X. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

At December 31, 2022, the Funds participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Gross Amounts Not Offset in the <br> Statements of Assets and Liabilities** | **Gross Amounts Not Offset in the <br> Statements of Assets and Liabilities** | **Gross Amounts Not Offset in the <br> Statements of Assets and Liabilities** | **Securities Lending Collateral** | **Securities Lending Collateral** | **Securities Lending Collateral** |
| <br>**Fund** | **Value of <br> Securities<br> Loaned** | **Collateral<br> Received<sup>(a)</sup>** | **Net<br> Amount** | **Cash<br> Collateral<br> Invested** | **Cash<br> Collateral<br> Uninvested** | **Total<br> Collateral** |
| Banking Fund | $6455 | $(6347) | $108 | $6347 \* | $— | $6347 |
| Biotechnology Fund | 27592 | (27008) | 584 | 27008 \* |  | 27008 |
| Consumer Products Fund | 24103 | (24103) |  | 25121 |  | 25121 |
| Electronics Fund | 186244 | (186244) |  | 191273 |  | 191273 |
| Financial Services Fund | 41711 | (41711) |  | 42092 |  | 42092 |
| Health Care Fund | 14454 | (14148) | 306 | 14148 \* |  | 14148 |
| Internet Fund | 56588 | (56588) |  | 59565 |  | 59565 |
| Leisure Fund | 44553 | (44553) |  | 46890 |  | 46890 |
| Precious Metals Fund | 336065 | (336065) |  | 357007 |  | 357007 |
| Retailing Fund | 54452 | (54452) |  | 56406 |  | 56406 |
| Technology Fund | 66543 | (66543) |  | 67938 |  | 67938 |
| Telecommunications Fund | 19017 | (18793) | 224 | 18793 \* |  | 18793 |
| Transportation Fund | 141545 | (141545) |  | 146482 |  | 146482 |

---

<sup>(a)</sup> Actual collateral received by the Fund is generally greater than the amount shown due to overcollateralization.

\* Subsequent to December 31, 2022, additional collateral was received.

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers to evaluate potential risks.

**Note 8 – Line of Credit** 

The Trust, along with other affiliated trusts, secured an uncommitted $150,000,000 line of credit from U.S. Bank, N.A., which was increased to $200,000,000 on February 10, 2021. On June 6, 2022, the line of credit agreement was renewed and expires on June 5, 2023. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 2.82% for the year ended December 31, 2022. The Funds did not have any borrowings outstanding under this agreement at December 31, 2022.

144 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (concluded)<br>

The average daily balances borrowed for the year ended December 31, 2022, were as follows:

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| | |
|:---|:---|
| **Fund** | **Average Daily Balance** |
| Banking Fund | $195 |
| Basic Materials Fund | 444 |
| Biotechnology Fund | 1830 |
| Consumer Products Fund | 1636 |
| Electronics Fund | 110 |
| Energy Fund | 17474 |
| Energy Services Fund | 1622 |
| Financial Services Fund | 1556 |
| Health Care Fund | 1860 |
| Internet Fund | 211 |
| Precious Metals Fund | 1353 |
| Real Estate Fund | 1403 |
| Technology Fund | 836 |
| Telecommunications Fund | 44 |
| Transportation Fund | 36 |
| Utilities Fund | 3666 |

---

**Note 9 – Market Risks** 

The value of, or income generated by, the investments held by the Funds are subject to the possibility of rapid and unpredictable fluctuation, and loss that may result from various factors. These factors include, among others, developments affecting individual companies, or from broader influences, including real or perceived changes in prevailing interest rates (which have since risen and may continue to rise), changes in inflation rates or expectations about inflation rates (which are currently elevated relative to normal conditions), adverse investor confidence or sentiment, changing economic, political (including geopolitical), social or financial market conditions, increased instability or general uncertainty, environmental disasters, governmental actions, public health emergencies (such as the spread of infectious diseases, pandemics and epidemics), debt crises, actual or threatened wars or other armed conflicts (such as the current Russia-Ukraine conflict and its risk of expansion or collateral economic and other effects) or ratings downgrades, and other similar events, each of which may be temporary or last for extended period. Moreover, changing economic, political, geopolitical, social, financial market or other conditions in one country or geographic region could adversely affect the value, yield and return of the investments held by the Funds in a different country or geographic region, economy, and market because of the increasingly interconnected global economies and financial markets. The duration and extent of the foregoing types of factors or conditions are highly uncertain and difficult to predict and have in the past, and may in the future, cause volatility and distress in economies and financial markets or other adverse circumstances, which may negatively affect the value of the Funds' investments and performance of the Funds.

**Note 10 – Subsequent Events** 

The Funds evaluated subsequent events through the date the financial statements were available for issue and determined there were no material events that would require adjustment to or disclosure in the Funds' financial statements.

THE RYDEX FUNDS ANNUAL REPORT \| 145

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** <br>

To the Shareholders of Banking Fund, Basic Materials Fund, Biotechnology Fund, Consumer Products Fund, Electronics Fund, Energy Fund, Energy Services Fund, Financial Services Fund, Health Care Fund, Internet Fund, Leisure Fund, Precious Metals Fund, Real Estate Fund, Retailing Fund, Technology Fund, Telecommunications Fund, Transportation Fund and Utilities Fund and the Board of Trustees of Rydex Variable Trust

**Opinion on the Financial Statements** 

We have audited the accompanying statements of assets and liabilities of Banking Fund, Basic Materials Fund, Biotechnology Fund, Consumer Products Fund, Electronics Fund, Energy Fund, Energy Services Fund, Financial Services Fund, Health Care Fund, Internet Fund, Leisure Fund, Precious Metals Fund, Real Estate Fund, Retailing Fund, Technology Fund, Telecommunications Fund, Transportation Fund and Utilities Fund (collectively referred to as the "Funds"), (eighteen of the funds constituting Rydex Variable Trust (the "Trust")), including the schedules of investments, as of December 31, 2022, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (eighteen of the funds constituting Rydex Variable Trust) at December 31, 2022, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion** 

These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on each of the Funds' financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](fp0081230-5_146.jpg)

We have served as the auditor of one or more Guggenheim investment companies since 1979.

Tysons, Virginia<br> February 24, 2023

146 \| THE RYDEX FUNDS ANNUAL REPORT

**OTHER INFORMATION** (Unaudited)<br>

**Federal Income Tax Information** 

This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.

In January 2023, shareholders will be advised on IRS Form 1099 DIV or substitute 1099 DIV as to the federal tax status of the distributions received by shareholders in the calendar year 2022.

The Funds' investment income (dividend income plus short-term capital gains, if any) qualifies as follows:

Of the taxable ordinary income distributions paid during the fiscal year ended December 31, 2022, the following Funds had the corresponding percentages qualify for the dividends received deduction for corporations.

---

| | |
|:---|:---|
| **Fund** | **Dividend<br> Received<br> Deduction** |
| Banking Fund | 100.00% |
| Basic Materials Fund | 75.52% |
| Biotechnology Fund | 0.00% |
| Consumer Products Fund | 100.00% |
| Electronics Fund | 33.36% |
| Energy Fund | 100.00% |
| Energy Services Fund | 0.00% |
| Financial Services Fund | 26.43% |
| Health Care Fund | 60.19% |
| Internet Fund | 0.00% |
| Leisure Fund | 0.00% |
| Precious Metals Fund | 100.00% |
| Real Estate Fund | 5.90% |
| Retailing Fund | 39.12% |
| Technology Fund | 53.99% |
| Telecommunications Fund | 100.00% |
| Transportation Fund | 17.93% |
| Utilities Fund | 100.00% |

---

With respect to the taxable year ended December 31, 2022, the Funds hereby designate as capital gain dividends the amounts listed below, or, if subsequently determined to be different, the net capital gain of such year:

---

| | | |
|:---|:---|:---|
| **Fund**  | **From long-term <br> capital gain:** | **From long-term capital <br> gain, using proceeds <br> from shareholder <br> redemptions:** |
| Basic Materials Fund | $— | $111709 |
| Biotechnology Fund | 1396614 |  |
| Consumer Products Fund | 576959 | 849337 |
| Electronics Fund | 45380 | 669491 |
| Financial Services Fund | 111511 | 359149 |
| Health Care Fund | 674197 | 1218878 |
| Internet Fund | 1179293 |  |
| Real Estate Fund | 90656 | 545282 |
| Technology Fund | 973004 | 745972 |
| Utilities Fund | 109992 |  |

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THE RYDEX FUNDS ANNUAL REPORT \| 147

**OTHER INFORMATION** (Unaudited)(concluded)<br>

**Delivery of Shareholder Reports** 

Paper copies of the Funds' annual and semi-annual shareholder reports are not sent by mail, unless you specifically request paper copies of the reports from a Fund or from your financial intermediary. Instead, the reports are made available on a website, and you are notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future shareholder reports in paper free of charge. If you hold shares of a Fund directly, you can inform the Fund that you wish to receive paper copies of reports by calling 800.820.0888. If you hold shares of a Fund through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive reports in paper may apply to all Guggenheim Funds in which you are invested and may apply to all Guggenheim Funds held with your financial intermediary.

**Proxy Voting Information** 

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds' portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC's website at https://www.sec.gov.

Information regarding how the Funds' voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC's website at https://www.sec.gov.

**Sector Classification** 

Information in the Schedule of Investments is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. Each Fund's registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Funds usually classify sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

**Quarterly Portfolio Schedules Information** 

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds' Forms N-PORT and N-Q are available on the SEC's website at https://www.sec.gov. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

148 \| THE RYDEX FUNDS ANNUAL REPORT

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited) <br>

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Funds' Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by visiting guggenheiminvestments.com or by calling 800.820.0888.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** | **Number of <br> Portfolios <br> in Fund <br> Complex <br> Overseen**  | **Other <br> Directorships Held <br> by Trustees\*\*\*** |
| **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** |  |  |  |
| **Randall C. Barnes** <br>(1951) | &nbsp;&nbsp;&nbsp;Trustee and Chair of the Valuation Oversight Committee | Since 2019 (Trustee) <br>Since 2020 (Chair of the Valuation Oversight Committee) | &nbsp;&nbsp;&nbsp;Current: Private Investor (2001-present). <br>Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990). | 155 | &nbsp;&nbsp;&nbsp;Current: Advent Convertible and Income Fund (2005-present); Purpose Investments Funds (2013-present). <br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2004-2022); Guggenheim Enhanced Equity Income Fund (2005-2021); Guggenheim Credit Allocation Fund (2013-2021). |
| **Angela Brock-Kyle** <br>(1959)  | &nbsp;&nbsp;&nbsp;Trustee | Since 2016 | &nbsp;&nbsp;&nbsp;Current: Founder and Chief Executive Officer, B.O.A.R.D.S. (2013-present); Director, Mutual Fund Directors Forum (2022-present). <br>Former: Senior Leader, TIAA (1987-2012). | 154 | &nbsp;&nbsp;&nbsp;Current: Bowhead Insurance GP, LLC (2020-present); Hunt Companies, Inc. (2019-present). <br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2019-2022); Guggenheim Enhanced Equity Income Fund (2019-2021); Guggenheim Credit Allocation Fund (2019-2021); Infinity Property & Casualty Corp. (2014-2018). |

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THE RYDEX FUNDS ANNUAL REPORT \| 149

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(continued)<br>

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** | **Number of <br> Portfolios <br> in Fund <br> Complex <br> Overseen**  | **Other <br> Directorships Held <br> by Trustees\*\*\*** |
| **Thomas F. Lydon, Jr.** <br>(1960) | &nbsp;&nbsp;&nbsp;Trustee and Chair of the Contracts Review Committee | Since 2005 (Trustee) <br>Since 2020 (Chair of the Contracts Review Committee) | &nbsp;&nbsp;&nbsp;Current: President, Global Trends Investments (1996-present); Chief Executive Officer, ETF Flows, LLC (2019-present); Chief Executive Officer, Lydon Media (2016-present); Director, GDX Index Partners, LLC (2021-present); Vice Chairman, VettaFi (2022-present). | 154 | &nbsp;&nbsp;&nbsp;Current: US Global Investors, Inc. (GROW) (1995-present). <br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2019-2022); Guggenheim Enhanced Equity Income Fund (2019-2021); Guggenheim Credit Allocation Fund (2019-2021); Harvest Volatility Edge Trust (3) (2017-2019). |
| **Ronald A. Nyberg** <br>(1953) | &nbsp;&nbsp;&nbsp;Trustee and Chair of the Nominating and Governance Committee | Since 2019 | &nbsp;&nbsp;&nbsp;Current: Of Counsel, Momkus LLP (2016-present). <br>Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999).  | 155 | &nbsp;&nbsp;&nbsp;Current: Advent Convertible and Income Fund (2003-present); PPM Funds (2) (2018-present); NorthShore-Edward-Elmhurst Health (2012-present). <br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2004-2022); Guggenheim Enhanced Equity Income Fund (2005-2021); Guggenheim Credit Allocation Fund (2013-2021); Western Asset Inflation-Linked Opportunities & Income Fund (2004-2020); Western Asset Inflation-Linked Income Fund (2003-2020). |

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150 \| THE RYDEX FUNDS ANNUAL REPORT

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(continued)<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** | **Number of <br> Portfolios <br> in Fund <br> Complex <br> Overseen**  | **Other <br> Directorships Held <br> by Trustees\*\*\*** |
| **INDEPENDENT TRUSTEES - concluded** | **INDEPENDENT TRUSTEES - concluded** | **INDEPENDENT TRUSTEES - concluded** | **INDEPENDENT TRUSTEES - concluded** |  |  |
| **Sandra G. Sponem** <br>(1958)  | &nbsp;&nbsp;&nbsp;Trustee and Chair of the Audit Committee | Since 2016 (Trustee) <br>Since 2019 (Chair of the Audit Committee) | &nbsp;&nbsp;&nbsp;Current: Retired. <br>Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson-Companies, Inc. (2007-2017). | 154 | &nbsp;&nbsp;&nbsp;Current: SPDR Series Trust (81) (2018-present); SPDR Index Shares Funds (30) (2018-present); SSGA Active Trust (14) (2018-present). <br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2019-2022); Guggenheim Enhanced Equity Income Fund (2019-2021); Guggenheim Credit Allocation Fund (2019-2021); SSGA Master Trust (1) (2018-2020). |
| **Ronald E. Toupin, Jr.** <br>(1958) | &nbsp;&nbsp;&nbsp;Trustee, Chair of the Board and Chair of the Executive Committee | Since 2019 | &nbsp;&nbsp;&nbsp;Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present). <br>Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999). | 154 | &nbsp;&nbsp;&nbsp;Former: Fiduciary/Claymore Energy Infrastructure Fund (2004-2022); Guggenheim Enhanced Equity Income Fund (2005-2021); Guggenheim Credit Allocation Fund (2013-2021); Western Asset Inflation-Linked Opportunities & Income Fund (2004-2020); Western Asset Inflation-Linked Income Fund (2003-2020). |

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THE RYDEX FUNDS ANNUAL REPORT \| 151

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(continued)<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** | **Number of <br> Portfolios <br> in Fund <br> Complex <br> Overseen**  | **Other <br> Directorships Held <br> by Trustees\*\*\*** |
| **INTERESTED TRUSTEE**  | **INTERESTED TRUSTEE**  |  |  |  |  |
| **Amy J. Lee\*\*\*\*** <br>(1961) | &nbsp;&nbsp;&nbsp;Trustee, Vice President and Chief Legal Officer | Since 2019 | &nbsp;&nbsp;&nbsp;Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present). <br>Former: President and Chief Executive Officer, certain other funds in the Fund Complex (2017-2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012). | 154 | &nbsp;&nbsp;&nbsp;Former: Fiduciary/Claymore Energy Infrastructure Fund (2018-2022); Guggenheim Enhanced Equity Income Fund (2018-2021); Guggenheim Credit Allocation Fund (2018-2021). |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The business address of each Trustee is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606. |
| \*\* | &nbsp;&nbsp;&nbsp;Each Trustee serves an indefinite term, until his or her successor is elected and qualified.  |
| \*\*\* | &nbsp;&nbsp;&nbsp;Each Trustee also serves on the Boards of Trustees of Guggenheim Funds Trust, Guggenheim Variable Funds Trust, Guggenheim Strategy Funds Trust, Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust, Guggenheim Strategic Opportunities Fund, Guggenheim Energy & Income Fund, Guggenheim Active Allocation Fund, Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust and Transparent Value Trust. Messrs. Barnes and Nyberg also serve on the Board of Trustees of Advent Convertible & Income Fund. |
| \*\*\*\* | &nbsp;&nbsp;&nbsp;This Trustee is deemed to be an "interested person" of the Funds under the 1940 Act by reason of her position with the Adviser and/or the parent of the Adviser. |

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152 \| THE RYDEX FUNDS ANNUAL REPORT

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(continued)<br>

---

| | | | |
|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** |
| **OFFICERS** |  |  |  |
| **Brian E. Binder** <br>(1972) | &nbsp;&nbsp;&nbsp;President and Chief Executive Officer | Since 2019 | &nbsp;&nbsp;&nbsp;Current: President, Mutual Fund Boards, Guggenheim Investments (2022-present); President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President, Chief Executive Officer and Chairman of the Board of Managers, Guggenheim Funds Investment Advisors, LLC (2018-present); President and Chief Executive Officer, Security Investors, LLC (2018-present); Board Member, Guggenheim Partners Investment Funds plc (2022-present); Board Member, Guggenheim Global Investments plc (2022-present); Board Member, Guggenheim Partners Fund Management (Europe) Limited (2018-present). <br>Former: Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-2022); Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Chairman of North American Executive Committee and Head of Business Management and Consulting, Invesco Ltd. (2010-2012). |
| **James M. Howley** <br>(1972) | &nbsp;&nbsp;&nbsp;Chief Financial Officer, Chief Accounting Officer and Treasurer | Since 2022 | &nbsp;&nbsp;&nbsp;Current: Managing Director, Guggenheim Investments (2004-present); Chief Financial Officer, Chief Accounting Officer, and Treasurer, certain other funds in the Fund Complex (2022-present). <br>Former: Assistant Treasurer, certain other funds in the Fund Complex (2006-2022); Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004). |
| **Mark E. Mathiasen** <br>(1978)  | &nbsp;&nbsp;&nbsp;Secretary  | Since 2017  | &nbsp;&nbsp;&nbsp;Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present). |
| **Glenn McWhinnie** <br>(1969)  | &nbsp;&nbsp;&nbsp;Assistant Treasurer | Since 2016  | &nbsp;&nbsp;&nbsp;Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present). |
| **Michael P. Megaris** <br>(1984)  | &nbsp;&nbsp;&nbsp;Assistant Secretary  | Since 2018  | &nbsp;&nbsp;&nbsp;Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Managing Director, Guggenheim Investments (2012-present). |
| **Elisabeth Miller** <br>(1968)  | &nbsp;&nbsp;&nbsp;Chief Compliance Officer  | Since 2012  | &nbsp;&nbsp;&nbsp;Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present); Vice President, Guggenheim Funds Distributors, LLC (2014-present). <br>Former: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim <br>Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014). |
| **Margaux Misantone** <br>(1978)  | &nbsp;&nbsp;&nbsp;AML Officer  | Since 2017  | &nbsp;&nbsp;&nbsp;Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC <br>and certain other funds in the Fund Complex (2017-present); Managing Director, Guggenheim Investments (2015-present). <br>Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018). |

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THE RYDEX FUNDS ANNUAL REPORT \| 153

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(concluded)<br>

---

| | | | |
|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** |
| **OFFICERS - concluded** | **OFFICERS - concluded** | **OFFICERS - concluded** |  |
| **Kimberly J. Scott** <br>(1974)  | &nbsp;&nbsp;&nbsp;Assistant Treasurer  | Since 2016  | &nbsp;&nbsp;&nbsp;Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). <br>Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009). |
| **Bryan Stone** <br>(1979)  | &nbsp;&nbsp;&nbsp;Vice President  | Since 2019 | &nbsp;&nbsp;&nbsp;Current: Vice President, certain other funds in the Fund Complex (2014-present); Managing Director, Guggenheim Investments (2013-present). <br>Former: Senior Vice President, Neuberger Berman Group LLC (2009-2013); Vice President, Morgan Stanley (2002-2009). |
| **Jon Szafran** <br>(1989) | &nbsp;&nbsp;&nbsp;Assistant Treasurer | Since 2017 | &nbsp;&nbsp;&nbsp;Current: Director, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present). <br>Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. ("HGINA"), (2017); Senior Analyst of US Fund Administration, HGINA (2014–2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013). |

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\* The business address of each officer is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606. <br> \*\* Each officer serves an indefinite term, until his or her successor is duly elected and qualified.

154 \| THE RYDEX FUNDS ANNUAL REPORT

**GUGGENHEIM INVESTMENTS PRIVACY NOTICE** (Unaudited)<br>

**Who We Are** 

This Privacy Notice describes the data protection practices of Guggenheim Investments. Guggenheim Investments as used herein refers to the affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Guggenheim Investment Advisors (Europe) Limited, Guggenheim Real Estate, LLC, GS Gamma Advisors, LLC, Guggenheim Partners India Management, LLC, Guggenheim Partners Europe Limited, as well as the funds in the Guggenheim Funds complex (the "Funds") ("Guggenheim Investments," "we," "us," or "our").

Guggenheim Partners Investment Management Holdings, LLC, located at 330 Madison Avenue, New York, New York 10017, is the data controller for your information. The affiliates who are also controllers of certain of your information are: Guggenheim Investment Advisors (Europe) Limited, Guggenheim Partners Europe Limited, Guggenheim Partners, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC and Security Investors, LLC, as well as the Funds.

**Our Commitment to You** 

Guggenheim Investments considers your privacy our utmost concern. When you become our client or investor, you entrust us with not only your hard-earned money but also with your personal and financial information. Because we have access to your private information, we hold ourselves to the highest standards in its safekeeping and use. We strictly limit how we share your information with others, whether you are a current or former Guggenheim Investments client or investor.

**The Information We Collect About You** 

We collect certain nonpublic personal information about you from information you provide on applications, other forms, our website, and/or from third parties including investment advisors. This information includes Social Security or other tax identification number, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, bank account information, marital status, family relationships, information that we collect on our website through the use of "cookies," and other personal information that you or others provide to us. We may also collect such information through your inquiries by mail, e-mail or telephone. We may also collect customer due diligence information, as required by applicable law and regulation, through third party service providers.

**How We Handle Your Personal Information** 

The legal basis for using your information as set out in this Privacy Notice is as follows: (a) use of your personal data is necessary to perform our obligations under any contract with you (such as a contract for us to provide financial services to you); or (b) where use of your personal data is not necessary for performance of a contract, use of your personal data is necessary for our legitimate interests or the legitimate interests of others (for example, to enforce the legal terms governing our services, operate and market our website and other services we offer, ensure safe environments for our personnel and others, make and receive payments, prevent fraud and to know the customer to whom we are providing the services). Some processing is done to comply with applicable law.

In addition to the specific uses described above, we also use your information in the following manner:

● We use your information in connection with servicing your accounts.

● We use information to respond to your requests or questions. For example, we might use your information to respond to your customer feedback.

● We use information to improve our products and services. We may use your information to make our website and products better. We may use your information to customize your experience with us.

● We use information for security purposes. We may use your information to protect our company and our customers.

● We use information to communicate with you. For example, we will communicate with you about your account or our relationship. We may contact you about your feedback. We might also contact you about this Privacy Notice. We may also enroll you in our email newsletter.

THE RYDEX FUNDS ANNUAL REPORT \| 155

**GUGGENHEIM INVESTMENTS PRIVACY NOTICE** (Unaudited)(continued)<br>

● We use information as otherwise permitted by law, as we may notify you.

● Aggregate/Anonymous Data. We may aggregate and/or anonymize any information collected through the website so that such information can no longer be linked to you or your device ("Aggregate/Anonymous Information"). We may use Aggregate/Anonymous Information for any purpose, including without limitation for research and marketing purposes, and may also share such data with any third parties, including advertisers, promotional partners, and sponsors.

We do not sell information about current or former clients or their accounts to third parties. Nor do we share this information, except when necessary to complete transactions at your request, to make you aware of investment products and services that we or our affiliates offer, or as permitted or required by law.

We provide information about you to companies and individuals not affiliated with Guggenheim Investments to complete certain transactions or account changes, or to perform services for us related to your account. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we must provide certain information about you to that company to complete the transaction. We provide the third party with only the information necessary to carry out its responsibilities and only for that purpose. And we require these third parties to treat your private information with the same high degree of confidentiality that we do. To alert you to other Guggenheim Investments products and services, we share your information within our family of affiliated companies. You may limit our sharing with affiliated companies as set out below. We may also share information with any successor to all or part of our business, or in connection with steps leading up to a merger or acquisition. For example, if part of our business was sold we may give customer information as part of that transaction. We may also share information about you with your consent.

We will release information about you if you direct us to do so, if we are compelled by law to do so, or in other circumstances as permitted by law (for example, to protect your account from fraud).

If you close your account(s) or become an inactive client or investor, we will continue to adhere to the privacy policies and practices described in this notice.

**Opt-Out Provisions and Your Data Choices** 

The law allows you to "opt out" of certain kinds of information sharing with third parties. We do not share personal information about you with any third parties that triggers this opt-out right. This means YOU ARE ALREADY OPTED OUT.

When you are no longer our client or investor, we continue to share your information as described in this notice, and you may contact us at any time to limit our sharing by sending an email to CorporateDataPrivacy@GuggenheimPartners.com.

European Union Data Subjects and certain others: In addition to the choices set forth above, residents of the European Union and certain other jurisdictions have certain rights to (1) request access to or rectification or deletion of information we collect about them, (2) request a restriction on the processing of their information, (3) object to the processing of their information, or (4) request the portability of certain information. To exercise these or other rights, please contact us using the contact information below. We will consider all requests and provide our response within the time period stated by applicable law. Please note, however, that certain information may be exempt from such requests in some circumstances, which may include if we need to keep processing your information for our legitimate interests or to comply with a legal obligation. We may request you provide us with information necessary to confirm your identity before responding to your request.

Residents of France and certain other jurisdictions may also provide us with instructions regarding the manner in which we may continue to store, erase and share your information after your death, and where applicable, the person you have designated to exercise these rights after your death.

156 \| THE RYDEX FUNDS ANNUAL REPORT

**GUGGENHEIM INVESTMENTS PRIVACY NOTICE** (Unaudited)(concluded)<br>

**How We Protect Privacy Online** 

**How We Safeguard Your Personal Information and Data Retention** 

We restrict access to nonpublic personal information about you to our employees and in some cases to third parties (for example, the service providers described above) as permitted by law. We maintain strict physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

We keep your information for no longer than necessary for the purposes for which it is processed. The length of time for which we retain information depends on the purposes for which we collected and use it and/or as required to comply with applicable laws. Information may persist in copies made for backup and business continuity purposes for additional time.

**International Visitors** 

If you are not a resident of the United States, please be aware that your information may be transferred to, stored and processed in the United States where our servers are located and our databases are operated. The data protection and other laws of the United States and other countries might not be as comprehensive as those in your country.

In such cases, we ensure that a legal basis for such a transfer exists and that adequate protection is provided as required by applicable law, for example, by using standard contractual clauses or by transferring your data to a jurisdiction that has obtained an adequacy finding. Individuals whose data may be transferred on the basis of standard contractual clauses may contact us as described below.

**We'll Keep You Informed** 

If you have any questions or concerns about how we treat your personal data, we encourage you to consult with us first. You may also contact the relevant supervisory authority.

We reserve the right to modify this policy at any time and will inform you promptly of material changes. You may access our privacy policy from our web site at www.guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us by email at CorporateDataPrivacy@GuggenheimPartners.com.

THE RYDEX FUNDS ANNUAL REPORT \| 157

![](fp0081230-2_i.jpg)<br>

**12.31.2022** 

**Rydex Variable Trust Funds Annual Report**

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| |
|:---|
| &nbsp;&nbsp;**Domestic Equity Funds** |
| &nbsp;&nbsp;**Nova Fund** |
| &nbsp;&nbsp;**Inverse S&P 500<sup>®</sup>** **Strategy Fund** |
| &nbsp;&nbsp;**NASDAQ-100<sup>®</sup>** **Fund** |
| &nbsp;&nbsp;**Inverse NASDAQ-100<sup>®</sup>** **Strategy Fund** |
| &nbsp;&nbsp;**S&P 500<sup>®</sup>** **2x Strategy Fund** |
| &nbsp;&nbsp;**NASDAQ-100<sup>®</sup>** **2x Strategy Fund** |
| &nbsp;&nbsp;**Mid-Cap 1.5x Strategy Fund** |
| &nbsp;&nbsp;**Inverse Mid-Cap Strategy Fund** |
| &nbsp;&nbsp;**Russell 2000<sup>®</sup>** **2x Strategy Fund** |
| &nbsp;&nbsp;**Russell 2000<sup>®</sup>** **1.5x Strategy Fund** |
| &nbsp;&nbsp;**Inverse Russell 2000<sup>®</sup>** **Strategy Fund** |
| &nbsp;&nbsp;**Dow 2x Strategy Fund** |
| &nbsp;&nbsp;**Inverse Dow 2x Strategy Fund** |

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| |
|:---|
| &nbsp;&nbsp;**Fixed Income Funds** |
| &nbsp;&nbsp;**Government Long Bond 1.2x Strategy Fund** |
| &nbsp;&nbsp;**Inverse Government Long Bond Strategy Fund** |
| &nbsp;&nbsp;**High Yield Strategy Fund** |
| &nbsp;&nbsp;**Money Market Fund** |
| &nbsp;&nbsp;**U.S. Government Money Market Fund** |

---

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| | |
|:---|:---|
| **GuggenheimInvestments.com** | &nbsp;&nbsp;RVATB1-ANN-1222x1223 |

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![](fp0081230-2_ii.jpg)

**TABLE OF CONTENTS** <br>

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| | |
|:---|:---|
| DEAR SHAREHOLDER  | 2 |
| ECONOMIC AND MARKET OVERVIEW  | 4 |
| A BRIEF NOTE ON THE COMPOUNDING OF RETURNS  | 6 |
| ABOUT SHAREHOLDERS' FUND EXPENSES  | 7 |
| NOVA FUND  | 9 |
| INVERSE S&P 500<sup>®</sup> STRATEGY FUND  | 21 |
| NASDAQ-100<sup>®</sup> FUND  | 29 |
| INVERSE NASDAQ-100<sup>®</sup> STRATEGY FUND  | 38 |
| S&P 500<sup>®</sup> 2x STRATEGY FUND  | 45 |
| NASDAQ-100<sup>®</sup> 2x STRATEGY FUND  | 57 |
| MID-CAP 1.5x STRATEGY FUND  | 66 |
| INVERSE MID-CAP STRATEGY FUND  | 77 |
| RUSSELL 2000<sup>®</sup> 2x STRATEGY FUND  | 84 |
| RUSSELL 2000<sup>®</sup> 1.5x STRATEGY FUND  | 92 |
| INVERSE RUSSELL 2000<sup>®</sup> STRATEGY FUND  | 118 |
| DOW 2x STRATEGY FUND  | 125 |
| INVERSE DOW 2x STRATEGY FUND  | 133 |
| GOVERNMENT LONG BOND 1.2x STRATEGY FUND  | 140 |
| INVERSE GOVERNMENT LONG BOND STRATEGY FUND  | 147 |
| HIGH YIELD STRATEGY FUND  | 155 |
| U.S. GOVERNMENT MONEY MARKET FUND  | 163 |
| NOTES TO FINANCIAL STATEMENTS  | 169 |
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  | 188 |
| OTHER INFORMATION  | 189 |
| INFORMATION ON BOARD OF TRUSTEES AND OFFICERS  | 191 |
| GUGGENHEIM INVESTMENTS PRIVACY NOTICE  | 197 |

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THE RYDEX FUNDS ANNUAL REPORT \| 1

  <u>December 31, 2022</u>

**Dear Shareholder:** 

Security Investors, LLC (the "Investment Adviser") is pleased to present the annual shareholder report for a selection of our Funds (the "Fund" or "Funds") that are part of the Rydex Variable Trust. This report covers performance of the Funds for the annual period ended December 31, 2022 (the "Reporting Period").

In December 2022, Guggenheim Partners announced the untimely and unexpected death of Scott Minerd, one of Guggenheim's Managing Partners and its Global Chief Investment Officer. He joined Guggenheim as a Managing Partner shortly after the firm was formed. He was a frequent commentator on markets and investments, both on television and via social media. He also was one of the designers of the organization, systems and processes that make Guggenheim Investments a strong, robust and scalable leader in the asset management business.

Guggenheim has implemented its succession plan, which is designed to deal with unexpected events. There has been and will continue to be no disruption of service to our clients, no change in the daily management of client portfolios and no change in the process of selecting investment assets, all of which continue to be handled by the longstanding committees and long-tenured investment professionals who, every day, implement our investment processes.

Guggenheim Investments continues to be led by its Co-Presidents, Dina DiLorenzo and David Rone, and by Anne B. Walsh, a Managing Partner and Chief Investment Officer of Guggenheim Partners Investment Management.

The Investment Adviser is a part of Guggenheim Investments, which represents the investment management businesses of Guggenheim Partners, LLC ("Guggenheim"), a global, diversified financial services firm.

Guggenheim Funds Distributors, LLC is the distributor of the Funds. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim and the Investment Adviser.

We encourage you to read the Economic and Market Overview section of the report, which follows this letter, and then the Performance Report and Fund Profile for each Fund.

We are committed to providing innovative investment solutions and appreciate the trust you place in us.

Sincerely,

*Security Investors, LLC*

January 31, 2023

***Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at guggenheiminvestments.com or call 800.820.0888.***

***This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.***

**Inverse and leveraged Funds are not suitable for all investors. ● These Funds should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking daily leveraged investment results, (c) understand the risk of shorting, and (d) intend to actively monitor and manage their investments**. ● The more a Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● Inverse Funds involve certain risks, which include increased volatility due to the Funds' possible use of short sales of securities and derivatives, such as options and futures. ● The Funds' use of derivatives, such as futures, options and swap agreements, may expose the Funds' 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 Funds seek to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily

2 \| THE RYDEX FUNDS ANNUAL REPORT

  <u>December 31, 2022</u>

basis. Because the Funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those Funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. **Due to the compounding of daily returns, leveraged and inverse Funds' returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period.** For those Funds that consistently apply leverage, the value of the fund's shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. The Funds rebalance their portfolios on a daily basis, increasing exposure in response to that day's gains or reducing exposure in response to that day's losses. Daily rebalancing will impair a fund's performance if the benchmark experiences volatility. **Investors should monitor their leveraged and inverse Funds' holdings consistent with their strategies, as frequently as daily.** ● For more on these and other risks, please read the prospectus.

**The Nasdaq-100**<sup>®</sup> **Fund may not be suitable for all investors.** ● Investing in Rydex NASDAQ-100<sup>®</sup> Fund involves certain risks, which may include increased volatility due to the use of futures and the possibility that companies in which the Fund invests may not be commercially successful or may become obsolete more quickly. ● There are no assurances that any Rydex Fund will achieve its objective and/or strategy. This Fund is subject to active trading and tracking error risks, which may increase volatility, impact the Fund's ability to achieve its investment objective and may decrease the Fund's performance. ● This Fund is considered non-diversified 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. ● For more on these and other risks, please read the prospectus.

**The Government Long Bond 1.2x Strategy and Inverse Government Long Bond Strategy funds are not suitable for all investors.** ● These Funds should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking daily leveraged investment results, and (c) intend to actively monitor and manage their investments. ● The more a Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● The Funds' use of derivatives, such as futures, options and swap agreements, may expose the Funds' shareholders to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. ● Leveraged and inverse Funds seek to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. Because the Funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those Funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. **Due to the compounding of daily returns, leveraged Funds' returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period.** For those Funds that consistently apply leverage, the value of the fund's shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. The Funds rebalance their portfolios on a daily basis, increasing exposure in response to that day's gains or reducing exposure in response to that day's losses. Daily rebalancing will impair a fund's performance if the benchmark experiences volatility. **Investors should monitor their leveraged Funds' holdings consistent with their strategies, as frequently as daily.** ● In general, bond prices rise when interest rates fall, and vice versa. Moreover, while securities with longer maturities tend to produce higher yields, the price of longer maturity securities is also subject to greater fluctuations as a result of changes in interest rates. ● It is important to note that the funds are not guaranteed by the U.S. government. ● There are no assurances that any Guggenheim fund will achieve its objective and/or strategy. These Funds are subject to active trading and tracking error risks, which may increase volatility, impact the fund's ability to achieve its investment objective, and may decrease the Fund's performance. ● For more on these and other risks, please read the prospectus.

**The High Yield Strategy Fund may not be suitable for all investors.** ● The Fund's use of derivatives such as futures, options, and swap agreements will 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 credit default swaps the Fund invests in, and there can be no assurance that a highly liquid secondary market will develop. ● The Fund's market value will change in response to interest rate changes and market conditions among other factors. ● You may have a gain or loss when you sell your shares. ● In general, bond prices rise when interest rates fall, and vice versa. ● The Fund's exposure to the high yield bond market may subject the Fund to greater volatility because (i) it will be affected by the ability of high yield security issuers' ability to make principal and interest payments and (ii) the prices of derivatives linked to high yield bonds may fluctuate unpredictably and not necessarily in relation to interest rates. ● It is important to note that the Fund is not guaranteed by the U.S. government. ● The Fund is subject to active trading risks that may increase volatility and impact its ability to achieve its investment objective. ● This Fund is considered non-diversified 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. ● Please read the prospectus for more detailed information regarding these and other risks.

**The U.S. Government Money Market Fund may not be suitable for all investors.** ● You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. ● Please read the prospectus for more detailed information regarding these and other risks.

THE RYDEX FUNDS ANNUAL REPORT \| 3

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|:---|:---|
| **ECONOMIC AND MARKET OVERVIEW** (Unaudited) | December 31, 2022 |

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Helped by lower energy prices, real economic growth reaccelerated in the fourth quarter of 2022. Amid this continued strong growth, the Federal Reserve (the "Fed") is explicitly targeting a weaker labor market, and several leading indicators point to rising unemployment by the middle of the year. Consumption also faces headwinds from dwindling excess savings buffers and a sharply negative wealth shock as financial asset and home prices fall. Business investment also appears to be weakening due to the sharp tightening in financial conditions and more challenging outlook for economic growth. The housing sector could subtract further from gross domestic product ("GDP") as the spike in mortgage rates has adversely impacted demand.

Because private sector balance sheets are generally healthy in the aggregate and the economy lacks major imbalances, we do not expect a particularly deep recession. But the likelihood of a limited monetary and fiscal policy response means the economic recovery could be weak, and certain highly levered companies may suffer.

Moderation in goods prices as supply chains normalize should bring inflation lower over the next several months, and shelter inflation should roll over by mid-2023. Services inflation outside of shelter is the main concern for the Fed, but a softening labor market and cooling wage growth may keep this category contained. As a result, core inflation could fall below 3 percent by the end of the year.

The Fed's continued rate hike campaign may cause the front end of the yield curve to remain elevated in the near term. But should the economic cycle roll over later this year, Treasury yields may see a significant decline. Weakening corporate earnings growth and an emerging recession would present downside risk to equity returns later in 2023 but, given corporate fundamentals remain solid, high quality fixed income and carefully selected high yield issuers should provide attractive returns.

For the Reporting Period, the S&P 500<sup>®</sup> Index\* returned -18.11%. The MSCI Europe-Australasia-Far East ("EAFE") Index\* returned -14.45%. The return of the MSCI Emerging Markets Index\* was -20.09%.

In the bond market, the Bloomberg U.S. Aggregate Bond Index\* posted a -13.01% return for the Reporting Period, while the Bloomberg U.S. Corporate High Yield Index\* returned -11.19%. The return of the ICE Bank of America ("BofA") 3-Month U.S. Treasury Bill Index\* was 1.47% for the Reporting Period.

*The opinions and forecasts expressed may not actually come to pass. This information is subject to change at any time, based on market and other conditions, and should not be construed as a recommendation of any specific security or strategy.* 

4 \| THE RYDEX FUNDS ANNUAL REPORT

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|:---|:---|
| **ECONOMIC AND MARKET OVERVIEW** (Unaudited)(concluded) | December 31, 2022 |

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**\*Index Definitions:**

The following indices are referenced throughout this report. Indices are unmanaged and not available for direct investment. Index performance does not reflect transaction costs, fees, or expenses.

**Bloomberg U.S. Aggregate Bond Index** is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, mortgage-backed securities or "MBS" (agency fixed-rate and hybrid adjustable-rate mortgage, or "ARM", pass-throughs), asset-backed securities ("ABS"), and commercial mortgage-backed securities ("CMBS") (agency and non-agency).

**Bloomberg U.S. Corporate High Yield Index** measures the U.S. dollar-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody's, Fitch, and S&P is Ba1/BB +/BB + or below.

**Bloomberg U.S. Long Treasury Index** includes all publicly issued, U.S. Treasury securities that have a remaining maturity of 10 or more years, are rated investment grade, and have $250 million or more of outstanding face value. In addition, the securities must be denominated in U.S. dollars and must be fixed rate and nonconvertible. The U.S. Long Treasury Index is market capitalization weighted and the securities in the index are updated on the last business day of each month.

**Bloomberg U.S. Treasury Bellwethers 30 Yr. Index** is an unmanaged index representing the on-the-run (most recently auctioned) U.S. Treasury bond with 30 years' maturity.

**Dow Jones Industrial Average**<sup>®</sup> is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow in 1896.

**ICE BofA 3-Month U.S. Treasury Bill Index** is an unmanaged market Index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income.

**MSCI EAFE Index** is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

**MSCI Emerging Markets Index** is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets.

**NASDAQ-100**<sup>®</sup> **Index** includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market based on market capitalization. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain securities of financial companies including investment companies.

**Russell 2000**<sup>®</sup> **Index** measures the performance of the small-cap value segment of the U.S. equity universe.

**S&P 500**<sup>®</sup> **Index** is a broad-based index, the performance of which is based on the performance of 500 widely held common stocks chosen for market size, liquidity, and industry group representation.

**S&P MidCap 400**<sup>®</sup> **Index** provides investors with a benchmark for mid-sized companies. The index covers approximately 7% of the U.S. equity market, and seeks to remain an accurate measure of mid-sized companies, reflecting the risk and return characteristics of the broader mid-cap universe on an on-going basis.

THE RYDEX FUNDS ANNUAL REPORT \| 5

**A BRIEF NOTE ON THE COMPOUNDING OF RETURNS** (Unaudited)<br>

Many of the Funds described in this report are benchmarked daily to leveraged and/or inverse leveraged versions of published indices. To properly evaluate the performance of these funds, it is essential to understand the effect of mathematical compounding on their respective returns.

Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in-line with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire period on a cumulative basis. It is also possible that a fund that performs in-line with its benchmark on a daily basis may seem to outperform its benchmark over longer periods.

**An Example of Compounding** 

For example, consider a hypothetical fund that is designed to produce returns that correspond to 150% of an index. On the first day of a period, the index rises from a level of 100 to a level of 106, producing a 6.0% gain and an expectation that the fund will rise by 9.0%. On the same day, the fund's net asset value per share ("NAV") increases from $10.00 to $10.90 for a gain of 9.0% — in line with its benchmark.

On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The fund, as expected, falls 9.9% to a price of $9.82. On each day, the fund performed exactly in line with its benchmark, but for the two-day period, the fund was down 1.8%, while the index was down only 1.0%. Without taking into account the daily compounding of returns, one would expect the fund to lose 1.5% and would see the fund as trailing by 0.3% when in fact it had performed perfectly. This example is summarized in the table below.

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|:---|:---|:---|:---|:---|:---|:---|
|  | **Index <br> Level** | **Index <br> Performance** | **Fund <br> Expectation** | **Fund <br> NAV** | **Fund <br> Performance** | **Assessment** |
| Start | 100 |  |  | $10.00 |  |  |
| Day 1 | 106 | 6.0% | 9.0% | $10.90 | 9.0% | In line |
| Day 2 | 99 | -6.6% | -9.9% | $9.82 | -9.9% | In line |
| Cumulative |  | -1.0% | -1.5% |  | -1.8% | -0.3% |

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As illustrated by this simple example, the effect of leverage can make it difficult to form expectations or judgments about fund performance given only the returns of the unleveraged index.

Because certain funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse funds' 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 funds' holdings to ensure that they are consistent with their strategies, as frequently as daily. For those funds that consistently apply leverage, the value of the fund'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.

In general, any change in direction in an index will produce compounding that seems to work against an investor. Were the index to move in the same direction (either up or down) for two or more periods in a row, the compounding of those returns would work in an investor's favor, causing the fund to seemingly beat its benchmark.

As a general rule of thumb, more leverage in a fund will magnify the compounding effect, while less leverage will generally produce results that are more in line with expectations. In addition, periods of high volatility in an underlying index will also cause the effects of compounding to be more pronounced, while lower volatility will produce a more muted effect.

6 \| THE RYDEX FUNDS ANNUAL REPORT

**ABOUT SHAREHOLDERS' FUND EXPENSES** (Unaudited)<br>

All mutual funds have operating expenses, and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, other distributions, and exchange fees, and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund's gross income and reduce the investment return of the fund.

A fund's expenses are expressed as a percentage of its average net assets, which is known as the expense ratio. The following examples are intended to help investors understand the ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning June 30, 2022 and ending December 31, 2022.

The following tables illustrate the Funds' costs in two ways:

**Table 1. Based on actual Fund return:** This section helps investors estimate the actual expenses paid over the period. The "Ending Account Value" shown is derived from the Fund's actual return, and the fifth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund's account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number provided under the heading "Expenses Paid During Period."

**Table 2. Based on hypothetical 5% return:** This section is intended to help investors compare a fund's cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the "SEC") requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a fund's costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchase payments, and contingent deferred sales charges ("CDSC") on redemptions, if any. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

More information about the Funds' expenses, including annual expense ratios for periods up to five years (subject to the Fund's inception date), can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

THE RYDEX FUNDS ANNUAL REPORT \| 7

**ABOUT SHAREHOLDERS' FUND EXPENSES** (Unaudited)(concluded)<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Expense <br> Ratio<sup>1</sup>** | **Fund <br> Return**  | **Beginning <br> Account Value <br> June 30, 2022** | **Ending <br> Account Value <br> December 31, 2022** | **Expenses <br> Paid During <br> Period<sup>2</sup>** |
| **Table 1. Based on actual Fund return<sup>3</sup>** |  |  |  |  |  |
| Nova Fund | &nbsp;&nbsp;1.66% | &nbsp;&nbsp;0.41% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1004.10 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$8.39 |
| Inverse S&P 500<sup>®</sup> Strategy Fund | &nbsp;&nbsp;1.77% | &nbsp;&nbsp;(2.74%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;972.60 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.80 |
| NASDAQ-100<sup>®</sup> Fund | &nbsp;&nbsp;1.68% | &nbsp;&nbsp;(5.35%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;946.50 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.24 |
| Inverse NASDAQ-100<sup>®</sup> Strategy Fund | &nbsp;&nbsp;1.93% | &nbsp;&nbsp;2.13% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1021.30 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.83 |
| S&P 500<sup>®</sup> 2x Strategy Fund | &nbsp;&nbsp;1.80% | &nbsp;&nbsp;(0.90%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;991.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.03 |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund  | &nbsp;&nbsp;1.81% | &nbsp;&nbsp;(15.05%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;849.50 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.44 |
| Mid-Cap 1.5x Strategy Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;9.22% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1092.20 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.39 |
| Inverse Mid-Cap Strategy Fund | &nbsp;&nbsp;1.75% | &nbsp;&nbsp;(8.31%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;916.90 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.46 |
| Russell 2000<sup>®</sup> 2x Strategy Fund  | &nbsp;&nbsp;1.84% | &nbsp;&nbsp;1.45% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1014.50 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.34 |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | &nbsp;&nbsp;1.80% | &nbsp;&nbsp;2.77% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1027.70 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.20 |
| Inverse Russell 2000<sup>®</sup> Strategy Fund | &nbsp;&nbsp;1.82% | &nbsp;&nbsp;(5.33%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;946.70 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.93 |
| Dow 2x Strategy Fund  | &nbsp;&nbsp;1.85% | &nbsp;&nbsp;13.20% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1132.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.94 |
| Inverse Dow 2x Strategy Fund  | &nbsp;&nbsp;1.86% | &nbsp;&nbsp;(17.32%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;826.80 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.56 |
| Government Long Bond 1.2x Strategy Fund | &nbsp;&nbsp;1.41% | &nbsp;&nbsp;(16.28%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;837.20 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.53 |
| Inverse Government Long Bond Strategy Fund | &nbsp;&nbsp;4.83% | &nbsp;&nbsp;14.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1140.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.05 |
| High Yield Strategy Fund | &nbsp;&nbsp;1.63% | &nbsp;&nbsp;4.90% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1049.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.42 |
| U.S. Government Money Market Fund | &nbsp;&nbsp;1.42% | &nbsp;&nbsp;0.73% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1007.30 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.18 |
| **Table 2. Based on hypothetical 5% return (before expenses)** | **Table 2. Based on hypothetical 5% return (before expenses)** |  |  |  |  |
| Nova Fund | &nbsp;&nbsp;1.66% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1016.84 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$8.44 |
| Inverse S&P 500<sup>®</sup> Strategy Fund | &nbsp;&nbsp;1.77% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.28 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.00 |
| NASDAQ-100<sup>®</sup> Fund | &nbsp;&nbsp;1.68% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.74 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.54 |
| Inverse NASDAQ-100<sup>®</sup> Strategy Fund | &nbsp;&nbsp;1.93% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1015.48 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.80 |
| S&P 500<sup>®</sup> 2x Strategy Fund | &nbsp;&nbsp;1.80% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.13 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.15 |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund  | &nbsp;&nbsp;1.81% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.08 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.20 |
| Mid-Cap 1.5x Strategy Fund | &nbsp;&nbsp;1.78% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.23 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.05 |
| Inverse Mid-Cap Strategy Fund | &nbsp;&nbsp;1.75% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.38 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.89 |
| Russell 2000<sup>®</sup> 2x Strategy Fund  | &nbsp;&nbsp;1.84% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1015.93 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.35 |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | &nbsp;&nbsp;1.80% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.13 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.15 |
| Inverse Russell 2000<sup>®</sup> Strategy Fund | &nbsp;&nbsp;1.82% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.03 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.25 |
| Dow 2x Strategy Fund  | &nbsp;&nbsp;1.85% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1015.88 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.40 |
| Inverse Dow 2x Strategy Fund  | &nbsp;&nbsp;1.86% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1015.83 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.45 |
| Government Long Bond 1.2x Strategy Fund | &nbsp;&nbsp;1.41% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1018.10 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.17 |
| Inverse Government Long Bond Strategy Fund | &nbsp;&nbsp;4.83% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.86 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.36 |
| High Yield Strategy Fund | &nbsp;&nbsp;1.63% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.99 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.29 |
| U.S. Government Money Market Fund | &nbsp;&nbsp;1.42% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1018.05 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.22 |

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<sup>1</sup> This ratio represents annualized net expenses, which includes interest expense, related to securities sold short. Excluding short interest expense, the operating expense ratio of the Inverse Government Long Bond Strategy Fund would be 1.73%. Excludes expenses of the underlying funds in which the Funds invest.

<sup>2</sup> Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses shown do not include fees charged by insurance companies.

<sup>3</sup> Actual cumulative return at net asset value for the period June 30, 2022 to December 31, 2022.

8 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**NOVA FUND** 

**OBJECTIVE:** Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund's current benchmark is 150% of the performance of the S&P 500<sup>®</sup> Index (the "underlying index"). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the Reporting Period, Nova Fund maintained a daily correlation of over 99% to its benchmark of 150% of the daily price movement of the S&P 500 Index. Nova Fund returned -30.26%, while the S&P 500 Index returned -18.11% over the same time period.

The only sectors contributing to the return of the underlying index for the Reporting Period were Energy and Health Care. The sectors detracting the most from the return of the underlying index were Information Technology, Consumer Discretionary, and Communication Services.

The holdings contributing the most to the return of the underlying index were Exxon Mobil Corp., Chevron Corp., and Merck & Co., Inc. The holdings detracting the most were Apple, Inc., Amazon.com, Inc., and Tesla, Inc.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds' 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 funds' holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.**

THE RYDEX FUNDS ANNUAL REPORT \| 9

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-2_10.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-2_10a.jpg)

**Inception Date:** May 7, 1997<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| Guggenheim Ultra Short Duration Fund — Institutional Class | 11.8% |
| Guggenheim Strategy Fund II | 11.5% |
| Apple, Inc. | 3.8% |
| Microsoft Corp. | 3.5% |
| Amazon.com, Inc. | 1.4% |
| Berkshire Hathaway, Inc. — Class B | 1.1% |
| Alphabet, Inc. — Class A | 1.0% |
| UnitedHealth Group, Inc. | 1.0% |
| Alphabet, Inc. — Class C | 0.9% |
| Johnson & Johnson | 0.9% |
| Top Ten Total | 36.9% |
| "Ten Largest Holdings" excludes any temporary cash or derivative investments. | "Ten Largest Holdings" excludes any temporary cash or derivative investments. |

---

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Nova Fund  | (30.26%)  | 9.13%  | 15.27%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

10 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **NOVA FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 62.0%** | **COMMON STOCKS<sup>†</sup>** **- 62.0%** | **COMMON STOCKS<sup>†</sup>** **- 62.0%** |
| **Consumer, Non-cyclical - 14.5%** | **Consumer, Non-cyclical - 14.5%** | **Consumer, Non-cyclical - 14.5%** |
| &nbsp;&nbsp;&nbsp;UnitedHealth Group, Inc. | 298 | $157994 |
| &nbsp;&nbsp;&nbsp;Johnson & Johnson | 831 | 146796 |
| &nbsp;&nbsp;&nbsp;Procter & Gamble Co. | 754 | 114276 |
| &nbsp;&nbsp;&nbsp;Eli Lilly & Co. | 251 | 91826 |
| &nbsp;&nbsp;&nbsp;Pfizer, Inc. | 1786 | 91515 |
| &nbsp;&nbsp;&nbsp;AbbVie, Inc. | 563 | 90987 |
| &nbsp;&nbsp;&nbsp;Merck & Company, Inc. | 808 | 89648 |
| &nbsp;&nbsp;&nbsp;PepsiCo, Inc. | 438 | 79129 |
| &nbsp;&nbsp;&nbsp;Coca-Cola Co. | 1239 | 78813 |
| &nbsp;&nbsp;&nbsp;Thermo Fisher Scientific, Inc. | 125 | 68836 |
| &nbsp;&nbsp;&nbsp;Abbott Laboratories | 555 | 60933 |
| &nbsp;&nbsp;&nbsp;Danaher Corp. | 209 | 55473 |
| &nbsp;&nbsp;&nbsp;Philip Morris International, Inc. | 493 | 49897 |
| &nbsp;&nbsp;&nbsp;Bristol-Myers Squibb Co. | 677 | 48710 |
| &nbsp;&nbsp;&nbsp;Amgen, Inc. | 170 | 44649 |
| &nbsp;&nbsp;&nbsp;Elevance Health, Inc. | 76 | 38986 |
| &nbsp;&nbsp;&nbsp;CVS Health Corp. | 418 | 38954 |
| &nbsp;&nbsp;&nbsp;S&P Global, Inc. | 106 | 35504 |
| &nbsp;&nbsp;&nbsp;Gilead Sciences, Inc. | 399 | 34254 |
| &nbsp;&nbsp;&nbsp;Medtronic plc | 423 | 32876 |
| &nbsp;&nbsp;&nbsp;Cigna Corp. | 97 | 32140 |
| &nbsp;&nbsp;&nbsp;Automatic Data Processing, Inc. | 132 | 31530 |
| &nbsp;&nbsp;&nbsp;Intuitive Surgical, Inc.\* | 113 | 29985 |
| &nbsp;&nbsp;&nbsp;Mondelez International, Inc. — Class A | 434 | 28926 |
| &nbsp;&nbsp;&nbsp;Stryker Corp. | 107 | 26160 |
| &nbsp;&nbsp;&nbsp;Altria Group, Inc. | 571 | 26100 |
| &nbsp;&nbsp;&nbsp;PayPal Holdings, Inc.\* | 363 | 25853 |
| &nbsp;&nbsp;&nbsp;Regeneron Pharmaceuticals, Inc.\* | 34 | 24531 |
| &nbsp;&nbsp;&nbsp;Vertex Pharmaceuticals, Inc.\* | 82 | 23680 |
| &nbsp;&nbsp;&nbsp;Becton Dickinson and Co. | 91 | 23141 |
| &nbsp;&nbsp;&nbsp;Zoetis, Inc. | 148 | 21689 |
| &nbsp;&nbsp;&nbsp;Boston Scientific Corp.\* | 456 | 21099 |
| &nbsp;&nbsp;&nbsp;Colgate-Palmolive Co. | 265 | 20880 |
| &nbsp;&nbsp;&nbsp;Humana, Inc. | 40 | 20488 |
| &nbsp;&nbsp;&nbsp;Moderna, Inc.\* | 105 | 18860 |
| &nbsp;&nbsp;&nbsp;Estee Lauder Companies, Inc. — Class A | 73 | 18112 |
| &nbsp;&nbsp;&nbsp;McKesson Corp. | 45 | 16880 |
| &nbsp;&nbsp;&nbsp;HCA Healthcare, Inc. | 68 | 16317 |
| &nbsp;&nbsp;&nbsp;Archer-Daniels-Midland Co. | 175 | 16249 |
| &nbsp;&nbsp;&nbsp;General Mills, Inc. | 189 | 15848 |
| &nbsp;&nbsp;&nbsp;Centene Corp.\* | 180 | 14762 |
| &nbsp;&nbsp;&nbsp;Edwards Lifesciences Corp.\* | 197 | 14698 |
| &nbsp;&nbsp;&nbsp;Kimberly-Clark Corp. | 107 | 14525 |
| &nbsp;&nbsp;&nbsp;Moody's Corp. | 50 | 13931 |
| &nbsp;&nbsp;&nbsp;Dexcom, Inc.\* | 123 | 13929 |
| &nbsp;&nbsp;&nbsp;Corteva, Inc. | 227 | 13343 |
| &nbsp;&nbsp;&nbsp;Biogen, Inc.\* | 46 | 12738 |
| &nbsp;&nbsp;&nbsp;Cintas Corp. | 28 | 12645 |
| &nbsp;&nbsp;&nbsp;Sysco Corp. | 161 | 12308 |
| &nbsp;&nbsp;&nbsp;Monster Beverage Corp.\* | 121 | 12285 |
| &nbsp;&nbsp;&nbsp;IQVIA Holdings, Inc.\* | 59 | 12088 |
| &nbsp;&nbsp;&nbsp;Constellation Brands, Inc. — Class A | 52 | 12051 |
| &nbsp;&nbsp;&nbsp;IDEXX Laboratories, Inc.\* | 27 | 11015 |
| &nbsp;&nbsp;&nbsp;Hershey Co. | 47 | 10884 |
| &nbsp;&nbsp;&nbsp;Kraft Heinz Co. | 254 | 10340 |
| &nbsp;&nbsp;&nbsp;Illumina, Inc.\* | 50 | 10110 |
| &nbsp;&nbsp;&nbsp;CoStar Group, Inc.\* | 129 | 9969 |
| &nbsp;&nbsp;&nbsp;ResMed, Inc. | 47 | 9782 |
| &nbsp;&nbsp;&nbsp;Keurig Dr Pepper, Inc. | 270 | 9628 |
| &nbsp;&nbsp;&nbsp;Kroger Co. | 207 | 9228 |
| &nbsp;&nbsp;&nbsp;Verisk Analytics, Inc. — Class A | 50 | 8821 |
| &nbsp;&nbsp;&nbsp;Zimmer Biomet Holdings, Inc. | 67 | 8543 |
| &nbsp;&nbsp;&nbsp;Global Payments, Inc. | 86 | 8542 |
| &nbsp;&nbsp;&nbsp;AmerisourceBergen Corp. — Class A | 51 | 8451 |
| &nbsp;&nbsp;&nbsp;Gartner, Inc.\* | 25 | 8403 |
| &nbsp;&nbsp;&nbsp;Baxter International, Inc. | 160 | 8155 |
| &nbsp;&nbsp;&nbsp;United Rentals, Inc.\* | 22 | 7819 |
| &nbsp;&nbsp;&nbsp;Equifax, Inc. | 39 | 7580 |
| &nbsp;&nbsp;&nbsp;Laboratory Corporation of America Holdings | 29 | 6829 |
| &nbsp;&nbsp;&nbsp;McCormick & Company, Inc. | 80 | 6631 |
| &nbsp;&nbsp;&nbsp;Quanta Services, Inc. | 46 | 6555 |
| &nbsp;&nbsp;&nbsp;Waters Corp.\* | 19 | 6509 |
| &nbsp;&nbsp;&nbsp;Cardinal Health, Inc. | 83 | 6380 |
| &nbsp;&nbsp;&nbsp;Molina Healthcare, Inc.\* | 19 | 6274 |
| &nbsp;&nbsp;&nbsp;Church & Dwight Company, Inc. | 77 | 6207 |
| &nbsp;&nbsp;&nbsp;Conagra Brands, Inc. | 153 | 5921 |
| &nbsp;&nbsp;&nbsp;STERIS plc | 32 | 5910 |
| &nbsp;&nbsp;&nbsp;Hologic, Inc.\* | 79 | 5910 |
| &nbsp;&nbsp;&nbsp;Kellogg Co. | 81 | 5770 |
| &nbsp;&nbsp;&nbsp;Tyson Foods, Inc. — Class A | 92 | 5727 |
| &nbsp;&nbsp;&nbsp;West Pharmaceutical Services, Inc. | 24 | 5648 |
| &nbsp;&nbsp;&nbsp;Quest Diagnostics, Inc. | 36 | 5632 |
| &nbsp;&nbsp;&nbsp;PerkinElmer, Inc. | 40 | 5609 |
| &nbsp;&nbsp;&nbsp;Clorox Co. | 39 | 5473 |
| &nbsp;&nbsp;&nbsp;J M Smucker Co. | 34 | 5388 |
| &nbsp;&nbsp;&nbsp;Cooper Companies, Inc. | 16 | 5291 |
| &nbsp;&nbsp;&nbsp;Align Technology, Inc.\* | 23 | 4851 |
| &nbsp;&nbsp;&nbsp;Incyte Corp.\* | 59 | 4739 |
| &nbsp;&nbsp;&nbsp;Avery Dennison Corp. | 26 | 4706 |
| &nbsp;&nbsp;&nbsp;FleetCor Technologies, Inc.\* | 24 | 4408 |
| &nbsp;&nbsp;&nbsp;Viatris, Inc. | 385 | 4285 |
| &nbsp;&nbsp;&nbsp;Hormel Foods Corp. | 92 | 4191 |
| &nbsp;&nbsp;&nbsp;Bio-Techne Corp. | 50 | 4144 |
| &nbsp;&nbsp;&nbsp;Lamb Weston Holdings, Inc. | 46 | 4111 |
| &nbsp;&nbsp;&nbsp;Brown-Forman Corp. — Class B | 58 | 3810 |
| &nbsp;&nbsp;&nbsp;Teleflex, Inc. | 15 | 3744 |
| &nbsp;&nbsp;&nbsp;Charles River Laboratories International, Inc.\* | 17 | 3704 |
| &nbsp;&nbsp;&nbsp;Campbell Soup Co. | 64 | 3632 |
| &nbsp;&nbsp;&nbsp;Henry Schein, Inc.\* | 43 | 3434 |
| &nbsp;&nbsp;&nbsp;MarketAxess Holdings, Inc. | 12 | 3347 |
| &nbsp;&nbsp;&nbsp;Molson Coors Beverage Co. — Class B | 60 | 3091 |
| &nbsp;&nbsp;&nbsp;Bio-Rad Laboratories, Inc. — Class A\* | 7 | 2943 |
| &nbsp;&nbsp;&nbsp;Universal Health Services, Inc. — Class B | 20 | 2818 |
| &nbsp;&nbsp;&nbsp;Rollins, Inc. | 74 | 2704 |
| &nbsp;&nbsp;&nbsp;Catalent, Inc.\* | 57 | 2565 |
| &nbsp;&nbsp;&nbsp;Robert Half International, Inc. | 34 | 2510 |
| &nbsp;&nbsp;&nbsp;Organon & Co. | 81 | 2262 |
| &nbsp;&nbsp;&nbsp;Dentsply Sirona, Inc. | 69 | 2197 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 11

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **NOVA FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;DaVita, Inc.\* | 17 | $| 1269 |
| **Total Consumer, Non-cyclical** |  |  | 2402226 |
| **Technology - 13.4%** | **Technology - 13.4%** | **Technology - 13.4%** | **Technology - 13.4%** |
| &nbsp;&nbsp;&nbsp;Apple, Inc. | 4759 |  | 618337 |
| &nbsp;&nbsp;&nbsp;Microsoft Corp. | 2372 |  | 568853 |
| &nbsp;&nbsp;&nbsp;NVIDIA Corp. | 792 |  | 115743 |
| &nbsp;&nbsp;&nbsp;Broadcom, Inc. | 129 |  | 72128 |
| &nbsp;&nbsp;&nbsp;Accenture plc — Class A | 200 |  | 53368 |
| &nbsp;&nbsp;&nbsp;Adobe, Inc.\* | 148 |  | 49807 |
| &nbsp;&nbsp;&nbsp;Texas Instruments, Inc. | 289 |  | 47749 |
| &nbsp;&nbsp;&nbsp;Salesforce, Inc.\* | 319 |  | 42296 |
| &nbsp;&nbsp;&nbsp;International Business Machines Corp. | 289 |  | 40717 |
| &nbsp;&nbsp;&nbsp;Oracle Corp. | 489 |  | 39971 |
| &nbsp;&nbsp;&nbsp;QUALCOMM, Inc. | 357 |  | 39248 |
| &nbsp;&nbsp;&nbsp;Intuit, Inc. | 90 |  | 35030 |
| &nbsp;&nbsp;&nbsp;Intel Corp. | 1313 |  | 34703 |
| &nbsp;&nbsp;&nbsp;Advanced Micro Devices, Inc.\* | 513 |  | 33227 |
| &nbsp;&nbsp;&nbsp;Analog Devices, Inc. | 165 |  | 27065 |
| &nbsp;&nbsp;&nbsp;Applied Materials, Inc. | 274 |  | 26682 |
| &nbsp;&nbsp;&nbsp;ServiceNow, Inc.\* | 64 |  | 24849 |
| &nbsp;&nbsp;&nbsp;Fiserv, Inc.\* | 202 |  | 20416 |
| &nbsp;&nbsp;&nbsp;Lam Research Corp. | 43 |  | 18073 |
| &nbsp;&nbsp;&nbsp;Activision Blizzard, Inc. | 228 |  | 17453 |
| &nbsp;&nbsp;&nbsp;Micron Technology, Inc. | 346 |  | 17293 |
| &nbsp;&nbsp;&nbsp;KLA Corp. | 45 |  | 16966 |
| &nbsp;&nbsp;&nbsp;Synopsys, Inc.\* | 49 |  | 15645 |
| &nbsp;&nbsp;&nbsp;Roper Technologies, Inc. | 34 |  | 14691 |
| &nbsp;&nbsp;&nbsp;Cadence Design Systems, Inc.\* | 87 |  | 13976 |
| &nbsp;&nbsp;&nbsp;NXP Semiconductor N.V. | 82 |  | 12958 |
| &nbsp;&nbsp;&nbsp;Autodesk, Inc.\* | 69 |  | 12894 |
| &nbsp;&nbsp;&nbsp;Fidelity National Information Services, Inc. | 189 |  | 12824 |
| &nbsp;&nbsp;&nbsp;Microchip Technology, Inc. | 175 |  | 12294 |
| &nbsp;&nbsp;&nbsp;MSCI, Inc. — Class A | 26 |  | 12094 |
| &nbsp;&nbsp;&nbsp;Paychex, Inc. | 102 |  | 11787 |
| &nbsp;&nbsp;&nbsp;Electronic Arts, Inc. | 83 |  | 10141 |
| &nbsp;&nbsp;&nbsp;Fortinet, Inc.\* | 206 |  | 10071 |
| &nbsp;&nbsp;&nbsp;Cognizant Technology Solutions Corp. — Class A | 163 |  | 9322 |
| &nbsp;&nbsp;&nbsp;ON Semiconductor Corp.\* | 138 |  | 8607 |
| &nbsp;&nbsp;&nbsp;HP, Inc. | 281 |  | 7550 |
| &nbsp;&nbsp;&nbsp;ANSYS, Inc.\* | 28 |  | 6765 |
| &nbsp;&nbsp;&nbsp;Hewlett Packard Enterprise Co. | 409 |  | 6528 |
| &nbsp;&nbsp;&nbsp;EPAM Systems, Inc.\* | 18 |  | 5899 |
| &nbsp;&nbsp;&nbsp;Take-Two Interactive Software, Inc.\* | 51 |  | 5311 |
| &nbsp;&nbsp;&nbsp;Broadridge Financial Solutions, Inc. | 37 |  | 4963 |
| &nbsp;&nbsp;&nbsp;Monolithic Power Systems, Inc. | 14 |  | 4950 |
| &nbsp;&nbsp;&nbsp;Paycom Software, Inc.\* | 15 |  | 4655 |
| &nbsp;&nbsp;&nbsp;Skyworks Solutions, Inc. | 51 |  | 4648 |
| &nbsp;&nbsp;&nbsp;Leidos Holdings, Inc. | 43 |  | 4523 |
| &nbsp;&nbsp;&nbsp;Teradyne, Inc. | 49 |  | 4280 |
| &nbsp;&nbsp;&nbsp;Akamai Technologies, Inc.\* | 50 |  | 4215 |
| &nbsp;&nbsp;&nbsp;Tyler Technologies, Inc.\* | 13 |  | 4191 |
| &nbsp;&nbsp;&nbsp;NetApp, Inc. | 69 |  | 4144 |
| &nbsp;&nbsp;&nbsp;Zebra Technologies Corp. — Class A\* | 16 |  | 4103 |
| &nbsp;&nbsp;&nbsp;PTC, Inc.\* | 34 |  | 4081 |
| &nbsp;&nbsp;&nbsp;Jack Henry & Associates, Inc. | 23 |  | 4038 |
| &nbsp;&nbsp;&nbsp;Seagate Technology Holdings plc | 61 |  | 3209 |
| &nbsp;&nbsp;&nbsp;Western Digital Corp.\* | 101 |  | 3187 |
| &nbsp;&nbsp;&nbsp;Ceridian HCM Holding, Inc.\* | 49 |  | 3143 |
| &nbsp;&nbsp;&nbsp;Qorvo, Inc.\* | 33 |  | 2991 |
| &nbsp;&nbsp;&nbsp;DXC Technology Co.\* | 73 |  | 1935 |
| **Total Technology** |  |  | 2216587 |
| **Financial - 9.7%** | **Financial - 9.7%** | **Financial - 9.7%** | **Financial - 9.7%** |
| &nbsp;&nbsp;&nbsp;Berkshire Hathaway, Inc. — Class B\* | 573 |  | 177000 |
| &nbsp;&nbsp;&nbsp;JPMorgan Chase & Co. | 933 |  | 125115 |
| &nbsp;&nbsp;&nbsp;Visa, Inc. — Class A | 520 |  | 108035 |
| &nbsp;&nbsp;&nbsp;Mastercard, Inc. — Class A | 270 |  | 93887 |
| &nbsp;&nbsp;&nbsp;Bank of America Corp. | 2221 |  | 73560 |
| &nbsp;&nbsp;&nbsp;Wells Fargo & Co. | 1212 |  | 50043 |
| &nbsp;&nbsp;&nbsp;Charles Schwab Corp. | 486 |  | 40464 |
| &nbsp;&nbsp;&nbsp;Goldman Sachs Group, Inc. | 108 |  | 37085 |
| &nbsp;&nbsp;&nbsp;Morgan Stanley | 420 |  | 35708 |
| &nbsp;&nbsp;&nbsp;BlackRock, Inc. — Class A | 48 |  | 34014 |
| &nbsp;&nbsp;&nbsp;Prologis, Inc. REIT | 293 |  | 33030 |
| &nbsp;&nbsp;&nbsp;American Tower Corp. — Class A REIT | 148 |  | 31355 |
| &nbsp;&nbsp;&nbsp;Chubb Ltd. | 132 |  | 29119 |
| &nbsp;&nbsp;&nbsp;American Express Co. | 190 |  | 28073 |
| &nbsp;&nbsp;&nbsp;Citigroup, Inc. | 616 |  | 27862 |
| &nbsp;&nbsp;&nbsp;Marsh & McLennan Companies, Inc. | 158 |  | 26146 |
| &nbsp;&nbsp;&nbsp;Progressive Corp. | 186 |  | 24126 |
| &nbsp;&nbsp;&nbsp;PNC Financial Services Group, Inc. | 129 |  | 20374 |
| &nbsp;&nbsp;&nbsp;Aon plc — Class A | 66 |  | 19809 |
| &nbsp;&nbsp;&nbsp;CME Group, Inc. — Class A | 114 |  | 19170 |
| &nbsp;&nbsp;&nbsp;Equinix, Inc. REIT | 29 |  | 18996 |
| &nbsp;&nbsp;&nbsp;U.S. Bancorp | 430 |  | 18752 |
| &nbsp;&nbsp;&nbsp;Crown Castle, Inc. REIT | 138 |  | 18718 |
| &nbsp;&nbsp;&nbsp;Truist Financial Corp. | 422 |  | 18159 |
| &nbsp;&nbsp;&nbsp;Intercontinental Exchange, Inc. | 177 |  | 18159 |
| &nbsp;&nbsp;&nbsp;MetLife, Inc. | 210 |  | 15198 |
| &nbsp;&nbsp;&nbsp;American International Group, Inc. | 236 |  | 14925 |
| &nbsp;&nbsp;&nbsp;Travelers Companies, Inc. | 75 |  | 14062 |
| &nbsp;&nbsp;&nbsp;Public Storage REIT | 50 |  | 14009 |
| &nbsp;&nbsp;&nbsp;Aflac, Inc. | 180 |  | 12949 |
| &nbsp;&nbsp;&nbsp;Arthur J Gallagher & Co. | 67 |  | 12632 |
| &nbsp;&nbsp;&nbsp;Realty Income Corp. REIT | 199 |  | 12623 |
| &nbsp;&nbsp;&nbsp;Simon Property Group, Inc. REIT | 104 |  | 12218 |
| &nbsp;&nbsp;&nbsp;Prudential Financial, Inc. | 117 |  | 11637 |
| &nbsp;&nbsp;&nbsp;Allstate Corp. | 84 |  | 11390 |
| &nbsp;&nbsp;&nbsp;Capital One Financial Corp. | 122 |  | 11341 |
| &nbsp;&nbsp;&nbsp;Bank of New York Mellon Corp. | 234 |  | 10652 |
| &nbsp;&nbsp;&nbsp;Ameriprise Financial, Inc. | 34 |  | 10587 |
| &nbsp;&nbsp;&nbsp;VICI Properties, Inc. REIT | 307 |  | 9947 |
| &nbsp;&nbsp;&nbsp;Welltower, Inc. REIT | 151 |  | 9898 |
| &nbsp;&nbsp;&nbsp;SBA Communications Corp. REIT | 34 |  | 9531 |
| &nbsp;&nbsp;&nbsp;Digital Realty Trust, Inc. REIT | 91 |  | 9125 |
| &nbsp;&nbsp;&nbsp;State Street Corp. | 117 |  | 9076 |
| &nbsp;&nbsp;&nbsp;Discover Financial Services | 87 |  | 8511 |
| &nbsp;&nbsp;&nbsp;Willis Towers Watson plc | 34 |  | 8316 |
| &nbsp;&nbsp;&nbsp;M&T Bank Corp. | 55 |  | 7978 |
| &nbsp;&nbsp;&nbsp;&nbsp;T. Rowe Price Group, Inc. | 72 |  | 7852 |
| &nbsp;&nbsp;&nbsp;CBRE Group, Inc. — Class A\* | 101 |  | 7773 |
| &nbsp;&nbsp;&nbsp;Hartford Financial Services Group, Inc. | 101 |  | 7659 |

---

12 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **NOVA FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;Arch Capital Group Ltd.\* | 118 | $| 7408 |
| &nbsp;&nbsp;&nbsp;Weyerhaeuser Co. REIT | 234 |  | 7254 |
| &nbsp;&nbsp;&nbsp;Fifth Third Bancorp | 218 |  | 7153 |
| &nbsp;&nbsp;&nbsp;AvalonBay Communities, Inc. REIT | 44 |  | 7107 |
| &nbsp;&nbsp;&nbsp;First Republic Bank | 58 |  | 7070 |
| &nbsp;&nbsp;&nbsp;Alexandria Real Estate Equities, Inc. REIT | 47 |  | 6846 |
| &nbsp;&nbsp;&nbsp;Nasdaq, Inc. | 108 |  | 6626 |
| &nbsp;&nbsp;&nbsp;Raymond James Financial, Inc. | 62 |  | 6625 |
| &nbsp;&nbsp;&nbsp;Huntington Bancshares, Inc. | 459 |  | 6472 |
| &nbsp;&nbsp;&nbsp;Regions Financial Corp. | 297 |  | 6403 |
| &nbsp;&nbsp;&nbsp;Equity Residential REIT | 108 |  | 6372 |
| &nbsp;&nbsp;&nbsp;Extra Space Storage, Inc. REIT | 43 |  | 6329 |
| &nbsp;&nbsp;&nbsp;Citizens Financial Group, Inc. | 156 |  | 6142 |
| &nbsp;&nbsp;&nbsp;Principal Financial Group, Inc. | 72 |  | 6042 |
| &nbsp;&nbsp;&nbsp;Mid-America Apartment Communities, Inc. REIT | 38 |  | 5966 |
| &nbsp;&nbsp;&nbsp;Northern Trust Corp. | 66 |  | 5840 |
| &nbsp;&nbsp;&nbsp;Ventas, Inc. REIT | 127 |  | 5721 |
| &nbsp;&nbsp;&nbsp;Invitation Homes, Inc. REIT | 185 |  | 5483 |
| &nbsp;&nbsp;&nbsp;KeyCorp | 296 |  | 5156 |
| &nbsp;&nbsp;&nbsp;Cincinnati Financial Corp. | 50 |  | 5119 |
| &nbsp;&nbsp;&nbsp;W R Berkley Corp. | 65 |  | 4717 |
| &nbsp;&nbsp;&nbsp;Synchrony Financial | 143 |  | 4699 |
| &nbsp;&nbsp;&nbsp;Iron Mountain, Inc. REIT | 93 |  | 4636 |
| &nbsp;&nbsp;&nbsp;Essex Property Trust, Inc. REIT | 21 |  | 4450 |
| &nbsp;&nbsp;&nbsp;SVB Financial Group\* | 19 |  | 4373 |
| &nbsp;&nbsp;&nbsp;Everest Re Group Ltd. | 13 |  | 4306 |
| &nbsp;&nbsp;&nbsp;Healthpeak Properties, Inc. REIT | 171 |  | 4287 |
| &nbsp;&nbsp;&nbsp;Brown & Brown, Inc. | 75 |  | 4273 |
| &nbsp;&nbsp;&nbsp;Cboe Global Markets, Inc. | 34 |  | 4266 |
| &nbsp;&nbsp;&nbsp;Kimco Realty Corp. REIT | 197 |  | 4172 |
| &nbsp;&nbsp;&nbsp;Camden Property Trust REIT | 34 |  | 3804 |
| &nbsp;&nbsp;&nbsp;UDR, Inc. REIT | 97 |  | 3757 |
| &nbsp;&nbsp;&nbsp;Loews Corp. | 63 |  | 3675 |
| &nbsp;&nbsp;&nbsp;Host Hotels & Resorts, Inc. REIT | 227 |  | 3643 |
| &nbsp;&nbsp;&nbsp;Globe Life, Inc. | 29 |  | 3496 |
| &nbsp;&nbsp;&nbsp;Regency Centers Corp. REIT | 49 |  | 3063 |
| &nbsp;&nbsp;&nbsp;Boston Properties, Inc. REIT | 45 |  | 3041 |
| &nbsp;&nbsp;&nbsp;Comerica, Inc. | 42 |  | 2808 |
| &nbsp;&nbsp;&nbsp;Invesco Ltd. | 145 |  | 2609 |
| &nbsp;&nbsp;&nbsp;Franklin Resources, Inc. | 90 |  | 2374 |
| &nbsp;&nbsp;&nbsp;Zions Bancorp North America | 48 |  | 2360 |
| &nbsp;&nbsp;&nbsp;Federal Realty Investment Trust REIT | 23 |  | 2324 |
| &nbsp;&nbsp;&nbsp;Signature Bank | 20 |  | 2304 |
| &nbsp;&nbsp;&nbsp;Assurant, Inc. | 17 |  | 2126 |
| &nbsp;&nbsp;&nbsp;Lincoln National Corp. | 49 |  | 1505 |
| &nbsp;&nbsp;&nbsp;Vornado Realty Trust REIT | 51 |  | 1061 |
| **Total Financial** |  |  | 1601911 |
| **Communications - 6.7%** | **Communications - 6.7%** | **Communications - 6.7%** | **Communications - 6.7%** |
| &nbsp;&nbsp;&nbsp;Amazon.com, Inc.\* | 2825 |  | 237300 |
| &nbsp;&nbsp;&nbsp;Alphabet, Inc. — Class A\* | 1901 |  | 167725 |
| &nbsp;&nbsp;&nbsp;Alphabet, Inc. — Class C\* | 1685 |  | 149510 |
| &nbsp;&nbsp;&nbsp;Meta Platforms, Inc. — Class A\* | 716 |  | 86164 |
| &nbsp;&nbsp;&nbsp;Cisco Systems, Inc. | 1307 |  | 62265 |
| &nbsp;&nbsp;&nbsp;Verizon Communications, Inc. | 1337 |  | 52678 |
| &nbsp;&nbsp;&nbsp;Walt Disney Co.\* | 580 |  | 50390 |
| &nbsp;&nbsp;&nbsp;Comcast Corp. — Class A | 1373 |  | 48014 |
| &nbsp;&nbsp;&nbsp;AT&T, Inc. | 2268 |  | 41754 |
| &nbsp;&nbsp;&nbsp;Netflix, Inc.\* | 141 |  | 41578 |
| &nbsp;&nbsp;&nbsp;T-Mobile US, Inc.\* | 190 |  | 26600 |
| &nbsp;&nbsp;&nbsp;Booking Holdings, Inc.\* | 12 |  | 24183 |
| &nbsp;&nbsp;&nbsp;Motorola Solutions, Inc. | 53 |  | 13659 |
| &nbsp;&nbsp;&nbsp;Charter Communications, Inc. — Class A\* | 34 |  | 11529 |
| &nbsp;&nbsp;&nbsp;Arista Networks, Inc.\* | 80 |  | 9708 |
| &nbsp;&nbsp;&nbsp;Corning, Inc. | 242 |  | 7729 |
| &nbsp;&nbsp;&nbsp;CDW Corp. | 43 |  | 7679 |
| &nbsp;&nbsp;&nbsp;eBay, Inc. | 173 |  | 7174 |
| &nbsp;&nbsp;&nbsp;Warner Bros Discovery, Inc.\* | 703 |  | 6665 |
| &nbsp;&nbsp;&nbsp;VeriSign, Inc.\* | 30 |  | 6163 |
| &nbsp;&nbsp;&nbsp;Omnicom Group, Inc. | 65 |  | 5302 |
| &nbsp;&nbsp;&nbsp;FactSet Research Systems, Inc. | 12 |  | 4815 |
| &nbsp;&nbsp;&nbsp;Etsy, Inc.\* | 40 |  | 4791 |
| &nbsp;&nbsp;&nbsp;Expedia Group, Inc.\* | 48 |  | 4205 |
| &nbsp;&nbsp;&nbsp;Interpublic Group of Companies, Inc. | 123 |  | 4097 |
| &nbsp;&nbsp;&nbsp;Gen Digital, Inc. | 184 |  | 3943 |
| &nbsp;&nbsp;&nbsp;Match Group, Inc.\* | 89 |  | 3693 |
| &nbsp;&nbsp;&nbsp;Juniper Networks, Inc. | 103 |  | 3292 |
| &nbsp;&nbsp;&nbsp;Fox Corp. — Class A | 96 |  | 2916 |
| &nbsp;&nbsp;&nbsp;F5, Inc.\* | 19 |  | 2727 |
| &nbsp;&nbsp;&nbsp;Paramount Global — Class B | 160 |  | 2701 |
| &nbsp;&nbsp;&nbsp;News Corp. — Class A | 122 |  | 2220 |
| &nbsp;&nbsp;&nbsp;Lumen Technologies, Inc.\* | 302 |  | 1576 |
| &nbsp;&nbsp;&nbsp;Fox Corp. — Class B | 44 |  | 1252 |
| &nbsp;&nbsp;&nbsp;DISH Network Corp. — Class A\* | 81 |  | 1137 |
| &nbsp;&nbsp;&nbsp;News Corp. — Class B | 37 |  | 682 |
| **Total Communications** |  |  | 1107816 |
| **Consumer, Cyclical - 5.6%** | **Consumer, Cyclical - 5.6%** | **Consumer, Cyclical - 5.6%** | **Consumer, Cyclical - 5.6%** |
| &nbsp;&nbsp;&nbsp;Tesla, Inc.\* | 854 |  | 105196 |
| &nbsp;&nbsp;&nbsp;Home Depot, Inc. | 325 |  | 102655 |
| &nbsp;&nbsp;&nbsp;Costco Wholesale Corp. | 141 |  | 64367 |
| &nbsp;&nbsp;&nbsp;Walmart, Inc. | 449 |  | 63664 |
| &nbsp;&nbsp;&nbsp;McDonald's Corp. | 233 |  | 61403 |
| &nbsp;&nbsp;&nbsp;NIKE, Inc. — Class B | 401 |  | 46921 |
| &nbsp;&nbsp;&nbsp;Lowe's Companies, Inc. | 197 |  | 39250 |
| &nbsp;&nbsp;&nbsp;Starbucks Corp. | 365 |  | 36208 |
| &nbsp;&nbsp;&nbsp;TJX Companies, Inc. | 369 |  | 29372 |
| &nbsp;&nbsp;&nbsp;Target Corp. | 147 |  | 21909 |
| &nbsp;&nbsp;&nbsp;Dollar General Corp. | 72 |  | 17730 |
| &nbsp;&nbsp;&nbsp;O'Reilly Automotive, Inc.\* | 20 |  | 16881 |
| &nbsp;&nbsp;&nbsp;General Motors Co. | 453 |  | 15239 |
| &nbsp;&nbsp;&nbsp;AutoZone, Inc.\* | 6 |  | 14797 |
| &nbsp;&nbsp;&nbsp;Ford Motor Co. | 1256 |  | 14607 |
| &nbsp;&nbsp;&nbsp;Ross Stores, Inc. | 111 |  | 12884 |
| &nbsp;&nbsp;&nbsp;Marriott International, Inc. — Class A | 86 |  | 12805 |
| &nbsp;&nbsp;&nbsp;Chipotle Mexican Grill, Inc. — Class A\* | 9 |  | 12487 |
| &nbsp;&nbsp;&nbsp;Yum! Brands, Inc. | 90 |  | 11527 |
| &nbsp;&nbsp;&nbsp;PACCAR, Inc. | 111 |  | 10986 |
| &nbsp;&nbsp;&nbsp;Cummins, Inc. | 45 |  | 10903 |
| &nbsp;&nbsp;&nbsp;Hilton Worldwide Holdings, Inc. | 86 |  | 10867 |
| &nbsp;&nbsp;&nbsp;Dollar Tree, Inc.\* | 67 |  | 9476 |
| &nbsp;&nbsp;&nbsp;DR Horton, Inc. | 100 |  | 8914 |
| &nbsp;&nbsp;&nbsp;Fastenal Co. | 182 |  | 8612 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 13

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **NOVA FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;Walgreens Boots Alliance, Inc. | 228 | $| 8518 |
| &nbsp;&nbsp;&nbsp;WW Grainger, Inc. | 15 |  | 8344 |
| &nbsp;&nbsp;&nbsp;Copart, Inc.\* | 136 |  | 8281 |
| &nbsp;&nbsp;&nbsp;Tractor Supply Co. | 36 |  | 8099 |
| &nbsp;&nbsp;&nbsp;Aptiv plc\* | 86 |  | 8009 |
| &nbsp;&nbsp;&nbsp;Genuine Parts Co. | 45 |  | 7808 |
| &nbsp;&nbsp;&nbsp;Ulta Beauty, Inc.\* | 16 |  | 7505 |
| &nbsp;&nbsp;&nbsp;Lennar Corp. — Class A | 81 |  | 7330 |
| &nbsp;&nbsp;&nbsp;Delta Air Lines, Inc.\* | 204 |  | 6703 |
| &nbsp;&nbsp;&nbsp;Southwest Airlines Co. | 189 |  | 6364 |
| &nbsp;&nbsp;&nbsp;Darden Restaurants, Inc. | 39 |  | 5395 |
| &nbsp;&nbsp;&nbsp;Best Buy Company, Inc. | 64 |  | 5133 |
| &nbsp;&nbsp;&nbsp;Las Vegas Sands Corp.\* | 104 |  | 4999 |
| &nbsp;&nbsp;&nbsp;NVR, Inc.\* | 1 |  | 4613 |
| &nbsp;&nbsp;&nbsp;LKQ Corp. | 81 |  | 4326 |
| &nbsp;&nbsp;&nbsp;United Airlines Holdings, Inc.\* | 104 |  | 3921 |
| &nbsp;&nbsp;&nbsp;Domino's Pizza, Inc. | 11 |  | 3810 |
| &nbsp;&nbsp;&nbsp;Pool Corp. | 12 |  | 3628 |
| &nbsp;&nbsp;&nbsp;Royal Caribbean Cruises Ltd.\* | 70 |  | 3460 |
| &nbsp;&nbsp;&nbsp;MGM Resorts International | 101 |  | 3387 |
| &nbsp;&nbsp;&nbsp;PulteGroup, Inc. | 73 |  | 3324 |
| &nbsp;&nbsp;&nbsp;Live Nation Entertainment, Inc.\* | 45 |  | 3138 |
| &nbsp;&nbsp;&nbsp;CarMax, Inc.\* | 51 |  | 3105 |
| &nbsp;&nbsp;&nbsp;Bath & Body Works, Inc. | 73 |  | 3076 |
| &nbsp;&nbsp;&nbsp;BorgWarner, Inc. | 74 |  | 2979 |
| &nbsp;&nbsp;&nbsp;Tapestry, Inc. | 77 |  | 2932 |
| &nbsp;&nbsp;&nbsp;VF Corp. | 105 |  | 2899 |
| &nbsp;&nbsp;&nbsp;Caesars Entertainment, Inc.\* | 68 |  | 2829 |
| &nbsp;&nbsp;&nbsp;Advance Auto Parts, Inc. | 19 |  | 2794 |
| &nbsp;&nbsp;&nbsp;Wynn Resorts Ltd.\* | 33 |  | 2721 |
| &nbsp;&nbsp;&nbsp;American Airlines Group, Inc.\* | 207 |  | 2633 |
| &nbsp;&nbsp;&nbsp;Carnival Corp.\* | 319 |  | 2571 |
| &nbsp;&nbsp;&nbsp;Hasbro, Inc. | 41 |  | 2501 |
| &nbsp;&nbsp;&nbsp;Whirlpool Corp. | 17 |  | 2405 |
| &nbsp;&nbsp;&nbsp;Alaska Air Group, Inc.\* | 40 |  | 1717 |
| &nbsp;&nbsp;&nbsp;Norwegian Cruise Line Holdings Ltd.\* | 134 |  | 1640 |
| &nbsp;&nbsp;&nbsp;Newell Brands, Inc. | 120 |  | 1570 |
| &nbsp;&nbsp;&nbsp;Ralph Lauren Corp. — Class A | 13 |  | 1374 |
| **Total Consumer, Cyclical** |  |  | 925501 |
| **Industrial - 5.2%** | **Industrial - 5.2%** | **Industrial - 5.2%** | **Industrial - 5.2%** |
| &nbsp;&nbsp;&nbsp;Raytheon Technologies Corp. | 467 |  | 47130 |
| &nbsp;&nbsp;&nbsp;Honeywell International, Inc. | 214 |  | 45860 |
| &nbsp;&nbsp;&nbsp;Union Pacific Corp. | 195 |  | 40379 |
| &nbsp;&nbsp;&nbsp;United Parcel Service, Inc. — Class B | 232 |  | 40331 |
| &nbsp;&nbsp;&nbsp;Caterpillar, Inc. | 166 |  | 39767 |
| &nbsp;&nbsp;&nbsp;Deere & Co. | 87 |  | 37302 |
| &nbsp;&nbsp;&nbsp;Lockheed Martin Corp. | 74 |  | 36000 |
| &nbsp;&nbsp;&nbsp;Boeing Co.\* | 178 |  | 33907 |
| &nbsp;&nbsp;&nbsp;General Electric Co. | 347 |  | 29075 |
| &nbsp;&nbsp;&nbsp;Northrop Grumman Corp. | 46 |  | 25098 |
| &nbsp;&nbsp;&nbsp;3M Co. | 176 |  | 21106 |
| &nbsp;&nbsp;&nbsp;CSX Corp. | 669 |  | 20725 |
| &nbsp;&nbsp;&nbsp;Eaton Corporation plc | 127 |  | 19933 |
| &nbsp;&nbsp;&nbsp;Illinois Tool Works, Inc. | 89 |  | 19607 |
| &nbsp;&nbsp;&nbsp;Waste Management, Inc. | 119 |  | 18669 |
| &nbsp;&nbsp;&nbsp;Norfolk Southern Corp. | 74 |  | 18235 |
| &nbsp;&nbsp;&nbsp;Emerson Electric Co. | 188 |  | 18059 |
| &nbsp;&nbsp;&nbsp;General Dynamics Corp. | 72 |  | 17864 |
| &nbsp;&nbsp;&nbsp;Amphenol Corp. — Class A | 189 |  | 14391 |
| &nbsp;&nbsp;&nbsp;Johnson Controls International plc | 220 |  | 14080 |
| &nbsp;&nbsp;&nbsp;Agilent Technologies, Inc. | 94 |  | 14067 |
| &nbsp;&nbsp;&nbsp;FedEx Corp. | 76 |  | 13163 |
| &nbsp;&nbsp;&nbsp;L3Harris Technologies, Inc. | 61 |  | 12701 |
| &nbsp;&nbsp;&nbsp;Trane Technologies plc | 73 |  | 12270 |
| &nbsp;&nbsp;&nbsp;Parker-Hannifin Corp. | 41 |  | 11931 |
| &nbsp;&nbsp;&nbsp;TE Connectivity Ltd. | 101 |  | 11595 |
| &nbsp;&nbsp;&nbsp;Carrier Global Corp. | 266 |  | 10972 |
| &nbsp;&nbsp;&nbsp;Otis Worldwide Corp. | 133 |  | 10415 |
| &nbsp;&nbsp;&nbsp;AMETEK, Inc. | 73 |  | 10200 |
| &nbsp;&nbsp;&nbsp;Mettler-Toledo International, Inc.\* | 7 |  | 10118 |
| &nbsp;&nbsp;&nbsp;TransDigm Group, Inc. | 16 |  | 10075 |
| &nbsp;&nbsp;&nbsp;Keysight Technologies, Inc.\* | 57 |  | 9751 |
| &nbsp;&nbsp;&nbsp;Rockwell Automation, Inc. | 37 |  | 9530 |
| &nbsp;&nbsp;&nbsp;Republic Services, Inc. — Class A | 66 |  | 8513 |
| &nbsp;&nbsp;&nbsp;Old Dominion Freight Line, Inc. | 29 |  | 8229 |
| &nbsp;&nbsp;&nbsp;Vulcan Materials Co. | 42 |  | 7355 |
| &nbsp;&nbsp;&nbsp;Fortive Corp. | 113 |  | 7260 |
| &nbsp;&nbsp;&nbsp;Martin Marietta Materials, Inc. | 20 |  | 6759 |
| &nbsp;&nbsp;&nbsp;Ingersoll Rand, Inc. | 129 |  | 6740 |
| &nbsp;&nbsp;&nbsp;Xylem, Inc. | 57 |  | 6303 |
| &nbsp;&nbsp;&nbsp;Dover Corp. | 45 |  | 6094 |
| &nbsp;&nbsp;&nbsp;Teledyne Technologies, Inc.\* | 15 |  | 5999 |
| &nbsp;&nbsp;&nbsp;Westinghouse Air Brake Technologies Corp. | 58 |  | 5789 |
| &nbsp;&nbsp;&nbsp;Amcor plc | 474 |  | 5645 |
| &nbsp;&nbsp;&nbsp;IDEX Corp. | 24 |  | 5480 |
| &nbsp;&nbsp;&nbsp;Expeditors International of Washington, Inc. | 51 |  | 5300 |
| &nbsp;&nbsp;&nbsp;Ball Corp. | 100 |  | 5114 |
| &nbsp;&nbsp;&nbsp;Jacobs Solutions, Inc. | 41 |  | 4923 |
| &nbsp;&nbsp;&nbsp;Textron, Inc. | 67 |  | 4744 |
| &nbsp;&nbsp;&nbsp;J.B. Hunt Transport Services, Inc. | 27 |  | 4708 |
| &nbsp;&nbsp;&nbsp;Howmet Aerospace, Inc. | 118 |  | 4650 |
| &nbsp;&nbsp;&nbsp;Garmin Ltd. | 49 |  | 4522 |
| &nbsp;&nbsp;&nbsp;Nordson Corp. | 17 |  | 4041 |
| &nbsp;&nbsp;&nbsp;Trimble, Inc.\* | 78 |  | 3944 |
| &nbsp;&nbsp;&nbsp;Snap-on, Inc. | 17 |  | 3884 |
| &nbsp;&nbsp;&nbsp;Packaging Corporation of America | 29 |  | 3709 |
| &nbsp;&nbsp;&nbsp;Stanley Black & Decker, Inc. | 47 |  | 3531 |
| &nbsp;&nbsp;&nbsp;CH Robinson Worldwide, Inc. | 37 |  | 3388 |
| &nbsp;&nbsp;&nbsp;Masco Corp. | 72 |  | 3360 |
| &nbsp;&nbsp;&nbsp;Huntington Ingalls Industries, Inc. | 13 |  | 2999 |
| &nbsp;&nbsp;&nbsp;Allegion plc | 28 |  | 2947 |
| &nbsp;&nbsp;&nbsp;Westrock Co. | 82 |  | 2883 |
| &nbsp;&nbsp;&nbsp;Pentair plc | 53 |  | 2384 |
| &nbsp;&nbsp;&nbsp;Sealed Air Corp. | 46 |  | 2295 |
| &nbsp;&nbsp;&nbsp;A O Smith Corp. | 40 |  | 2289 |
| &nbsp;&nbsp;&nbsp;Generac Holdings, Inc.\* | 20 |  | 2013 |
| &nbsp;&nbsp;&nbsp;Mohawk Industries, Inc.\* | 17 |  | 1738 |
| **Total Industrial** |  |  | 863838 |
| **Energy - 3.4%** | **Energy - 3.4%** | **Energy - 3.4%** | **Energy - 3.4%** |
| &nbsp;&nbsp;&nbsp;Exxon Mobil Corp. | 1310 |  | 144493 |
| &nbsp;&nbsp;&nbsp;Chevron Corp. | 566 |  | 101591 |

---

14 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **NOVA FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;ConocoPhillips | 397 | $| 46846 |
| &nbsp;&nbsp;&nbsp;EOG Resources, Inc. | 187 |  | 24220 |
| &nbsp;&nbsp;&nbsp;Schlumberger Ltd. | 452 |  | 24164 |
| &nbsp;&nbsp;&nbsp;Pioneer Natural Resources Co. | 76 |  | 17358 |
| &nbsp;&nbsp;&nbsp;Marathon Petroleum Corp. | 149 |  | 17342 |
| &nbsp;&nbsp;&nbsp;Valero Energy Corp. | 124 |  | 15731 |
| &nbsp;&nbsp;&nbsp;Phillips 66 | 151 |  | 15716 |
| &nbsp;&nbsp;&nbsp;Occidental Petroleum Corp. | 232 |  | 14614 |
| &nbsp;&nbsp;&nbsp;Devon Energy Corp. | 208 |  | 12794 |
| &nbsp;&nbsp;&nbsp;Williams Companies, Inc. | 387 |  | 12732 |
| &nbsp;&nbsp;&nbsp;Hess Corp. | 89 |  | 12622 |
| &nbsp;&nbsp;&nbsp;Enphase Energy, Inc.\* | 43 |  | 11394 |
| &nbsp;&nbsp;&nbsp;Kinder Morgan, Inc. | 630 |  | 11391 |
| &nbsp;&nbsp;&nbsp;Halliburton Co. | 289 |  | 11372 |
| &nbsp;&nbsp;&nbsp;Baker Hughes Co. | 319 |  | 9420 |
| &nbsp;&nbsp;&nbsp;ONEOK, Inc. | 142 |  | 9329 |
| &nbsp;&nbsp;&nbsp;Diamondback Energy, Inc. | 56 |  | 7660 |
| &nbsp;&nbsp;&nbsp;Coterra Energy, Inc. — Class A | 251 |  | 6167 |
| &nbsp;&nbsp;&nbsp;Marathon Oil Corp. | 202 |  | 5468 |
| &nbsp;&nbsp;&nbsp;SolarEdge Technologies, Inc.\* | 19 |  | 5382 |
| &nbsp;&nbsp;&nbsp;Targa Resources Corp. | 72 |  | 5292 |
| &nbsp;&nbsp;&nbsp;APA Corp. | 103 |  | 4808 |
| &nbsp;&nbsp;&nbsp;First Solar, Inc.\* | 32 |  | 4793 |
| &nbsp;&nbsp;&nbsp;Equities Corp. | 117 |  | 3958 |
| **Total Energy** |  |  | 556657 |
| **Utilities - 2.1%** | **Utilities - 2.1%** | **Utilities - 2.1%** | **Utilities - 2.1%** |
| &nbsp;&nbsp;&nbsp;NextEra Energy, Inc. | 660 |  | 55176 |
| &nbsp;&nbsp;&nbsp;Duke Energy Corp. | 256 |  | 26365 |
| &nbsp;&nbsp;&nbsp;Southern Co. | 362 |  | 25850 |
| &nbsp;&nbsp;&nbsp;Dominion Energy, Inc. | 278 |  | 17047 |
| &nbsp;&nbsp;&nbsp;American Electric Power Company, Inc. | 171 |  | 16236 |
| &nbsp;&nbsp;&nbsp;Sempra Energy | 105 |  | 16227 |
| &nbsp;&nbsp;&nbsp;Exelon Corp. | 331 |  | 14309 |
| &nbsp;&nbsp;&nbsp;Xcel Energy, Inc. | 183 |  | 12830 |
| &nbsp;&nbsp;&nbsp;Consolidated Edison, Inc. | 118 |  | 11247 |
| &nbsp;&nbsp;&nbsp;Public Service Enterprise Group, Inc. | 166 |  | 10171 |
| &nbsp;&nbsp;&nbsp;WEC Energy Group, Inc. | 105 |  | 9845 |
| &nbsp;&nbsp;&nbsp;Eversource Energy | 116 |  | 9725 |
| &nbsp;&nbsp;&nbsp;Constellation Energy Corp. | 109 |  | 9397 |
| &nbsp;&nbsp;&nbsp;American Water Works Company, Inc. | 61 |  | 9298 |
| &nbsp;&nbsp;&nbsp;PG&E Corp.\* | 536 |  | 8715 |
| &nbsp;&nbsp;&nbsp;Edison International | 127 |  | 8080 |
| &nbsp;&nbsp;&nbsp;Entergy Corp. | 68 |  | 7650 |
| &nbsp;&nbsp;&nbsp;Ameren Corp. | 86 |  | 7647 |
| &nbsp;&nbsp;&nbsp;DTE Energy Co. | 65 |  | 7639 |
| &nbsp;&nbsp;&nbsp;FirstEnergy Corp. | 181 |  | 7591 |
| &nbsp;&nbsp;&nbsp;PPL Corp. | 246 |  | 7188 |
| &nbsp;&nbsp;&nbsp;AES Corp. | 223 |  | 6414 |
| &nbsp;&nbsp;&nbsp;CenterPoint Energy, Inc. | 210 |  | 6298 |
| &nbsp;&nbsp;&nbsp;CMS Energy Corp. | 97 |  | 6143 |
| &nbsp;&nbsp;&nbsp;Atmos Energy Corp. | 47 |  | 5267 |
| &nbsp;&nbsp;&nbsp;Evergy, Inc. | 77 |  | 4846 |
| &nbsp;&nbsp;&nbsp;Alliant Energy Corp. | 84 |  | 4638 |
| &nbsp;&nbsp;&nbsp;NiSource, Inc. | 135 |  | 3702 |
| &nbsp;&nbsp;&nbsp;Pinnacle West Capital Corp. | 38 |  | 2890 |
| &nbsp;&nbsp;&nbsp;NRG Energy, Inc. | 77 |  | 2450 |
| **Total Utilities** |  |  | 340881 |
| **Basic Materials - 1.4%** | **Basic Materials - 1.4%** | **Basic Materials - 1.4%** | **Basic Materials - 1.4%** |
| &nbsp;&nbsp;&nbsp;Linde plc | 158 |  | 51536 |
| &nbsp;&nbsp;&nbsp;Air Products and Chemicals, Inc. | 70 |  | 21578 |
| &nbsp;&nbsp;&nbsp;Sherwin-Williams Co. | 76 |  | 18037 |
| &nbsp;&nbsp;&nbsp;Freeport-McMoRan, Inc. | 455 |  | 17290 |
| &nbsp;&nbsp;&nbsp;Newmont Corp. | 253 |  | 11942 |
| &nbsp;&nbsp;&nbsp;Ecolab, Inc. | 79 |  | 11499 |
| &nbsp;&nbsp;&nbsp;Dow, Inc. | 224 |  | 11287 |
| &nbsp;&nbsp;&nbsp;DuPont de Nemours, Inc. | 158 |  | 10844 |
| &nbsp;&nbsp;&nbsp;Nucor Corp. | 82 |  | 10809 |
| &nbsp;&nbsp;&nbsp;PPG Industries, Inc. | 75 |  | 9431 |
| &nbsp;&nbsp;&nbsp;International Flavors & Fragrances, Inc. | 81 |  | 8492 |
| &nbsp;&nbsp;&nbsp;Albemarle Corp. | 37 |  | 8024 |
| &nbsp;&nbsp;&nbsp;LyondellBasell Industries N.V. — Class A | 81 |  | 6725 |
| &nbsp;&nbsp;&nbsp;CF Industries Holdings, Inc. | 62 |  | 5282 |
| &nbsp;&nbsp;&nbsp;Steel Dynamics, Inc. | 53 |  | 5178 |
| &nbsp;&nbsp;&nbsp;FMC Corp. | 40 |  | 4992 |
| &nbsp;&nbsp;&nbsp;Mosaic Co. | 109 |  | 4782 |
| &nbsp;&nbsp;&nbsp;International Paper Co. | 113 |  | 3913 |
| &nbsp;&nbsp;&nbsp;Celanese Corp. — Class A | 32 |  | 3272 |
| &nbsp;&nbsp;&nbsp;Eastman Chemical Co. | 38 |  | 3095 |
| **Total Basic Materials** |  |  | 228008 |
| **Total Common Stocks** | **Total Common Stocks** |  |  |
| &nbsp;&nbsp;&nbsp;(Cost $7,814,249) |  |  | 10243425 |
| **MUTUAL FUNDS<sup>†</sup>** **- 23.3%** | **MUTUAL FUNDS<sup>†</sup>** **- 23.3%** | **MUTUAL FUNDS<sup>†</sup>** **- 23.3%** | **MUTUAL FUNDS<sup>†</sup>** **- 23.3%** |
| &nbsp;&nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class<sup>1</sup> | 202415 |  | 1951280 |
| &nbsp;&nbsp;&nbsp;Guggenheim Strategy Fund II<sup>1</sup> | 78932 |  | 1897514 |
| **Total Mutual Funds** | **Total Mutual Funds** |  |  |
| &nbsp;&nbsp;&nbsp;(Cost $3,941,469) |  |  | 3848794 |
|  | **Face<br> Amount** |  |  |
| **U.S. TREASURY BILLS<sup>††</sup>** **- 6.6%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 6.6%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 6.6%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 6.6%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.89% due 01/12/23<sup>2,3</sup> | $1050000 |  | 1049088 |
| &nbsp;&nbsp;&nbsp;3.79% due 01/17/23<sup>3,4</sup> | 33000 |  | 32953 |
| **Total U.S. Treasury Bills** | **Total U.S. Treasury Bills** |  |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,081,697) |  |  | 1082041 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 15

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **NOVA FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Face <br> Amount** | **Value** |
| **REPURCHASE AGREEMENTS<sup>††,5</sup>** **- 7.2%** | **REPURCHASE AGREEMENTS<sup>††,5</sup>** **- 7.2%** | **REPURCHASE AGREEMENTS<sup>††,5</sup>** **- 7.2%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23<sup>2</sup> | $668935 | $668935 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23<sup>2</sup> | 257283 | 257283 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23<sup>2</sup> | 256486 | 256486 |
| **Total Repurchase Agreements** |  |  |
| (Cost $1,182,704) |  | 1182704 |
| **Total Investments - 99.1%** |  |  |
| (Cost $14,020,119) |  | $16356964 |
| **Other Assets & Liabilities, net - 0.9%** |  | 156466 |
| **Total Net Assets - 100.0%** |  | $16513430 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Depreciation\*\*** |
| **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** |
| S&P 500 Index Mini Futures Contracts | 6 | Mar 2023 | $1158450 | $(49063) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** |
| **Counterparty** | **Index** | **Type** | **Financing <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Units** | **Notional <br> Amount** | **Value and <br> Unrealized <br> Depreciation** |
| **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** |
| BNP Paribas | S&P 500 Index | Pay | 4.93% (Federal Funds Rate + 0.60%) | At Maturity | 01/26/23 | 674 | $2585955 | $(86711) |
| Goldman Sachs International | S&P 500 Index | Pay | 4.83% (Federal Funds Rate + 0.50%) | At Maturity | 01/26/23 | 1464 | 5622354 | (111878) |
| Barclays Bank plc | S&P 500 Index | Pay | 4.75% (SOFR + 0.45%) | At Maturity | 01/25/23 | 1327 | 5095027 | (202009) |
|  |  |  |  |  |  |  | $13303336 | $(400598) |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| \*\* | &nbsp;&nbsp;&nbsp;Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Affiliated issuer. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as equity index swap collateral at December 31, 2022. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as futures collateral at December 31, 2022. |
| <sup>5</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;REIT — Real Estate Investment Trust |
|  | &nbsp;&nbsp;&nbsp;SOFR — Secured Overnight Financing Rate |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

16 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **NOVA FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $10243425 | $— | $— | $10243425 |
| Mutual Funds | 3848794 |  |  | 3848794 |
| U.S. Treasury Bills |  | 1082041 |  | 1082041 |
| Repurchase Agreements |  | 1182704 |  | 1182704 |
| Total Assets | $14092219 | $2264745 | $— | $16356964 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Liabilities)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Equity Futures Contracts\*\* | $49063 | $— | $— | $49063 |
| Equity Index Swap Agreements\*\* |  | 400598 |  | 400598 |
| Total Liabilities | $49063 | $400598 | $— | $449661 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $5008187 | $400000 | $(3400000) | $(33857) | $(76816) | $1897514 | 78932 | $73470 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 3156914 | 400000 | (1500000) | (52984) | (52650) | 1951280 | 202415 | 64137 |
|  | $8165101 | $800000 | $(4900000) | $(86841) | $(129466) | $3848794 |  | $137607 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 17

**NOVA FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments in unaffiliated issuers, at value (cost $8,895,946) | $11325466 |
| Investments in affiliated issuers, at value (cost $3,941,469) | 3848794 |
| Repurchase agreements, at value (cost $1,182,704) | 1182704 |
| Cash | 175 |
| Segregated cash with broker | 30821 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 766969 |
| &nbsp;&nbsp;&nbsp;Dividends | 25207 |
| &nbsp;&nbsp;&nbsp;Interest | 279 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 1 |
| **Total assets** | 17180416 |
| **Liabilities:** | **Liabilities:** |
| Unrealized depreciation on OTC swap agreements | 400598 |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Swap settlement | 182991 |
| &nbsp;&nbsp;&nbsp;Management fees | 12364 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 7222 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 4260 |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 3075 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 2641 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 287 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 137 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 53411 |
| **Total liabilities** | 666986 |
| **Net assets** | $16513430 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $28451967 |
| Total distributable earnings (loss) | (11938537) |
| Net assets | $16513430 |
| Capital shares outstanding | 139062 |
| Net asset value per share | $118.75 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $61) | $298769 |
| Dividends from securities of affiliated issuers | 137607 |
| Interest | 90254 |
| Income from securities lending, net | 43 |
| &nbsp;&nbsp;&nbsp;Total investment income | 526673 |
| **Expenses:** | **Expenses:** |
| Management fees | 226109 |
| Investor service fees | 75370 |
| Transfer agent fees | 87956 |
| Professional fees | 48575 |
| Portfolio accounting and administration fees | 37421 |
| Trustees' fees\* | 5802 |
| Custodian fees | 4595 |
| Interest expense | 314 |
| Line of credit fees | 146 |
| Miscellaneous | 17813 |
| &nbsp;&nbsp;&nbsp;Total expenses | 504101 |
| Less: | Less: |
| Expenses waived by Adviser | (7830) |
| Net expenses | 496271 |
| Net investment income | 30402 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (2859111) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (86841) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (6501206) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (1333084) |
| Net realized loss | (10780242) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (5171914) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (129466) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (1218120) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (48964) |
| Net change in unrealized appreciation (depreciation) | (6568464) |
| Net realized and unrealized loss | (17348706) |
| **Net decrease in net assets resulting from operations** | $(17318304) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

18 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**NOVA FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income (loss) | $30402 | $(220785) |
| Net realized gain (loss) on investments | (10780242) | 9854145 |
| Net change in unrealized appreciation (depreciation) on investments | (6568464) | 5676521 |
| Net increase (decrease) in net assets resulting from operations | (17318304) | 15309881 |
| Distributions to shareholders | (3401154) | (2128912) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 258422284 | 204167073 |
| Distributions reinvested | 3401154 | 2128912 |
| Cost of shares redeemed | (288174715) | (201584927) |
| Net increase (decrease) from capital share transactions | (26351277) | 4711058 |
| Net increase (decrease) in net assets | (47070735) | 17892027 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 63584165 | 45692138 |
| &nbsp;&nbsp;&nbsp;End of year | $16513430 | $63584165 |
| **Capital share activity:** |  |  |
| Shares sold | 1691174 | 1191814 |
| Shares issued from reinvestment of distributions | 26925 | 12342 |
| Shares redeemed | (1902255) | (1196620) |
| Net increase (decrease) in shares | (184156) | 7536 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 19

**NOVA FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $196.72 | $144.74 | $135.68 | $94.55 | $113.00 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .15 | (.76) | (.30) | .90 | .83 |
| Net gain (loss) on investments (realized and unrealized) | (58.50) | 60.70 | 24.12 | 41.55 | (11.15) |
| Total from investment operations | (58.35) | 59.94 | 23.82 | 42.45 | (10.32) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (.67) | (.61) | (1.16) | (1.32) | (.21) |
| Net realized gains | (18.95) | (7.35) | (13.60) |  | (7.92) |
| Total distributions | (19.62) | (7.96) | (14.76) | (1.32) | (8.13) |
| Net asset value, end of period | $118.75 | $196.72 | $144.74 | $135.68 | $94.55 |
| **Total Return<sup>b</sup>** | **(30.26** **%)** | **42.18%** | **20.03%** | **45.04%** | **(10.32** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $16513 | $63584 | $45692 | $36545 | $32309 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.10% | (0.44%) | (0.24%) | 0.77% | 0.73% |
| Total expenses<sup>c</sup> | 1.67% | 1.60% | 1.73% | 1.72% | 1.62% |
| Net expenses<sup>d</sup> | 1.65% | 1.57% | 1.68% | 1.66% | 1.61% |
| Portfolio turnover rate | 748% | 408% | 650% | 336% | 604% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

20 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**INVERSE S&P 500<sup>®</sup>** **STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund's current benchmark is the inverse (opposite) of the performance of the S&P 500<sup>®</sup> Index (the "underlying index"). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the Reporting Period, Inverse S&P 500 Strategy Fund maintained a daily correlation of over 99% to its benchmark of -100% of the daily price movement of the S&P 500 Index. Inverse S&P 500 Strategy Fund returned 16.56%, while the S&P 500 Index returned -18.11% over the same time period.

The only sectors contributing to the return of the underlying index for the Reporting Period were Energy and Health Care. The sectors detracting the most from the return of the underlying index were Information Technology, Consumer Discretionary, and Communication Services.

The holdings contributing the most to the return of the underlying index were Exxon Mobil Corp., Chevron Corp., and Merck & Co., Inc. The holdings detracting the most were Apple, Inc., Amazon.com, Inc., and Tesla, Inc.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds' 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 funds' holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.**

THE RYDEX FUNDS ANNUAL REPORT \| 21

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-2_22.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-2_22a.jpg)

**Inception Date:** June 9, 1997<br>

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

---

| | |
|:---|:---|
| **Largest Holdings**  | **(% of Total Net Assets)** |
| Guggenheim Ultra Short Duration Fund — Institutional Class  | 9.5% |
| Guggenheim Strategy Fund II | 5.6% |
| Total | 15.1% |
| "Largest Holdings" excludes any temporary cash or derivative investments. | "Largest Holdings" excludes any temporary cash or derivative investments. |

---

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Inverse S&P 500<sup>®</sup> Strategy Fund  | 16.56%  | (11.95%)  | (13.62%)  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

22 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **INVERSE S&P 500<sup>®</sup>** **STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **MUTUAL FUNDS<sup>†</sup>** **- 15.1%** | **MUTUAL FUNDS<sup>†</sup>** **- 15.1%** | **MUTUAL FUNDS<sup>†</sup>** **- 15.1%** |
| &nbsp;&nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class<sup>1</sup> | 60526 | $583470 |
| &nbsp;&nbsp;&nbsp;Guggenheim Strategy Fund II<sup>1</sup> | 14382 | 345744 |
| **Total Mutual Funds** | **Total Mutual Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $954,123) |  | 929214 |
|  | **Face<br> Amount** |  |
| **FEDERAL AGENCY NOTES<sup>††</sup>** **- 21.5%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 21.5%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 21.5%** |
| Federal Home Loan Bank | Federal Home Loan Bank | Federal Home Loan Bank |
| &nbsp;&nbsp;&nbsp;4.36% (SOFR + 0.06%, Rate Floor: 0.00%) due 03/14/23<sup>◊</sup> | $1000000 | 1000077 |
| Fannie Mae | Fannie Mae | Fannie Mae |
| &nbsp;&nbsp;&nbsp;2.38% due 01/19/23 | 325000 | 324682 |
| **Total Federal Agency Notes** | **Total Federal Agency Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,324,697) |  | 1324759 |
| **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 21.0%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 21.0%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 21.0%** |
| Federal Home Loan Bank | Federal Home Loan Bank | Federal Home Loan Bank |
| &nbsp;&nbsp;&nbsp;4.05% due 01/27/23<sup>2</sup> | 800000 | 797801 |
| Federal Farm Credit Bank | Federal Farm Credit Bank | Federal Farm Credit Bank |
| &nbsp;&nbsp;&nbsp;4.14% due 02/02/23<sup>2</sup> | 500000 | 498160 |
| **Total Federal Agency Discount Notes** | **Total Federal Agency Discount Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,295,820) |  | 1295961 |

---

---

| | | |
|:---|:---|:---|
| **U.S. TREASURY BILLS<sup>††</sup>** **- 2.5%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 2.5%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 2.5%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.89% due 01/12/23<sup>2,3</sup> | 100000 | 99913 |
| &nbsp;&nbsp;&nbsp;3.79% due 01/17/23<sup>2,4</sup> | 54000 | 53923 |
| **Total U.S. Treasury Bills** |  |  |
| (Cost $153,788) |  | 153836 |
| **REPURCHASE AGREEMENTS††,5 - 41.4%** | **REPURCHASE AGREEMENTS††,5 - 41.4%** | **REPURCHASE AGREEMENTS††,5 - 41.4%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23<sup>3</sup> | 1439967 | 1439967 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23<sup>3</sup> | 553834 | 553834 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23<sup>3</sup> | 552118 | 552118 |
| **Total Repurchase Agreements** |  |  |
| (Cost $2,545,919) |  | 2545919 |
| **Total Investments - 101.5%** |  |  |
| (Cost $6,274,347) |  | $6249689 |
| **Other Assets & Liabilities, net - (1.5)%** |  | (93748) |
| **Total Net Assets - 100.0%** |  | $6155941 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation\*\*** |
| **Equity Futures Contracts Sold Short<sup>†</sup>** | **Equity Futures Contracts Sold Short<sup>†</sup>** | **Equity Futures Contracts Sold Short<sup>†</sup>** | **Equity Futures Contracts Sold Short<sup>†</sup>** | **Equity Futures Contracts Sold Short<sup>†</sup>** |
| S&P 500 Index Mini Futures Contracts | 6 | Mar 2023 | $1158450 | $49069 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** |
| **Counterparty** | **Index** | **Type** | **Financing <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Units** | **Notional <br> Amount** | **Value and <br> Unrealized <br> Appreciation** |
| **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** |
| Barclays Bank plc | S&P 500 Index | Receive | 4.60% (SOFR + 0.30%) | At Maturity | 01/25/23 | 359 | $1378608 | $54660 |
| Goldman Sachs International | S&P 500 Index | Receive | 4.63% (Federal Funds Rate + 0.30%) | At Maturity | 01/26/23 | 714 | 2742205 | 45654 |
| BNP Paribas | S&P 500 Index | Receive | 4.53% (Federal Funds Rate + 0.20%) | At Maturity | 01/26/23 | 236 | 907764 | 32739 |
|  |  |  |  |  |  |  | $5028577 | $133053 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 23

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **INVERSE S&P 500<sup>®</sup>** **STRATEGY FUND** |  |

---

---

| | |
|:---|:---|
| \*\* | &nbsp;&nbsp;&nbsp;Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>◊</sup> | &nbsp;&nbsp;&nbsp;Variable rate security. Rate indicated is the rate effective at December 31, 2022. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Affiliated issuer. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as equity index swap collateral at December 31, 2022. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as futures collateral at December 31, 2022. |
| <sup>5</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;SOFR — Secured Overnight Financing Rate |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Mutual Funds | $929214 | $— | $— | $929214 |
| Federal Agency Notes |  | 1324759 |  | 1324759 |
| Federal Agency Discount Notes |  | 1295961 |  | 1295961 |
| U.S. Treasury Bills |  | 153836 |  | 153836 |
| Repurchase Agreements |  | 2545919 |  | 2545919 |
| Equity Futures Contracts\*\* | 49069 |  |  | 49069 |
| Equity Index Swap Agreements\*\* |  | 133053 |  | 133053 |
| Total Assets | $978283 | $5453528 | $— | $6431811 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

24 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **INVERSE S&P 500<sup>®</sup>** **STRATEGY FUND** |  |

---

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $357825 | $— | $— | $— | $(12081) | $345744 | 14382 | $9838 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 350417 | 250000 |  |  | (16947) | 583470 | 60526 | 13177 |
|  | $708242 | $250000 | $— | $— | $(29028) | $929214 |  | $23015 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 25

**INVERSE S&P 500<sup>®</sup>** **STRATEGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments in unaffiliated issuers, at value (cost $2,774,305) | $2774556 |
| Investments in affiliated issuers, at value (cost $954,123) | 929214 |
| Repurchase agreements, at value (cost $2,545,919) | 2545919 |
| Segregated cash with broker | 50600 |
| Unrealized appreciation on OTC swap agreements | 133053 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 44977 |
| &nbsp;&nbsp;&nbsp;Interest | 6239 |
| &nbsp;&nbsp;&nbsp;Dividends | 3548 |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 3075 |
| **Total assets** | 6491181 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 293847 |
| &nbsp;&nbsp;&nbsp;Swap settlement | 19531 |
| &nbsp;&nbsp;&nbsp;Management fees | 3966 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 2472 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 1136 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 477 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 74 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 13737 |
| **Total liabilities** | 335240 |
| **Net assets** | $6155941 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $24837106 |
| Total distributable earnings (loss) | (18681165) |
| Net assets | $6155941 |
| Capital shares outstanding | 169798 |
| Net asset value per share | $36.25 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of affiliated issuers | $23015 |
| Interest | 122037 |
| &nbsp;&nbsp;&nbsp;Total investment income | 145052 |
| **Expenses:** | **Expenses:** |
| Management fees | 69318 |
| Investor service fees | 19255 |
| Transfer agent fees | 18883 |
| Portfolio accounting and administration fees | 10166 |
| Professional fees | 7935 |
| Interest expense | 1269 |
| Custodian fees | 1065 |
| Trustees' fees\* | 648 |
| Line of credit fees | 99 |
| Miscellaneous | 11391 |
| &nbsp;&nbsp;&nbsp;Total expenses | 140029 |
| Less: | Less: |
| Expenses reimbursed by Adviser | (3851) |
| Expenses waived by Adviser | (1448) |
| &nbsp;&nbsp;&nbsp;Total waived/reimbursed expenses | (5299) |
| Net expenses | 134730 |
| Net investment income | 10322 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | 47 |
| &nbsp;&nbsp;&nbsp;Swap agreements | (930028) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (46316) |
| Net realized loss | (976297) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | 258 |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (29028) |
| &nbsp;&nbsp;&nbsp;Swap agreements | 159108 |
| &nbsp;&nbsp;&nbsp;Futures contracts | 54055 |
| Net change in unrealized appreciation (depreciation) | 184393 |
| Net realized and unrealized loss | (791904) |
| **Net decrease in net assets resulting from operations** | $(781582) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

26 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**INVERSE S&P 500<sup>®</sup>** **STRATEGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income (loss) | $10322 | $(93920) |
| Net realized loss on investments | (976297) | (1372780) |
| Net change in unrealized appreciation (depreciation) on investments | 184393 | (26630) |
| Net decrease in net assets resulting from operations | (781582) | (1493330) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 456862080 | 909153099 |
| Distributions reinvested |  |  |
| Cost of shares redeemed | (452412255) | (906579104) |
| Net increase from capital share transactions | 4449825 | 2573995 |
| Net increase in net assets | 3668243 | 1080665 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 2487698 | 1407033 |
| &nbsp;&nbsp;&nbsp;End of year | $6155941 | $2487698 |
| **Capital share activity:** |  |  |
| Shares sold | 13220617 | 25153384 |
| Shares redeemed | (13130813) | (25107575) |
| Net increase in shares | 89804 | 45809 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 27

**INVERSE S&P 500<sup>®</sup>** **STRATEGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $31.10 | $41.16 | $55.29 | $72.35 | $69.60 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .05 | (.53) | (.48) | .44 | .41 |
| Net gain (loss) on investments (realized and unrealized) | 5.10 <sup>e</sup> | (9.53) | (13.31) | (16.97) | 2.34 |
| Total from investment operations | 5.15 | (10.06) | (13.79) | (16.53) | 2.75 |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  | (.34) | (.53) |  |
| Total distributions |  |  | (.34) | (.53) |  |
| Net asset value, end of period | $36.25 | $31.10 | $41.16 | $55.29 | $72.35 |
| **Total Return<sup>b</sup>** | **16.56%** | **(24.44** **%)** | **(25.02** **%)** | **(22.91** **%)** | **3.95%** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $6156 | $2488 | $1407 | $1759 | $4413 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.13% | (1.48%) | (0.93%) | 0.71% | 0.61% |
| Total expenses<sup>c</sup> | 1.82% | 1.74% | 1.88% | 1.88% | 1.77% |
| Net expenses<sup>d</sup> | 1.75% | 1.69% | 1.83% | 1.82% | 1.76% |
| Portfolio turnover rate |  | 1675% | 1417% | 442% | 540% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

<sup>e</sup> The amount shown for a share outstanding throughout the period does not agree with the aggregate net loss on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

28 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**NASDAQ-100<sup>®</sup>** **FUND** 

**OBJECTIVE:** Seeks to provide investment results that correspond, before fees and expenses, to a benchmark for over-the-counter securities on a daily basis. The Fund's current benchmark is the NASDAQ-100<sup>®</sup> Index (the "underlying index").

For the Reporting Period, NASDAQ-100 Fund maintained a daily correlation of over 99% to its benchmark of 100% of the daily price movement of the NASDAQ-100<sup>®</sup> Index. The Fund returned -34.14%, while the NASDAQ-100 Index returned -32.38% over the same time period.

The only sectors contributing to the return of the underlying index for the Reporting Period were Utilities and Health Care. The sectors detracting the most from the return of the underlying index were Information Technology, Consumer Discretionary, and Communication Services.

The holdings contributing the most to the return of the underlying index were Gilead Sciences, Inc., Amgen, Inc., and T-Mobile US, Inc. The holdings detracting the most were Tesla, Inc., Amazon.com, Inc., and Apple, Inc.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes. Derivatives performed as expected.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.**

THE RYDEX FUNDS ANNUAL REPORT \| 29

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-2_30.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-2_30a.jpg)

**Inception Date:** May 7, 1997<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings**  | **(% of Total Net Assets)** |
| Guggenheim Ultra Short Duration Fund — Institutional Class | 17.3% |
| Guggenheim Strategy Fund II | 15.9% |
| Microsoft Corp. | 7.4% |
| Apple, Inc. | 7.0% |
| Amazon.com, Inc. | 3.6% |
| Alphabet, Inc. — Class C | 2.3% |
| Alphabet, Inc. — Class A | 2.2% |
| NVIDIA Corp. | 2.0% |
| Tesla, Inc. | 1.6% |
| Meta Platforms, Inc. — Class A | 1.5% |
| Top Ten Total | 60.8% |
| "Ten Largest Holdings" excludes any temporary cash or derivative investments. | "Ten Largest Holdings" excludes any temporary cash or derivative investments. |

---

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| NASDAQ-100<sup>®</sup> Fund  | (34.14%)  | 10.00%  | 14.37%  |
| NASDAQ-100 Index  | (32.38%)  | 12.36%  | 16.45%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The NASDAQ-100 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

30 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **NASDAQ-100<sup>®</sup>** **FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 59.2%** | **COMMON STOCKS<sup>†</sup>** **- 59.2%** | **COMMON STOCKS<sup>†</sup>** **- 59.2%** |
| **Technology - 27.5%** | **Technology - 27.5%** | **Technology - 27.5%** |
| &nbsp;&nbsp;&nbsp;Microsoft Corp. | 20172 | $4837649 |
| &nbsp;&nbsp;&nbsp;Apple, Inc. | 34768 | 4517406 |
| &nbsp;&nbsp;&nbsp;NVIDIA Corp. | 8672 | 1267326 |
| &nbsp;&nbsp;&nbsp;Broadcom, Inc. | 1428 | 798437 |
| &nbsp;&nbsp;&nbsp;Adobe, Inc.\* | 1639 | 551573 |
| &nbsp;&nbsp;&nbsp;Texas Instruments, Inc. | 3199 | 528539 |
| &nbsp;&nbsp;&nbsp;QUALCOMM, Inc. | 3952 | 434483 |
| &nbsp;&nbsp;&nbsp;Intuit, Inc. | 991 | 385717 |
| &nbsp;&nbsp;&nbsp;Intel Corp. | 14548 | 384504 |
| &nbsp;&nbsp;&nbsp;Advanced Micro Devices, Inc.\* | 5684 | 368153 |
| &nbsp;&nbsp;&nbsp;Applied Materials, Inc. | 3033 | 295353 |
| &nbsp;&nbsp;&nbsp;Analog Devices, Inc. | 1796 | 294598 |
| &nbsp;&nbsp;&nbsp;Fiserv, Inc.\* | 2240 | 226397 |
| &nbsp;&nbsp;&nbsp;Activision Blizzard, Inc. | 2759 | 211201 |
| &nbsp;&nbsp;&nbsp;Lam Research Corp. | 481 | 202164 |
| &nbsp;&nbsp;&nbsp;Micron Technology, Inc. | 3833 | 191573 |
| &nbsp;&nbsp;&nbsp;KLA Corp. | 500 | 188515 |
| &nbsp;&nbsp;&nbsp;Synopsys, Inc.\* | 539 | 172097 |
| &nbsp;&nbsp;&nbsp;ASML Holding N.V. — Class G | 312 | 170477 |
| &nbsp;&nbsp;&nbsp;Cadence Design Systems, Inc.\* | 968 | 155500 |
| &nbsp;&nbsp;&nbsp;Paychex, Inc. | 1270 | 146761 |
| &nbsp;&nbsp;&nbsp;NXP Semiconductor N.V. | 913 | 144281 |
| &nbsp;&nbsp;&nbsp;Autodesk, Inc.\* | 761 | 142208 |
| &nbsp;&nbsp;&nbsp;Microchip Technology, Inc. | 1939 | 136215 |
| &nbsp;&nbsp;&nbsp;Fortinet, Inc.\* | 2755 | 134692 |
| &nbsp;&nbsp;&nbsp;Workday, Inc. — Class A\* | 712 | 119139 |
| &nbsp;&nbsp;&nbsp;Electronic Arts, Inc. | 974 | 119003 |
| &nbsp;&nbsp;&nbsp;Marvell Technology, Inc. | 3006 | 111342 |
| &nbsp;&nbsp;&nbsp;Cognizant Technology Solutions Corp. — Class A | 1812 | 103628 |
| &nbsp;&nbsp;&nbsp;GLOBALFOUNDRIES, Inc.\*<sup>,1</sup> | 1921 | 103523 |
| &nbsp;&nbsp;&nbsp;Crowdstrike Holdings, Inc. — Class A\* | 770 | 81074 |
| &nbsp;&nbsp;&nbsp;Datadog, Inc. — Class A\* | 1030 | 75705 |
| &nbsp;&nbsp;&nbsp;ANSYS, Inc.\* | 307 | 74168 |
| &nbsp;&nbsp;&nbsp;Atlassian Corp. — Class A\* | 523 | 67300 |
| &nbsp;&nbsp;&nbsp;Zoom Video Communications, Inc. — Class A\* | 866 | 58663 |
| &nbsp;&nbsp;&nbsp;Zscaler, Inc.\* | 509 | 56957 |
| **Total Technology** |  | 17856321 |
| **Communications - 15.2%** | **Communications - 15.2%** | **Communications - 15.2%** |
| &nbsp;&nbsp;&nbsp;Amazon.com, Inc.\* | 27721 | 2328564 |
| &nbsp;&nbsp;&nbsp;Alphabet, Inc. — Class C\* | 16538 | 1467417 |
| &nbsp;&nbsp;&nbsp;Alphabet, Inc. — Class A\* | 16543 | 1459589 |
| &nbsp;&nbsp;&nbsp;Meta Platforms, Inc. — Class A\* | 7927 | 953935 |
| &nbsp;&nbsp;&nbsp;Cisco Systems, Inc. | 14482 | 689923 |
| &nbsp;&nbsp;&nbsp;T-Mobile US, Inc.\* | 4386 | 614040 |
| &nbsp;&nbsp;&nbsp;Comcast Corp. — Class A | 15207 | 531789 |
| &nbsp;&nbsp;&nbsp;Netflix, Inc.\* | 1569 | 462667 |
| &nbsp;&nbsp;&nbsp;Booking Holdings, Inc.\* | 137 | 276093 |
| &nbsp;&nbsp;&nbsp;Charter Communications, Inc. — Class A\* | 549 | 186166 |
| &nbsp;&nbsp;&nbsp;MercadoLibre, Inc.\* | 177 | 149784 |
| &nbsp;&nbsp;&nbsp;Palo Alto Networks, Inc.\* | 1066 | 148750 |
| &nbsp;&nbsp;&nbsp;Pinduoduo, Inc. ADR\* | 1650 | 134557 |
| &nbsp;&nbsp;&nbsp;Airbnb, Inc. — Class A\* | 1404 | 120042 |
| &nbsp;&nbsp;&nbsp;JD.com, Inc. ADR | 1713 | 96151 |
| &nbsp;&nbsp;&nbsp;Warner Bros Discovery, Inc.\* | 8561 | 81158 |
| &nbsp;&nbsp;&nbsp;Sirius XM Holdings, Inc.<sup>1</sup> | 13711 | 80072 |
| &nbsp;&nbsp;&nbsp;eBay, Inc. | 1913 | 79332 |
| **Total Communications** |  | 9860029 |
| **Consumer, Non-cyclical - 8.6%** | **Consumer, Non-cyclical - 8.6%** | **Consumer, Non-cyclical - 8.6%** |
| &nbsp;&nbsp;&nbsp;PepsiCo, Inc. | 4857 | 877466 |
| &nbsp;&nbsp;&nbsp;Amgen, Inc. | 1897 | 498228 |
| &nbsp;&nbsp;&nbsp;Gilead Sciences, Inc. | 4465 | 383320 |
| &nbsp;&nbsp;&nbsp;Automatic Data Processing, Inc. | 1462 | 349213 |
| &nbsp;&nbsp;&nbsp;Intuitive Surgical, Inc.\* | 1258 | 333810 |
| &nbsp;&nbsp;&nbsp;Mondelez International, Inc. — Class A | 4814 | 320853 |
| &nbsp;&nbsp;&nbsp;PayPal Holdings, Inc.\* | 4019 | 286233 |
| &nbsp;&nbsp;&nbsp;Regeneron Pharmaceuticals, Inc.\* | 378 | 272723 |
| &nbsp;&nbsp;&nbsp;Vertex Pharmaceuticals, Inc.\* | 915 | 264234 |
| &nbsp;&nbsp;&nbsp;Moderna, Inc.\* | 1369 | 245900 |
| &nbsp;&nbsp;&nbsp;Monster Beverage Corp.\* | 1840 | 186815 |
| &nbsp;&nbsp;&nbsp;Keurig Dr Pepper, Inc. | 4993 | 178050 |
| &nbsp;&nbsp;&nbsp;Kraft Heinz Co. | 4318 | 175786 |
| &nbsp;&nbsp;&nbsp;Cintas Corp. | 358 | 161680 |
| &nbsp;&nbsp;&nbsp;Dexcom, Inc.\* | 1379 | 156158 |
| &nbsp;&nbsp;&nbsp;AstraZeneca plc ADR | 2185 | 148143 |
| &nbsp;&nbsp;&nbsp;Biogen, Inc.\* | 515 | 142614 |
| &nbsp;&nbsp;&nbsp;IDEXX Laboratories, Inc.\* | 292 | 119125 |
| &nbsp;&nbsp;&nbsp;Illumina, Inc.\* | 563 | 113839 |
| &nbsp;&nbsp;&nbsp;CoStar Group, Inc.\* | 1434 | 110820 |
| &nbsp;&nbsp;&nbsp;Verisk Analytics, Inc. — Class A | 551 | 97207 |
| &nbsp;&nbsp;&nbsp;Seagen, Inc.\* | 665 | 85459 |
| &nbsp;&nbsp;&nbsp;Align Technology, Inc.\* | 281 | 59263 |
| **Total Consumer, Non-cyclical** |  | 5566939 |
| **Consumer, Cyclical - 5.3%** | **Consumer, Cyclical - 5.3%** | **Consumer, Cyclical - 5.3%** |
| &nbsp;&nbsp;&nbsp;Tesla, Inc.\* | 8581 | 1057008 |
| &nbsp;&nbsp;&nbsp;Costco Wholesale Corp. | 1560 | 712140 |
| &nbsp;&nbsp;&nbsp;Starbucks Corp. | 4046 | 401363 |
| &nbsp;&nbsp;&nbsp;O'Reilly Automotive, Inc.\* | 221 | 186531 |
| &nbsp;&nbsp;&nbsp;Marriott International, Inc. — Class A | 1117 | 166310 |
| &nbsp;&nbsp;&nbsp;Ross Stores, Inc. | 1223 | 141954 |
| &nbsp;&nbsp;&nbsp;Lululemon Athletica, Inc.\* | 432 | 138404 |
| &nbsp;&nbsp;&nbsp;PACCAR, Inc. | 1227 | 121436 |
| &nbsp;&nbsp;&nbsp;Walgreens Boots Alliance, Inc. | 3049 | 113911 |
| &nbsp;&nbsp;&nbsp;Dollar Tree, Inc.\* | 780 | 110323 |
| &nbsp;&nbsp;&nbsp;Copart, Inc.\* | 1679 | 102234 |
| &nbsp;&nbsp;&nbsp;Fastenal Co. | 2019 | 95539 |
| &nbsp;&nbsp;&nbsp;Rivian Automotive, Inc. — Class A\* | 3219 | 59326 |
| &nbsp;&nbsp;&nbsp;Lucid Group, Inc.\*<sup>,1</sup> | 5924 | 40461 |
| **Total Consumer, Cyclical** |  | 3446940 |
| **Industrial - 1.3%** | **Industrial - 1.3%** | **Industrial - 1.3%** |
| &nbsp;&nbsp;&nbsp;Honeywell International, Inc. | 2370 | 507891 |
| &nbsp;&nbsp;&nbsp;CSX Corp. | 7411 | 229593 |
| &nbsp;&nbsp;&nbsp;Old Dominion Freight Line, Inc. | 390 | 110674 |
| **Total Industrial** |  | 848158 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 31

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **NASDAQ-100<sup>®</sup>** **FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **Utilities - 0.8%** | **Utilities - 0.8%** | **Utilities - 0.8%** |
| &nbsp;&nbsp;&nbsp;American Electric Power Company, Inc. | 1812 | $172049 |
| &nbsp;&nbsp;&nbsp;Exelon Corp. | 3503 | 151435 |
| &nbsp;&nbsp;&nbsp;Xcel Energy, Inc. | 1929 | 135242 |
| &nbsp;&nbsp;&nbsp;Constellation Energy Corp. | 1153 | 99400 |
| **Total Utilities** |  | 558126 |
| **Energy - 0.5%** | **Energy - 0.5%** | **Energy - 0.5%** |
| &nbsp;&nbsp;&nbsp;Enphase Energy, Inc.\* | 479 | 126916 |
| &nbsp;&nbsp;&nbsp;Baker Hughes Co. | 3531 | 104270 |
| &nbsp;&nbsp;&nbsp;Diamondback Energy, Inc. | 620 | 84804 |
| **Total Energy** |  | 315990 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $23,036,142) |  | 38452503 |
| **MUTUAL FUNDS<sup>†</sup>** **- 33.2%** | **MUTUAL FUNDS<sup>†</sup>** **- 33.2%** | **MUTUAL FUNDS<sup>†</sup>** **- 33.2%** |
| &nbsp;&nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class<sup>2</sup> | 1166612 | 11246136 |
| &nbsp;&nbsp;&nbsp;Guggenheim Strategy Fund II<sup>2</sup> | 430196 | 10341915 |
| **Total Mutual Funds** | **Total Mutual Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $22,220,138) |  | 21588051 |
|  | **Face<br> Amount** |  |
| **U.S. TREASURY BILLS<sup>††</sup>** **- 3.9%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 3.9%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 3.9%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.89% due 01/12/23<sup>3,4</sup> | $1600000 | 1598612 |
| &nbsp;&nbsp;&nbsp;3.79% due 01/17/23<sup>4,5</sup> | 910000 | 908698 |
| **Total U.S. Treasury Bills** | **Total U.S. Treasury Bills** |  |
| &nbsp;&nbsp;&nbsp;(Cost $2,506,529) |  | 2507310 |

---

---

| | | |
|:---|:---|:---|
| **REPURCHASE AGREEMENTS<sup>††,6</sup>** **- 5.8%** | **REPURCHASE AGREEMENTS<sup>††,6</sup>** **- 5.8%** | **REPURCHASE AGREEMENTS<sup>††,6</sup>** **- 5.8%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23<sup>3</sup> | 2145038 | 2145038 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23<sup>3</sup> | 825014 | 825014 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23<sup>3</sup> | 822459 | 822459 |
| **Total Repurchase Agreements** |  |  |
| (Cost $3,792,511) |  | 3792511 |
|  | **Shares**  |  |
| **SECURITIES LENDING COLLATERAL<sup>†,7</sup> - 0.3%** | **SECURITIES LENDING COLLATERAL<sup>†,7</sup> - 0.3%** | **SECURITIES LENDING COLLATERAL<sup>†,7</sup> - 0.3%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>8</sup> | 173078 | 173078 |
| **Total Securities Lending Collateral** |  |  |
| (Cost $173,078) |  | 173078 |
| **Total Investments - 102.4%** |  |  |
| (Cost $51,728,398) |  | $66513453 |
| **Other Assets & Liabilities, net - (2.4)%** |  | (1553750) |
| **Total Net Assets - 100.0%** |  | $64959703 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Depreciation\*\*** |
| **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** |
| NASDAQ-100 Index Mini Futures Contracts | 47 | Mar 2023 | $10361620 | $(762866) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** |
| **Counterparty** | **Index** | **Type** | **Financing <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Units** | **Notional <br> Amount** | **Value and <br> Unrealized <br> Depreciation** |
| **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** |
| Goldman Sachs International | NASDAQ-100 Index | Pay | 4.83% (Federal Funds Rate + 0.50%) | At Maturity | 01/26/23 | 173 | $1892938 | $(131391) |
| BNP Paribas | NASDAQ-100 Index | Pay | 4.98% (Federal Funds Rate + 0.65%) | At Maturity | 01/26/23 | 632 | 6910197 | (299627) |
| Barclays Bank plc | NASDAQ-100 Index | Pay | 4.80% (SOFR + 0.50%) | At Maturity | 01/25/23 | 669 | 7320007 | (482079) |
|  |  |  |  |  |  |  | $16123142 | $(913097) |

---

32 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **NASDAQ-100<sup>®</sup>** **FUND** |  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| \*\* | &nbsp;&nbsp;&nbsp;Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Affiliated issuer. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as equity index swap collateral at December 31, 2022. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>5</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as futures collateral at December 31, 2022. |
| <sup>6</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>7</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>8</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;SOFR — Secured Overnight Financing Rate |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $38452503 | $— | $— | $38452503 |
| Mutual Funds | 21588051 |  |  | 21588051 |
| U.S. Treasury Bills |  | 2507310 |  | 2507310 |
| Repurchase Agreements |  | 3792511 |  | 3792511 |
| Securities Lending Collateral | 173078 |  |  | 173078 |
| Total Assets | $60213632 | $6299821 | $— | $66513453 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Liabilities)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Equity Futures Contracts\*\* | $762866 | $— | $— | $762866 |
| Equity Index Swap Agreements\*\* |  | 913097 |  | 913097 |
| Total Liabilities | $762866 | $913097 | $— | $1675963 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 33

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **NASDAQ-100<sup>®</sup>** **FUND** |  |

---

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $17866840 | $— | $(7000000) | $(185837) | $(339088) | $10341915 | 430196 | $356431 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 8572788 | 3000000 |  |  | (326652) | 11246136 | 1166612 | 254748 |
|  | $26439628 | $3000000 | $(7000000) | $(185837) | $(665740) | $21588051 |  | $611179 |

---

34 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**NASDAQ-100<sup>®</sup>** **FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments in unaffiliated issuers, at value - including $168,000 of securities loaned (cost $25,715,749) | $41132891 |
| Investments in affiliated issuers, at value (cost $22,220,138) | 21588051 |
| Repurchase agreements, at value (cost $3,792,511) | 3792511 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 167283 |
| &nbsp;&nbsp;&nbsp;Dividends | 101203 |
| &nbsp;&nbsp;&nbsp;Interest | 895 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 721 |
| **Total assets** | 66783555 |
| **Liabilities:** | **Liabilities:** |
| Unrealized depreciation on OTC swap agreements | 913097 |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Swap settlement | 437188 |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 173078 |
| &nbsp;&nbsp;&nbsp;Management fees | 42574 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 22676 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 14987 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 10873 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 9292 |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 9165 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 1009 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 189913 |
| **Total liabilities** | 1823852 |
| **Net assets** | $64959703 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $65218551 |
| Total distributable earnings (loss) | (258848) |
| Net assets | $64959703 |
| Capital shares outstanding | 1403594 |
| Net asset value per share | $46.28 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $800) | $508509 |
| Dividends from securities of affiliated issuers | 611179 |
| Interest | 101607 |
| Income from securities lending, net | 13348 |
| &nbsp;&nbsp;&nbsp;Total investment income | 1234643 |
| **Expenses:** | **Expenses:** |
| Management fees | 673875 |
| Investor service fees | 224625 |
| Transfer agent fees | 256278 |
| Professional fees | 156651 |
| Portfolio accounting and administration fees | 112014 |
| Trustees' fees\* | 16038 |
| Custodian fees | 13249 |
| Interest expense | 430 |
| Line of credit fees | 266 |
| Miscellaneous | 79939 |
| &nbsp;&nbsp;&nbsp;Total expenses | 1533365 |
| Less: | Less: |
| Expenses waived by Adviser | (28133) |
| Net expenses | 1505232 |
| Net investment loss | (270589) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | 277002 |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (185837) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (3217104) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (7163223) |
| Net realized loss | (10289162) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (33318555) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (665740) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (1007205) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (964599) |
| Net change in unrealized appreciation (depreciation) | (35956099) |
| Net realized and unrealized loss | (46245261) |
| **Net decrease in net assets resulting from operations** | $(46515850) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 35

**NASDAQ-100<sup>®</sup>** **FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment loss | $(270589) | $(1011552) |
| Net realized gain (loss) on investments | (10289162) | 10110149 |
| Net change in unrealized appreciation (depreciation) on investments | (35956099) | 17509910 |
| Net increase (decrease) in net assets resulting from operations | (46515850) | 26608507 |
| Distributions to shareholders | (2858771) | (9244565) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 205400530 | 181177063 |
| Distributions reinvested | 2858771 | 9244565 |
| Cost of shares redeemed | (233329698) | (181167449) |
| Net increase (decrease) from capital share transactions | (25070397) | 9254179 |
| Net increase (decrease) in net assets | (74445018) | 26618121 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 139404721 | 112786600 |
| &nbsp;&nbsp;&nbsp;End of year | $64959703 | $139404721 |
| **Capital share activity:** |  |  |
| Shares sold | 3593298 | 2682315 |
| Shares issued from reinvestment of distributions | 54113 | 138849 |
| Shares redeemed | (4156462) | (2704320) |
| Net increase (decrease) in shares | (509051) | 116844 |

---

36 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**NASDAQ-100<sup>®</sup>** **FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $72.89 | $62.81 | $48.86 | $36.56 | $38.70 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | (.17) | (.56) | (.31) | .18 | .04 |
| Net gain (loss) on investments (realized and unrealized) | (24.48) | 16.09 | 21.04 | 13.20 | (.49) |
| Total from investment operations | (24.65) | 15.53 | 20.73 | 13.38 | (.45) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  | (.17) | (.05) |  |
| Net realized gains | (1.96) | (5.45) | (6.61) | (1.03) | (1.69) |
| Total distributions | (1.96) | (5.45) | (6.78) | (1.08) | (1.69) |
| Net asset value, end of period | $46.28 | $72.89 | $62.81 | $48.86 | $36.56 |
| **Total Return<sup>b</sup>** | **(34.14** **%)** | **25.54%** | **44.96%** | **36.86%** | **(1.81** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $64960 | $139405 | $112787 | $86623 | $60616 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | (0.30%) | (0.83%) | (0.58%) | 0.41% | 0.11% |
| Total expenses<sup>c</sup> | 1.71% | 1.63% | 1.76% | 1.76% | 1.66% |
| Net expenses<sup>d</sup> | 1.68% | 1.61% | 1.72% | 1.70% | 1.66% |
| Portfolio turnover rate | 168% | 57% | 142% | 61% | 80% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 37

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**INVERSE NASDAQ-100<sup>®</sup>** **STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund's current benchmark is the inverse (opposite) of the performance of the NASDAQ-100<sup>®</sup> Index (the "underlying index"). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the Reporting Period, Inverse NASDAQ-100 Strategy Fund maintained a daily correlation of over 99% to its benchmark of -100% of the daily price movement of the NASDAQ-100 Index. Inverse NASDAQ-100<sup>®</sup> Strategy Fund returned 34.78%, while the NASDAQ-100 Index returned -32.38%.

The only sectors contributing to the return of the underlying index for the Reporting Period were Utilities and Health Care. The sectors detracting the most from the return of the underlying index were Information Technology, Consumer Discretionary, and Communication Services.

The holdings contributing the most to the return of the underlying index were Gilead Sciences, Inc., Amgen, Inc., and T-Mobile US, Inc. The holdings detracting the most were Tesla, Inc., Amazon.com, Inc., and Apple, Inc.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds' 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 funds' holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.**

38 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-2_39.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-2_39a.jpg)

**Inception Date:** May 21, 2001<br>

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

---

| | |
|:---|:---|
| **Largest Holdings**  | **(% of Total Net Assets)** |
| Guggenheim Strategy Fund II | 3.0% |
| Guggenheim Ultra Short Duration Fund — Institutional Class | 2.5% |
| Total | 5.5% |
| "Largest Holdings" excludes any temporary cash or derivative investments. | "Largest Holdings" excludes any temporary cash or derivative investments. |

---

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Inverse NASDAQ-100<sup>®</sup> Strategy Fund  | 34.78%  | (15.29%)  | (17.30%)  |
| NASDAQ-100 Index  | (32.38%)  | 12.36%  | 16.45%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The NASDAQ-100 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 39

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **INVERSE NASDAQ-100<sup>®</sup>** **STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **MUTUAL FUNDS<sup>†</sup>** **- 5.5%** | **MUTUAL FUNDS<sup>†</sup>** **- 5.5%** | **MUTUAL FUNDS<sup>†</sup>** **- 5.5%** |
| &nbsp;&nbsp;&nbsp;Guggenheim Strategy Fund II<sup>1</sup> | 10880 | $261546 |
| &nbsp;&nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class<sup>1</sup> | 22830 | 220078 |
| **Total Mutual Funds** | **Total Mutual Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $495,909) |  | 481624 |
|  | **Face<br> Amount** |  |
| **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 13.7%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 13.7%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 13.7%** |
| Federal Home Loan Bank | Federal Home Loan Bank | Federal Home Loan Bank |
| &nbsp;&nbsp;&nbsp;4.05% due 01/27/23<sup>2</sup> | $700000 | 698077 |
| Federal Farm Credit Bank | Federal Farm Credit Bank | Federal Farm Credit Bank |
| &nbsp;&nbsp;&nbsp;4.14% due 02/02/23<sup>2</sup> | 500000 | 498160 |
| **Total Federal Agency Discount Notes** | **Total Federal Agency Discount Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,196,112) |  | 1196237 |
| **FEDERAL AGENCY NOTES<sup>††</sup>** **- 11.5%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 11.5%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 11.5%** |
| Federal Home Loan Bank | Federal Home Loan Bank | Federal Home Loan Bank |
| &nbsp;&nbsp;&nbsp;4.36% (SOFR + 0.06%, Rate Floor: 0.00%) due 03/14/23<sup>◊</sup> | 1000000 | 1000077 |
| **Total Federal Agency Notes** | **Total Federal Agency Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,000,000) |  | 1000077 |

---

---

| | | |
|:---|:---|:---|
| **U.S. TREASURY BILLS<sup>††</sup>** **- 6.9%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 6.9%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 6.9%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.89% due 01/12/23<sup>2,3</sup> | 600000 | 599479 |
| **Total U.S. Treasury Bills** |  |  |
| (Cost $599,288) |  | 599479 |
| **REPURCHASE AGREEMENTS<sup>††,4</sup> - 56.8%** | **REPURCHASE AGREEMENTS<sup>††,4</sup> - 56.8%** | **REPURCHASE AGREEMENTS<sup>††,4</sup> - 56.8%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23<sup>3</sup> | 2793036 | 2793036 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23<sup>3</sup> | 1074244 | 1074244 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23<sup>3</sup> | 1070918 | 1070918 |
| **Total Repurchase Agreements** |  |  |
| (Cost $4,938,198) |  | 4938198 |
| **Total Investments - 94.4%** |  |  |
| (Cost $8,229,507) |  | $8215615 |
| **Other Assets & Liabilities, net - 5.6%** |  | 483198 |
| **Total Net Assets - 100.0%** |  | $8698813 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** |
| **Counterparty** | **Index** | **Type** | **Financing <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Units** | **Notional <br> Amount** | **Value and <br> Unrealized <br> Appreciation** |
| **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** |
| Barclays Bank plc | NASDAQ-100 Index | Receive | 4.65% (SOFR + 0.35%) | At Maturity | 01/25/23 | 156 | $1703402 | $138896 |
| Goldman Sachs International | NASDAQ-100 Index | Receive | 4.63% (Federal Funds Rate + 0.30%) | At Maturity | 01/26/23 | 117 | 1276171 | 88582 |
| BNP Paribas | NASDAQ-100 Index | Receive | 4.58% (Federal Funds Rate + 0.25%) | At Maturity | 01/26/23 | 521 | 5701443 | 39420 |
|  |  |  |  |  |  |  | $8681016 | $266898 |

---

---

| | |
|:---|:---|
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>◊</sup> | &nbsp;&nbsp;&nbsp;Variable rate security. Rate indicated is the rate effective at December 31, 2022. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Affiliated issuer. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as equity index swap collateral at December 31, 2022. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;SOFR — Secured Overnight Financing Rate |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

40 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **INVERSE NASDAQ-100<sup>®</sup>** **STRATEGY FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Mutual Funds | $481624 | $— | $— | $481624 |
| Federal Agency Discount Notes |  | 1196237 |  | 1196237 |
| Federal Agency Notes |  | 1000077 |  | 1000077 |
| U.S. Treasury Bills |  | 599479 |  | 599479 |
| Repurchase Agreements |  | 4938198 |  | 4938198 |
| Equity Index Swap Agreements\*\* |  | 266898 |  | 266898 |
| Total Assets | $481624 | $8000889 | $— | $8482513 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $131337 | $200000 | $(60000) | $(795) | $(8996) | $261546 | 10880 | $7603 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 330143 | 200000 | (300000) | (3977) | (6088) | 220078 | 22830 | 5741 |
|  | $461480 | $400000 | $(360000) | $(4772) | $(15084) | $481624 |  | $13344 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 41

**INVERSE NASDAQ-100<sup>®</sup>** **STRATEGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments in unaffiliated issuers, at value (cost $2,795,400) | $2795793 |
| Investments in affiliated issuers, at value (cost $495,909) | 481624 |
| Repurchase agreements, at value (cost $4,938,198) | 4938198 |
| Segregated cash with broker | 31600 |
| Unrealized appreciation on OTC swap agreements | 266898 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 323331 |
| &nbsp;&nbsp;&nbsp;Swap settlement | 6901 |
| &nbsp;&nbsp;&nbsp;Interest | 3317 |
| &nbsp;&nbsp;&nbsp;Dividends | 1869 |
| **Total assets** | 8849531 |
| **Liabilities:** | **Liabilities:** |
| Segregated cash due to broker | 120000 |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 8703 |
| &nbsp;&nbsp;&nbsp;Management fees | 3883 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 2602 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 1092 |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 561 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 458 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 68 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 13351 |
| **Total liabilities** | 150718 |
| **Net assets** | $8698813 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $16622656 |
| Total distributable earnings (loss) | (7923843) |
| Net assets | $8698813 |
| Capital shares outstanding | 342234 |
| Net asset value per share | $25.42 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of affiliated issuers | $13344 |
| Interest | 140789 |
| &nbsp;&nbsp;&nbsp;Total investment income | 154133 |
| **Expenses:** | **Expenses:** |
| Management fees | 69343 |
| Investor service fees | 19262 |
| Transfer agent fees | 18285 |
| Professional fees | 12941 |
| Portfolio accounting and administration fees | 10335 |
| Interest expense | 7118 |
| Custodian fees | 1088 |
| Trustees' fees\* | 587 |
| Miscellaneous | 10648 |
| &nbsp;&nbsp;&nbsp;Total expenses | 149607 |
| Less: | Less: |
| Expenses reimbursed by Adviser | (3853) |
| Expenses waived by Adviser | (735) |
| &nbsp;&nbsp;&nbsp;Total waived/reimbursed expenses | (4588) |
| Net expenses | 145019 |
| Net investment income | 9114 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | 525 |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (4772) |
| &nbsp;&nbsp;&nbsp;Swap agreements | 80036 |
| &nbsp;&nbsp;&nbsp;Futures contracts | (26248) |
| Net realized gain | 49541 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | 393 |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (15084) |
| &nbsp;&nbsp;&nbsp;Swap agreements | 270959 |
| Net change in unrealized appreciation (depreciation) | 256268 |
| Net realized and unrealized gain | 305809 |
| **Net increase in net assets resulting from operations** | $314923 |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

42 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**INVERSE NASDAQ-100<sup>®</sup>** **STRATEGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income (loss) | $9114 | $(8844) |
| Net realized gain (loss) on investments | 49541 | (258814) |
| Net change in unrealized appreciation (depreciation) on investments | 256268 | (4099) |
| Net increase (decrease) in net assets resulting from operations | 314923 | (271757) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 106230169 | 17764324 |
| Cost of shares redeemed | (99499765) | (16302674) |
| Net increase from capital share transactions | 6730404 | 1461650 |
| Net increase in net assets | 7045327 | 1189893 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 1653486 | 463593 |
| &nbsp;&nbsp;&nbsp;End of year | $8698813 | $1653486 |
| **Capital share activity:** |  |  |
| Shares sold | 4706278 | 794399 |
| Shares redeemed | (4451724) | (725045) |
| Net increase in shares | 254554 | 69354 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 43

**INVERSE NASDAQ-100<sup>®</sup>** **STRATEGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $18.86 | $25.30 | $41.21 | $57.64 | $59.28 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .03 | (.27) | (.33) | .34 | .32 |
| Net gain (loss) on investments (realized and unrealized) | 6.53 | (6.17) | (15.28) | (16.47) | (1.96)<sup>e</sup> |
| Total from investment operations | 6.56 | (6.44) | (15.61) | (16.13) | (1.64) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  | (.30) | (.30) |  |
| Total distributions |  |  | (.30) | (.30) |  |
| Net asset value, end of period | $25.42 | $18.86 | $25.30 | $41.21 | $57.64 |
| **Total Return<sup>b</sup>** | **34.78%** | **(25.45** **%)** | **(38.00** **%)** | **(28.01** **%)** | **(2.77** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $8699 | $1653 | $464 | $592 | $7815 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.12% | (1.23%) | (0.93%) | 0.70% | 0.58% |
| Total expenses<sup>c</sup> | 1.94% | 1.78% | 1.92% | 1.92% | 1.83% |
| Net expenses<sup>d</sup> | 1.88% | 1.71% | 1.87% | 1.84% | 1.83% |
| Portfolio turnover rate | 63% | 430% | 681% | 418% | 136% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

<sup>e</sup> The amount shown for a share outstanding throughout the period does not agree with the aggregate net gain on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

44 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**S&P 500<sup>®</sup>** **2x STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund's current benchmark is 200% of the performance of the S&P 500<sup>®</sup> Index (the "underlying index"). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the Reporting Period, S&P 500 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the S&P 500 Index. S&P 500 2x Strategy Fund returned -39.77%, while the S&P 500 Index returned -18.11% over the same time period.

The only sectors contributing to the return of the underlying index for the Reporting Period were Energy and Health Care. The sectors detracting the most from the return of the underlying index were Information Technology, Consumer Discretionary, and Communication Services.

The holdings contributing the most to the return of the underlying index were Exxon Mobil Corp., Chevron Corp., and Merck & Co., Inc. The holdings detracting the most were Apple, Inc., Amazon.com, Inc., and Tesla, Inc.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds' 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 funds' holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short-Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.**

THE RYDEX FUNDS ANNUAL REPORT \| 45

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-2_46.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-2_46a.jpg)

**Inception Date:** October 1, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| Apple, Inc. | 4.7% |
| Microsoft Corp. | 4.3% |
| Amazon.com, Inc. | 1.8% |
| Berkshire Hathaway, Inc. — Class B | 1.3% |
| Alphabet, Inc. — Class A | 1.3% |
| UnitedHealth Group, Inc. | 1.2% |
| Alphabet, Inc. — Class C | 1.1% |
| Johnson & Johnson | 1.1% |
| Exxon Mobil Corp. | 1.1% |
| JPMorgan Chase & Co. | 0.9% |
| Top Ten Total | 18.8% |
| "Ten Largest Holdings" excludes any temporary cash or derivative investments. | "Ten Largest Holdings" excludes any temporary cash or derivative investments. |

---

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| S&P 500<sup>®</sup> 2x Strategy Fund  | (39.77%)  | 9.13%  | 18.65%  |
| S&P 500 Index  | (18.11%)  | 9.42%  | 12.56%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

46 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **S&P 500<sup>®</sup>** **2x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 76.8%** | **COMMON STOCKS<sup>†</sup>** **- 76.8%** | **COMMON STOCKS<sup>†</sup>** **- 76.8%** |
| **Consumer, Non-cyclical - 18.0%** | **Consumer, Non-cyclical - 18.0%** | **Consumer, Non-cyclical - 18.0%** |
| &nbsp;&nbsp;&nbsp;UnitedHealth Group, Inc. | 368 | $195106 |
| &nbsp;&nbsp;&nbsp;Johnson & Johnson | 1030 | 181950 |
| &nbsp;&nbsp;&nbsp;Procter & Gamble Co. | 934 | 141557 |
| &nbsp;&nbsp;&nbsp;Eli Lilly & Co. | 311 | 113776 |
| &nbsp;&nbsp;&nbsp;Pfizer, Inc. | 2213 | 113394 |
| &nbsp;&nbsp;&nbsp;AbbVie, Inc. | 697 | 112642 |
| &nbsp;&nbsp;&nbsp;Merck & Company, Inc. | 999 | 110839 |
| &nbsp;&nbsp;&nbsp;PepsiCo, Inc. | 543 | 98098 |
| &nbsp;&nbsp;&nbsp;Coca-Cola Co. | 1534 | 97578 |
| &nbsp;&nbsp;&nbsp;Thermo Fisher Scientific, Inc. | 155 | 85357 |
| &nbsp;&nbsp;&nbsp;Abbott Laboratories | 687 | 75426 |
| &nbsp;&nbsp;&nbsp;Danaher Corp. | 258 | 68478 |
| &nbsp;&nbsp;&nbsp;Philip Morris International, Inc. | 611 | 61839 |
| &nbsp;&nbsp;&nbsp;Bristol-Myers Squibb Co. | 837 | 60222 |
| &nbsp;&nbsp;&nbsp;Amgen, Inc. | 210 | 55154 |
| &nbsp;&nbsp;&nbsp;CVS Health Corp. | 518 | 48272 |
| &nbsp;&nbsp;&nbsp;Elevance Health, Inc. | 94 | 48219 |
| &nbsp;&nbsp;&nbsp;S&P Global, Inc. | 131 | 43877 |
| &nbsp;&nbsp;&nbsp;Gilead Sciences, Inc. | 495 | 42496 |
| &nbsp;&nbsp;&nbsp;Medtronic plc | 524 | 40725 |
| &nbsp;&nbsp;&nbsp;Cigna Corp. | 120 | 39761 |
| &nbsp;&nbsp;&nbsp;Automatic Data Processing, Inc. | 163 | 38934 |
| &nbsp;&nbsp;&nbsp;Intuitive Surgical, Inc.\* | 139 | 36884 |
| &nbsp;&nbsp;&nbsp;Mondelez International, Inc. — Class A | 538 | 35858 |
| &nbsp;&nbsp;&nbsp;Stryker Corp. | 133 | 32517 |
| &nbsp;&nbsp;&nbsp;Altria Group, Inc. | 706 | 32271 |
| &nbsp;&nbsp;&nbsp;PayPal Holdings, Inc.\* | 449 | 31978 |
| &nbsp;&nbsp;&nbsp;Regeneron Pharmaceuticals, Inc.\* | 42 | 30303 |
| &nbsp;&nbsp;&nbsp;Vertex Pharmaceuticals, Inc.\* | 101 | 29167 |
| &nbsp;&nbsp;&nbsp;Becton Dickinson and Co. | 112 | 28482 |
| &nbsp;&nbsp;&nbsp;Zoetis, Inc. | 184 | 26965 |
| &nbsp;&nbsp;&nbsp;Boston Scientific Corp.\* | 564 | 26096 |
| &nbsp;&nbsp;&nbsp;Colgate-Palmolive Co. | 329 | 25922 |
| &nbsp;&nbsp;&nbsp;Humana, Inc. | 50 | 25609 |
| &nbsp;&nbsp;&nbsp;Moderna, Inc.\* | 130 | 23351 |
| &nbsp;&nbsp;&nbsp;Estee Lauder Companies, Inc. — Class A | 91 | 22578 |
| &nbsp;&nbsp;&nbsp;McKesson Corp. | 56 | 21007 |
| &nbsp;&nbsp;&nbsp;HCA Healthcare, Inc. | 84 | 20157 |
| &nbsp;&nbsp;&nbsp;Archer-Daniels-Midland Co. | 216 | 20056 |
| &nbsp;&nbsp;&nbsp;General Mills, Inc. | 234 | 19621 |
| &nbsp;&nbsp;&nbsp;Centene Corp.\* | 223 | 18288 |
| &nbsp;&nbsp;&nbsp;Edwards Lifesciences Corp.\* | 244 | 18205 |
| &nbsp;&nbsp;&nbsp;Kimberly-Clark Corp. | 133 | 18055 |
| &nbsp;&nbsp;&nbsp;Moody's Corp. | 62 | 17275 |
| &nbsp;&nbsp;&nbsp;Dexcom, Inc.\* | 152 | 17213 |
| &nbsp;&nbsp;&nbsp;Corteva, Inc. | 281 | 16517 |
| &nbsp;&nbsp;&nbsp;Biogen, Inc.\* | 57 | 15784 |
| &nbsp;&nbsp;&nbsp;Cintas Corp. | 34 | 15355 |
| &nbsp;&nbsp;&nbsp;Sysco Corp. | 200 | 15290 |
| &nbsp;&nbsp;&nbsp;Monster Beverage Corp.\* | 150 | 15230 |
| &nbsp;&nbsp;&nbsp;IQVIA Holdings, Inc.\* | 73 | 14957 |
| &nbsp;&nbsp;&nbsp;Constellation Brands, Inc. — Class A | 64 | 14832 |
| &nbsp;&nbsp;&nbsp;IDEXX Laboratories, Inc.\* | 33 | 13463 |
| &nbsp;&nbsp;&nbsp;Hershey Co. | 58 | 13431 |
| &nbsp;&nbsp;&nbsp;Kraft Heinz Co. | 314 | 12783 |
| &nbsp;&nbsp;&nbsp;Illumina, Inc.\* | 63 | 12739 |
| &nbsp;&nbsp;&nbsp;CoStar Group, Inc.\* | 160 | 12365 |
| &nbsp;&nbsp;&nbsp;ResMed, Inc. | 58 | 12072 |
| &nbsp;&nbsp;&nbsp;Keurig Dr Pepper, Inc. | 335 | 11946 |
| &nbsp;&nbsp;&nbsp;Kroger Co. | 257 | 11457 |
| &nbsp;&nbsp;&nbsp;Verisk Analytics, Inc. — Class A | 62 | 10938 |
| &nbsp;&nbsp;&nbsp;Global Payments, Inc. | 107 | 10627 |
| &nbsp;&nbsp;&nbsp;AmerisourceBergen Corp. — Class A | 64 | 10605 |
| &nbsp;&nbsp;&nbsp;Zimmer Biomet Holdings, Inc. | 83 | 10583 |
| &nbsp;&nbsp;&nbsp;Gartner, Inc.\* | 31 | 10420 |
| &nbsp;&nbsp;&nbsp;Baxter International, Inc. | 199 | 10143 |
| &nbsp;&nbsp;&nbsp;United Rentals, Inc.\* | 27 | 9596 |
| &nbsp;&nbsp;&nbsp;Equifax, Inc. | 48 | 9329 |
| &nbsp;&nbsp;&nbsp;Laboratory Corporation of America Holdings | 35 | 8242 |
| &nbsp;&nbsp;&nbsp;McCormick & Company, Inc. | 99 | 8206 |
| &nbsp;&nbsp;&nbsp;Quanta Services, Inc. | 56 | 7980 |
| &nbsp;&nbsp;&nbsp;Cardinal Health, Inc. | 103 | 7918 |
| &nbsp;&nbsp;&nbsp;Waters Corp.\* | 23 | 7879 |
| &nbsp;&nbsp;&nbsp;Church & Dwight Company, Inc. | 97 | 7819 |
| &nbsp;&nbsp;&nbsp;Molina Healthcare, Inc.\* | 23 | 7595 |
| &nbsp;&nbsp;&nbsp;Hologic, Inc.\* | 99 | 7406 |
| &nbsp;&nbsp;&nbsp;Conagra Brands, Inc. | 189 | 7314 |
| &nbsp;&nbsp;&nbsp;STERIS plc | 39 | 7203 |
| &nbsp;&nbsp;&nbsp;Kellogg Co. | 101 | 7195 |
| &nbsp;&nbsp;&nbsp;Tyson Foods, Inc. — Class A | 114 | 7096 |
| &nbsp;&nbsp;&nbsp;Quest Diagnostics, Inc. | 45 | 7040 |
| &nbsp;&nbsp;&nbsp;PerkinElmer, Inc. | 50 | 7011 |
| &nbsp;&nbsp;&nbsp;Clorox Co. | 49 | 6876 |
| &nbsp;&nbsp;&nbsp;West Pharmaceutical Services, Inc. | 29 | 6825 |
| &nbsp;&nbsp;&nbsp;J M Smucker Co. | 42 | 6655 |
| &nbsp;&nbsp;&nbsp;Cooper Companies, Inc. | 19 | 6283 |
| &nbsp;&nbsp;&nbsp;Align Technology, Inc.\* | 29 | 6116 |
| &nbsp;&nbsp;&nbsp;Incyte Corp.\* | 73 | 5863 |
| &nbsp;&nbsp;&nbsp;Avery Dennison Corp. | 32 | 5792 |
| &nbsp;&nbsp;&nbsp;FleetCor Technologies, Inc.\* | 29 | 5327 |
| &nbsp;&nbsp;&nbsp;Viatris, Inc. | 478 | 5320 |
| &nbsp;&nbsp;&nbsp;Hormel Foods Corp. | 114 | 5193 |
| &nbsp;&nbsp;&nbsp;Bio-Techne Corp. | 62 | 5139 |
| &nbsp;&nbsp;&nbsp;Lamb Weston Holdings, Inc. | 57 | 5094 |
| &nbsp;&nbsp;&nbsp;Brown-Forman Corp. — Class B | 72 | 4729 |
| &nbsp;&nbsp;&nbsp;Teleflex, Inc. | 18 | 4493 |
| &nbsp;&nbsp;&nbsp;Campbell Soup Co. | 79 | 4483 |
| &nbsp;&nbsp;&nbsp;Charles River Laboratories International, Inc.\* | 20 | 4358 |
| &nbsp;&nbsp;&nbsp;Henry Schein, Inc.\* | 53 | 4233 |
| &nbsp;&nbsp;&nbsp;MarketAxess Holdings, Inc. | 15 | 4183 |
| &nbsp;&nbsp;&nbsp;Molson Coors Beverage Co. — Class B | 75 | 3864 |
| &nbsp;&nbsp;&nbsp;Universal Health Services, Inc. — Class B | 25 | 3522 |
| &nbsp;&nbsp;&nbsp;Bio-Rad Laboratories, Inc. — Class A\* | 8 | 3364 |
| &nbsp;&nbsp;&nbsp;Rollins, Inc. | 91 | 3325 |
| &nbsp;&nbsp;&nbsp;Catalent, Inc.\* | 71 | 3196 |
| &nbsp;&nbsp;&nbsp;Robert Half International, Inc. | 43 | 3175 |
| &nbsp;&nbsp;&nbsp;Organon & Co. | 100 | 2793 |
| &nbsp;&nbsp;&nbsp;Dentsply Sirona, Inc. | 85 | 2706 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 47

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **S&P 500<sup>®</sup>** **2x STRATEGY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;DaVita, Inc.\* | 22 | $| 1643 |
| **Total Consumer, Non-cyclical** |  |  | 2972474 |
| **Technology - 16.7%** | **Technology - 16.7%** | **Technology - 16.7%** | **Technology - 16.7%** |
| &nbsp;&nbsp;&nbsp;Apple, Inc. | 5896 |  | 766067 |
| &nbsp;&nbsp;&nbsp;Microsoft Corp. | 2938 |  | 704591 |
| &nbsp;&nbsp;&nbsp;NVIDIA Corp. | 982 |  | 143509 |
| &nbsp;&nbsp;&nbsp;Broadcom, Inc. | 160 |  | 89461 |
| &nbsp;&nbsp;&nbsp;Accenture plc — Class A | 248 |  | 66176 |
| &nbsp;&nbsp;&nbsp;Adobe, Inc.\* | 183 |  | 61585 |
| &nbsp;&nbsp;&nbsp;Texas Instruments, Inc. | 357 |  | 58984 |
| &nbsp;&nbsp;&nbsp;Salesforce, Inc.\* | 394 |  | 52240 |
| &nbsp;&nbsp;&nbsp;International Business Machines Corp. | 357 |  | 50298 |
| &nbsp;&nbsp;&nbsp;Oracle Corp. | 605 |  | 49453 |
| &nbsp;&nbsp;&nbsp;QUALCOMM, Inc. | 442 |  | 48593 |
| &nbsp;&nbsp;&nbsp;Intuit, Inc. | 111 |  | 43203 |
| &nbsp;&nbsp;&nbsp;Intel Corp. | 1627 |  | 43002 |
| &nbsp;&nbsp;&nbsp;Advanced Micro Devices, Inc.\* | 636 |  | 41194 |
| &nbsp;&nbsp;&nbsp;Analog Devices, Inc. | 203 |  | 33298 |
| &nbsp;&nbsp;&nbsp;Applied Materials, Inc. | 339 |  | 33012 |
| &nbsp;&nbsp;&nbsp;ServiceNow, Inc.\* | 80 |  | 31062 |
| &nbsp;&nbsp;&nbsp;Fiserv, Inc.\* | 250 |  | 25267 |
| &nbsp;&nbsp;&nbsp;Lam Research Corp. | 54 |  | 22696 |
| &nbsp;&nbsp;&nbsp;Activision Blizzard, Inc. | 281 |  | 21511 |
| &nbsp;&nbsp;&nbsp;Micron Technology, Inc. | 428 |  | 21391 |
| &nbsp;&nbsp;&nbsp;KLA Corp. | 56 |  | 21114 |
| &nbsp;&nbsp;&nbsp;Synopsys, Inc.\* | 60 |  | 19157 |
| &nbsp;&nbsp;&nbsp;Roper Technologies, Inc. | 42 |  | 18148 |
| &nbsp;&nbsp;&nbsp;Cadence Design Systems, Inc.\* | 108 |  | 17349 |
| &nbsp;&nbsp;&nbsp;NXP Semiconductor N.V. | 102 |  | 16119 |
| &nbsp;&nbsp;&nbsp;Autodesk, Inc.\* | 85 |  | 15884 |
| &nbsp;&nbsp;&nbsp;Fidelity National Information Services, Inc. | 234 |  | 15877 |
| &nbsp;&nbsp;&nbsp;Microchip Technology, Inc. | 217 |  | 15244 |
| &nbsp;&nbsp;&nbsp;Paychex, Inc. | 127 |  | 14676 |
| &nbsp;&nbsp;&nbsp;MSCI, Inc. — Class A | 31 |  | 14420 |
| &nbsp;&nbsp;&nbsp;Electronic Arts, Inc. | 103 |  | 12585 |
| &nbsp;&nbsp;&nbsp;Fortinet, Inc.\* | 255 |  | 12467 |
| &nbsp;&nbsp;&nbsp;Cognizant Technology Solutions Corp. — Class A | 202 |  | 11552 |
| &nbsp;&nbsp;&nbsp;ON Semiconductor Corp.\* | 170 |  | 10603 |
| &nbsp;&nbsp;&nbsp;HP, Inc. | 349 |  | 9378 |
| &nbsp;&nbsp;&nbsp;ANSYS, Inc.\* | 34 |  | 8214 |
| &nbsp;&nbsp;&nbsp;Hewlett Packard Enterprise Co. | 507 |  | 8092 |
| &nbsp;&nbsp;&nbsp;EPAM Systems, Inc.\* | 23 |  | 7538 |
| &nbsp;&nbsp;&nbsp;Take-Two Interactive Software, Inc.\* | 62 |  | 6456 |
| &nbsp;&nbsp;&nbsp;Monolithic Power Systems, Inc. | 18 |  | 6365 |
| &nbsp;&nbsp;&nbsp;Broadridge Financial Solutions, Inc. | 46 |  | 6170 |
| &nbsp;&nbsp;&nbsp;Paycom Software, Inc.\* | 19 |  | 5896 |
| &nbsp;&nbsp;&nbsp;Skyworks Solutions, Inc. | 63 |  | 5741 |
| &nbsp;&nbsp;&nbsp;Leidos Holdings, Inc. | 54 |  | 5680 |
| &nbsp;&nbsp;&nbsp;Tyler Technologies, Inc.\* | 17 |  | 5481 |
| &nbsp;&nbsp;&nbsp;Teradyne, Inc. | 61 |  | 5328 |
| &nbsp;&nbsp;&nbsp;Akamai Technologies, Inc.\* | 62 |  | 5227 |
| &nbsp;&nbsp;&nbsp;NetApp, Inc. | 86 |  | 5165 |
| &nbsp;&nbsp;&nbsp;Zebra Technologies Corp. — Class A\* | 20 |  | 5128 |
| &nbsp;&nbsp;&nbsp;Jack Henry & Associates, Inc. | 29 |  | 5091 |
| &nbsp;&nbsp;&nbsp;PTC, Inc.\* | 42 |  | 5042 |
| &nbsp;&nbsp;&nbsp;Seagate Technology Holdings plc | 76 |  | 3998 |
| &nbsp;&nbsp;&nbsp;Western Digital Corp.\* | 125 |  | 3944 |
| &nbsp;&nbsp;&nbsp;Ceridian HCM Holding, Inc.\* | 60 |  | 3849 |
| &nbsp;&nbsp;&nbsp;Qorvo, Inc.\* | 40 |  | 3626 |
| &nbsp;&nbsp;&nbsp;DXC Technology Co.\* | 91 |  | 2412 |
| **Total Technology** |  |  | 2745609 |
| **Financial - 12.0%** | **Financial - 12.0%** | **Financial - 12.0%** | **Financial - 12.0%** |
| &nbsp;&nbsp;&nbsp;Berkshire Hathaway, Inc. — Class B\* | 710 |  | 219319 |
| &nbsp;&nbsp;&nbsp;JPMorgan Chase & Co. | 1156 |  | 155020 |
| &nbsp;&nbsp;&nbsp;Visa, Inc. — Class A | 644 |  | 133797 |
| &nbsp;&nbsp;&nbsp;Mastercard, Inc. — Class A | 334 |  | 116142 |
| &nbsp;&nbsp;&nbsp;Bank of America Corp. | 2752 |  | 91146 |
| &nbsp;&nbsp;&nbsp;Wells Fargo & Co. | 1502 |  | 62018 |
| &nbsp;&nbsp;&nbsp;Charles Schwab Corp. | 601 |  | 50039 |
| &nbsp;&nbsp;&nbsp;Goldman Sachs Group, Inc. | 133 |  | 45670 |
| &nbsp;&nbsp;&nbsp;Morgan Stanley | 519 |  | 44125 |
| &nbsp;&nbsp;&nbsp;BlackRock, Inc. — Class A | 59 |  | 41809 |
| &nbsp;&nbsp;&nbsp;Prologis, Inc. REIT | 365 |  | 41146 |
| &nbsp;&nbsp;&nbsp;American Tower Corp. — Class A REIT | 183 |  | 38770 |
| &nbsp;&nbsp;&nbsp;Chubb Ltd. | 163 |  | 35958 |
| &nbsp;&nbsp;&nbsp;American Express Co. | 235 |  | 34721 |
| &nbsp;&nbsp;&nbsp;Citigroup, Inc. | 763 |  | 34510 |
| &nbsp;&nbsp;&nbsp;Marsh & McLennan Companies, Inc. | 195 |  | 32269 |
| &nbsp;&nbsp;&nbsp;Progressive Corp. | 230 |  | 29833 |
| &nbsp;&nbsp;&nbsp;PNC Financial Services Group, Inc. | 159 |  | 25112 |
| &nbsp;&nbsp;&nbsp;Aon plc — Class A | 81 |  | 24311 |
| &nbsp;&nbsp;&nbsp;CME Group, Inc. — Class A | 142 |  | 23879 |
| &nbsp;&nbsp;&nbsp;Equinix, Inc. REIT | 36 |  | 23581 |
| &nbsp;&nbsp;&nbsp;U.S. Bancorp | 533 |  | 23244 |
| &nbsp;&nbsp;&nbsp;Crown Castle, Inc. REIT | 171 |  | 23194 |
| &nbsp;&nbsp;&nbsp;Intercontinental Exchange, Inc. | 221 |  | 22672 |
| &nbsp;&nbsp;&nbsp;Truist Financial Corp. | 523 |  | 22505 |
| &nbsp;&nbsp;&nbsp;MetLife, Inc. | 260 |  | 18816 |
| &nbsp;&nbsp;&nbsp;American International Group, Inc. | 293 |  | 18529 |
| &nbsp;&nbsp;&nbsp;Public Storage REIT | 62 |  | 17372 |
| &nbsp;&nbsp;&nbsp;Travelers Companies, Inc. | 92 |  | 17249 |
| &nbsp;&nbsp;&nbsp;Aflac, Inc. | 223 |  | 16043 |
| &nbsp;&nbsp;&nbsp;Realty Income Corp. REIT | 247 |  | 15667 |
| &nbsp;&nbsp;&nbsp;Arthur J Gallagher & Co. | 83 |  | 15649 |
| &nbsp;&nbsp;&nbsp;Simon Property Group, Inc. REIT | 129 |  | 15155 |
| &nbsp;&nbsp;&nbsp;Prudential Financial, Inc. | 145 |  | 14422 |
| &nbsp;&nbsp;&nbsp;Allstate Corp. | 104 |  | 14102 |
| &nbsp;&nbsp;&nbsp;Capital One Financial Corp. | 150 |  | 13944 |
| &nbsp;&nbsp;&nbsp;Bank of New York Mellon Corp. | 290 |  | 13201 |
| &nbsp;&nbsp;&nbsp;Ameriprise Financial, Inc. | 42 |  | 13078 |
| &nbsp;&nbsp;&nbsp;VICI Properties, Inc. REIT | 379 |  | 12280 |
| &nbsp;&nbsp;&nbsp;Welltower, Inc. REIT | 186 |  | 12192 |
| &nbsp;&nbsp;&nbsp;SBA Communications Corp. REIT | 43 |  | 12053 |
| &nbsp;&nbsp;&nbsp;Digital Realty Trust, Inc. REIT | 113 |  | 11330 |
| &nbsp;&nbsp;&nbsp;State Street Corp. | 145 |  | 11248 |
| &nbsp;&nbsp;&nbsp;Discover Financial Services | 108 |  | 10566 |
| &nbsp;&nbsp;&nbsp;Willis Towers Watson plc | 43 |  | 10517 |
| &nbsp;&nbsp;&nbsp;M&T Bank Corp. | 68 |  | 9864 |
| &nbsp;&nbsp;&nbsp;&nbsp;T. Rowe Price Group, Inc. | 88 |  | 9597 |
| &nbsp;&nbsp;&nbsp;CBRE Group, Inc. — Class A\* | 124 |  | 9543 |
| &nbsp;&nbsp;&nbsp;Hartford Financial Services Group, Inc. | 125 |  | 9479 |

---

48 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **S&P 500<sup>®</sup>** **2x STRATEGY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;Arch Capital Group Ltd.\* | 146 | $| 9166 |
| &nbsp;&nbsp;&nbsp;Weyerhaeuser Co. REIT | 290 |  | 8990 |
| &nbsp;&nbsp;&nbsp;Fifth Third Bancorp | 271 |  | 8892 |
| &nbsp;&nbsp;&nbsp;AvalonBay Communities, Inc. REIT | 55 |  | 8884 |
| &nbsp;&nbsp;&nbsp;First Republic Bank | 72 |  | 8776 |
| &nbsp;&nbsp;&nbsp;Alexandria Real Estate Equities, Inc. REIT | 59 |  | 8595 |
| &nbsp;&nbsp;&nbsp;Nasdaq, Inc. | 134 |  | 8221 |
| &nbsp;&nbsp;&nbsp;Raymond James Financial, Inc. | 76 |  | 8121 |
| &nbsp;&nbsp;&nbsp;Huntington Bancshares, Inc. | 568 |  | 8009 |
| &nbsp;&nbsp;&nbsp;Regions Financial Corp. | 368 |  | 7934 |
| &nbsp;&nbsp;&nbsp;Equity Residential REIT | 134 |  | 7906 |
| &nbsp;&nbsp;&nbsp;Extra Space Storage, Inc. REIT | 53 |  | 7801 |
| &nbsp;&nbsp;&nbsp;Citizens Financial Group, Inc. | 194 |  | 7638 |
| &nbsp;&nbsp;&nbsp;Principal Financial Group, Inc. | 90 |  | 7553 |
| &nbsp;&nbsp;&nbsp;Northern Trust Corp. | 82 |  | 7256 |
| &nbsp;&nbsp;&nbsp;Ventas, Inc. REIT | 157 |  | 7073 |
| &nbsp;&nbsp;&nbsp;Mid-America Apartment Communities, Inc. REIT | 45 |  | 7065 |
| &nbsp;&nbsp;&nbsp;Invitation Homes, Inc. REIT | 229 |  | 6788 |
| &nbsp;&nbsp;&nbsp;KeyCorp | 367 |  | 6393 |
| &nbsp;&nbsp;&nbsp;Cincinnati Financial Corp. | 62 |  | 6348 |
| &nbsp;&nbsp;&nbsp;W R Berkley Corp. | 81 |  | 5878 |
| &nbsp;&nbsp;&nbsp;Synchrony Financial | 177 |  | 5816 |
| &nbsp;&nbsp;&nbsp;Iron Mountain, Inc. REIT | 115 |  | 5733 |
| &nbsp;&nbsp;&nbsp;Essex Property Trust, Inc. REIT | 26 |  | 5510 |
| &nbsp;&nbsp;&nbsp;Healthpeak Properties, Inc. REIT | 212 |  | 5315 |
| &nbsp;&nbsp;&nbsp;Brown & Brown, Inc. | 93 |  | 5298 |
| &nbsp;&nbsp;&nbsp;SVB Financial Group\* | 23 |  | 5293 |
| &nbsp;&nbsp;&nbsp;Cboe Global Markets, Inc. | 42 |  | 5270 |
| &nbsp;&nbsp;&nbsp;Kimco Realty Corp. REIT | 244 |  | 5168 |
| &nbsp;&nbsp;&nbsp;Everest Re Group Ltd. | 15 |  | 4969 |
| &nbsp;&nbsp;&nbsp;UDR, Inc. REIT | 122 |  | 4725 |
| &nbsp;&nbsp;&nbsp;Camden Property Trust REIT | 42 |  | 4699 |
| &nbsp;&nbsp;&nbsp;Loews Corp. | 78 |  | 4550 |
| &nbsp;&nbsp;&nbsp;Host Hotels & Resorts, Inc. REIT | 282 |  | 4526 |
| &nbsp;&nbsp;&nbsp;Globe Life, Inc. | 36 |  | 4340 |
| &nbsp;&nbsp;&nbsp;Regency Centers Corp. REIT | 61 |  | 3812 |
| &nbsp;&nbsp;&nbsp;Boston Properties, Inc. REIT | 56 |  | 3784 |
| &nbsp;&nbsp;&nbsp;Comerica, Inc. | 52 |  | 3476 |
| &nbsp;&nbsp;&nbsp;Invesco Ltd. | 179 |  | 3220 |
| &nbsp;&nbsp;&nbsp;Franklin Resources, Inc. | 112 |  | 2955 |
| &nbsp;&nbsp;&nbsp;Federal Realty Investment Trust REIT | 29 |  | 2930 |
| &nbsp;&nbsp;&nbsp;Zions Bancorp North America | 59 |  | 2900 |
| &nbsp;&nbsp;&nbsp;Signature Bank | 25 |  | 2881 |
| &nbsp;&nbsp;&nbsp;Assurant, Inc. | 21 |  | 2626 |
| &nbsp;&nbsp;&nbsp;Lincoln National Corp. | 61 |  | 1874 |
| &nbsp;&nbsp;&nbsp;Vornado Realty Trust REIT | 63 |  | 1311 |
| **Total Financial** |  |  | 1982954 |
| **Communications - 8.3%** | **Communications - 8.3%** | **Communications - 8.3%** | **Communications - 8.3%** |
| &nbsp;&nbsp;&nbsp;Amazon.com, Inc.\* | 3500 |  | 294000 |
| &nbsp;&nbsp;&nbsp;Alphabet, Inc. — Class A\* | 2355 |  | 207782 |
| &nbsp;&nbsp;&nbsp;Alphabet, Inc. — Class C\* | 2087 |  | 185179 |
| &nbsp;&nbsp;&nbsp;Meta Platforms, Inc. — Class A\* | 886 |  | 106621 |
| &nbsp;&nbsp;&nbsp;Cisco Systems, Inc. | 1618 |  | 77082 |
| &nbsp;&nbsp;&nbsp;Verizon Communications, Inc. | 1655 |  | 65207 |
| &nbsp;&nbsp;&nbsp;Walt Disney Co.\* | 718 |  | 62380 |
| &nbsp;&nbsp;&nbsp;Comcast Corp. — Class A | 1700 |  | 59449 |
| &nbsp;&nbsp;&nbsp;AT&T, Inc. | 2810 |  | 51732 |
| &nbsp;&nbsp;&nbsp;Netflix, Inc.\* | 175 |  | 51604 |
| &nbsp;&nbsp;&nbsp;T-Mobile US, Inc.\* | 235 |  | 32900 |
| &nbsp;&nbsp;&nbsp;Booking Holdings, Inc.\* | 15 |  | 30229 |
| &nbsp;&nbsp;&nbsp;Motorola Solutions, Inc. | 66 |  | 17009 |
| &nbsp;&nbsp;&nbsp;Charter Communications, Inc. — Class A\* | 42 |  | 14242 |
| &nbsp;&nbsp;&nbsp;Arista Networks, Inc.\* | 98 |  | 11892 |
| &nbsp;&nbsp;&nbsp;Corning, Inc. | 300 |  | 9582 |
| &nbsp;&nbsp;&nbsp;CDW Corp. | 53 |  | 9465 |
| &nbsp;&nbsp;&nbsp;eBay, Inc. | 214 |  | 8875 |
| &nbsp;&nbsp;&nbsp;Warner Bros Discovery, Inc.\* | 871 |  | 8257 |
| &nbsp;&nbsp;&nbsp;VeriSign, Inc.\* | 36 |  | 7396 |
| &nbsp;&nbsp;&nbsp;Omnicom Group, Inc. | 80 |  | 6526 |
| &nbsp;&nbsp;&nbsp;FactSet Research Systems, Inc. | 15 |  | 6018 |
| &nbsp;&nbsp;&nbsp;Etsy, Inc.\* | 50 |  | 5989 |
| &nbsp;&nbsp;&nbsp;Expedia Group, Inc.\* | 59 |  | 5168 |
| &nbsp;&nbsp;&nbsp;Interpublic Group of Companies, Inc. | 153 |  | 5096 |
| &nbsp;&nbsp;&nbsp;Gen Digital, Inc. | 228 |  | 4886 |
| &nbsp;&nbsp;&nbsp;Match Group, Inc.\* | 110 |  | 4564 |
| &nbsp;&nbsp;&nbsp;Juniper Networks, Inc. | 128 |  | 4091 |
| &nbsp;&nbsp;&nbsp;Fox Corp. — Class A | 119 |  | 3614 |
| &nbsp;&nbsp;&nbsp;F5, Inc.\* | 24 |  | 3444 |
| &nbsp;&nbsp;&nbsp;Paramount Global — Class B | 199 |  | 3359 |
| &nbsp;&nbsp;&nbsp;News Corp. — Class A | 151 |  | 2748 |
| &nbsp;&nbsp;&nbsp;Lumen Technologies, Inc.\* | 375 |  | 1957 |
| &nbsp;&nbsp;&nbsp;Fox Corp. — Class B | 55 |  | 1565 |
| &nbsp;&nbsp;&nbsp;DISH Network Corp. — Class A\* | 99 |  | 1390 |
| &nbsp;&nbsp;&nbsp;News Corp. — Class B | 46 |  | 849 |
| **Total Communications** |  |  | 1372147 |
| **Consumer, Cyclical - 6.9%** | **Consumer, Cyclical - 6.9%** | **Consumer, Cyclical - 6.9%** | **Consumer, Cyclical - 6.9%** |
| &nbsp;&nbsp;&nbsp;Tesla, Inc.\* | 1058 |  | 130325 |
| &nbsp;&nbsp;&nbsp;Home Depot, Inc. | 403 |  | 127292 |
| &nbsp;&nbsp;&nbsp;Costco Wholesale Corp. | 174 |  | 79431 |
| &nbsp;&nbsp;&nbsp;Walmart, Inc. | 556 |  | 78835 |
| &nbsp;&nbsp;&nbsp;McDonald's Corp. | 288 |  | 75897 |
| &nbsp;&nbsp;&nbsp;NIKE, Inc. — Class B | 496 |  | 58037 |
| &nbsp;&nbsp;&nbsp;Lowe's Companies, Inc. | 244 |  | 48615 |
| &nbsp;&nbsp;&nbsp;Starbucks Corp. | 452 |  | 44838 |
| &nbsp;&nbsp;&nbsp;TJX Companies, Inc. | 457 |  | 36377 |
| &nbsp;&nbsp;&nbsp;Target Corp. | 181 |  | 26976 |
| &nbsp;&nbsp;&nbsp;Dollar General Corp. | 89 |  | 21916 |
| &nbsp;&nbsp;&nbsp;O'Reilly Automotive, Inc.\* | 25 |  | 21101 |
| &nbsp;&nbsp;&nbsp;General Motors Co. | 560 |  | 18838 |
| &nbsp;&nbsp;&nbsp;Ford Motor Co. | 1557 |  | 18108 |
| &nbsp;&nbsp;&nbsp;AutoZone, Inc.\* | 7 |  | 17263 |
| &nbsp;&nbsp;&nbsp;Ross Stores, Inc. | 137 |  | 15902 |
| &nbsp;&nbsp;&nbsp;Marriott International, Inc. — Class A | 106 |  | 15782 |
| &nbsp;&nbsp;&nbsp;Chipotle Mexican Grill, Inc. — Class A\* | 11 |  | 15262 |
| &nbsp;&nbsp;&nbsp;Yum! Brands, Inc. | 111 |  | 14217 |
| &nbsp;&nbsp;&nbsp;Cummins, Inc. | 56 |  | 13568 |
| &nbsp;&nbsp;&nbsp;PACCAR, Inc. | 137 |  | 13559 |
| &nbsp;&nbsp;&nbsp;Hilton Worldwide Holdings, Inc. | 107 |  | 13521 |
| &nbsp;&nbsp;&nbsp;Dollar Tree, Inc.\* | 83 |  | 11739 |
| &nbsp;&nbsp;&nbsp;DR Horton, Inc. | 123 |  | 10964 |
| &nbsp;&nbsp;&nbsp;Fastenal Co. | 226 |  | 10694 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 49

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **S&P 500<sup>®</sup>** **2x STRATEGY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;Walgreens Boots Alliance, Inc. | 283 | $| 10573 |
| &nbsp;&nbsp;&nbsp;Copart, Inc.\* | 169 |  | 10290 |
| &nbsp;&nbsp;&nbsp;WW Grainger, Inc. | 18 |  | 10013 |
| &nbsp;&nbsp;&nbsp;Aptiv plc\* | 107 |  | 9965 |
| &nbsp;&nbsp;&nbsp;Tractor Supply Co. | 44 |  | 9899 |
| &nbsp;&nbsp;&nbsp;Ulta Beauty, Inc.\* | 21 |  | 9850 |
| &nbsp;&nbsp;&nbsp;Genuine Parts Co. | 56 |  | 9716 |
| &nbsp;&nbsp;&nbsp;Lennar Corp. — Class A | 100 |  | 9050 |
| &nbsp;&nbsp;&nbsp;Delta Air Lines, Inc.\* | 253 |  | 8314 |
| &nbsp;&nbsp;&nbsp;Southwest Airlines Co. | 234 |  | 7879 |
| &nbsp;&nbsp;&nbsp;Darden Restaurants, Inc. | 48 |  | 6640 |
| &nbsp;&nbsp;&nbsp;Best Buy Company, Inc. | 79 |  | 6337 |
| &nbsp;&nbsp;&nbsp;Las Vegas Sands Corp.\* | 130 |  | 6249 |
| &nbsp;&nbsp;&nbsp;LKQ Corp. | 100 |  | 5341 |
| &nbsp;&nbsp;&nbsp;United Airlines Holdings, Inc.\* | 129 |  | 4863 |
| &nbsp;&nbsp;&nbsp;Domino's Pizza, Inc. | 14 |  | 4850 |
| &nbsp;&nbsp;&nbsp;NVR, Inc.\* | 1 |  | 4612 |
| &nbsp;&nbsp;&nbsp;Pool Corp. | 15 |  | 4535 |
| &nbsp;&nbsp;&nbsp;Royal Caribbean Cruises Ltd.\* | 86 |  | 4251 |
| &nbsp;&nbsp;&nbsp;MGM Resorts International | 126 |  | 4225 |
| &nbsp;&nbsp;&nbsp;PulteGroup, Inc. | 90 |  | 4098 |
| &nbsp;&nbsp;&nbsp;Live Nation Entertainment, Inc.\* | 56 |  | 3905 |
| &nbsp;&nbsp;&nbsp;Bath & Body Works, Inc. | 91 |  | 3835 |
| &nbsp;&nbsp;&nbsp;CarMax, Inc.\* | 62 |  | 3775 |
| &nbsp;&nbsp;&nbsp;BorgWarner, Inc. | 92 |  | 3703 |
| &nbsp;&nbsp;&nbsp;Tapestry, Inc. | 95 |  | 3618 |
| &nbsp;&nbsp;&nbsp;VF Corp. | 130 |  | 3589 |
| &nbsp;&nbsp;&nbsp;Caesars Entertainment, Inc.\* | 85 |  | 3536 |
| &nbsp;&nbsp;&nbsp;Advance Auto Parts, Inc. | 24 |  | 3529 |
| &nbsp;&nbsp;&nbsp;Wynn Resorts Ltd.\* | 41 |  | 3381 |
| &nbsp;&nbsp;&nbsp;American Airlines Group, Inc.\* | 256 |  | 3256 |
| &nbsp;&nbsp;&nbsp;Carnival Corp.\* | 394 |  | 3175 |
| &nbsp;&nbsp;&nbsp;Hasbro, Inc. | 51 |  | 3112 |
| &nbsp;&nbsp;&nbsp;Whirlpool Corp. | 21 |  | 2971 |
| &nbsp;&nbsp;&nbsp;Alaska Air Group, Inc.\* | 50 |  | 2147 |
| &nbsp;&nbsp;&nbsp;Norwegian Cruise Line Holdings Ltd.\* | 166 |  | 2032 |
| &nbsp;&nbsp;&nbsp;Newell Brands, Inc. | 148 |  | 1936 |
| &nbsp;&nbsp;&nbsp;Ralph Lauren Corp. — Class A | 16 |  | 1691 |
| **Total Consumer, Cyclical** |  |  | 1143798 |
| **Industrial - 6.5%** | **Industrial - 6.5%** | **Industrial - 6.5%** | **Industrial - 6.5%** |
| &nbsp;&nbsp;&nbsp;Raytheon Technologies Corp. | 580 |  | 58534 |
| &nbsp;&nbsp;&nbsp;Honeywell International, Inc. | 265 |  | 56790 |
| &nbsp;&nbsp;&nbsp;Union Pacific Corp. | 242 |  | 50111 |
| &nbsp;&nbsp;&nbsp;United Parcel Service, Inc. — Class B | 287 |  | 49892 |
| &nbsp;&nbsp;&nbsp;Caterpillar, Inc. | 205 |  | 49110 |
| &nbsp;&nbsp;&nbsp;Deere & Co. | 109 |  | 46735 |
| &nbsp;&nbsp;&nbsp;Lockheed Martin Corp. | 92 |  | 44757 |
| &nbsp;&nbsp;&nbsp;Boeing Co.\* | 221 |  | 42098 |
| &nbsp;&nbsp;&nbsp;General Electric Co. | 430 |  | 36030 |
| &nbsp;&nbsp;&nbsp;Northrop Grumman Corp. | 57 |  | 31100 |
| &nbsp;&nbsp;&nbsp;3M Co. | 218 |  | 26143 |
| &nbsp;&nbsp;&nbsp;CSX Corp. | 828 |  | 25651 |
| &nbsp;&nbsp;&nbsp;Eaton Corporation plc | 157 |  | 24641 |
| &nbsp;&nbsp;&nbsp;Illinois Tool Works, Inc. | 110 |  | 24233 |
| &nbsp;&nbsp;&nbsp;Waste Management, Inc. | 147 |  | 23061 |
| &nbsp;&nbsp;&nbsp;Emerson Electric Co. | 234 |  | 22478 |
| &nbsp;&nbsp;&nbsp;Norfolk Southern Corp. | 91 |  | 22424 |
| &nbsp;&nbsp;&nbsp;General Dynamics Corp. | 89 |  | 22082 |
| &nbsp;&nbsp;&nbsp;Amphenol Corp. — Class A | 234 |  | 17817 |
| &nbsp;&nbsp;&nbsp;Agilent Technologies, Inc. | 117 |  | 17509 |
| &nbsp;&nbsp;&nbsp;Johnson Controls International plc | 271 |  | 17344 |
| &nbsp;&nbsp;&nbsp;FedEx Corp. | 94 |  | 16281 |
| &nbsp;&nbsp;&nbsp;L3Harris Technologies, Inc. | 75 |  | 15616 |
| &nbsp;&nbsp;&nbsp;Trane Technologies plc | 91 |  | 15296 |
| &nbsp;&nbsp;&nbsp;Parker-Hannifin Corp. | 51 |  | 14841 |
| &nbsp;&nbsp;&nbsp;TE Connectivity Ltd. | 125 |  | 14350 |
| &nbsp;&nbsp;&nbsp;Carrier Global Corp. | 329 |  | 13571 |
| &nbsp;&nbsp;&nbsp;Mettler-Toledo International, Inc.\* | 9 |  | 13009 |
| &nbsp;&nbsp;&nbsp;Otis Worldwide Corp. | 164 |  | 12843 |
| &nbsp;&nbsp;&nbsp;TransDigm Group, Inc. | 20 |  | 12593 |
| &nbsp;&nbsp;&nbsp;AMETEK, Inc. | 90 |  | 12575 |
| &nbsp;&nbsp;&nbsp;Keysight Technologies, Inc.\* | 70 |  | 11975 |
| &nbsp;&nbsp;&nbsp;Rockwell Automation, Inc. | 45 |  | 11591 |
| &nbsp;&nbsp;&nbsp;Republic Services, Inc. — Class A | 81 |  | 10448 |
| &nbsp;&nbsp;&nbsp;Old Dominion Freight Line, Inc. | 36 |  | 10216 |
| &nbsp;&nbsp;&nbsp;Vulcan Materials Co. | 52 |  | 9106 |
| &nbsp;&nbsp;&nbsp;Fortive Corp. | 139 |  | 8931 |
| &nbsp;&nbsp;&nbsp;Ingersoll Rand, Inc. | 159 |  | 8308 |
| &nbsp;&nbsp;&nbsp;Martin Marietta Materials, Inc. | 24 |  | 8111 |
| &nbsp;&nbsp;&nbsp;Xylem, Inc. | 71 |  | 7850 |
| &nbsp;&nbsp;&nbsp;Dover Corp. | 55 |  | 7447 |
| &nbsp;&nbsp;&nbsp;Teledyne Technologies, Inc.\* | 18 |  | 7198 |
| &nbsp;&nbsp;&nbsp;Westinghouse Air Brake Technologies Corp. | 72 |  | 7186 |
| &nbsp;&nbsp;&nbsp;Amcor plc | 587 |  | 6991 |
| &nbsp;&nbsp;&nbsp;IDEX Corp. | 30 |  | 6850 |
| &nbsp;&nbsp;&nbsp;Expeditors International of Washington, Inc. | 63 |  | 6547 |
| &nbsp;&nbsp;&nbsp;Ball Corp. | 124 |  | 6341 |
| &nbsp;&nbsp;&nbsp;Jacobs Solutions, Inc. | 50 |  | 6004 |
| &nbsp;&nbsp;&nbsp;Textron, Inc. | 82 |  | 5806 |
| &nbsp;&nbsp;&nbsp;J.B. Hunt Transport Services, Inc. | 33 |  | 5754 |
| &nbsp;&nbsp;&nbsp;Howmet Aerospace, Inc. | 145 |  | 5714 |
| &nbsp;&nbsp;&nbsp;Garmin Ltd. | 60 |  | 5537 |
| &nbsp;&nbsp;&nbsp;Nordson Corp. | 21 |  | 4992 |
| &nbsp;&nbsp;&nbsp;Trimble, Inc.\* | 97 |  | 4904 |
| &nbsp;&nbsp;&nbsp;Snap-on, Inc. | 21 |  | 4798 |
| &nbsp;&nbsp;&nbsp;Packaging Corporation of America | 36 |  | 4605 |
| &nbsp;&nbsp;&nbsp;Stanley Black & Decker, Inc. | 58 |  | 4357 |
| &nbsp;&nbsp;&nbsp;CH Robinson Worldwide, Inc. | 46 |  | 4212 |
| &nbsp;&nbsp;&nbsp;Masco Corp. | 89 |  | 4154 |
| &nbsp;&nbsp;&nbsp;Huntington Ingalls Industries, Inc. | 16 |  | 3691 |
| &nbsp;&nbsp;&nbsp;Allegion plc | 35 |  | 3684 |
| &nbsp;&nbsp;&nbsp;Westrock Co. | 100 |  | 3516 |
| &nbsp;&nbsp;&nbsp;Pentair plc | 65 |  | 2924 |
| &nbsp;&nbsp;&nbsp;A O Smith Corp. | 50 |  | 2862 |
| &nbsp;&nbsp;&nbsp;Sealed Air Corp. | 57 |  | 2843 |
| &nbsp;&nbsp;&nbsp;Generac Holdings, Inc.\* | 25 |  | 2516 |
| &nbsp;&nbsp;&nbsp;Mohawk Industries, Inc.\* | 21 |  | 2147 |
| **Total Industrial** |  |  | 1069631 |
| **Energy - 4.2%** | **Energy - 4.2%** | **Energy - 4.2%** | **Energy - 4.2%** |
| &nbsp;&nbsp;&nbsp;Exxon Mobil Corp. | 1623 |  | 179017 |
| &nbsp;&nbsp;&nbsp;Chevron Corp. | 702 |  | 126002 |

---

50 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **S&P 500<sup>®</sup>** **2x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| &nbsp;&nbsp;&nbsp;ConocoPhillips | 491 | $57938 |
| &nbsp;&nbsp;&nbsp;EOG Resources, Inc. | 231 | 29919 |
| &nbsp;&nbsp;&nbsp;Schlumberger Ltd. | 559 | 29884 |
| &nbsp;&nbsp;&nbsp;Marathon Petroleum Corp. | 185 | 21532 |
| &nbsp;&nbsp;&nbsp;Pioneer Natural Resources Co. | 94 | 21469 |
| &nbsp;&nbsp;&nbsp;Phillips 66 | 186 | 19359 |
| &nbsp;&nbsp;&nbsp;Valero Energy Corp. | 152 | 19283 |
| &nbsp;&nbsp;&nbsp;Occidental Petroleum Corp. | 286 | 18015 |
| &nbsp;&nbsp;&nbsp;Devon Energy Corp. | 257 | 15808 |
| &nbsp;&nbsp;&nbsp;Williams Companies, Inc. | 480 | 15792 |
| &nbsp;&nbsp;&nbsp;Hess Corp. | 109 | 15458 |
| &nbsp;&nbsp;&nbsp;Enphase Energy, Inc.\* | 54 | 14308 |
| &nbsp;&nbsp;&nbsp;Halliburton Co. | 358 | 14087 |
| &nbsp;&nbsp;&nbsp;Kinder Morgan, Inc. | 779 | 14084 |
| &nbsp;&nbsp;&nbsp;Baker Hughes Co. | 394 | 11635 |
| &nbsp;&nbsp;&nbsp;ONEOK, Inc. | 176 | 11563 |
| &nbsp;&nbsp;&nbsp;Diamondback Energy, Inc. | 69 | 9438 |
| &nbsp;&nbsp;&nbsp;Coterra Energy, Inc. — Class A | 311 | 7641 |
| &nbsp;&nbsp;&nbsp;Marathon Oil Corp. | 250 | 6768 |
| &nbsp;&nbsp;&nbsp;Targa Resources Corp. | 89 | 6542 |
| &nbsp;&nbsp;&nbsp;SolarEdge Technologies, Inc.\* | 22 | 6232 |
| &nbsp;&nbsp;&nbsp;APA Corp. | 127 | 5928 |
| &nbsp;&nbsp;&nbsp;First Solar, Inc.\* | 39 | 5842 |
| &nbsp;&nbsp;&nbsp;Equities Corp. | 145 | 4905 |
| **Total Energy** |  | 688449 |
| **Utilities - 2.5%** | **Utilities - 2.5%** | **Utilities - 2.5%** |
| &nbsp;&nbsp;&nbsp;NextEra Energy, Inc. | 783 | 65459 |
| &nbsp;&nbsp;&nbsp;Duke Energy Corp. | 304 | 31309 |
| &nbsp;&nbsp;&nbsp;Southern Co. | 429 | 30635 |
| &nbsp;&nbsp;&nbsp;Dominion Energy, Inc. | 328 | 20113 |
| &nbsp;&nbsp;&nbsp;American Electric Power Company, Inc. | 202 | 19180 |
| &nbsp;&nbsp;&nbsp;Sempra Energy | 124 | 19163 |
| &nbsp;&nbsp;&nbsp;Exelon Corp. | 392 | 16946 |
| &nbsp;&nbsp;&nbsp;Xcel Energy, Inc. | 216 | 15144 |
| &nbsp;&nbsp;&nbsp;Consolidated Edison, Inc. | 140 | 13343 |
| &nbsp;&nbsp;&nbsp;Public Service Enterprise Group, Inc. | 197 | 12070 |
| &nbsp;&nbsp;&nbsp;WEC Energy Group, Inc. | 124 | 11626 |
| &nbsp;&nbsp;&nbsp;Eversource Energy | 137 | 11486 |
| &nbsp;&nbsp;&nbsp;Constellation Energy Corp. | 129 | 11121 |
| &nbsp;&nbsp;&nbsp;American Water Works Company, Inc. | 72 | 10974 |
| &nbsp;&nbsp;&nbsp;PG&E Corp.\* | 634 | 10309 |
| &nbsp;&nbsp;&nbsp;Edison International | 150 | 9543 |
| &nbsp;&nbsp;&nbsp;Entergy Corp. | 81 | 9112 |
| &nbsp;&nbsp;&nbsp;Ameren Corp. | 102 | 9070 |
| &nbsp;&nbsp;&nbsp;FirstEnergy Corp. | 214 | 8975 |
| &nbsp;&nbsp;&nbsp;DTE Energy Co. | 76 | 8932 |
| &nbsp;&nbsp;&nbsp;PPL Corp. | 290 | 8474 |
| &nbsp;&nbsp;&nbsp;AES Corp. | 263 | 7564 |
| &nbsp;&nbsp;&nbsp;CenterPoint Energy, Inc. | 248 | 7437 |
| &nbsp;&nbsp;&nbsp;CMS Energy Corp. | 114 | 7220 |
| &nbsp;&nbsp;&nbsp;Atmos Energy Corp. | 55 | 6164 |
| &nbsp;&nbsp;&nbsp;Evergy, Inc. | 90 | 5664 |
| &nbsp;&nbsp;&nbsp;Alliant Energy Corp. | 99 | 5466 |
| &nbsp;&nbsp;&nbsp;NiSource, Inc. | 160 | 4387 |
| &nbsp;&nbsp;&nbsp;Pinnacle West Capital Corp. | 45 | 3422 |
| &nbsp;&nbsp;&nbsp;NRG Energy, Inc. | 91 | 2896 |
| **Total Utilities** |  | 403204 |
| **Basic Materials - 1.7%** | **Basic Materials - 1.7%** | **Basic Materials - 1.7%** |
| &nbsp;&nbsp;&nbsp;Linde plc | 195 | 63605 |
| &nbsp;&nbsp;&nbsp;Air Products and Chemicals, Inc. | 88 | 27127 |
| &nbsp;&nbsp;&nbsp;Sherwin-Williams Co. | 93 | 22072 |
| &nbsp;&nbsp;&nbsp;Freeport-McMoRan, Inc. | 563 | 21394 |
| &nbsp;&nbsp;&nbsp;Newmont Corp. | 313 | 14774 |
| &nbsp;&nbsp;&nbsp;Ecolab, Inc. | 98 | 14265 |
| &nbsp;&nbsp;&nbsp;Dow, Inc. | 278 | 14008 |
| &nbsp;&nbsp;&nbsp;DuPont de Nemours, Inc. | 196 | 13451 |
| &nbsp;&nbsp;&nbsp;Nucor Corp. | 101 | 13313 |
| &nbsp;&nbsp;&nbsp;PPG Industries, Inc. | 93 | 11694 |
| &nbsp;&nbsp;&nbsp;International Flavors & Fragrances, Inc. | 100 | 10484 |
| &nbsp;&nbsp;&nbsp;Albemarle Corp. | 46 | 9976 |
| &nbsp;&nbsp;&nbsp;LyondellBasell Industries N.V. — Class A | 100 | 8303 |
| &nbsp;&nbsp;&nbsp;CF Industries Holdings, Inc. | 77 | 6560 |
| &nbsp;&nbsp;&nbsp;Steel Dynamics, Inc. | 66 | 6448 |
| &nbsp;&nbsp;&nbsp;FMC Corp. | 50 | 6240 |
| &nbsp;&nbsp;&nbsp;Mosaic Co. | 134 | 5879 |
| &nbsp;&nbsp;&nbsp;International Paper Co. | 140 | 4848 |
| &nbsp;&nbsp;&nbsp;Celanese Corp. — Class A | 39 | 3987 |
| &nbsp;&nbsp;&nbsp;Eastman Chemical Co. | 47 | 3828 |
| **Total Basic Materials** |  | 282256 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $11,346,127) |  | 12660522 |
|  | **Face<br> Amount** |  |
| **U.S. TREASURY BILLS<sup>††</sup>** **- 14.5%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 14.5%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 14.5%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.80% due 01/17/23<sup>1,2</sup> | $1398000 | 1396000 |
| &nbsp;&nbsp;&nbsp;3.89% due 01/12/23<sup>2,3</sup> | 850000 | 849262 |
| &nbsp;&nbsp;&nbsp;3.61% due 01/12/23<sup>2,3</sup> | 150000 | 149870 |
| **Total U.S. Treasury Bills** | **Total U.S. Treasury Bills** |  |
| &nbsp;&nbsp;&nbsp;(Cost $2,394,412) |  | 2395132 |
| **REPURCHASE AGREEMENTS<sup>††,4</sup>** **- 44.9%** | **REPURCHASE AGREEMENTS<sup>††,4</sup>** **- 44.9%** | **REPURCHASE AGREEMENTS<sup>††,4</sup>** **- 44.9%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23<sup>3</sup> | 4185139 | 4185139 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23<sup>3</sup> | 1609669 | 1609669 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23<sup>3</sup> | 1604684 | 1604684 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $7,399,492) |  | 7399492 |
| **Total Investments - 136.2%** | **Total Investments - 136.2%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $21,140,031) | &nbsp;&nbsp;&nbsp;(Cost $21,140,031) | $22455146 |
| **Other Assets & Liabilities, net - (36.2)%** | **Other Assets & Liabilities, net - (36.2)%** | (5972888) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $16482258 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 51

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **S&P 500<sup>®</sup>** **2x STRATEGY FUND** |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Depreciation\*\*** |
| **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** |
| S&P 500 Index Mini Futures Contracts | 22 | Mar 2023 | $4247650 | $(20375) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** |
| **Counterparty** | **Index** | **Type** | **Financing <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Units** | **Notional <br> Amount** | **Value and <br> Unrealized <br> Depreciation** |
| **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** |
| Goldman Sachs International | S&P 500 Index | Pay | 4.83% (Federal Funds Rate + 0.50%) | At Maturity | 01/26/23 | 1939 | $7444608 | $(10315) |
| BNP Paribas | S&P 500 Index | Pay | 4.93% (Federal Funds Rate + 0.60%) | At Maturity | 01/26/23 | 584 | 2242897 | (69113) |
| Barclays Bank plc | S&P 500 Index | Pay | 4.75% (SOFR + 0.45%) | At Maturity | 01/25/23 | 1612 | 6190386 | (192736) |
|  |  |  |  |  |  |  | $15877891 | $(272164) |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| \*\* | &nbsp;&nbsp;&nbsp;Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as futures collateral at December 31, 2022. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as equity index swap collateral at December 31, 2022. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;REIT — Real Estate Investment Trust |
|  | &nbsp;&nbsp;&nbsp;SOFR — Secured Overnight Financing Rate |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

52 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **S&P 500<sup>®</sup>** **2x STRATEGY FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $12660522 | $— | $— | $12660522 |
| U.S. Treasury Bills |  | 2395132 |  | 2395132 |
| Repurchase Agreements |  | 7399492 |  | 7399492 |
| Total Assets | $12660522 | $9794624 | $— | $22455146 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Liabilities)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Equity Futures Contracts\*\* | $20375 | $— | $— | $20375 |
| Equity Index Swap Agreements\*\* |  | 272164 |  | 272164 |
| Total Liabilities | $20375 | $272164 | $— | $292539 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gugg84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $8303229 | $— | $(8235872) | $(58563) | $(8794) | $— |  | $24281 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 4438580 |  | (4316735) | (126020) | 4175 |  |  | 30523 |
|  | $12741809 | $— | $(12552607) | $(184583) | $(4619) | $— |  | $54804 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 53

**S&P 500<sup>®</sup>** **2x STRATEGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value (cost $13,740,539) | $15055654 |
| Repurchase agreements, at value (cost $7,399,492) | 7399492 |
| Cash | 530 |
| Segregated cash with broker | 99317 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Securities sold | 14119204 |
| &nbsp;&nbsp;&nbsp;Dividends | 37963 |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 14569 |
| &nbsp;&nbsp;&nbsp;Interest | 1746 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 1 |
| **Total assets** | 36728476 |
| **Liabilities:** | **Liabilities:** |
| Unrealized depreciation on OTC swap agreements | 272164 |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 17201902 |
| &nbsp;&nbsp;&nbsp;Swap settlement | 2526368 |
| &nbsp;&nbsp;&nbsp;Professional fees  | 85071 |
| &nbsp;&nbsp;&nbsp;Management fees | 43461 |
| &nbsp;&nbsp;&nbsp;Printing fees  | 16595 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 14739 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 12073 |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 11275 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 5070 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 2692 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 54808 |
| **Total liabilities** | 20246218 |
| **Net assets** | $16482258 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $46907612 |
| Total distributable earnings (loss) | (30425354) |
| Net assets | $16482258 |
| Capital shares outstanding | 69803 |
| Net asset value per share | $236.13 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $132) | $471938 |
| Dividends from securities of affiliated issuers | 54804 |
| Interest | 261830 |
| Income from securities lending, net | 105 |
| &nbsp;&nbsp;&nbsp;Total investment income | 788677 |
| **Expenses:** | **Expenses:** |
| Management fees | 395418 |
| Investor service fees | 109838 |
| Transfer agent fees | 121188 |
| Professional fees | 91854 |
| Portfolio accounting and administration fees | 57261 |
| Trustees' fees\* | 8251 |
| Custodian fees | 6961 |
| Interest expense | 3486 |
| Line of credit fees | 2784 |
| Miscellaneous | 10391 |
| &nbsp;&nbsp;&nbsp;Total expenses | 807432 |
| Less: | Less: |
| Expenses reimbursed by Adviser | (21968) |
| Expenses waived by Adviser | (6064) |
| &nbsp;&nbsp;&nbsp;Total waived/reimbursed expenses | (28032) |
| Net expenses | 779400 |
| Net investment income | 9277 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (12305782) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (184583) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (15452330) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (834413) |
| Net realized loss | (28777108) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | 1416557 |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (4619) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (2922305) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (19659) |
| Net change in unrealized appreciation (depreciation) | (1530026) |
| Net realized and unrealized loss | (30307134) |
| **Net decrease in net assets resulting from operations** | $(30297857) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

54 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**S&P 500<sup>®</sup>** **2x STRATEGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income (loss) | $9277 | $(357063) |
| Net realized gain (loss) on investments | (28777108) | 19000258 |
| Net change in unrealized appreciation (depreciation) on investments | (1530026) | 563164 |
| Net increase (decrease) in net assets resulting from operations | (30297857) | 19206359 |
| Distributions to shareholders | (3768617) |  |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 961517884 | 1339593284 |
| Distributions reinvested | 3768617 |  |
| Cost of shares redeemed | (1005586879) | (1304638359) |
| Net increase (decrease) from capital share transactions | (40300378) | 34954925 |
| Net increase (decrease) in net assets | (74366852) | 54161284 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 90849110 | 36687826 |
| &nbsp;&nbsp;&nbsp;End of year | $16482258 | $90849110 |
| **Capital share activity:** |  |  |
| Shares sold | 2982448 | 3381480 |
| Shares issued from reinvestment of distributions | 14517 |  |
| Shares redeemed | (3109135) | (3315816) |
| Net increase (decrease) in shares | (112170) | 65664 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 55

**S&P 500<sup>®</sup>** **2x STRATEGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $499.24 | $315.43 | $313.21 | $192.73 | $244.38 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .07 | (2.79) | (1.21) | 1.59 | 1.48 |
| Net gain (loss) on investments (realized and unrealized) | (192.13) | 186.60 | 45.29 <sup>e</sup> | 118.89 | (35.10) |
| Total from investment operations | (192.06) | 183.81 | 44.08 | 120.48 | (33.62) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  | (1.68) |  | (.14) |
| Net realized gains | (71.05) |  | (40.18) |  | (17.89) |
| Total distributions | (71.05) |  | (41.86) |  | (18.03) |
| Net asset value, end of period | $236.13 | $499.24 | $315.43 | $313.21 | $192.73 |
| **Total Return<sup>b</sup>** | **(39.77** **%)** | **58.27%** | **18.10%** | **62.51%** | **(15.41** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $16482 | $90849 | $36688 | $54196 | $31177 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.02% | (0.68%) | (0.44 %) | 0.62% | 0.60% |
| Total expenses<sup>c</sup> | 1.84% | 1.75% | 1.87% | 1.87% | 1.77% |
| Net expenses<sup>d</sup> | 1.77% | 1.71% | 1.83% | 1.80% | 1.77% |
| Portfolio turnover rate | 1703% | 2834% | 2610% | 248% | 424% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

<sup>e</sup> The amount shown for a share outstanding throughout the period does not agree with the aggregate net loss on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

56 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**NASDAQ-100<sup>®</sup>** **2x STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund's current benchmark is 200% of the performance of the NASDAQ-100<sup>®</sup> Index (the "underlying index"). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the Reporting Period, NASDAQ-100<sup>®</sup> 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the NASDAQ-100 Index. NASDAQ-100<sup>®</sup> 2x Strategy Fund returned -61.04%, while the NASDAQ-100 Index returned -32.38% over the same time period.

The only sectors contributing to the return of the underlying index for the Reporting Period were Utilities and Health Care. The sectors detracting the most from the return of the underlying index were Information Technology, Consumer Discretionary, and Communication Services.

The holdings contributing the most to the return of the underlying index were Gilead Sciences, Inc., Amgen, Inc., and T-Mobile US, Inc. The holdings detracting the most were Tesla, Inc., Amazon.com, Inc., and Apple, Inc.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds' 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 funds' holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short-Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.**

THE RYDEX FUNDS ANNUAL REPORT \| 57

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-2_58.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-2_58a.jpg)

**Inception Date:** October 1, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings**  | **(% of Total Net Assets)** |
| Microsoft Corp. | 10.4% |
| Apple, Inc. | 9.7% |
| Amazon.com, Inc. | 5.0% |
| Alphabet, Inc. — Class C | 3.1% |
| Alphabet, Inc. — Class A | 3.1% |
| NVIDIA Corp. | 2.7% |
| Tesla, Inc. | 2.3% |
| Meta Platforms, Inc. — Class A | 2.0% |
| PepsiCo, Inc. | 1.9% |
| Broadcom, Inc. | 1.7% |
| Top Ten Total | 41.9% |
| "Ten Largest Holdings" excludes any temporary cash or derivative investments. | "Ten Largest Holdings" excludes any temporary cash or derivative investments. |

---

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund  | (61.04%)  | 12.83%  | 25.36%  |
| NASDAQ-100 Index  | (32.38%)  | 12.36%  | 16.45%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The NASDAQ-100 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

58 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **NASDAQ-100<sup>®</sup>** **2x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 82.3%** | **COMMON STOCKS<sup>†</sup>** **- 82.3%** | **COMMON STOCKS<sup>†</sup>** **- 82.3%** |
| **Technology - 38.2%** | **Technology - 38.2%** | **Technology - 38.2%** |
| &nbsp;&nbsp;&nbsp;Microsoft Corp. | 13918 | $3337815 |
| &nbsp;&nbsp;&nbsp;Apple, Inc. | 23990 | 3117021 |
| &nbsp;&nbsp;&nbsp;NVIDIA Corp. | 5983 | 874356 |
| &nbsp;&nbsp;&nbsp;Broadcom, Inc. | 985 | 550743 |
| &nbsp;&nbsp;&nbsp;Adobe, Inc.\* | 1131 | 380615 |
| &nbsp;&nbsp;&nbsp;Texas Instruments, Inc. | 2208 | 364806 |
| &nbsp;&nbsp;&nbsp;QUALCOMM, Inc. | 2727 | 299806 |
| &nbsp;&nbsp;&nbsp;Intuit, Inc. | 684 | 266226 |
| &nbsp;&nbsp;&nbsp;Intel Corp. | 10038 | 265304 |
| &nbsp;&nbsp;&nbsp;Advanced Micro Devices, Inc.\* | 3922 | 254028 |
| &nbsp;&nbsp;&nbsp;Applied Materials, Inc. | 2092 | 203719 |
| &nbsp;&nbsp;&nbsp;Analog Devices, Inc. | 1240 | 203397 |
| &nbsp;&nbsp;&nbsp;Fiserv, Inc.\* | 1544 | 156052 |
| &nbsp;&nbsp;&nbsp;Activision Blizzard, Inc. | 1903 | 145675 |
| &nbsp;&nbsp;&nbsp;Lam Research Corp. | 332 | 139540 |
| &nbsp;&nbsp;&nbsp;Micron Technology, Inc. | 2644 | 132147 |
| &nbsp;&nbsp;&nbsp;KLA Corp. | 345 | 130075 |
| &nbsp;&nbsp;&nbsp;Synopsys, Inc.\* | 372 | 118776 |
| &nbsp;&nbsp;&nbsp;ASML Holding N.V. — Class G | 215 | 117476 |
| &nbsp;&nbsp;&nbsp;Cadence Design Systems, Inc.\* | 668 | 107308 |
| &nbsp;&nbsp;&nbsp;Paychex, Inc. | 877 | 101346 |
| &nbsp;&nbsp;&nbsp;NXP Semiconductor N.V. | 631 | 99717 |
| &nbsp;&nbsp;&nbsp;Autodesk, Inc.\* | 526 | 98294 |
| &nbsp;&nbsp;&nbsp;Microchip Technology, Inc. | 1338 | 93995 |
| &nbsp;&nbsp;&nbsp;Fortinet, Inc.\* | 1900 | 92891 |
| &nbsp;&nbsp;&nbsp;Workday, Inc. — Class A\* | 491 | 82159 |
| &nbsp;&nbsp;&nbsp;Electronic Arts, Inc. | 671 | 81983 |
| &nbsp;&nbsp;&nbsp;Marvell Technology, Inc. | 2074 | 76821 |
| &nbsp;&nbsp;&nbsp;Cognizant Technology Solutions Corp. — Class A | 1251 | 71544 |
| &nbsp;&nbsp;&nbsp;GLOBALFOUNDRIES, Inc.\*<sup>,1</sup> | 1326 | 71458 |
| &nbsp;&nbsp;&nbsp;Crowdstrike Holdings, Inc. — Class A\* | 531 | 55909 |
| &nbsp;&nbsp;&nbsp;Datadog, Inc. — Class A\* | 711 | 52258 |
| &nbsp;&nbsp;&nbsp;ANSYS, Inc.\* | 212 | 51217 |
| &nbsp;&nbsp;&nbsp;Atlassian Corp. — Class A\* | 361 | 46453 |
| &nbsp;&nbsp;&nbsp;Zoom Video Communications, Inc. — Class A\* | 598 | 40509 |
| &nbsp;&nbsp;&nbsp;Zscaler, Inc.\* | 351 | 39277 |
| **Total Technology** |  | 12320716 |
| **Communications - 21.1%** | **Communications - 21.1%** | **Communications - 21.1%** |
| &nbsp;&nbsp;&nbsp;Amazon.com, Inc.\* | 19127 | 1606668 |
| &nbsp;&nbsp;&nbsp;Alphabet, Inc. — Class C\* | 11411 | 1012498 |
| &nbsp;&nbsp;&nbsp;Alphabet, Inc. — Class A\* | 11414 | 1007057 |
| &nbsp;&nbsp;&nbsp;Meta Platforms, Inc. — Class A\* | 5469 | 658139 |
| &nbsp;&nbsp;&nbsp;Cisco Systems, Inc. | 9993 | 476067 |
| &nbsp;&nbsp;&nbsp;T-Mobile US, Inc.\* | 3026 | 423640 |
| &nbsp;&nbsp;&nbsp;Comcast Corp. — Class A | 10493 | 366940 |
| &nbsp;&nbsp;&nbsp;Netflix, Inc.\* | 1083 | 319355 |
| &nbsp;&nbsp;&nbsp;Booking Holdings, Inc.\* | 94 | 189436 |
| &nbsp;&nbsp;&nbsp;Charter Communications, Inc. — Class A\* | 379 | 128519 |
| &nbsp;&nbsp;&nbsp;MercadoLibre, Inc.\* | 123 | 104088 |
| &nbsp;&nbsp;&nbsp;Palo Alto Networks, Inc.\* | 736 | 102701 |
| &nbsp;&nbsp;&nbsp;Pinduoduo, Inc. ADR\* | 1138 | 92804 |
| &nbsp;&nbsp;&nbsp;Airbnb, Inc. — Class A\* | 969 | 82850 |
| &nbsp;&nbsp;&nbsp;JD.com, Inc. ADR | 1182 | 66346 |
| &nbsp;&nbsp;&nbsp;Warner Bros Discovery, Inc.\* | 5906 | 55989 |
| &nbsp;&nbsp;&nbsp;Sirius XM Holdings, Inc.<sup>1</sup> | 9461 | 55252 |
| &nbsp;&nbsp;&nbsp;eBay, Inc. | 1320 | 54740 |
| **Total Communications** |  | 6803089 |
| **Consumer, Non-cyclical - 11.9%** | **Consumer, Non-cyclical - 11.9%** | **Consumer, Non-cyclical - 11.9%** |
| &nbsp;&nbsp;&nbsp;PepsiCo, Inc. | 3351 | 605391 |
| &nbsp;&nbsp;&nbsp;Amgen, Inc. | 1299 | 341169 |
| &nbsp;&nbsp;&nbsp;Gilead Sciences, Inc. | 3051 | 261928 |
| &nbsp;&nbsp;&nbsp;Automatic Data Processing, Inc. | 1009 | 241010 |
| &nbsp;&nbsp;&nbsp;Intuitive Surgical, Inc.\* | 860 | 228201 |
| &nbsp;&nbsp;&nbsp;Mondelez International, Inc. — Class A | 3321 | 221345 |
| &nbsp;&nbsp;&nbsp;PayPal Holdings, Inc.\* | 2773 | 197493 |
| &nbsp;&nbsp;&nbsp;Regeneron Pharmaceuticals, Inc.\* | 260 | 187587 |
| &nbsp;&nbsp;&nbsp;Vertex Pharmaceuticals, Inc.\* | 624 | 180199 |
| &nbsp;&nbsp;&nbsp;Moderna, Inc.\* | 934 | 167765 |
| &nbsp;&nbsp;&nbsp;Monster Beverage Corp.\* | 1270 | 128943 |
| &nbsp;&nbsp;&nbsp;Keurig Dr Pepper, Inc. | 3445 | 122849 |
| &nbsp;&nbsp;&nbsp;Kraft Heinz Co. | 2979 | 121275 |
| &nbsp;&nbsp;&nbsp;Cintas Corp. | 247 | 111550 |
| &nbsp;&nbsp;&nbsp;Dexcom, Inc.\* | 940 | 106445 |
| &nbsp;&nbsp;&nbsp;AstraZeneca plc ADR | 1486 | 100751 |
| &nbsp;&nbsp;&nbsp;Biogen, Inc.\* | 350 | 96922 |
| &nbsp;&nbsp;&nbsp;IDEXX Laboratories, Inc.\* | 201 | 82000 |
| &nbsp;&nbsp;&nbsp;Illumina, Inc.\* | 383 | 77443 |
| &nbsp;&nbsp;&nbsp;CoStar Group, Inc.\* | 989 | 76430 |
| &nbsp;&nbsp;&nbsp;Verisk Analytics, Inc. — Class A | 380 | 67040 |
| &nbsp;&nbsp;&nbsp;Seagen, Inc.\* | 452 | 58087 |
| &nbsp;&nbsp;&nbsp;Align Technology, Inc.\* | 190 | 40071 |
| **Total Consumer, Non-cyclical** |  | 3821894 |
| **Consumer, Cyclical - 7.4%** | **Consumer, Cyclical - 7.4%** | **Consumer, Cyclical - 7.4%** |
| &nbsp;&nbsp;&nbsp;Tesla, Inc.\* | 5920 | 729226 |
| &nbsp;&nbsp;&nbsp;Costco Wholesale Corp. | 1077 | 491651 |
| &nbsp;&nbsp;&nbsp;Starbucks Corp. | 2792 | 276966 |
| &nbsp;&nbsp;&nbsp;O'Reilly Automotive, Inc.\* | 152 | 128293 |
| &nbsp;&nbsp;&nbsp;Marriott International, Inc. — Class A | 771 | 114794 |
| &nbsp;&nbsp;&nbsp;Ross Stores, Inc. | 844 | 97963 |
| &nbsp;&nbsp;&nbsp;Lululemon Athletica, Inc.\* | 297 | 95153 |
| &nbsp;&nbsp;&nbsp;PACCAR, Inc. | 846 | 83729 |
| &nbsp;&nbsp;&nbsp;Walgreens Boots Alliance, Inc. | 2104 | 78605 |
| &nbsp;&nbsp;&nbsp;Dollar Tree, Inc.\* | 538 | 76095 |
| &nbsp;&nbsp;&nbsp;Copart, Inc.\* | 1158 | 70510 |
| &nbsp;&nbsp;&nbsp;Fastenal Co. | 1393 | 65917 |
| &nbsp;&nbsp;&nbsp;Rivian Automotive, Inc. — Class A\* | 2221 | 40933 |
| &nbsp;&nbsp;&nbsp;Lucid Group, Inc.\*<sup>,1</sup> | 4087 | 27914 |
| **Total Consumer, Cyclical** |  | 2377749 |
| **Industrial - 1.8%** | **Industrial - 1.8%** | **Industrial - 1.8%** |
| &nbsp;&nbsp;&nbsp;Honeywell International, Inc. | 1635 | 350380 |
| &nbsp;&nbsp;&nbsp;CSX Corp. | 5113 | 158401 |
| &nbsp;&nbsp;&nbsp;Old Dominion Freight Line, Inc. | 269 | 76337 |
| **Total Industrial** |  | 585118 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 59

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **NASDAQ-100<sup>®</sup>** **2x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **Utilities - 1.2%** | **Utilities - 1.2%** | **Utilities - 1.2%** |
| &nbsp;&nbsp;&nbsp;American Electric Power Company, Inc. | 1250 | $118688 |
| &nbsp;&nbsp;&nbsp;Exelon Corp. | 2417 | 104487 |
| &nbsp;&nbsp;&nbsp;Xcel Energy, Inc. | 1331 | 93316 |
| &nbsp;&nbsp;&nbsp;Constellation Energy Corp. | 796 | 68623 |
| **Total Utilities** |  | 385114 |
| **Energy - 0.7%** | **Energy - 0.7%** | **Energy - 0.7%** |
| &nbsp;&nbsp;&nbsp;Enphase Energy, Inc.\* | 331 | 87702 |
| &nbsp;&nbsp;&nbsp;Baker Hughes Co. | 2436 | 71935 |
| &nbsp;&nbsp;&nbsp;Diamondback Energy, Inc. | 429 | 58678 |
| **Total Energy** |  | 218315 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $25,643,968) |  | 26511995 |
|  | **Face<br> Amount** |  |
| **U.S. TREASURY BILLS<sup>††</sup>** **- 9.1%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 9.1%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 9.1%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.89% due 01/12/23<sup>2,3</sup> | $2050000 | 2048220 |
| &nbsp;&nbsp;&nbsp;3.79% due 01/17/23<sup>3,4</sup> | 878000 | 876744 |
| **Total U.S. Treasury Bills** | **Total U.S. Treasury Bills** |  |
| &nbsp;&nbsp;&nbsp;(Cost $2,924,050) |  | 2924964 |

---

---

| | | |
|:---|:---|:---|
| **REPURCHASE AGREEMENTS<sup>††,5</sup>** **- 18.4%** | **REPURCHASE AGREEMENTS<sup>††,5</sup>** **- 18.4%** | **REPURCHASE AGREEMENTS<sup>††,5</sup>** **- 18.4%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23<sup>2</sup> | 3358005 | 3358005 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23<sup>2</sup> | 1291540 | 1291540 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23<sup>2</sup> | 1287541 | 1287541 |
| **Total Repurchase Agreements** |  |  |
| (Cost $5,937,086) |  | 5937086 |
|  | **Shares**  |  |
| **SECURITIES LENDING COLLATERAL<sup>†,6</sup> - 0.4%** | **SECURITIES LENDING COLLATERAL<sup>†,6</sup> - 0.4%** | **SECURITIES LENDING COLLATERAL<sup>†,6</sup> - 0.4%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>7</sup> | 128580 | 128580 |
| **Total Securities Lending Collateral** |  |  |
| (Cost $128,580) |  | 128580 |
| **Total Investments - 110.2%** |  |  |
| (Cost $34,633,684) |  | $35502625 |
| **Other Assets & Liabilities, net - (10.2)%** |  | (3274292) |
| **Total Net Assets - 100.0%** |  | $32228333 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Depreciation\*\*** |
| **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** |
| NASDAQ-100 Index Mini Futures Contracts | 45 | Mar 2023 | $9920700 | $(730404) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** |
| **Counterparty** | **Index** | **Type** | **Financing <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Units** | **Notional <br> Amount** | **Value and <br> Unrealized <br> Depreciation** |
| **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** |
| Barclays Bank plc | NASDAQ-100 Index | Pay | 4.80% (SOFR + 0.50%) | At Maturity | 01/25/23 | 345 | $3770596 | $(254458) |
| Goldman Sachs International | NASDAQ-100 Index | Pay | 4.83% (Federal Funds Rate + 0.50%) | At Maturity | 01/26/23 | 667 | 7300458 | (568380) |
| BNP Paribas | NASDAQ-100 Index | Pay | 4.98% (Federal Funds Rate + 0.65%) | At Maturity | 01/26/23 | 1531 | 16748285 | (871374) |
|  |  |  |  |  |  |  | $27819339 | $(1694212) |

---

60 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **NASDAQ-100<sup>®</sup>** **2x STRATEGY FUND** |  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| \*\* | &nbsp;&nbsp;&nbsp;Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as equity index swap collateral at December 31, 2022. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as futures collateral at December 31, 2022. |
| <sup>5</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>6</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>7</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;SOFR — Secured Overnight Financing Rate |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $26511995 | $— | $— | $26511995 |
| U.S. Treasury Bills |  | 2924964 |  | 2924964 |
| Repurchase Agreements |  | 5937086 |  | 5937086 |
| Securities Lending Collateral | 128580 |  |  | 128580 |
| Total Assets | $26640575 | $8862050 | $— | $35502625 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Liabilities)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Equity Futures Contracts\*\* | $730404 | $— | $— | $730404 |
| Equity Index Swap Agreements\*\* |  | 1694212 |  | 1694212 |
| Total Liabilities | $730404 | $1694212 | $— | $2424616 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 61

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **NASDAQ-100<sup>®</sup>** **2x STRATEGY FUND** |  |

---

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $18444006 | $— | $(18079116) | $(178513) | $(186377) | $— |  | $113138 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 825598 | 5000000 | (5669054) | (146321) | (10223) |  |  | 38120 |
|  | $19269604 | $5000000 | $(23748170) | $(324834) | $(196600) | $— |  | $151258 |

---

62 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**NASDAQ-100<sup>®</sup>** **2x STRATEGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value - including $124,807 of securities loaned (cost $28,696,598) | $29565539 |
| Repurchase agreements, at value (cost $5,937,086) | 5937086 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Securities sold | 3029199 |
| &nbsp;&nbsp;&nbsp;Dividends | 15008 |
| &nbsp;&nbsp;&nbsp;Interest | 1401 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 612 |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 189 |
| **Total assets** | 38549034 |
| **Liabilities:** | **Liabilities:** |
| Unrealized depreciation on OTC swap agreements | 1694212 |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 2474651 |
| &nbsp;&nbsp;&nbsp;Swap settlement | 1843700 |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 128580 |
| &nbsp;&nbsp;&nbsp;Management fees | 31962 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 13105 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 8878 |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 8775 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 3729 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 595 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 112514 |
| **Total liabilities** | 6320701 |
| **Net assets** | $32228333 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $83296412 |
| Total distributable earnings (loss) | (51068079) |
| Net assets | $32228333 |
| Capital shares outstanding | 531859 |
| Net asset value per share | $60.60 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $570) | $321552 |
| Dividends from securities of affiliated issuers | 151258 |
| Interest | 319093 |
| Income from securities lending, net | 8480 |
| &nbsp;&nbsp;&nbsp;Total investment income | 800383 |
| **Expenses:** | **Expenses:** |
| Management fees | 545978 |
| Investor service fees | 151660 |
| Transfer agent fees | 190313 |
| Professional fees | 108730 |
| Portfolio accounting and administration fees | 73902 |
| Trustees' fees\* | 15552 |
| Custodian fees | 9420 |
| Interest expense | 1568 |
| Line of credit fees | 1030 |
| Miscellaneous | 27659 |
| &nbsp;&nbsp;&nbsp;Total expenses | 1125812 |
| Less: | Less: |
| Expenses reimbursed by Adviser | (30333) |
| Expenses waived/reimbursed by Adviser | (7432) |
| &nbsp;&nbsp;&nbsp;Total waived expenses | (37765) |
| Net expenses | 1088047 |
| Net investment loss | (287664) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | 8554562 |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (324834) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (41632827) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (3152647) |
| Net realized loss | (36555746) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (34191661) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (196600) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (4589330) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (876716) |
| Net change in unrealized appreciation (depreciation) | (39854307) |
| Net realized and unrealized loss | (76410053) |
| **Net decrease in net assets resulting from operations** | $(76697717) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 63

**NASDAQ-100<sup>®</sup>** **2x STRATEGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment loss | $(287664) | $(1502290) |
| Net realized gain (loss) on investments | (36555746) | 35168052 |
| Net change in unrealized appreciation (depreciation) on investments | (39854307) | 21144105 |
| Net increase (decrease) in net assets resulting from operations | (76697717) | 54809867 |
| Distributions to shareholders | (10383440) | (19515328) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 598677754 | 557462126 |
| Distributions reinvested | 10383440 | 19515328 |
| Cost of shares redeemed | (640820556) | (592252213) |
| Net decrease from capital share transactions | (31759362) | (15274759) |
| Net increase (decrease) in net assets | (118840519) | 20019780 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 151068852 | 131049072 |
| &nbsp;&nbsp;&nbsp;End of year | $32228333 | $151068852 |
| **Capital share activity:** |  |  |
| Shares sold | 5634677 | 3353125 |
| Shares issued from reinvestment of distributions | 125087 | 120816 |
| Shares redeemed | (6014789) | (3612961) |
| Net decrease in shares | (255025) | (139020) |

---

64 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**NASDAQ-100<sup>®</sup>** **2x STRATEGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $191.98 | $141.54 | $91.34 | $50.68 | $64.95 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | (.49) | (1.74) | (.88) | .22 | .14 |
| Net gain (loss) on investments (realized and unrealized) | (111.42) | 73.37 | 72.46 | 40.55 | (2.70) |
| Total from investment operations | (111.91) | 71.63 | 71.58 | 40.77 | (2.56) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  | (.30) | (.11) |  |
| Net realized gains | (19.47) | (21.19) | (21.08) |  | (11.71) |
| Total distributions | (19.47) | (21.19) | (21.38) | (.11) | (11.71) |
| Net asset value, end of period | $60.60 | $191.98 | $141.54 | $91.34 | $50.68 |
| **Total Return<sup>b</sup>** | **(61.04** **%)** | **53.45%** | **86.87%** | **80.50%** | **(9.31** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $32228 | $151069 | $131049 | $99811 | $58680 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | (0.47%) | (1.05%) | (0.83%) | 0.30% | 0.21% |
| Total expenses<sup>c</sup> | 1.86% | 1.78% | 1.91% | 1.91% | 1.81% |
| Net expenses<sup>d</sup> | 1.79% | 1.74% | 1.87% | 1.84% | 1.80% |
| Portfolio turnover rate | 860% | 392% | 663% | 346% | 220% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 65

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**MID-CAP 1.5x STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark for midcap securities on a daily basis. The Fund's current benchmark is 150% of the performance of the S&P MidCap 400<sup>®</sup> Index (the "underlying index"). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the Reporting Period, Mid-Cap 1.5x Strategy Fund maintained a correlation of more than 99% to its benchmark of 150% of the daily price movement of the S&P MidCap 400 Index. Mid-Cap 1.5x Strategy Fund returned -23.20%, while the S&P MidCap 400 Index returned -13.06% over the same period.

The only sectors contributing to the return of the underlying index for the Reporting Period were Energy and Consumer Staples. The sectors detracting the most from the return of the underlying index were Consumer Discretionary, Information Technology, and Real Estate.

The holdings contributing the most to the return of the underlying index were Steel Dynamics, First Solar, Inc., and Fair Isaac Corp. The holdings detracting the most were Trex Co., Inc., Synaptics, Inc., and Medical Properties Trust, Inc. REIT.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds' 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 funds' holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.**

66 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-2_67.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-2_67a.jpg)

**Inception Date:** October 1, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| Guggenheim Ultra Short Duration Fund — Institutional Class | 3.4% |
| Guggenheim Strategy Fund II | 1.7% |
| Fair Isaac Corp. | 0.5% |
| First Horizon Corp. | 0.5% |
| United Therapeutics Corp. | 0.4% |
| Hubbell, Inc. | 0.4% |
| RPM International, Inc. | 0.4% |
| Carlisle Companies, Inc. | 0.4% |
| Reliance Steel & Aluminum Co. | 0.4% |
| AECOM | 0.4% |
| Top Ten Total | 8.5% |
| "Ten Largest Holdings" excludes any temporary cash or derivative investments. | "Ten Largest Holdings" excludes any temporary cash or derivative investments. |

---

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Mid-Cap 1.5x Strategy Fund  | (23.20%)  | 4.75%  | 12.27%  |
| S&P MidCap 400 Index  | (13.06%)  | 6.71%  | 10.78%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 67

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **MID-CAP 1.5x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 72.7%** | **COMMON STOCKS<sup>†</sup>** **- 72.7%** | **COMMON STOCKS<sup>†</sup>** **- 72.7%** |
| **Financial - 17.0%** | **Financial - 17.0%** | **Financial - 17.0%** |
| &nbsp;&nbsp;&nbsp;First Horizon Corp. | 858 | $21021 |
| &nbsp;&nbsp;&nbsp;Rexford Industrial Realty, Inc. REIT | 294 | 16064 |
| &nbsp;&nbsp;&nbsp;Annaly Capital Management, Inc. REIT | 748 | 15768 |
| &nbsp;&nbsp;&nbsp;American Financial Group, Inc. | 112 | 15375 |
| &nbsp;&nbsp;&nbsp;Reinsurance Group of America, Inc. — Class A | 107 | 15204 |
| &nbsp;&nbsp;&nbsp;East West Bancorp, Inc. | 225 | 14828 |
| &nbsp;&nbsp;&nbsp;CubeSmart REIT | 358 | 14410 |
| &nbsp;&nbsp;&nbsp;Cullen/Frost Bankers, Inc. | 103 | 13771 |
| &nbsp;&nbsp;&nbsp;STORE Capital Corp. REIT | 425 | 13626 |
| &nbsp;&nbsp;&nbsp;Life Storage, Inc. REIT | 136 | 13396 |
| &nbsp;&nbsp;&nbsp;Lamar Advertising Co. — Class A REIT | 140 | 13216 |
| &nbsp;&nbsp;&nbsp;Webster Financial Corp. | 278 | 13161 |
| &nbsp;&nbsp;&nbsp;National Retail Properties, Inc. REIT | 286 | 13087 |
| &nbsp;&nbsp;&nbsp;RenaissanceRe Holdings Ltd. | 70 | 12896 |
| &nbsp;&nbsp;&nbsp;Commerce Bancshares, Inc. | 183 | 12436 |
| &nbsp;&nbsp;&nbsp;Unum Group | 299 | 12268 |
| &nbsp;&nbsp;&nbsp;Jones Lang LaSalle, Inc.\* | 76 | 12112 |
| &nbsp;&nbsp;&nbsp;Interactive Brokers Group, Inc. — Class A | 165 | 11938 |
| &nbsp;&nbsp;&nbsp;Healthcare Realty Trust, Inc. REIT | 609 | 11735 |
| &nbsp;&nbsp;&nbsp;Old Republic International Corp. | 453 | 10940 |
| &nbsp;&nbsp;&nbsp;Brixmor Property Group, Inc. REIT | 480 | 10882 |
| &nbsp;&nbsp;&nbsp;Medical Properties Trust, Inc. REIT | 957 | 10661 |
| &nbsp;&nbsp;&nbsp;Prosperity Bancshares, Inc. | 146 | 10611 |
| &nbsp;&nbsp;&nbsp;Omega Healthcare Investors, Inc. REIT | 375 | 10481 |
| &nbsp;&nbsp;&nbsp;EastGroup Properties, Inc. REIT | 70 | 10364 |
| &nbsp;&nbsp;&nbsp;First Industrial Realty Trust, Inc. REIT | 211 | 10183 |
| &nbsp;&nbsp;&nbsp;Jefferies Financial Group, Inc. | 293 | 10044 |
| &nbsp;&nbsp;&nbsp;Stifel Financial Corp. | 170 | 9923 |
| &nbsp;&nbsp;&nbsp;SEI Investments Co. | 164 | 9561 |
| &nbsp;&nbsp;&nbsp;Voya Financial, Inc. | 155 | 9531 |
| &nbsp;&nbsp;&nbsp;Affiliated Managers Group, Inc. | 60 | 9506 |
| &nbsp;&nbsp;&nbsp;New York Community Bancorp, Inc. | 1088 | 9357 |
| &nbsp;&nbsp;&nbsp;Pinnacle Financial Partners, Inc. | 122 | 8955 |
| &nbsp;&nbsp;&nbsp;Spirit Realty Capital, Inc. REIT | 223 | 8904 |
| &nbsp;&nbsp;&nbsp;Kinsale Capital Group, Inc. | 34 | 8892 |
| &nbsp;&nbsp;&nbsp;Synovus Financial Corp. | 233 | 8749 |
| &nbsp;&nbsp;&nbsp;Glacier Bancorp, Inc. | 177 | 8747 |
| &nbsp;&nbsp;&nbsp;United Bankshares, Inc. | 215 | 8705 |
| &nbsp;&nbsp;&nbsp;First American Financial Corp. | 166 | 8688 |
| &nbsp;&nbsp;&nbsp;RLI Corp. | 65 | 8533 |
| &nbsp;&nbsp;&nbsp;Western Union Co. | 618 | 8510 |
| &nbsp;&nbsp;&nbsp;Selective Insurance Group, Inc. | 96 | 8507 |
| &nbsp;&nbsp;&nbsp;Old National Bancorp | 469 | 8433 |
| &nbsp;&nbsp;&nbsp;Primerica, Inc. | 59 | 8367 |
| &nbsp;&nbsp;&nbsp;Apartment Income REIT Corp. | 240 | 8234 |
| &nbsp;&nbsp;&nbsp;Wintrust Financial Corp. | 97 | 8198 |
| &nbsp;&nbsp;&nbsp;Rayonier, Inc. REIT | 234 | 7713 |
| &nbsp;&nbsp;&nbsp;Hanover Insurance Group, Inc. | 57 | 7702 |
| &nbsp;&nbsp;&nbsp;Valley National Bancorp | 672 | 7600 |
| &nbsp;&nbsp;&nbsp;Kite Realty Group Trust REIT | 350 | 7368 |
| &nbsp;&nbsp;&nbsp;FNB Corp. | 561 | 7321 |
| &nbsp;&nbsp;&nbsp;Cadence Bank | 292 | 7201 |
| &nbsp;&nbsp;&nbsp;First Financial Bankshares, Inc. | 208 | 7155 |
| &nbsp;&nbsp;&nbsp;Bank OZK | 177 | 7091 |
| &nbsp;&nbsp;&nbsp;Home BancShares, Inc. | 303 | 6905 |
| &nbsp;&nbsp;&nbsp;Essent Group Ltd. | 172 | 6687 |
| &nbsp;&nbsp;&nbsp;SLM Corp. | 400 | 6640 |
| &nbsp;&nbsp;&nbsp;Hancock Whitney Corp. | 137 | 6629 |
| &nbsp;&nbsp;&nbsp;Kilroy Realty Corp. REIT | 168 | 6497 |
| &nbsp;&nbsp;&nbsp;Evercore, Inc. — Class A | 57 | 6217 |
| &nbsp;&nbsp;&nbsp;Umpqua Holdings Corp. | 347 | 6194 |
| &nbsp;&nbsp;&nbsp;MGIC Investment Corp. | 475 | 6175 |
| &nbsp;&nbsp;&nbsp;Cousins Properties, Inc. REIT | 242 | 6120 |
| &nbsp;&nbsp;&nbsp;Independence Realty Trust, Inc. REIT | 358 | 6036 |
| &nbsp;&nbsp;&nbsp;UMB Financial Corp. | 70 | 5846 |
| &nbsp;&nbsp;&nbsp;Brighthouse Financial, Inc.\* | 111 | 5691 |
| &nbsp;&nbsp;&nbsp;PotlatchDeltic Corp. REIT | 129 | 5675 |
| &nbsp;&nbsp;&nbsp;Associated Banc-Corp. | 241 | 5565 |
| &nbsp;&nbsp;&nbsp;Physicians Realty Trust REIT | 365 | 5282 |
| &nbsp;&nbsp;&nbsp;Kemper Corp. | 102 | 5018 |
| &nbsp;&nbsp;&nbsp;Janus Henderson Group plc | 212 | 4986 |
| &nbsp;&nbsp;&nbsp;Bank of Hawaii Corp. | 64 | 4964 |
| &nbsp;&nbsp;&nbsp;Federated Hermes, Inc. — Class B | 135 | 4902 |
| &nbsp;&nbsp;&nbsp;National Storage Affiliates Trust REIT | 135 | 4876 |
| &nbsp;&nbsp;&nbsp;Cathay General Bancorp | 119 | 4854 |
| &nbsp;&nbsp;&nbsp;Texas Capital Bancshares, Inc.\* | 80 | 4825 |
| &nbsp;&nbsp;&nbsp;Highwoods Properties, Inc. REIT | 168 | 4701 |
| &nbsp;&nbsp;&nbsp;Corporate Office Properties Trust REIT | 180 | 4669 |
| &nbsp;&nbsp;&nbsp;Sabra Health Care REIT, Inc. | 369 | 4587 |
| &nbsp;&nbsp;&nbsp;EPR Properties REIT | 120 | 4526 |
| &nbsp;&nbsp;&nbsp;Fulton Financial Corp. | 268 | 4511 |
| &nbsp;&nbsp;&nbsp;Douglas Emmett, Inc. REIT | 281 | 4406 |
| &nbsp;&nbsp;&nbsp;PacWest Bancorp | 188 | 4315 |
| &nbsp;&nbsp;&nbsp;Park Hotels & Resorts, Inc. REIT | 360 | 4244 |
| &nbsp;&nbsp;&nbsp;CNO Financial Group, Inc. | 183 | 4182 |
| &nbsp;&nbsp;&nbsp;Macerich Co. REIT | 344 | 3873 |
| &nbsp;&nbsp;&nbsp;International Bancshares Corp. | 84 | 3844 |
| &nbsp;&nbsp;&nbsp;Washington Federal, Inc. | 105 | 3523 |
| &nbsp;&nbsp;&nbsp;SL Green Realty Corp. REIT | 103 | 3473 |
| &nbsp;&nbsp;&nbsp;JBG SMITH Properties REIT | 158 | 2999 |
| &nbsp;&nbsp;&nbsp;Pebblebrook Hotel Trust REIT | 210 | 2812 |
| &nbsp;&nbsp;&nbsp;Navient Corp. | 169 | 2780 |
| **Total Financial** |  | 767958 |
| **Industrial - 15.2%** | **Industrial - 15.2%** | **Industrial - 15.2%** |
| &nbsp;&nbsp;&nbsp;Hubbell, Inc. | 86 | 20182 |
| &nbsp;&nbsp;&nbsp;Carlisle Companies, Inc. | 83 | 19559 |
| &nbsp;&nbsp;&nbsp;AECOM | 223 | 18940 |
| &nbsp;&nbsp;&nbsp;Toro Co. | 167 | 18904 |
| &nbsp;&nbsp;&nbsp;Graco, Inc. | 270 | 18160 |
| &nbsp;&nbsp;&nbsp;Axon Enterprise, Inc.\* | 108 | 17920 |
| &nbsp;&nbsp;&nbsp;Builders FirstSource, Inc.\* | 235 | 15247 |
| &nbsp;&nbsp;&nbsp;Jabil, Inc. | 215 | 14663 |
| &nbsp;&nbsp;&nbsp;AGCO Corp. | 99 | 13730 |
| &nbsp;&nbsp;&nbsp;Knight-Swift Transportation Holdings, Inc. | 257 | 13469 |
| &nbsp;&nbsp;&nbsp;Lincoln Electric Holdings, Inc. | 92 | 13293 |
| &nbsp;&nbsp;&nbsp;Cognex Corp. | 277 | 13050 |
| &nbsp;&nbsp;&nbsp;Regal Rexnord Corp. | 106 | 12718 |
| &nbsp;&nbsp;&nbsp;Owens Corning | 149 | 12710 |
| &nbsp;&nbsp;&nbsp;Lennox International, Inc. | 52 | 12440 |

---

68 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MID-CAP 1.5x STRATEGY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;Tetra Tech, Inc. | 85 | $| 12341 |
| &nbsp;&nbsp;&nbsp;Fortune Brands Innovations, Inc. | 205 |  | 11708 |
| &nbsp;&nbsp;&nbsp;Donaldson Company, Inc. | 196 |  | 11539 |
| &nbsp;&nbsp;&nbsp;Middleby Corp.\* | 86 |  | 11515 |
| &nbsp;&nbsp;&nbsp;AptarGroup, Inc. | 104 |  | 11438 |
| &nbsp;&nbsp;&nbsp;EMCOR Group, Inc. | 76 |  | 11256 |
| &nbsp;&nbsp;&nbsp;Valmont Industries, Inc. | 34 |  | 11242 |
| &nbsp;&nbsp;&nbsp;ITT, Inc. | 132 |  | 10705 |
| &nbsp;&nbsp;&nbsp;Arrow Electronics, Inc.\* | 98 |  | 10248 |
| &nbsp;&nbsp;&nbsp;nVent Electric plc | 266 |  | 10233 |
| &nbsp;&nbsp;&nbsp;Curtiss-Wright Corp. | 61 |  | 10186 |
| &nbsp;&nbsp;&nbsp;MDU Resources Group, Inc. | 325 |  | 9860 |
| &nbsp;&nbsp;&nbsp;Sonoco Products Co. | 156 |  | 9471 |
| &nbsp;&nbsp;&nbsp;Landstar System, Inc. | 57 |  | 9285 |
| &nbsp;&nbsp;&nbsp;Woodward, Inc. | 96 |  | 9275 |
| &nbsp;&nbsp;&nbsp;Oshkosh Corp. | 105 |  | 9260 |
| &nbsp;&nbsp;&nbsp;Clean Harbors, Inc.\* | 80 |  | 9129 |
| &nbsp;&nbsp;&nbsp;Littelfuse, Inc. | 40 |  | 8808 |
| &nbsp;&nbsp;&nbsp;Saia, Inc.\* | 42 |  | 8807 |
| &nbsp;&nbsp;&nbsp;MSA Safety, Inc. | 59 |  | 8507 |
| &nbsp;&nbsp;&nbsp;Acuity Brands, Inc. | 51 |  | 8446 |
| &nbsp;&nbsp;&nbsp;MasTec, Inc.\* | 94 |  | 8021 |
| &nbsp;&nbsp;&nbsp;TopBuild Corp.\* | 51 |  | 7981 |
| &nbsp;&nbsp;&nbsp;Hexcel Corp. | 135 |  | 7945 |
| &nbsp;&nbsp;&nbsp;Fluor Corp.\* | 227 |  | 7868 |
| &nbsp;&nbsp;&nbsp;Eagle Materials, Inc. | 59 |  | 7838 |
| &nbsp;&nbsp;&nbsp;Coherent Corp.\* | 222 |  | 7792 |
| &nbsp;&nbsp;&nbsp;Novanta, Inc.\* | 57 |  | 7745 |
| &nbsp;&nbsp;&nbsp;Chart Industries, Inc.\* | 67 |  | 7721 |
| &nbsp;&nbsp;&nbsp;National Instruments Corp. | 209 |  | 7712 |
| &nbsp;&nbsp;&nbsp;Crane Holdings Co. | 76 |  | 7634 |
| &nbsp;&nbsp;&nbsp;Universal Display Corp. | 70 |  | 7563 |
| &nbsp;&nbsp;&nbsp;Timken Co. | 106 |  | 7491 |
| &nbsp;&nbsp;&nbsp;Trex Company, Inc.\* | 176 |  | 7450 |
| &nbsp;&nbsp;&nbsp;Stericycle, Inc.\* | 147 |  | 7334 |
| &nbsp;&nbsp;&nbsp;Silgan Holdings, Inc. | 134 |  | 6947 |
| &nbsp;&nbsp;&nbsp;Louisiana-Pacific Corp. | 115 |  | 6808 |
| &nbsp;&nbsp;&nbsp;Ryder System, Inc. | 80 |  | 6686 |
| &nbsp;&nbsp;&nbsp;Watts Water Technologies, Inc. — Class A | 44 |  | 6434 |
| &nbsp;&nbsp;&nbsp;Flowserve Corp. | 209 |  | 6412 |
| &nbsp;&nbsp;&nbsp;TD SYNNEX Corp. | 67 |  | 6346 |
| &nbsp;&nbsp;&nbsp;Kirby Corp.\* | 96 |  | 6178 |
| &nbsp;&nbsp;&nbsp;XPO, Inc.\* | 184 |  | 6125 |
| &nbsp;&nbsp;&nbsp;Avnet, Inc. | 146 |  | 6071 |
| &nbsp;&nbsp;&nbsp;Simpson Manufacturing Company, Inc. | 68 |  | 6029 |
| &nbsp;&nbsp;&nbsp;GATX Corp. | 56 |  | 5955 |
| &nbsp;&nbsp;&nbsp;Vontier Corp. | 253 |  | 4890 |
| &nbsp;&nbsp;&nbsp;Belden, Inc. | 68 |  | 4889 |
| &nbsp;&nbsp;&nbsp;EnerSys | 65 |  | 4800 |
| &nbsp;&nbsp;&nbsp;Terex Corp. | 108 |  | 4614 |
| &nbsp;&nbsp;&nbsp;Vishay Intertechnology, Inc. | 207 |  | 4465 |
| &nbsp;&nbsp;&nbsp;Dycom Industries, Inc.\* | 47 |  | 4399 |
| &nbsp;&nbsp;&nbsp;Mercury Systems, Inc.\* | 93 |  | 4161 |
| &nbsp;&nbsp;&nbsp;Enovis Corp.\* | 76 |  | 4068 |
| &nbsp;&nbsp;&nbsp;Esab Corp. | 83 |  | 3894 |
| &nbsp;&nbsp;&nbsp;Werner Enterprises, Inc. | 94 |  | 3784 |
| &nbsp;&nbsp;&nbsp;Energizer Holdings, Inc. | 106 |  | 3556 |
| &nbsp;&nbsp;&nbsp;RXO, Inc.\* | 184 |  | 3165 |
| &nbsp;&nbsp;&nbsp;Kennametal, Inc. | 129 |  | 3104 |
| &nbsp;&nbsp;&nbsp;Greif, Inc. — Class A | 41 |  | 2749 |
| &nbsp;&nbsp;&nbsp;Worthington Industries, Inc. | 49 |  | 2436 |
| &nbsp;&nbsp;&nbsp;Vicor Corp.\* | 36 |  | 1935 |
| **Total Industrial** |  |  | 687239 |
| **Consumer, Non-cyclical - 12.2%** | **Consumer, Non-cyclical - 12.2%** | **Consumer, Non-cyclical - 12.2%** | **Consumer, Non-cyclical - 12.2%** |
| &nbsp;&nbsp;&nbsp;United Therapeutics Corp.\* | 73 |  | 20300 |
| &nbsp;&nbsp;&nbsp;Neurocrine Biosciences, Inc.\* | 154 |  | 18394 |
| &nbsp;&nbsp;&nbsp;Service Corporation International | 246 |  | 17009 |
| &nbsp;&nbsp;&nbsp;Jazz Pharmaceuticals plc\* | 101 |  | 16090 |
| &nbsp;&nbsp;&nbsp;Darling Ingredients, Inc.\* | 256 |  | 16023 |
| &nbsp;&nbsp;&nbsp;Performance Food Group Co.\* | 249 |  | 14539 |
| &nbsp;&nbsp;&nbsp;Repligen Corp.\* | 83 |  | 14053 |
| &nbsp;&nbsp;&nbsp;Penumbra, Inc.\* | 61 |  | 13570 |
| &nbsp;&nbsp;&nbsp;Paylocity Holding Corp.\* | 66 |  | 12821 |
| &nbsp;&nbsp;&nbsp;Halozyme Therapeutics, Inc.\* | 216 |  | 12290 |
| &nbsp;&nbsp;&nbsp;Chemed Corp. | 24 |  | 12250 |
| &nbsp;&nbsp;&nbsp;Acadia Healthcare Company, Inc.\* | 146 |  | 12019 |
| &nbsp;&nbsp;&nbsp;Shockwave Medical, Inc.\* | 58 |  | 11925 |
| &nbsp;&nbsp;&nbsp;WEX, Inc.\* | 70 |  | 11456 |
| &nbsp;&nbsp;&nbsp;Masimo Corp.\* | 77 |  | 11392 |
| &nbsp;&nbsp;&nbsp;Bruker Corp. | 160 |  | 10936 |
| &nbsp;&nbsp;&nbsp;Ingredion, Inc. | 105 |  | 10283 |
| &nbsp;&nbsp;&nbsp;Encompass Health Corp. | 160 |  | 9570 |
| &nbsp;&nbsp;&nbsp;Globus Medical, Inc. — Class A\* | 124 |  | 9209 |
| &nbsp;&nbsp;&nbsp;H&R Block, Inc. | 249 |  | 9091 |
| &nbsp;&nbsp;&nbsp;Flowers Foods, Inc. | 307 |  | 8823 |
| &nbsp;&nbsp;&nbsp;Envista Holdings Corp.\* | 261 |  | 8788 |
| &nbsp;&nbsp;&nbsp;FTI Consulting, Inc.\* | 55 |  | 8734 |
| &nbsp;&nbsp;&nbsp;Medpace Holdings, Inc.\* | 40 |  | 8496 |
| &nbsp;&nbsp;&nbsp;Tenet Healthcare Corp.\* | 173 |  | 8441 |
| &nbsp;&nbsp;&nbsp;HealthEquity, Inc.\* | 135 |  | 8321 |
| &nbsp;&nbsp;&nbsp;Exelixis, Inc.\* | 516 |  | 8277 |
| &nbsp;&nbsp;&nbsp;GXO Logistics, Inc.\* | 190 |  | 8111 |
| &nbsp;&nbsp;&nbsp;LHC Group, Inc.\* | 50 |  | 8085 |
| &nbsp;&nbsp;&nbsp;Post Holdings, Inc.\* | 87 |  | 7853 |
| &nbsp;&nbsp;&nbsp;Option Care Health, Inc.\* | 247 |  | 7432 |
| &nbsp;&nbsp;&nbsp;QuidelOrtho Corp.\* | 86 |  | 7368 |
| &nbsp;&nbsp;&nbsp;Perrigo Company plc | 215 |  | 7329 |
| &nbsp;&nbsp;&nbsp;Euronet Worldwide, Inc.\* | 75 |  | 7079 |
| &nbsp;&nbsp;&nbsp;Azenta, Inc.\* | 120 |  | 6986 |
| &nbsp;&nbsp;&nbsp;Arrowhead Pharmaceuticals, Inc.\* | 169 |  | 6855 |
| &nbsp;&nbsp;&nbsp;Celsius Holdings, Inc.\* | 65 |  | 6763 |
| &nbsp;&nbsp;&nbsp;ManpowerGroup, Inc. | 81 |  | 6740 |
| &nbsp;&nbsp;&nbsp;Avis Budget Group, Inc.\* | 40 |  | 6557 |
| &nbsp;&nbsp;&nbsp;ASGN, Inc.\* | 80 |  | 6518 |
| &nbsp;&nbsp;&nbsp;Integra LifeSciences Holdings Corp.\* | 116 |  | 6504 |
| &nbsp;&nbsp;&nbsp;Insperity, Inc. | 57 |  | 6475 |
| &nbsp;&nbsp;&nbsp;Haemonetics Corp.\* | 81 |  | 6371 |
| &nbsp;&nbsp;&nbsp;Lancaster Colony Corp. | 32 |  | 6314 |
| &nbsp;&nbsp;&nbsp;Syneos Health, Inc.\* | 165 |  | 6052 |
| &nbsp;&nbsp;&nbsp;Lantheus Holdings, Inc.\* | 110 |  | 5606 |
| &nbsp;&nbsp;&nbsp;BellRing Brands, Inc.\* | 217 |  | 5564 |
| &nbsp;&nbsp;&nbsp;Sprouts Farmers Market, Inc.\* | 169 |  | 5470 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 69

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MID-CAP 1.5x STRATEGY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;Neogen Corp.\* | 346 | $| 5270 |
| &nbsp;&nbsp;&nbsp;Grand Canyon Education, Inc.\* | 49 |  | 5177 |
| &nbsp;&nbsp;&nbsp;ICU Medical, Inc.\* | 32 |  | 5039 |
| &nbsp;&nbsp;&nbsp;Coty, Inc. — Class A\* | 585 |  | 5008 |
| &nbsp;&nbsp;&nbsp;Boston Beer Company, Inc. — Class A\* | 15 |  | 4943 |
| &nbsp;&nbsp;&nbsp;Inari Medical, Inc.\* | 77 |  | 4894 |
| &nbsp;&nbsp;&nbsp;LivaNova plc\* | 86 |  | 4776 |
| &nbsp;&nbsp;&nbsp;Tandem Diabetes Care, Inc.\* | 103 |  | 4630 |
| &nbsp;&nbsp;&nbsp;Amedisys, Inc.\* | 52 |  | 4344 |
| &nbsp;&nbsp;&nbsp;Helen of Troy Ltd.\* | 38 |  | 4215 |
| &nbsp;&nbsp;&nbsp;Grocery Outlet Holding Corp.\* | 142 |  | 4145 |
| &nbsp;&nbsp;&nbsp;Brink's Co. | 74 |  | 3975 |
| &nbsp;&nbsp;&nbsp;Patterson Companies, Inc. | 139 |  | 3896 |
| &nbsp;&nbsp;&nbsp;Progyny, Inc.\* | 120 |  | 3738 |
| &nbsp;&nbsp;&nbsp;STAAR Surgical Co.\* | 77 |  | 3738 |
| &nbsp;&nbsp;&nbsp;Graham Holdings Co. — Class B | 6 |  | 3625 |
| &nbsp;&nbsp;&nbsp;Coca-Cola Consolidated, Inc. | 7 |  | 3586 |
| &nbsp;&nbsp;&nbsp;Omnicell, Inc.\* | 71 |  | 3580 |
| &nbsp;&nbsp;&nbsp;John Wiley & Sons, Inc. — Class A | 69 |  | 2764 |
| &nbsp;&nbsp;&nbsp;R1 RCM, Inc.\* | 220 |  | 2409 |
| &nbsp;&nbsp;&nbsp;Pilgrim's Pride Corp.\* | 72 |  | 1708 |
| &nbsp;&nbsp;&nbsp;Sotera Health Co.\* | 158 |  | 1316 |
| **Total Consumer, Non-cyclical** |  |  | 551908 |
| **Consumer, Cyclical - 10.8%** | **Consumer, Cyclical - 10.8%** | **Consumer, Cyclical - 10.8%** | **Consumer, Cyclical - 10.8%** |
| &nbsp;&nbsp;&nbsp;Deckers Outdoor Corp.\* | 42 |  | 16765 |
| &nbsp;&nbsp;&nbsp;Five Below, Inc.\* | 89 |  | 15741 |
| &nbsp;&nbsp;&nbsp;BJ's Wholesale Club Holdings, Inc.\* | 216 |  | 14291 |
| &nbsp;&nbsp;&nbsp;Casey's General Stores, Inc. | 60 |  | 13461 |
| &nbsp;&nbsp;&nbsp;Watsco, Inc. | 53 |  | 13218 |
| &nbsp;&nbsp;&nbsp;Williams-Sonoma, Inc. | 107 |  | 12296 |
| &nbsp;&nbsp;&nbsp;Capri Holdings Ltd.\* | 206 |  | 11808 |
| &nbsp;&nbsp;&nbsp;Lear Corp. | 95 |  | 11782 |
| &nbsp;&nbsp;&nbsp;Churchill Downs, Inc. | 53 |  | 11206 |
| &nbsp;&nbsp;&nbsp;Crocs, Inc.\* | 99 |  | 10735 |
| &nbsp;&nbsp;&nbsp;Dick's Sporting Goods, Inc. | 89 |  | 10706 |
| &nbsp;&nbsp;&nbsp;Gentex Corp. | 375 |  | 10226 |
| &nbsp;&nbsp;&nbsp;Mattel, Inc.\* | 567 |  | 10115 |
| &nbsp;&nbsp;&nbsp;Wyndham Hotels & Resorts, Inc. | 141 |  | 10055 |
| &nbsp;&nbsp;&nbsp;Texas Roadhouse, Inc. — Class A | 107 |  | 9732 |
| &nbsp;&nbsp;&nbsp;Tempur Sealy International, Inc. | 274 |  | 9406 |
| &nbsp;&nbsp;&nbsp;Murphy USA, Inc. | 33 |  | 9225 |
| &nbsp;&nbsp;&nbsp;Skechers USA, Inc. — Class A\* | 215 |  | 9019 |
| &nbsp;&nbsp;&nbsp;Lithia Motors, Inc. — Class A | 44 |  | 9009 |
| &nbsp;&nbsp;&nbsp;Macy's, Inc. | 433 |  | 8941 |
| &nbsp;&nbsp;&nbsp;Harley-Davidson, Inc. | 213 |  | 8861 |
| &nbsp;&nbsp;&nbsp;Light & Wonder, Inc. — Class A\* | 150 |  | 8790 |
| &nbsp;&nbsp;&nbsp;Polaris, Inc. | 87 |  | 8787 |
| &nbsp;&nbsp;&nbsp;IAA, Inc.\* | 214 |  | 8560 |
| &nbsp;&nbsp;&nbsp;Toll Brothers, Inc. | 169 |  | 8436 |
| &nbsp;&nbsp;&nbsp;Brunswick Corp. | 116 |  | 8361 |
| &nbsp;&nbsp;&nbsp;Univar Solutions, Inc.\* | 261 |  | 8300 |
| &nbsp;&nbsp;&nbsp;RH\* | 31 |  | 8283 |
| &nbsp;&nbsp;&nbsp;Marriott Vacations Worldwide Corp. | 61 |  | 8210 |
| &nbsp;&nbsp;&nbsp;GameStop Corp. — Class A\*<sup>,1</sup> | 404 |  | 7458 |
| &nbsp;&nbsp;&nbsp;Penn Entertainment, Inc.\* | 248 |  | 7366 |
| &nbsp;&nbsp;&nbsp;PVH Corp. | 104 |  | 7341 |
| &nbsp;&nbsp;&nbsp;Boyd Gaming Corp. | 127 |  | 6925 |
| &nbsp;&nbsp;&nbsp;Leggett & Platt, Inc. | 212 |  | 6833 |
| &nbsp;&nbsp;&nbsp;Wingstop, Inc. | 48 |  | 6606 |
| &nbsp;&nbsp;&nbsp;Thor Industries, Inc. | 86 |  | 6492 |
| &nbsp;&nbsp;&nbsp;MSC Industrial Direct Company, Inc. — Class A | 76 |  | 6209 |
| &nbsp;&nbsp;&nbsp;Fox Factory Holding Corp.\* | 68 |  | 6204 |
| &nbsp;&nbsp;&nbsp;Wendy's Co. | 273 |  | 6178 |
| &nbsp;&nbsp;&nbsp;AutoNation, Inc.\* | 55 |  | 5901 |
| &nbsp;&nbsp;&nbsp;Visteon Corp.\* | 45 |  | 5887 |
| &nbsp;&nbsp;&nbsp;YETI Holdings, Inc.\* | 138 |  | 5701 |
| &nbsp;&nbsp;&nbsp;Adient plc\* | 152 |  | 5273 |
| &nbsp;&nbsp;&nbsp;Taylor Morrison Home Corp. — Class A\* | 173 |  | 5251 |
| &nbsp;&nbsp;&nbsp;FirstCash Holdings, Inc. | 60 |  | 5215 |
| &nbsp;&nbsp;&nbsp;Columbia Sportswear Co. | 57 |  | 4992 |
| &nbsp;&nbsp;&nbsp;Choice Hotels International, Inc. | 44 |  | 4956 |
| &nbsp;&nbsp;&nbsp;Foot Locker, Inc. | 127 |  | 4799 |
| &nbsp;&nbsp;&nbsp;Travel + Leisure Co. | 130 |  | 4732 |
| &nbsp;&nbsp;&nbsp;Kohl's Corp. | 187 |  | 4722 |
| &nbsp;&nbsp;&nbsp;Victoria's Secret & Co.\* | 130 |  | 4651 |
| &nbsp;&nbsp;&nbsp;Goodyear Tire & Rubber Co.\* | 452 |  | 4588 |
| &nbsp;&nbsp;&nbsp;Carter's, Inc. | 61 |  | 4551 |
| &nbsp;&nbsp;&nbsp;Topgolf Callaway Brands Corp.\* | 222 |  | 4385 |
| &nbsp;&nbsp;&nbsp;Ollie's Bargain Outlet Holdings, Inc.\* | 93 |  | 4356 |
| &nbsp;&nbsp;&nbsp;KB Home | 133 |  | 4236 |
| &nbsp;&nbsp;&nbsp;Papa John's International, Inc. | 51 |  | 4198 |
| &nbsp;&nbsp;&nbsp;Gap, Inc. | 337 |  | 3801 |
| &nbsp;&nbsp;&nbsp;Hanesbrands, Inc. | 558 |  | 3549 |
| &nbsp;&nbsp;&nbsp;JetBlue Airways Corp.\* | 518 |  | 3357 |
| &nbsp;&nbsp;&nbsp;Cracker Barrel Old Country Store, Inc. | 35 |  | 3316 |
| &nbsp;&nbsp;&nbsp;Scotts Miracle-Gro Co. — Class A | 65 |  | 3158 |
| &nbsp;&nbsp;&nbsp;Dana, Inc. | 204 |  | 3086 |
| &nbsp;&nbsp;&nbsp;Under Armour, Inc. — Class A\* | 302 |  | 3068 |
| &nbsp;&nbsp;&nbsp;Nordstrom, Inc. | 178 |  | 2873 |
| &nbsp;&nbsp;&nbsp;Under Armour, Inc. — Class C\* | 315 |  | 2810 |
| **Total Consumer, Cyclical** |  |  | 489349 |
| **Technology - 5.8%** | **Technology - 5.8%** | **Technology - 5.8%** | **Technology - 5.8%** |
| &nbsp;&nbsp;&nbsp;Fair Isaac Corp.\* | 40 |  | 23943 |
| &nbsp;&nbsp;&nbsp;Lattice Semiconductor Corp.\* | 219 |  | 14209 |
| &nbsp;&nbsp;&nbsp;Wolfspeed, Inc.\* | 199 |  | 13739 |
| &nbsp;&nbsp;&nbsp;Genpact Ltd. | 270 |  | 12506 |
| &nbsp;&nbsp;&nbsp;Dynatrace, Inc.\* | 322 |  | 12333 |
| &nbsp;&nbsp;&nbsp;Manhattan Associates, Inc.\* | 100 |  | 12140 |
| &nbsp;&nbsp;&nbsp;KBR, Inc. | 219 |  | 11563 |
| &nbsp;&nbsp;&nbsp;CACI International, Inc. — Class A\* | 38 |  | 11423 |
| &nbsp;&nbsp;&nbsp;Science Applications International Corp. | 88 |  | 9762 |
| &nbsp;&nbsp;&nbsp;Aspen Technology, Inc.\* | 46 |  | 9448 |
| &nbsp;&nbsp;&nbsp;Concentrix Corp. | 68 |  | 9055 |
| &nbsp;&nbsp;&nbsp;ExlService Holdings, Inc.\* | 53 |  | 8980 |
| &nbsp;&nbsp;&nbsp;MKS Instruments, Inc. | 91 |  | 7710 |
| &nbsp;&nbsp;&nbsp;Silicon Laboratories, Inc.\* | 53 |  | 7191 |
| &nbsp;&nbsp;&nbsp;Maximus, Inc. | 97 |  | 7113 |
| &nbsp;&nbsp;&nbsp;Cirrus Logic, Inc.\* | 88 |  | 6554 |
| &nbsp;&nbsp;&nbsp;Power Integrations, Inc. | 91 |  | 6527 |
| &nbsp;&nbsp;&nbsp;Qualys, Inc.\* | 55 |  | 6173 |
| &nbsp;&nbsp;&nbsp;Synaptics, Inc.\* | 64 |  | 6090 |

---

70 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MID-CAP 1.5x STRATEGY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;Super Micro Computer, Inc.\* | 74 | $| 6075 |
| &nbsp;&nbsp;&nbsp;Lumentum Holdings, Inc.\* | 109 |  | 5687 |
| &nbsp;&nbsp;&nbsp;Teradata Corp.\* | 163 |  | 5486 |
| &nbsp;&nbsp;&nbsp;Envestnet, Inc.\* | 88 |  | 5430 |
| &nbsp;&nbsp;&nbsp;MACOM Technology Solutions Holdings, Inc.\* | 82 |  | 5164 |
| &nbsp;&nbsp;&nbsp;NCR Corp.\* | 220 |  | 5150 |
| &nbsp;&nbsp;&nbsp;IPG Photonics Corp.\* | 51 |  | 4828 |
| &nbsp;&nbsp;&nbsp;CommVault Systems, Inc.\* | 71 |  | 4462 |
| &nbsp;&nbsp;&nbsp;Blackbaud, Inc.\* | 71 |  | 4179 |
| &nbsp;&nbsp;&nbsp;ACI Worldwide, Inc.\* | 180 |  | 4140 |
| &nbsp;&nbsp;&nbsp;Amkor Technology, Inc. | 161 |  | 3861 |
| &nbsp;&nbsp;&nbsp;Kyndryl Holdings, Inc.\* | 326 |  | 3625 |
| &nbsp;&nbsp;&nbsp;Allegro MicroSystems, Inc.\* | 104 |  | 3122 |
| &nbsp;&nbsp;&nbsp;SiTime Corp.\* | 26 |  | 2642 |
| &nbsp;&nbsp;&nbsp;Xerox Holdings Corp. | 179 |  | 2613 |
| **Total Technology** |  |  | 262923 |
| **Basic Materials - 3.6%** | **Basic Materials - 3.6%** | **Basic Materials - 3.6%** | **Basic Materials - 3.6%** |
| &nbsp;&nbsp;&nbsp;RPM International, Inc. | 207 |  | 20172 |
| &nbsp;&nbsp;&nbsp;Reliance Steel & Aluminum Co. | 94 |  | 19029 |
| &nbsp;&nbsp;&nbsp;Cleveland-Cliffs, Inc.\* | 824 |  | 13275 |
| &nbsp;&nbsp;&nbsp;Alcoa Corp. | 283 |  | 12868 |
| &nbsp;&nbsp;&nbsp;Royal Gold, Inc. | 105 |  | 11836 |
| &nbsp;&nbsp;&nbsp;Olin Corp. | 204 |  | 10800 |
| &nbsp;&nbsp;&nbsp;United States Steel Corp. | 375 |  | 9394 |
| &nbsp;&nbsp;&nbsp;Valvoline, Inc. | 283 |  | 9240 |
| &nbsp;&nbsp;&nbsp;Commercial Metals Co. | 188 |  | 9080 |
| &nbsp;&nbsp;&nbsp;Ashland, Inc. | 80 |  | 8602 |
| &nbsp;&nbsp;&nbsp;Chemours Co. | 241 |  | 7379 |
| &nbsp;&nbsp;&nbsp;Cabot Corp. | 90 |  | 6016 |
| &nbsp;&nbsp;&nbsp;Westlake Corp. | 55 |  | 5640 |
| &nbsp;&nbsp;&nbsp;Sensient Technologies Corp. | 67 |  | 4886 |
| &nbsp;&nbsp;&nbsp;Avient Corp. | 137 |  | 4625 |
| &nbsp;&nbsp;&nbsp;Ingevity Corp.\* | 56 |  | 3945 |
| &nbsp;&nbsp;&nbsp;MP Materials Corp.\* | 148 |  | 3593 |
| &nbsp;&nbsp;&nbsp;NewMarket Corp. | 11 |  | 3422 |
| **Total Basic Materials** |  |  | 163802 |
| **Energy - 3.1%** | **Energy - 3.1%** | **Energy - 3.1%** | **Energy - 3.1%** |
| &nbsp;&nbsp;&nbsp;Antero Resources Corp.\* | 442 |  | 13698 |
| &nbsp;&nbsp;&nbsp;NOV, Inc. | 628 |  | 13119 |
| &nbsp;&nbsp;&nbsp;HF Sinclair Corp. | 215 |  | 11156 |
| &nbsp;&nbsp;&nbsp;Southwestern Energy Co.\* | 1765 |  | 10325 |
| &nbsp;&nbsp;&nbsp;Matador Resources Co. | 180 |  | 10303 |
| &nbsp;&nbsp;&nbsp;Murphy Oil Corp. | 234 |  | 10064 |
| &nbsp;&nbsp;&nbsp;Range Resources Corp. | 387 |  | 9683 |
| &nbsp;&nbsp;&nbsp;PDC Energy, Inc. | 147 |  | 9331 |
| &nbsp;&nbsp;&nbsp;ChampionX Corp. | 319 |  | 9248 |
| &nbsp;&nbsp;&nbsp;DT Midstream, Inc. | 155 |  | 8565 |
| &nbsp;&nbsp;&nbsp;Sunrun, Inc.\* | 341 |  | 8191 |
| &nbsp;&nbsp;&nbsp;PBF Energy, Inc. — Class A | 183 |  | 7463 |
| &nbsp;&nbsp;&nbsp;Antero Midstream Corp. | 536 |  | 5784 |
| &nbsp;&nbsp;&nbsp;CNX Resources Corp.\* | 289 |  | 4867 |
| &nbsp;&nbsp;&nbsp;Equitrans Midstream Corp. | 692 |  | 4636 |
| &nbsp;&nbsp;&nbsp;SunPower Corp. — Class A\* | 137 |  | 2470 |
| **Total Energy** |  |  | 138903 |
| **Utilities - 3.0%** | **Utilities - 3.0%** | **Utilities - 3.0%** | **Utilities - 3.0%** |
| &nbsp;&nbsp;&nbsp;Essential Utilities, Inc. | 382 |  | 18233 |
| &nbsp;&nbsp;&nbsp;OGE Energy Corp. | 320 |  | 12656 |
| &nbsp;&nbsp;&nbsp;UGI Corp. | 335 |  | 12418 |
| &nbsp;&nbsp;&nbsp;National Fuel Gas Co. | 146 |  | 9242 |
| &nbsp;&nbsp;&nbsp;IDACORP, Inc. | 81 |  | 8736 |
| &nbsp;&nbsp;&nbsp;New Jersey Resources Corp. | 154 |  | 7642 |
| &nbsp;&nbsp;&nbsp;Hawaiian Electric Industries, Inc. | 175 |  | 7324 |
| &nbsp;&nbsp;&nbsp;Black Hills Corp. | 104 |  | 7315 |
| &nbsp;&nbsp;&nbsp;Portland General Electric Co. | 143 |  | 7007 |
| &nbsp;&nbsp;&nbsp;Ormat Technologies, Inc. | 78 |  | 6746 |
| &nbsp;&nbsp;&nbsp;PNM Resources, Inc. | 137 |  | 6684 |
| &nbsp;&nbsp;&nbsp;ONE Gas, Inc. | 87 |  | 6588 |
| &nbsp;&nbsp;&nbsp;Southwest Gas Holdings, Inc. | 99 |  | 6126 |
| &nbsp;&nbsp;&nbsp;ALLETE, Inc. | 91 |  | 5870 |
| &nbsp;&nbsp;&nbsp;Spire, Inc. | 84 |  | 5784 |
| &nbsp;&nbsp;&nbsp;NorthWestern Corp. | 92 |  | 5459 |
| **Total Utilities** |  |  | 133830 |
| **Communications - 2.0%** | **Communications - 2.0%** | **Communications - 2.0%** | **Communications - 2.0%** |
| &nbsp;&nbsp;&nbsp;Ciena Corp.\* | 237 |  | 12082 |
| &nbsp;&nbsp;&nbsp;Nexstar Media Group, Inc. — Class A | 60 |  | 10501 |
| &nbsp;&nbsp;&nbsp;Iridium Communications, Inc. | 201 |  | 10332 |
| &nbsp;&nbsp;&nbsp;Frontier Communications Parent, Inc.\* | 357 |  | 9096 |
| &nbsp;&nbsp;&nbsp;New York Times Co. — Class A | 263 |  | 8537 |
| &nbsp;&nbsp;&nbsp;TEGNA, Inc. | 357 |  | 7565 |
| &nbsp;&nbsp;&nbsp;Calix, Inc.\* | 91 |  | 6227 |
| &nbsp;&nbsp;&nbsp;Ziff Davis, Inc.\* | 75 |  | 5932 |
| &nbsp;&nbsp;&nbsp;Cable One, Inc. | 8 |  | 5695 |
| &nbsp;&nbsp;&nbsp;World Wrestling Entertainment, Inc. — Class A | 69 |  | 4728 |
| &nbsp;&nbsp;&nbsp;Viasat, Inc.\* | 121 |  | 3830 |
| &nbsp;&nbsp;&nbsp;TripAdvisor, Inc.\* | 168 |  | 3021 |
| **Total Communications** |  |  | 87546 |
| **Total Common Stocks** | **Total Common Stocks** |  |  |
| &nbsp;&nbsp;&nbsp;(Cost $2,770,071) |  |  | 3283458 |
| **MUTUAL FUNDS<sup>†</sup>** **- 5.2%** | **MUTUAL FUNDS<sup>†</sup>** **- 5.2%** | **MUTUAL FUNDS<sup>†</sup>** **- 5.2%** | **MUTUAL FUNDS<sup>†</sup>** **- 5.2%** |
| &nbsp;&nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class<sup>2</sup> | 15965 |  | 153904 |
| &nbsp;&nbsp;&nbsp;Guggenheim Strategy Fund II<sup>2</sup> | 3259 |  | 78335 |
| **Total Mutual Funds** | **Total Mutual Funds** |  |  |
| &nbsp;&nbsp;&nbsp;(Cost $231,938) |  |  | 232239 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 71

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **MID-CAP 1.5x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
| | **Face <br> Amount** | **Value** |
| **U.S. TREASURY BILLS<sup>††</sup>** **- 4.4%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 4.4%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 4.4%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.89% due 01/12/23<sup>3,4</sup> | $200000 | $199826 |
| **Total U.S. Treasury Bills** |  |  |
| (Cost $199,763) |  | 199826 |
| **REPURCHASE AGREEMENTS<sup>††,5</sup> - 21.7%** | **REPURCHASE AGREEMENTS<sup>††,5</sup> - 21.7%** | **REPURCHASE AGREEMENTS<sup>††,5</sup> - 21.7%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23<sup>3</sup> | 553022 | 553022 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23<sup>3</sup> | 212701 | 212701 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23<sup>3</sup> | 212042 | 212042 |
| **Total Repurchase Agreements** |  |  |
| (Cost $977,765) |  | 977765 |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | |
| **SECURITIES LENDING COLLATERAL<sup>†,6</sup> - 0.1%** | **SECURITIES LENDING COLLATERAL<sup>†,6</sup> - 0.1%** | **SECURITIES LENDING COLLATERAL<sup>†,6</sup> - 0.1%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>7</sup> | 5717 | 5717 |
| **Total Securities Lending Collateral** |  |  |
| (Cost $5,717) |  | 5717 |
| **Total Investments - 104.1%** |  |  |
| (Cost $4,185,254) |  | $4699005 |
| **Other Assets & Liabilities, net - (4.1)%** |  | (183296) |
| **Total Net Assets - 100.0%** |  | $4515709 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** |
| **Counterparty** | **Index** | **Type** | **Financing <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Units** | **Notional <br> Amount** | **Value and <br> Unrealized <br> Depreciation** |
| **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** |
| BNP Paribas | S&P MidCap 400 Index | Pay | 4.78% (Federal Funds Rate + 0.45%) | At Maturity | 01/26/23 | 58 | $141387 | $(4459) |
| Goldman Sachs International | S&P MidCap 400 Index | Pay | 4.58% (Federal Funds Rate + 0.25%) | At Maturity | 01/26/23 | 908 | 2207842 | (46810) |
| Barclays Bank plc | S&P MidCap 400 Index | Pay | 4.65% (SOFR + 0.35%) | At Maturity | 01/25/23 | 465 | 1128917 | (52604) |
|  |  |  |  |  |  |  | $3478146 | $(103873) |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Affiliated issuer. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as equity index swap collateral at December 31, 2022. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>5</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>6</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>7</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;REIT — Real Estate Investment Trust |
|  | &nbsp;&nbsp;&nbsp;SOFR — Secured Overnight Financing Rate |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

72 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **MID-CAP 1.5x STRATEGY FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $3283458 | $— | $— | $3283458 |
| Mutual Funds | 232239 |  |  | 232239 |
| U.S. Treasury Bills |  | 199826 |  | 199826 |
| Repurchase Agreements |  | 977765 |  | 977765 |
| Securities Lending Collateral | 5717 |  |  | 5717 |
| Total Assets | $3521414 | $1177591 | $— | $4699005 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Liabilities)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Equity Index Swap Agreements\*\* | $– $| 103873 | $– $| 103873 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gugg84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $306899 | $— | $(225000) | $2149 | $(5713) | $78335 | 3259 | $2545 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 158374 |  |  |  | (4470) | 153904 | 15965 | 3495 |
|  | $465273 | $— | $(225000) | $2149 | $(10183) | $232239 |  | $6040 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 73

**MID-CAP 1.5x STRATEGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments in unaffiliated issuers, at value - including $5,593 of securities loaned (cost $2,975,551) | $3489001 |
| Investments in affiliated issuers, at value (cost $231,938) | 232239 |
| Repurchase agreements, at value (cost $977,765) | 977765 |
| Cash | 55 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 5025 |
| &nbsp;&nbsp;&nbsp;Interest | 231 |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 183 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 30 |
| **Total assets** | 4704529 |
| **Liabilities:** | **Liabilities:** |
| Unrealized depreciation on OTC swap agreements | 103873 |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Swap settlement | 45072 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 17625 |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 5717 |
| &nbsp;&nbsp;&nbsp;Management fees | 3136 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 1247 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 880 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 370 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 59 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 10841 |
| **Total liabilities** | 188820 |
| **Net assets** | $4515709 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $5107760 |
| Total distributable earnings (loss) | (592051) |
| Net assets | $4515709 |
| Capital shares outstanding | 25965 |
| Net asset value per share | $173.92 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of unaffiliated issuers | $58359 |
| Dividends from securities of affiliated issuers | 6040 |
| Interest | 11691 |
| Income from securities lending, net | 749 |
| &nbsp;&nbsp;&nbsp;Total investment income | 76839 |
| **Expenses:** | **Expenses:** |
| Management fees | 41811 |
| Investor service fees | 11614 |
| Transfer agent fees | 12890 |
| Professional fees | 6815 |
| Portfolio accounting and administration fees | 5832 |
| Custodian fees | 854 |
| Trustees' fees\* | 745 |
| Line of credit fees | 43 |
| Miscellaneous | 4196 |
| &nbsp;&nbsp;&nbsp;Total expenses | 84800 |
| Less: | Less: |
| Expenses reimbursed by Adviser | (2323) |
| Expenses waived by Adviser | (388) |
| &nbsp;&nbsp;&nbsp;Total waived/reimbursed expenses | (2711) |
| Net expenses | 82089 |
| Net investment loss | (5250) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (185168) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | 2149 |
| &nbsp;&nbsp;&nbsp;Swap agreements | (416429) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (10501) |
| Net realized loss | (609949) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (503850) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (10183) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (243232) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (6729) |
| Net change in unrealized appreciation (depreciation) | (763994) |
| Net realized and unrealized loss | (1373943) |
| **Net decrease in net assets resulting from operations** | $(1379193) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

74 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**MID-CAP 1.5x STRATEGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment loss | $(5250) | $(40515) |
| Net realized gain (loss) on investments | (609949) | 1277911 |
| Net change in unrealized appreciation (depreciation) on investments | (763994) | 434960 |
| Net increase (decrease) in net assets resulting from operations | (1379193) | 1672356 |
| Distributions to shareholders | (281786) | (866639) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 3206486 | 6260708 |
| Distributions reinvested | 281786 | 866639 |
| Cost of shares redeemed | (3350065) | (6650270) |
| Net increase from capital share transactions | 138207 | 477077 |
| Net increase (decrease) in net assets | (1522772) | 1282794 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 6038481 | 4755687 |
| &nbsp;&nbsp;&nbsp;End of year | $4515709 | $6038481 |
| **Capital share activity:** |  |  |
| Shares sold | 17683 | 25488 |
| Shares issued from reinvestment of distributions | 1630 | 3894 |
| Shares redeemed | (18208) | (27691) |
| Net increase in shares | 1105 | 1691 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 75

**MID-CAP 1.5x STRATEGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019<sup>e</sup>** | **Year Ended <br> December 31, <br> 2018<sup>e</sup>** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $242.90 | $205.26 | $193.99 | $144.00 | $233.70 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | (.22) | (1.55) | (.12) | 1.10 | 1.30 |
| Net gain (loss) on investments (realized and unrealized) | (56.21) | 70.95 | 12.09 | 50.79 | (32.00) |
| Total from investment operations | (56.43) | 69.40 | 11.97 | 51.89 | (30.70) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  | (.15) | (1.90) | (.60) |
| Net realized gains | (12.55) | (31.76) | (.55) |  | (58.40) |
| Total distributions | (12.55) | (31.76) | (.70) | (1.90) | (59.00) |
| Net asset value, end of period | $173.92 | $242.90 | $205.26 | $193.99 | $144.00 |
| **Total Return<sup>b</sup>** | **(23.20** **%)** | **35.25%** | **10.69%** | **36.11%** | **(19.40** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $4516 | $6038 | $4756 | $5444 | $5408 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | (0.11%) | (0.65%) | (0.47%) | 0.60% | 0.67% |
| Total expenses<sup>c</sup> | 1.83% | 1.75% | 1.87% | 1.87% | 1.78% |
| Net expenses<sup>d</sup> | 1.77% | 1.69% | 1.81% | 1.80% | 1.78% |
| Portfolio turnover rate | 154% | 56% | 472% | 274% | 368% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

<sup>e</sup> Reverse share split — Per share amounts for the years presented through December 31, 2019 have been restated to reflect a 1:10 reverse share split effective August 24, 2020.

76 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**INVERSE MID-CAP STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund's current benchmark is the inverse (opposite) of the performance of the S&P MidCap 400<sup>®</sup> Index (the "underlying index"). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the Reporting Period, Inverse Mid-Cap Strategy Fund maintained a daily correlation of 99% to its benchmark of -100% of the daily price movement of the S&P MidCap 400 Index. Inverse Mid-Cap Strategy Fund returned 9.01%, while the S&P MidCap 400 Index returned -13.06% over the same period.

The only sectors contributing to the return of the underlying index for the Reporting Period were Energy and Consumer Staples. The sectors detracting the most from the return of the underlying index were Consumer Discretionary, Information Technology, and Real Estate.

The holdings contributing the most to the return of the underlying index were Steel Dynamics, Inc., First Solar, Inc., and Fair Isaac Corp. The holdings detracting the most were Trex Company, Inc., Synaptics, Inc., and Medical Properties Trust, Inc.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds' 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 funds' holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.**

THE RYDEX FUNDS ANNUAL REPORT \| 77

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-2_78.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-2_78a.jpg)

**Inception Date:** May 3, 2004<br>

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

---

| | |
|:---|:---|
| **Largest Holdings**  | **(% of Total Net Assets)** |
| Guggenheim Ultra Short Duration Fund — Institutional Class | 13.2% |
| Guggenheim Strategy Fund II | 8.2% |
| Total | 21.4% |
| "Largest Holdings" excludes any temporary cash or derivative investments. | "Largest Holdings" excludes any temporary cash or derivative investments. |

---

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Inverse Mid-Cap Strategy Fund  | 9.01%  | (11.08%)  | (13.08%)  |
| S&P MidCap 400 Index  | (13.06%)  | 6.71%  | 10.78%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

78 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **INVERSE MID-CAP STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **MUTUAL FUNDS<sup>†</sup>** **- 21.4%** | **MUTUAL FUNDS<sup>†</sup>** **- 21.4%** | **MUTUAL FUNDS<sup>†</sup>** **- 21.4%** |
| &nbsp;&nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class<sup>1</sup> | 3280 | $31618 |
| &nbsp;&nbsp;&nbsp;Guggenheim Strategy Fund II<sup>1</sup> | 822 | 19755 |
| **Total Mutual Funds** | **Total Mutual Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $52,024) |  | 51373 |
|  | **Face<br> Amount** |  |
| **FEDERAL AGENCY NOTES<sup>††</sup>** **- 20.9%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 20.9%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 20.9%** |
| Fannie Mae | Fannie Mae | Fannie Mae |
| &nbsp;&nbsp;&nbsp;2.38% due 01/19/23 | $50000 | 49951 |
| **Total Federal Agency Notes** | **Total Federal Agency Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $49,954) |  | 49951 |

---

---

| | |
|:---|:---|
| **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 50.2%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 50.2%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23<sup>3</sup> | 67993 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23<sup>3</sup> | 26151 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23<sup>3</sup> | 26070 |
| **Total Repurchase Agreements** |  |
| (Cost $120,214) | 120214 |
| **Total Investments - 92.5%** |  |
| (Cost $222,192) | $221538 |
| **Other Assets & Liabilities, net - 7.5%** | 18068 |
| **Total Net Assets - 100.0%** | $239606 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** |
| **Counterparty** | **Index** | **Type** | **Financing <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Units** | **Notional <br> Amount** | **Value and <br> Unrealized <br> Appreciation** |
| **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** |
| Barclays Bank plc | S&P MidCap 400 Index | Receive | 4.50% (SOFR + 0.20%) | At Maturity | 01/25/23 | 49 | $119885 | $2554 |
| Goldman Sachs International | S&P MidCap 400 Index | Receive | 4.28% (Federal Funds Rate - 0.05%) | At Maturity | 01/26/23 | 23 | 55551 | 1782 |
| BNP Paribas | S&P MidCap 400 Index | Receive | 4.38% (Federal Funds Rate + 0.05%) | At Maturity | 01/26/23 | 26 | 64127 | 1619 |
|  |  |  |  |  |  |  | $239563 | $5955 |

---

---

| | |
|:---|:---|
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Affiliated issuer. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as equity index swap collateral at December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;SOFR — Secured Overnight Financing Rate |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 79

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **INVERSE MID-CAP STRATEGY FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Mutual Funds | $51373 | $— | $— | $51373 |
| Federal Agency Notes |  | 49951 |  | 49951 |
| Repurchase Agreements |  | 120214 |  | 120214 |
| Equity Index Swap Agreements\*\* |  | 5955 |  | 5955 |
| Total Assets | $51373 | $176120 | $— | $227493 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $20445 | $— | $— | $— | $(690) | $19755 | 822 | $562 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 22515 | 10022 |  |  | (919) | 31618 | 3280 | 715 |
|  | $42960 | $10022 | $— | $— | $(1609) | $51373 |  | $1277 |

---

80 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**INVERSE MID-CAP STRATEGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments in unaffiliated issuers, at value (cost $49,954) | $49951 |
| Investments in affiliated issuers, at value (cost $52,024) | 51373 |
| Repurchase agreements, at value (cost $120,214) | 120214 |
| Segregated cash with broker | 10000 |
| Unrealized appreciation on OTC swap agreements | 5955 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Swap settlement | 1615 |
| &nbsp;&nbsp;&nbsp;Interest | 563 |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 560 |
| &nbsp;&nbsp;&nbsp;Dividends | 196 |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 56 |
| **Total assets** | 240483 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Professional fees | 500 |
| &nbsp;&nbsp;&nbsp;Management fees | 157 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 105 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 45 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 19 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 3 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 1 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 47 |
| **Total liabilities** | 877 |
| **Net assets** | $239606 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $2240651 |
| Total distributable earnings (loss) | (2001045) |
| Net assets | $239606 |
| Capital shares outstanding | 6407 |
| Net asset value per share | $37.40 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of affiliated issuers | $1277 |
| Interest | 5500 |
| &nbsp;&nbsp;&nbsp;Total investment income | 6777 |
| **Expenses:** | **Expenses:** |
| Management fees | 3179 |
| Investor service fees | 883 |
| Transfer agent fees | 878 |
| Professional fees | 545 |
| Portfolio accounting and administration fees | 460 |
| Custodian fees | 49 |
| Trustees' fees\* | 32 |
| Miscellaneous | 260 |
| &nbsp;&nbsp;&nbsp;Total expenses | 6286 |
| Less: | Less: |
| Expenses reimbursed by Adviser | (177) |
| Expenses waived by Adviser | (79) |
| &nbsp;&nbsp;&nbsp;Total waived/reimbursed expenses | (256) |
| Net expenses | 6030 |
| Net investment income | 747 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Swap agreements | (78316) |
| Net realized loss | (78316) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (4) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (1609) |
| &nbsp;&nbsp;&nbsp;Swap agreements | 8675 |
| Net change in unrealized appreciation (depreciation) | 7062 |
| Net realized and unrealized loss | (71254) |
| **Net decrease in net assets resulting from operations** | $(70507) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 81

**INVERSE MID-CAP STRATEGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income (loss) | $747 | $(1474) |
| Net realized loss on investments | (78316) | (56421) |
| Net change in unrealized appreciation (depreciation) on investments | 7062 | (2990) |
| Net decrease in net assets resulting from operations | (70507) | (60885) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 4129492 | 1513243 |
| Cost of shares redeemed | (3908202) | (1500895) |
| Net increase from capital share transactions | 221290 | 12348 |
| Net increase (decrease) in net assets | 150783 | (48537) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 88823 | 137360 |
| &nbsp;&nbsp;&nbsp;End of year | $239606 | $88823 |
| **Capital share activity:** |  |  |
| Shares sold | 107340 | 39557 |
| Shares redeemed | (103522) | (40042) |
| Net increase (decrease) in shares | 3818 | (485) |

---

82 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**INVERSE MID-CAP STRATEGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $34.31 | $44.68 | $60.05 | $75.67 | $68.22 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .08 | (.44) | (.61) | .51 | .35 |
| Net gain (loss) on investments (realized and unrealized) | 3.01 <sup>e</sup> | (9.93) | (14.22) | (15.87) | 7.10 <sup>e</sup> |
| Total from investment operations | 3.09 | (10.37) | (14.83) | (15.36) | 7.45 |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  | (.54) | (.26) |  |
| Total distributions |  |  | (.54) | (.26) |  |
| Net asset value, end of period | $37.40 | $34.31 | $44.68 | $60.05 | $75.67 |
| **Total Return<sup>b</sup>** | **9.01%** | **(23.21** **%)** | **(24.89** **%)** | **(20.31** **%)** | **10.90%** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $240 | $89 | $137 | $265 | $645 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.21% | (1.18%) | (1.01%) | 0.78% | 0.51% |
| Total expenses<sup>c</sup> | 1.78% | 1.74% | 1.88% | 1.88% | 1.77% |
| Net expenses<sup>d</sup> | 1.71% | 1.67% | 1.83% | 1.81% | 1.77% |
| Portfolio turnover rate | 9% | 29% | 281% | 185% | 404% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

<sup>e</sup> The amount shown for a share outstanding throughout the period does not agree with the aggregate net loss on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments in the Fund.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 83

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**RUSSELL 2000<sup>®</sup>** **2x STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund's current benchmark is 200% of the performance of the Russell 2000<sup>®</sup> Index (the "underlying index"). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the Reporting Period, Russell 2000<sup>®</sup> 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the Russell 2000 Index. Russell 2000<sup>®</sup> 2x Strategy Fund returned -42.99%, while the Russell 2000 Index returned -20.44% over the same time period.

The only sectors contributing to the return of the underlying index for the Reporting Period were Energy and Communication Services. The sectors detracting the most from the return of the underlying index were Information Technology, Health Care, and Consumer Discretionary.

Madrigal Pharmaceuticals, Inc., Halozyme Therapeutics, Inc., and Antero Resources Corp. contributed the most to performance of the underlying index for 2022. Synaptics, Inc., AMC Entertainment Holdings, Inc. Class A, and Omnicell, Inc. detracted the most from performance of the underlying index.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds' 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 funds' holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short-Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.**

84 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-2_85.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-2_85a.jpg)

**Inception Date:** October 27, 2006<br>

---

| | |
|:---|:---|
| **Largest Holdings**  | **(% of Total Net Assets)** |
| iShares Russell 2000 Index ETF | 15.9% |
| Vanguard Russell 2000 ETF | 15.8% |
| Total | 31.7% |
| "Largest Holdings" excludes any temporary cash or derivative investments. | "Largest Holdings" excludes any temporary cash or derivative investments. |

---

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Russell 2000<sup>®</sup> 2x Strategy Fund  | (42.99%)  | (1.82%)  | 10.44%  |
| Russell 2000 Index  | (20.44%)  | 4.13%  | 10.47%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Russell 2000 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 85

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **2x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **RIGHTS<sup>†††</sup>** **- 0.0%** | **RIGHTS<sup>†††</sup>** **- 0.0%** | **RIGHTS<sup>†††</sup>** **- 0.0%** |
| **Consumer, Non-cyclical - 0.0%** | **Consumer, Non-cyclical - 0.0%** | **Consumer, Non-cyclical - 0.0%** |
| &nbsp;&nbsp;&nbsp;Tobira Therapeutics, Inc.\* | 7 | $— |
| &nbsp;&nbsp;&nbsp;UCB\* | 13 |  |
| **Total Rights** | **Total Rights** |  |
| &nbsp;&nbsp;&nbsp;(Cost $—) |  |  |
| **EXCHANGE-TRADED FUNDS<sup>†</sup>** **- 31.7%** | **EXCHANGE-TRADED FUNDS<sup>†</sup>** **- 31.7%** | **EXCHANGE-TRADED FUNDS<sup>†</sup>** **- 31.7%** |
| &nbsp;&nbsp;&nbsp;iShares Russell 2000 Index ETF<sup>1</sup> | 932 | 162503 |
| &nbsp;&nbsp;&nbsp;Vanguard Russell 2000 ETF | 2308 | 162414 |
| **Total Exchange-Traded Funds** | **Total Exchange-Traded Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $408,358) |  | 324917 |
|  | **Face<br> Amount** |  |
| **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 48.7%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 48.7%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 48.7%** |
| Federal Home Loan Bank | Federal Home Loan Bank | Federal Home Loan Bank |
| &nbsp;&nbsp;&nbsp;4.05% due 01/27/23<sup>2</sup> | $500000 | 498626 |
| **Total Federal Agency Discount Notes** | **Total Federal Agency Discount Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $498,537) |  | 498626 |
| **U.S. TREASURY BILLS<sup>††</sup>** **- 35.6%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 35.6%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 35.6%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.61% due 01/12/23<sup>2,3</sup> | 300000 | 299739 |
| &nbsp;&nbsp;&nbsp;3.79% due 01/17/23<sup>2,4</sup> | 65000 | 64907 |
| **Total U.S. Treasury Bills** | **Total U.S. Treasury Bills** |  |
| &nbsp;&nbsp;&nbsp;(Cost $364,557) |  | 364646 |

---

---

| | | |
|:---|:---|:---|
| **REPURCHASE AGREEMENTS<sup>††,5</sup>** **- 72.2%** | **REPURCHASE AGREEMENTS<sup>††,5</sup>** **- 72.2%** | **REPURCHASE AGREEMENTS<sup>††,5</sup>** **- 72.2%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23<sup>3</sup> | 417704 | 417704 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23<sup>3</sup> | 160655 | 160655 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23<sup>3</sup> | 160158 | 160158 |
| **Total Repurchase Agreements** |  |  |
| (Cost $738,517) |  | 738517 |
|  | **Shares**  |  |
| **SECURITIES LENDING COLLATERAL†,6 - 4.1%** | **SECURITIES LENDING COLLATERAL†,6 - 4.1%** | **SECURITIES LENDING COLLATERAL†,6 - 4.1%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>7</sup> | 41852 | 41852 |
| **Total Securities Lending Collateral** |  |  |
| (Cost $41,852) |  | 41852 |
| **Total Investments - 192.3%** |  |  |
| (Cost $2,051,821) |  | $1968558 |
| **Other Assets & Liabilities, net - (92.3)%** |  | (945034) |
| **Total Net Assets - 100.0%** |  | $1023524 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Depreciation\*\*** |
| **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** |
| Russell 2000 Index Mini Futures Contracts | 3 | Mar 2023 | $265695 | $(9490) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** |
| **Counterparty** | **Index** | **Type** | **Financing <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Units** | **Notional <br> Amount** | **Value and <br> Unrealized <br> Depreciation** |
| **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** |
| BNP Paribas | Russell 2000 Index | Pay | 4.53% (Federal Funds Rate + 0.20%) | At Maturity | 01/26/23 | 272 | $479884 | $(13664) |
| Goldman Sachs International | Russell 2000 Index | Pay | 4.43% (Federal Funds Rate + 0.10%) | At Maturity | 01/26/23 | 304 | 534716 | (23493) |
| Barclays Bank plc | Russell 2000 Index | Pay | 4.30% (SOFR) | At Maturity | 01/25/23 | 246 | 433030 | (31099) |
|  |  |  |  |  |  |  | $1447630 | $(68256) |

---

86 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **2x STRATEGY FUND** |  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| \*\* | &nbsp;&nbsp;&nbsp;Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>†††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 3 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as equity index swap collateral at December 31, 2022. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as futures collateral at December 31, 2022. |
| <sup>5</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>6</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>7</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;SOFR — Secured Overnight Financing Rate |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Rights | $— | $— | $— \* | $— |
| Exchange-Traded Funds | 324917 |  |  | 324917 |
| Federal Agency Discount Notes |  | 498626 |  | 498626 |
| U.S. Treasury Bills |  | 364646 |  | 364646 |
| Repurchase Agreements |  | 738517 |  | 738517 |
| Securities Lending Collateral | 41852 |  |  | 41852 |
| Total Assets | $366769 | $1601789 | $— | $1968558 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Liabilities)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Equity Futures Contracts\*\* | $9490 | $— | $— | $9490 |
| Equity Index Swap Agreements\*\* |  | 68256 |  | 68256 |
| Total Liabilities | $9490 | $68256 | $— | $77746 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Security has a market value of $0. |
| \*\* | &nbsp;&nbsp;&nbsp;This derivative is reported as unrealized appreciation/depreciation at period end. |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 87

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **2x STRATEGY FUND** |  |

---

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $638809 | $— | $(636863) | $1645 | $(3591) | $— |  | $657 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 689495 |  | (686109) | (246) | (3140) |  |  | 869 |
|  | $1328304 | $— | $(1322972) | $1399 | $(6731) | $— |  | $1526 |

---

88 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**RUSSELL 2000<sup>®</sup>** **2x STRATEGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value - including $40,626 of securities loaned (cost $1,313,304) | $1230041 |
| Repurchase agreements, at value (cost $738,517) | 738517 |
| Segregated cash with broker | 100632 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Interest | 175 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 52 |
| **Total assets** | 2069417 |
| **Liabilities:** | **Liabilities:** |
| Unrealized depreciation on OTC swap agreements | 68256 |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 495828 |
| &nbsp;&nbsp;&nbsp;Swap settlement | 426592 |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 41852 |
| &nbsp;&nbsp;&nbsp;Professional fees | 4597 |
| &nbsp;&nbsp;&nbsp;Management fees | 2066 |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 1138 |
| &nbsp;&nbsp;&nbsp;Printing fees | 1022 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 816 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 574 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 241 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 40 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 2871 |
| **Total liabilities** | 1045893 |
| **Net assets** | $1023524 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $1539904 |
| Total distributable earnings (loss) | (516380) |
| Net assets | $1023524 |
| Capital shares outstanding | 8357 |
| Net asset value per share | $122.48 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $16) | $7034 |
| Dividends from securities of affiliated issuers | 1526 |
| Interest | 42456 |
| Income from securities lending, net | 907 |
| &nbsp;&nbsp;&nbsp;Total investment income | 51923 |
| **Expenses:** | **Expenses:** |
| Management fees | 21031 |
| Investor service fees | 5842 |
| Transfer agent fees | 6665 |
| Portfolio accounting and administration fees | 3097 |
| Professional fees | 859 |
| Printing fees | 788 |
| Custodian fees | 568 |
| Trustees' fees\* | 538 |
| Line of credit fees | 45 |
| Interest expense | 31 |
| Miscellaneous | 4538 |
| &nbsp;&nbsp;&nbsp;Total expenses | 44002 |
| Less: | Less: |
| Expenses reimbursed by Adviser | (1168) |
| Expenses waived by Adviser | (186) |
| &nbsp;&nbsp;&nbsp;Total waived/reimbursed expenses | (1354) |
| Net expenses | 42648 |
| Net investment income | 9275 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | 70955 |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | 1399 |
| &nbsp;&nbsp;&nbsp;Swap agreements | (820446) |
| &nbsp;&nbsp;&nbsp;Futures contracts | 450520 |
| Net realized loss | (297572) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (139828) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (6731) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (316077) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (9490) |
| Net change in unrealized appreciation (depreciation) | (472126) |
| Net realized and unrealized loss | (769698) |
| **Net decrease in net assets resulting from operations** | $(760423) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 89

**RUSSELL 2000<sup>®</sup>** **2x STRATEGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income (loss) | $9275 | $(96770) |
| Net realized gain (loss) on investments | (297572) | 1615248 |
| Net change in unrealized appreciation (depreciation) on investments | (472126) | 342261 |
| Net increase (decrease) in net assets resulting from operations | (760423) | 1860739 |
| Distributions to shareholders |  | (991318) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 59710191 | 178342618 |
| Distributions reinvested |  | 991318 |
| Cost of shares redeemed | (60447045) | (194196868) |
| Net decrease from capital share transactions | (736854) | (14862932) |
| Net decrease in net assets | (1497277) | (13993511) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 2520801 | 16514312 |
| &nbsp;&nbsp;&nbsp;End of year | $1023524 | $2520801 |
| **Capital share activity:** |  |  |
| Shares sold | 369483 | 611014 |
| Shares issued from reinvestment of distributions |  | 4664 |
| Shares redeemed | (372859) | (664306) |
| Net decrease in shares | (3376) | (48628) |

---

90 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**RUSSELL 2000<sup>®</sup>** **2x STRATEGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $214.85 | $273.59 | $234.99 | $160.46 | $234.65 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .58 | (3.44) | (2.35) | 1.27 | .70 |
| Net gain (loss) on investments (realized and unrealized) | (92.95) | 72.57 | 42.01 | 74.31 | (54.40) |
| Total from investment operations | (92.37) | 69.13 | 39.66 | 75.58 | (53.70) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  | (1.06) | (1.05) |  |
| Net realized gains |  | (127.87) |  |  | (20.49) |
| Total distributions |  | (127.87) | (1.06) | (1.05) | (20.49) |
| Net asset value, end of period | $122.48 | $214.85 | $273.59 | $234.99 | $160.46 |
| **Total Return<sup>b</sup>** | **(42.99** **%)** | **25.77%** | **17.21%** | **47.15%** | **(26.21** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $1024 | $2521 | $16514 | $3875 | $1690 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.40% | (1.23%) | (1.23%) | 0.61% | 0.28% |
| Total expenses<sup>c</sup> | 1.88% | 1.80% | 1.92% | 1.92% | 1.82% |
| Net expenses<sup>d</sup> | 1.83% | 1.74% | 1.86% | 1.86% | 1.82% |
| Portfolio turnover rate | 598% | 701% | 463% | 510% | 625% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 91

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark for small-cap securities on a daily basis. The Fund's current benchmark is 150% of the Russell 2000<sup>®</sup> Index (the "underlying index"). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the Reporting Period, Russell 2000 1.5x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 150% of the daily price movement of the Russell 2000 Index. Russell 2000 1.5x Strategy Fund returned -33.45%, while the Russell 2000 Index returned -20.44% over the same time period.

The only sectors contributing to the return of the underlying index for the Reporting Period were Energy and Communication Services. The sectors detracting the most from the return of the underlying index were Information Technology, Health Care, and Consumer Discretionary.

Madrigal Pharmaceuticals, Inc., Halozyme Therapeutics, Inc., and Antero Resources Corp. contributed the most to performance of the underlying index for 2022. Synaptics, Inc., AMC Entertainment Holdings, Inc. Class A, and Omnicell, Inc. detracted the most from performance of the underlying index.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds' 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 funds' holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.**

92 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-2_93.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-2_93a.jpg)

**Inception Date:** October 1, 2001<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| Guggenheim Ultra Short Duration Fund — Institutional Class | 12.4% |
| iShares Russell 2000 Index ETF | 9.8% |
| Vanguard Russell 2000 ETF | 9.8% |
| Guggenheim Strategy Fund II | 7.0% |
| Halozyme Therapeutics, Inc. | 0.2% |
| Shockwave Medical, Inc. | 0.1% |
| Inspire Medical Systems, Inc. | 0.1% |
| EMCOR Group, Inc. | 0.1% |
| Crocs, Inc. | 0.1% |
| Iridium Communications, Inc. | 0.1% |
| Top Ten Total | 39.7% |
| "Ten Largest Holdings" excludes any temporary cash or derivative investments. | "Ten Largest Holdings" excludes any temporary cash or derivative investments. |

---

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund  | (33.45%)  | 0.69%  | 9.31%  |
| Russell 2000 Index  | (20.44%)  | 4.13%  | 10.47%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Russell 2000 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 93

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 40.7%** | **COMMON STOCKS<sup>†</sup>** **- 40.7%** | **COMMON STOCKS<sup>†</sup>** **- 40.7%** |
| **Consumer, Non-cyclical - 9.7%** | **Consumer, Non-cyclical - 9.7%** | **Consumer, Non-cyclical - 9.7%** |
| &nbsp;&nbsp;&nbsp;Halozyme Therapeutics, Inc.\* | 80 | $4552 |
| &nbsp;&nbsp;&nbsp;Shockwave Medical, Inc.\* | 21 | 4318 |
| &nbsp;&nbsp;&nbsp;Inspire Medical Systems, Inc.\* | 17 | 4282 |
| &nbsp;&nbsp;&nbsp;Karuna Therapeutics, Inc.\* | 18 | 3537 |
| &nbsp;&nbsp;&nbsp;Celsius Holdings, Inc.\* | 33 | 3433 |
| &nbsp;&nbsp;&nbsp;Medpace Holdings, Inc.\* | 15 | 3186 |
| &nbsp;&nbsp;&nbsp;HealthEquity, Inc.\* | 50 | 3082 |
| &nbsp;&nbsp;&nbsp;Ensign Group, Inc. | 32 | 3028 |
| &nbsp;&nbsp;&nbsp;Intra-Cellular Therapies, Inc.\* | 55 | 2911 |
| &nbsp;&nbsp;&nbsp;LHC Group, Inc.\* | 18 | 2911 |
| &nbsp;&nbsp;&nbsp;Apellis Pharmaceuticals, Inc.\* | 55 | 2844 |
| &nbsp;&nbsp;&nbsp;Option Care Health, Inc.\* | 94 | 2828 |
| &nbsp;&nbsp;&nbsp;AMN Healthcare Services, Inc.\* | 26 | 2673 |
| &nbsp;&nbsp;&nbsp;Alkermes plc\* | 98 | 2561 |
| &nbsp;&nbsp;&nbsp;Arrowhead Pharmaceuticals, Inc.\* | 63 | 2555 |
| &nbsp;&nbsp;&nbsp;Insperity, Inc. | 22 | 2499 |
| &nbsp;&nbsp;&nbsp;Triton International Ltd. | 35 | 2407 |
| &nbsp;&nbsp;&nbsp;Lancaster Colony Corp. | 12 | 2368 |
| &nbsp;&nbsp;&nbsp;ASGN, Inc.\* | 29 | 2363 |
| &nbsp;&nbsp;&nbsp;Haemonetics Corp.\* | 30 | 2360 |
| &nbsp;&nbsp;&nbsp;API Group Corp.\* | 125 | 2351 |
| &nbsp;&nbsp;&nbsp;Merit Medical Systems, Inc.\* | 33 | 2330 |
| &nbsp;&nbsp;&nbsp;Madrigal Pharmaceuticals, Inc.\* | 8 | 2322 |
| &nbsp;&nbsp;&nbsp;Prometheus Biosciences, Inc.\* | 21 | 2310 |
| &nbsp;&nbsp;&nbsp;Cytokinetics, Inc.\* | 49 | 2245 |
| &nbsp;&nbsp;&nbsp;Vaxcyte, Inc.\* | 43 | 2062 |
| &nbsp;&nbsp;&nbsp;Simply Good Foods Co.\* | 54 | 2054 |
| &nbsp;&nbsp;&nbsp;Sprouts Farmers Market, Inc.\* | 63 | 2039 |
| &nbsp;&nbsp;&nbsp;Amicus Therapeutics, Inc.\* | 167 | 2039 |
| &nbsp;&nbsp;&nbsp;Lantheus Holdings, Inc.\* | 40 | 2038 |
| &nbsp;&nbsp;&nbsp;BellRing Brands, Inc.\* | 78 | 2000 |
| &nbsp;&nbsp;&nbsp;Neogen Corp.\* | 130 | 1980 |
| &nbsp;&nbsp;&nbsp;Herc Holdings, Inc. | 15 | 1974 |
| &nbsp;&nbsp;&nbsp;Chegg, Inc.\* | 75 | 1895 |
| &nbsp;&nbsp;&nbsp;Prestige Consumer Healthcare, Inc.\* | 30 | 1878 |
| &nbsp;&nbsp;&nbsp;Inari Medical, Inc.\* | 29 | 1843 |
| &nbsp;&nbsp;&nbsp;Axonics, Inc.\* | 29 | 1813 |
| &nbsp;&nbsp;&nbsp;Denali Therapeutics, Inc.\* | 65 | 1808 |
| &nbsp;&nbsp;&nbsp;Hostess Brands, Inc.\* | 80 | 1795 |
| &nbsp;&nbsp;&nbsp;Intellia Therapeutics, Inc.\* | 51 | 1779 |
| &nbsp;&nbsp;&nbsp;ABM Industries, Inc. | 40 | 1777 |
| &nbsp;&nbsp;&nbsp;LivaNova plc\* | 31 | 1722 |
| &nbsp;&nbsp;&nbsp;IVERIC bio, Inc.\* | 79 | 1691 |
| &nbsp;&nbsp;&nbsp;Alight, Inc. — Class A\* | 202 | 1689 |
| &nbsp;&nbsp;&nbsp;iRhythm Technologies, Inc.\* | 18 | 1686 |
| &nbsp;&nbsp;&nbsp;Korn Ferry | 32 | 1620 |
| &nbsp;&nbsp;&nbsp;Insmed, Inc.\* | 81 | 1618 |
| &nbsp;&nbsp;&nbsp;elf Beauty, Inc.\* | 29 | 1604 |
| &nbsp;&nbsp;&nbsp;PTC Therapeutics, Inc.\* | 42 | 1603 |
| &nbsp;&nbsp;&nbsp;Blueprint Medicines Corp.\* | 36 | 1577 |
| &nbsp;&nbsp;&nbsp;StoneCo Ltd. — Class A\* | 167 | 1576 |
| &nbsp;&nbsp;&nbsp;Helen of Troy Ltd.\* | 14 | 1553 |
| &nbsp;&nbsp;&nbsp;Coca-Cola Consolidated, Inc. | 3 | 1537 |
| &nbsp;&nbsp;&nbsp;Select Medical Holdings Corp. | 61 | 1515 |
| &nbsp;&nbsp;&nbsp;CONMED Corp. | 17 | 1507 |
| &nbsp;&nbsp;&nbsp;Primo Water Corp. | 96 | 1492 |
| &nbsp;&nbsp;&nbsp;TriNet Group, Inc.\* | 22 | 1492 |
| &nbsp;&nbsp;&nbsp;Beam Therapeutics, Inc.\* | 38 | 1486 |
| &nbsp;&nbsp;&nbsp;TreeHouse Foods, Inc.\* | 30 | 1481 |
| &nbsp;&nbsp;&nbsp;Axsome Therapeutics, Inc.\* | 19 | 1465 |
| &nbsp;&nbsp;&nbsp;Patterson Companies, Inc. | 52 | 1458 |
| &nbsp;&nbsp;&nbsp;Brink's Co. | 27 | 1450 |
| &nbsp;&nbsp;&nbsp;Alarm.com Holdings, Inc.\* | 29 | 1435 |
| &nbsp;&nbsp;&nbsp;Progyny, Inc.\* | 45 | 1402 |
| &nbsp;&nbsp;&nbsp;Omnicell, Inc.\* | 27 | 1361 |
| &nbsp;&nbsp;&nbsp;STAAR Surgical Co.\* | 28 | 1359 |
| &nbsp;&nbsp;&nbsp;CBIZ, Inc.\* | 29 | 1359 |
| &nbsp;&nbsp;&nbsp;United Natural Foods, Inc.\* | 35 | 1355 |
| &nbsp;&nbsp;&nbsp;J & J Snack Foods Corp. | 9 | 1347 |
| &nbsp;&nbsp;&nbsp;Prothena Corporation plc\* | 22 | 1326 |
| &nbsp;&nbsp;&nbsp;Integer Holdings Corp.\* | 19 | 1301 |
| &nbsp;&nbsp;&nbsp;BioCryst Pharmaceuticals, Inc.\* | 113 | 1297 |
| &nbsp;&nbsp;&nbsp;WD-40 Co. | 8 | 1290 |
| &nbsp;&nbsp;&nbsp;NuVasive, Inc.\* | 31 | 1278 |
| &nbsp;&nbsp;&nbsp;AbCellera Biologics, Inc.\* | 125 | 1266 |
| &nbsp;&nbsp;&nbsp;Cal-Maine Foods, Inc. | 23 | 1252 |
| &nbsp;&nbsp;&nbsp;Celldex Therapeutics, Inc.\* | 28 | 1248 |
| &nbsp;&nbsp;&nbsp;AtriCure, Inc.\* | 28 | 1243 |
| &nbsp;&nbsp;&nbsp;Graham Holdings Co. — Class B | 2 | 1208 |
| &nbsp;&nbsp;&nbsp;Sabre Corp.\* | 194 | 1199 |
| &nbsp;&nbsp;&nbsp;EVERTEC, Inc. | 37 | 1198 |
| &nbsp;&nbsp;&nbsp;Sage Therapeutics, Inc.\* | 31 | 1182 |
| &nbsp;&nbsp;&nbsp;Glaukos Corp.\* | 27 | 1179 |
| &nbsp;&nbsp;&nbsp;Silk Road Medical, Inc.\* | 22 | 1163 |
| &nbsp;&nbsp;&nbsp;Edgewell Personal Care Co. | 30 | 1156 |
| &nbsp;&nbsp;&nbsp;Akero Therapeutics, Inc.\* | 21 | 1151 |
| &nbsp;&nbsp;&nbsp;ACADIA Pharmaceuticals, Inc.\* | 71 | 1130 |
| &nbsp;&nbsp;&nbsp;Pacific Biosciences of California, Inc.\* | 137 | 1121 |
| &nbsp;&nbsp;&nbsp;Vir Biotechnology, Inc.\* | 44 | 1114 |
| &nbsp;&nbsp;&nbsp;TransMedics Group, Inc.\* | 18 | 1111 |
| &nbsp;&nbsp;&nbsp;Amylyx Pharmaceuticals, Inc.\* | 30 | 1109 |
| &nbsp;&nbsp;&nbsp;Strategic Education, Inc. | 14 | 1096 |
| &nbsp;&nbsp;&nbsp;ICF International, Inc. | 11 | 1090 |
| &nbsp;&nbsp;&nbsp;Catalyst Pharmaceuticals, Inc.\* | 58 | 1079 |
| &nbsp;&nbsp;&nbsp;Inter Parfums, Inc. | 11 | 1062 |
| &nbsp;&nbsp;&nbsp;Corcept Therapeutics, Inc.\* | 52 | 1056 |
| &nbsp;&nbsp;&nbsp;REVOLUTION Medicines, Inc.\* | 44 | 1048 |
| &nbsp;&nbsp;&nbsp;Veracyte, Inc.\* | 44 | 1044 |
| &nbsp;&nbsp;&nbsp;Pacira BioSciences, Inc.\* | 27 | 1043 |
| &nbsp;&nbsp;&nbsp;John Wiley & Sons, Inc. — Class A | 26 | 1042 |
| &nbsp;&nbsp;&nbsp;Supernus Pharmaceuticals, Inc.\* | 29 | 1034 |
| &nbsp;&nbsp;&nbsp;Ironwood Pharmaceuticals, Inc. — Class A\* | 83 | 1028 |
| &nbsp;&nbsp;&nbsp;Vector Group Ltd. | 86 | 1020 |
| &nbsp;&nbsp;&nbsp;Cerevel Therapeutics Holdings, Inc.\* | 32 | 1009 |
| &nbsp;&nbsp;&nbsp;Arvinas, Inc.\* | 29 | 992 |
| &nbsp;&nbsp;&nbsp;R1 RCM, Inc.\* | 88 | 964 |
| &nbsp;&nbsp;&nbsp;Krystal Biotech, Inc.\* | 12 | 951 |
| &nbsp;&nbsp;&nbsp;Evo Payments, Inc. — Class A\* | 28 | 947 |
| &nbsp;&nbsp;&nbsp;LiveRamp Holdings, Inc.\* | 40 | 938 |

---

94 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| &nbsp;&nbsp;&nbsp;TG Therapeutics, Inc.\* | 79 | $935 |
| &nbsp;&nbsp;&nbsp;Agios Pharmaceuticals, Inc.\* | 33 | 927 |
| &nbsp;&nbsp;&nbsp;Adtalem Global Education, Inc.\* | 26 | 923 |
| &nbsp;&nbsp;&nbsp;Addus HomeCare Corp.\* | 9 | 895 |
| &nbsp;&nbsp;&nbsp;Revance Therapeutics, Inc.\* | 48 | 886 |
| &nbsp;&nbsp;&nbsp;Xencor, Inc.\* | 34 | 885 |
| &nbsp;&nbsp;&nbsp;Harmony Biosciences Holdings, Inc.\* | 16 | 882 |
| &nbsp;&nbsp;&nbsp;Owens & Minor, Inc.\* | 45 | 879 |
| &nbsp;&nbsp;&nbsp;Hain Celestial Group, Inc.\* | 54 | 874 |
| &nbsp;&nbsp;&nbsp;Huron Consulting Group, Inc.\* | 12 | 871 |
| &nbsp;&nbsp;&nbsp;Nevro Corp.\* | 22 | 871 |
| &nbsp;&nbsp;&nbsp;Meridian Bioscience, Inc.\* | 26 | 863 |
| &nbsp;&nbsp;&nbsp;Herbalife Nutrition Ltd.\* | 58 | 863 |
| &nbsp;&nbsp;&nbsp;Embecta Corp. | 34 | 860 |
| &nbsp;&nbsp;&nbsp;Central Garden & Pet Co. — Class A\* | 24 | 859 |
| &nbsp;&nbsp;&nbsp;Monro, Inc. | 19 | 859 |
| &nbsp;&nbsp;&nbsp;MGP Ingredients, Inc. | 8 | 851 |
| &nbsp;&nbsp;&nbsp;AdaptHealth Corp.\* | 44 | 846 |
| &nbsp;&nbsp;&nbsp;Textainer Group Holdings Ltd. | 27 | 837 |
| &nbsp;&nbsp;&nbsp;Surgery Partners, Inc.\* | 30 | 836 |
| &nbsp;&nbsp;&nbsp;FibroGen, Inc.\* | 52 | 833 |
| &nbsp;&nbsp;&nbsp;Weis Markets, Inc. | 10 | 823 |
| &nbsp;&nbsp;&nbsp;Twist Bioscience Corp.\* | 34 | 810 |
| &nbsp;&nbsp;&nbsp;Coursera, Inc.\* | 67 | 793 |
| &nbsp;&nbsp;&nbsp;MannKind Corp.\* | 150 | 791 |
| &nbsp;&nbsp;&nbsp;Syndax Pharmaceuticals, Inc.\* | 31 | 789 |
| &nbsp;&nbsp;&nbsp;CoreCivic, Inc.\* | 68 | 786 |
| &nbsp;&nbsp;&nbsp;Chinook Therapeutics, Inc.\* | 30 | 786 |
| &nbsp;&nbsp;&nbsp;Laureate Education, Inc. — Class A | 81 | 779 |
| &nbsp;&nbsp;&nbsp;Travere Therapeutics, Inc.\* | 37 | 778 |
| &nbsp;&nbsp;&nbsp;GEO Group, Inc.\* | 71 | 777 |
| &nbsp;&nbsp;&nbsp;Ingles Markets, Inc. — Class A | 8 | 772 |
| &nbsp;&nbsp;&nbsp;Dynavax Technologies Corp.\* | 72 | 766 |
| &nbsp;&nbsp;&nbsp;Vericel Corp.\* | 29 | 764 |
| &nbsp;&nbsp;&nbsp;Avanos Medical, Inc.\* | 28 | 758 |
| &nbsp;&nbsp;&nbsp;Stride, Inc.\* | 24 | 751 |
| &nbsp;&nbsp;&nbsp;Universal Corp. | 14 | 739 |
| &nbsp;&nbsp;&nbsp;Pediatrix Medical Group, Inc.\* | 49 | 728 |
| &nbsp;&nbsp;&nbsp;CorVel Corp.\* | 5 | 727 |
| &nbsp;&nbsp;&nbsp;ZipRecruiter, Inc. — Class A\* | 44 | 722 |
| &nbsp;&nbsp;&nbsp;Rent-A-Center, Inc. | 32 | 722 |
| &nbsp;&nbsp;&nbsp;ModivCare, Inc.\* | 8 | 718 |
| &nbsp;&nbsp;&nbsp;Payoneer Global, Inc.\* | 131 | 717 |
| &nbsp;&nbsp;&nbsp;Cytek Biosciences, Inc.\* | 69 | 705 |
| &nbsp;&nbsp;&nbsp;Relay Therapeutics, Inc.\* | 47 | 702 |
| &nbsp;&nbsp;&nbsp;Andersons, Inc. | 20 | 700 |
| &nbsp;&nbsp;&nbsp;Myriad Genetics, Inc.\* | 48 | 697 |
| &nbsp;&nbsp;&nbsp;Medifast, Inc. | 6 | 692 |
| &nbsp;&nbsp;&nbsp;NeoGenomics, Inc.\* | 74 | 684 |
| &nbsp;&nbsp;&nbsp;Cassava Sciences, Inc.\*<sup>,1</sup> | 23 | 679 |
| &nbsp;&nbsp;&nbsp;Viridian Therapeutics, Inc.\* | 23 | 672 |
| &nbsp;&nbsp;&nbsp;Vivint Smart Home, Inc.\* | 56 | 666 |
| &nbsp;&nbsp;&nbsp;Avidity Biosciences, Inc.\* | 30 | 666 |
| &nbsp;&nbsp;&nbsp;Chefs' Warehouse, Inc.\* | 20 | 666 |
| &nbsp;&nbsp;&nbsp;Remitly Global, Inc.\* | 58 | 664 |
| &nbsp;&nbsp;&nbsp;Kforce, Inc. | 12 | 658 |
| &nbsp;&nbsp;&nbsp;DICE Therapeutics, Inc.\* | 21 | 655 |
| &nbsp;&nbsp;&nbsp;Replimune Group, Inc.\* | 24 | 653 |
| &nbsp;&nbsp;&nbsp;National Beverage Corp.\* | 14 | 651 |
| &nbsp;&nbsp;&nbsp;Utz Brands, Inc. | 41 | 650 |
| &nbsp;&nbsp;&nbsp;US Physical Therapy, Inc. | 8 | 648 |
| &nbsp;&nbsp;&nbsp;ImmunoGen, Inc.\* | 130 | 645 |
| &nbsp;&nbsp;&nbsp;Amphastar Pharmaceuticals, Inc.\* | 23 | 645 |
| &nbsp;&nbsp;&nbsp;Arcus Biosciences, Inc.\* | 31 | 641 |
| &nbsp;&nbsp;&nbsp;SpartanNash Co. | 21 | 635 |
| &nbsp;&nbsp;&nbsp;Rocket Pharmaceuticals, Inc.\* | 32 | 626 |
| &nbsp;&nbsp;&nbsp;PROCEPT BioRobotics Corp.\* | 15 | 623 |
| &nbsp;&nbsp;&nbsp;MoneyGram International, Inc.\* | 57 | 621 |
| &nbsp;&nbsp;&nbsp;Recursion Pharmaceuticals, Inc. — Class A\* | 80 | 617 |
| &nbsp;&nbsp;&nbsp;Imago Biosciences, Inc.\* | 17 | 611 |
| &nbsp;&nbsp;&nbsp;Reata Pharmaceuticals, Inc. — Class A\* | 16 | 608 |
| &nbsp;&nbsp;&nbsp;Ligand Pharmaceuticals, Inc. — Class B\* | 9 | 601 |
| &nbsp;&nbsp;&nbsp;Aclaris Therapeutics, Inc.\* | 38 | 599 |
| &nbsp;&nbsp;&nbsp;Crinetics Pharmaceuticals, Inc.\* | 32 | 586 |
| &nbsp;&nbsp;&nbsp;Cross Country Healthcare, Inc.\* | 22 | 585 |
| &nbsp;&nbsp;&nbsp;Iovance Biotherapeutics, Inc.\* | 91 | 582 |
| &nbsp;&nbsp;&nbsp;Zentalis Pharmaceuticals, Inc.\* | 28 | 564 |
| &nbsp;&nbsp;&nbsp;Atrion Corp. | 1 | 559 |
| &nbsp;&nbsp;&nbsp;Arcellx, Inc.\* | 18 | 558 |
| &nbsp;&nbsp;&nbsp;Perdoceo Education Corp.\* | 40 | 556 |
| &nbsp;&nbsp;&nbsp;Beauty Health Co.\* | 61 | 555 |
| &nbsp;&nbsp;&nbsp;Kymera Therapeutics, Inc.\* | 22 | 549 |
| &nbsp;&nbsp;&nbsp;SpringWorks Therapeutics, Inc.\* | 21 | 546 |
| &nbsp;&nbsp;&nbsp;RadNet, Inc.\* | 29 | 546 |
| &nbsp;&nbsp;&nbsp;REGENXBIO, Inc.\* | 24 | 544 |
| &nbsp;&nbsp;&nbsp;Paragon 28, Inc.\* | 28 | 535 |
| &nbsp;&nbsp;&nbsp;Keros Therapeutics, Inc.\* | 11 | 528 |
| &nbsp;&nbsp;&nbsp;Healthcare Services Group, Inc. | 44 | 528 |
| &nbsp;&nbsp;&nbsp;Geron Corp.\* | 218 | 528 |
| &nbsp;&nbsp;&nbsp;Biohaven Ltd.\* | 38 | 527 |
| &nbsp;&nbsp;&nbsp;Verve Therapeutics, Inc.\* | 27 | 522 |
| &nbsp;&nbsp;&nbsp;Adaptive Biotechnologies Corp.\* | 68 | 520 |
| &nbsp;&nbsp;&nbsp;Alphatec Holdings, Inc.\* | 42 | 519 |
| &nbsp;&nbsp;&nbsp;Enanta Pharmaceuticals, Inc.\* | 11 | 512 |
| &nbsp;&nbsp;&nbsp;Avid Bioservices, Inc.\* | 37 | 510 |
| &nbsp;&nbsp;&nbsp;LeMaitre Vascular, Inc. | 11 | 506 |
| &nbsp;&nbsp;&nbsp;Fate Therapeutics, Inc.\* | 50 | 505 |
| &nbsp;&nbsp;&nbsp;Innoviva, Inc.\* | 38 | 504 |
| &nbsp;&nbsp;&nbsp;SunOpta, Inc.\* | 59 | 498 |
| &nbsp;&nbsp;&nbsp;Inhibrx, Inc.\* | 20 | 493 |
| &nbsp;&nbsp;&nbsp;Ideaya Biosciences, Inc.\* | 27 | 491 |
| &nbsp;&nbsp;&nbsp;PROG Holdings, Inc.\* | 29 | 490 |
| &nbsp;&nbsp;&nbsp;CRA International, Inc. | 4 | 490 |
| &nbsp;&nbsp;&nbsp;Collegium Pharmaceutical, Inc.\* | 21 | 487 |
| &nbsp;&nbsp;&nbsp;Varex Imaging Corp.\* | 24 | 487 |
| &nbsp;&nbsp;&nbsp;Treace Medical Concepts, Inc.\* | 21 | 483 |
| &nbsp;&nbsp;&nbsp;Bridgebio Pharma, Inc.\* | 63 | 480 |
| &nbsp;&nbsp;&nbsp;Quanex Building Products Corp. | 20 | 473 |
| &nbsp;&nbsp;&nbsp;Kura Oncology, Inc.\* | 38 | 472 |
| &nbsp;&nbsp;&nbsp;Fresh Del Monte Produce, Inc. | 18 | 472 |
| &nbsp;&nbsp;&nbsp;B&G Foods, Inc.<sup>1</sup> | 41 | 457 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 95

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| &nbsp;&nbsp;&nbsp;Beyond Meat, Inc.\*<sup>,1</sup> | 37 | $455 |
| &nbsp;&nbsp;&nbsp;First Advantage Corp.\* | 35 | 455 |
| &nbsp;&nbsp;&nbsp;Krispy Kreme, Inc. | 44 | 454 |
| &nbsp;&nbsp;&nbsp;Udemy, Inc.\* | 43 | 454 |
| &nbsp;&nbsp;&nbsp;Green Dot Corp. — Class A\* | 28 | 443 |
| &nbsp;&nbsp;&nbsp;Cutera, Inc.\* | 10 | 442 |
| &nbsp;&nbsp;&nbsp;Legalzoom.com, Inc.\* | 57 | 441 |
| &nbsp;&nbsp;&nbsp;Theravance Biopharma, Inc.\* | 39 | 438 |
| &nbsp;&nbsp;&nbsp;TrueBlue, Inc.\* | 22 | 431 |
| &nbsp;&nbsp;&nbsp;ADMA Biologics, Inc.\* | 111 | 431 |
| &nbsp;&nbsp;&nbsp;Cogent Biosciences, Inc.\* | 37 | 428 |
| &nbsp;&nbsp;&nbsp;Ventyx Biosciences, Inc.\* | 13 | 426 |
| &nbsp;&nbsp;&nbsp;Deciphera Pharmaceuticals, Inc.\* | 26 | 426 |
| &nbsp;&nbsp;&nbsp;Immunovant, Inc.\* | 24 | 426 |
| &nbsp;&nbsp;&nbsp;Deluxe Corp. | 25 | 424 |
| &nbsp;&nbsp;&nbsp;Repay Holdings Corp.\* | 52 | 419 |
| &nbsp;&nbsp;&nbsp;Paya Holdings, Inc.\* | 53 | 417 |
| &nbsp;&nbsp;&nbsp;SP Plus Corp.\* | 12 | 417 |
| &nbsp;&nbsp;&nbsp;National Healthcare Corp. | 7 | 417 |
| &nbsp;&nbsp;&nbsp;John B Sanfilippo & Son, Inc. | 5 | 407 |
| &nbsp;&nbsp;&nbsp;AnaptysBio, Inc.\* | 13 | 403 |
| &nbsp;&nbsp;&nbsp;Morphic Holding, Inc.\* | 15 | 401 |
| &nbsp;&nbsp;&nbsp;4D Molecular Therapeutics, Inc.\* | 18 | 400 |
| &nbsp;&nbsp;&nbsp;Agenus, Inc.\* | 166 | 398 |
| &nbsp;&nbsp;&nbsp;ViewRay, Inc.\* | 88 | 394 |
| &nbsp;&nbsp;&nbsp;American Well Corp. — Class A\* | 139 | 393 |
| &nbsp;&nbsp;&nbsp;Fulgent Genetics, Inc.\* | 13 | 387 |
| &nbsp;&nbsp;&nbsp;Cerus Corp.\* | 105 | 383 |
| &nbsp;&nbsp;&nbsp;Tootsie Roll Industries, Inc. | 9 | 383 |
| &nbsp;&nbsp;&nbsp;Franklin Covey Co.\* | 8 | 374 |
| &nbsp;&nbsp;&nbsp;Barrett Business Services, Inc. | 4 | 373 |
| &nbsp;&nbsp;&nbsp;Heska Corp.\* | 6 | 373 |
| &nbsp;&nbsp;&nbsp;USANA Health Sciences, Inc.\* | 7 | 372 |
| &nbsp;&nbsp;&nbsp;Anavex Life Sciences Corp.\* | 40 | 370 |
| &nbsp;&nbsp;&nbsp;Provention Bio, Inc.\* | 35 | 370 |
| &nbsp;&nbsp;&nbsp;Cass Information Systems, Inc. | 8 | 367 |
| &nbsp;&nbsp;&nbsp;Duckhorn Portfolio, Inc.\* | 22 | 365 |
| &nbsp;&nbsp;&nbsp;Lyell Immunopharma, Inc.\* | 105 | 364 |
| &nbsp;&nbsp;&nbsp;BioLife Solutions, Inc.\* | 20 | 364 |
| &nbsp;&nbsp;&nbsp;Editas Medicine, Inc.\* | 41 | 364 |
| &nbsp;&nbsp;&nbsp;ACCO Brands Corp. | 64 | 358 |
| &nbsp;&nbsp;&nbsp;OrthoPediatrics Corp.\* | 9 | 358 |
| &nbsp;&nbsp;&nbsp;Coherus Biosciences, Inc.\* | 45 | 356 |
| &nbsp;&nbsp;&nbsp;Arcutis Biotherapeutics, Inc.\* | 24 | 355 |
| &nbsp;&nbsp;&nbsp;CTI BioPharma Corp.\* | 59 | 355 |
| &nbsp;&nbsp;&nbsp;Transcat, Inc.\* | 5 | 354 |
| &nbsp;&nbsp;&nbsp;Emergent BioSolutions, Inc.\* | 30 | 354 |
| &nbsp;&nbsp;&nbsp;CareDx, Inc.\* | 31 | 354 |
| &nbsp;&nbsp;&nbsp;Aurinia Pharmaceuticals, Inc.\* | 81 | 350 |
| &nbsp;&nbsp;&nbsp;Resources Connection, Inc. | 19 | 349 |
| &nbsp;&nbsp;&nbsp;Day One Biopharmaceuticals, Inc.\* | 16 | 344 |
| &nbsp;&nbsp;&nbsp;Alector, Inc.\* | 37 | 342 |
| &nbsp;&nbsp;&nbsp;DocGo, Inc.\* | 48 | 339 |
| &nbsp;&nbsp;&nbsp;Kelly Services, Inc. — Class A | 20 | 338 |
| &nbsp;&nbsp;&nbsp;Ennis, Inc. | 15 | 332 |
| &nbsp;&nbsp;&nbsp;Castle Biosciences, Inc.\* | 14 | 330 |
| &nbsp;&nbsp;&nbsp;Community Health Systems, Inc.\* | 76 | 328 |
| &nbsp;&nbsp;&nbsp;Cardiovascular Systems, Inc.\* | 24 | 327 |
| &nbsp;&nbsp;&nbsp;23andMe Holding Co. — Class A\* | 151 | 326 |
| &nbsp;&nbsp;&nbsp;Hackett Group, Inc. | 16 | 326 |
| &nbsp;&nbsp;&nbsp;Calavo Growers, Inc. | 11 | 323 |
| &nbsp;&nbsp;&nbsp;ANI Pharmaceuticals, Inc.\* | 8 | 322 |
| &nbsp;&nbsp;&nbsp;Point Biopharma Global, Inc.\* | 44 | 321 |
| &nbsp;&nbsp;&nbsp;Viad Corp.\* | 13 | 317 |
| &nbsp;&nbsp;&nbsp;RAPT Therapeutics, Inc.\* | 16 | 317 |
| &nbsp;&nbsp;&nbsp;I3 Verticals, Inc. — Class A\* | 13 | 316 |
| &nbsp;&nbsp;&nbsp;Bluebird Bio, Inc.\* | 45 | 311 |
| &nbsp;&nbsp;&nbsp;Mersana Therapeutics, Inc.\* | 53 | 311 |
| &nbsp;&nbsp;&nbsp;Brookdale Senior Living, Inc. — Class A\* | 113 | 309 |
| &nbsp;&nbsp;&nbsp;Heidrick & Struggles International, Inc. | 11 | 308 |
| &nbsp;&nbsp;&nbsp;OPKO Health, Inc.\* | 244 | 305 |
| &nbsp;&nbsp;&nbsp;Cimpress plc\* | 11 | 304 |
| &nbsp;&nbsp;&nbsp;AngioDynamics, Inc.\* | 22 | 303 |
| &nbsp;&nbsp;&nbsp;Allogene Therapeutics, Inc.\* | 48 | 302 |
| &nbsp;&nbsp;&nbsp;National Research Corp. — Class A | 8 | 298 |
| &nbsp;&nbsp;&nbsp;Nuvalent, Inc. — Class A\* | 10 | 298 |
| &nbsp;&nbsp;&nbsp;Nurix Therapeutics, Inc.\* | 27 | 296 |
| &nbsp;&nbsp;&nbsp;Accolade, Inc.\* | 38 | 296 |
| &nbsp;&nbsp;&nbsp;Inogen, Inc.\* | 15 | 296 |
| &nbsp;&nbsp;&nbsp;Protagonist Therapeutics, Inc.\* | 27 | 295 |
| &nbsp;&nbsp;&nbsp;Quanterix Corp.\* | 21 | 291 |
| &nbsp;&nbsp;&nbsp;EQRx, Inc.\* | 118 | 290 |
| &nbsp;&nbsp;&nbsp;Cara Therapeutics, Inc.\* | 27 | 290 |
| &nbsp;&nbsp;&nbsp;V2X, Inc.\* | 7 | 289 |
| &nbsp;&nbsp;&nbsp;2U, Inc.\* | 46 | 288 |
| &nbsp;&nbsp;&nbsp;Forrester Research, Inc.\* | 8 | 286 |
| &nbsp;&nbsp;&nbsp;Senseonics Holdings, Inc.\* | 277 | 285 |
| &nbsp;&nbsp;&nbsp;Kiniksa Pharmaceuticals Ltd. — Class A\* | 19 | 285 |
| &nbsp;&nbsp;&nbsp;MaxCyte, Inc.\* | 52 | 284 |
| &nbsp;&nbsp;&nbsp;Artivion, Inc.\* | 23 | 279 |
| &nbsp;&nbsp;&nbsp;iTeos Therapeutics, Inc.\* | 14 | 273 |
| &nbsp;&nbsp;&nbsp;Surmodics, Inc.\* | 8 | 273 |
| &nbsp;&nbsp;&nbsp;Target Hospitality Corp.\* | 18 | 272 |
| &nbsp;&nbsp;&nbsp;SI-BONE, Inc.\* | 20 | 272 |
| &nbsp;&nbsp;&nbsp;Riot Blockchain, Inc.\*<sup>,1</sup> | 79 | 268 |
| &nbsp;&nbsp;&nbsp;Mission Produce, Inc.\* | 23 | 267 |
| &nbsp;&nbsp;&nbsp;Anika Therapeutics, Inc.\* | 9 | 266 |
| &nbsp;&nbsp;&nbsp;Benson Hill, Inc.\* | 104 | 265 |
| &nbsp;&nbsp;&nbsp;Multiplan Corp.\* | 227 | 261 |
| &nbsp;&nbsp;&nbsp;Agiliti, Inc.\* | 16 | 261 |
| &nbsp;&nbsp;&nbsp;Bionano Genomics, Inc.\* | 177 | 258 |
| &nbsp;&nbsp;&nbsp;Invitae Corp.\* | 138 | 257 |
| &nbsp;&nbsp;&nbsp;Vital Farms, Inc.\* | 17 | 254 |
| &nbsp;&nbsp;&nbsp;Vanda Pharmaceuticals, Inc.\* | 34 | 251 |
| &nbsp;&nbsp;&nbsp;Nektar Therapeutics\* | 110 | 249 |
| &nbsp;&nbsp;&nbsp;ImmunityBio, Inc.\* | 49 | 248 |
| &nbsp;&nbsp;&nbsp;Carriage Services, Inc. — Class A | 9 | 248 |
| &nbsp;&nbsp;&nbsp;Orthofix Medical, Inc.\* | 12 | 246 |
| &nbsp;&nbsp;&nbsp;Tejon Ranch Co.\* | 13 | 245 |
| &nbsp;&nbsp;&nbsp;Esperion Therapeutics, Inc.\* | 39 | 243 |
| &nbsp;&nbsp;&nbsp;MacroGenics, Inc.\* | 36 | 242 |
| &nbsp;&nbsp;&nbsp;OraSure Technologies, Inc.\* | 50 | 241 |

---

96 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| &nbsp;&nbsp;&nbsp;Axogen, Inc.\* | 24 | $240 |
| &nbsp;&nbsp;&nbsp;Arcturus Therapeutics Holdings, Inc.\* | 14 | 237 |
| &nbsp;&nbsp;&nbsp;Bioxcel Therapeutics, Inc.\* | 11 | 236 |
| &nbsp;&nbsp;&nbsp;Sangamo Therapeutics, Inc.\* | 75 | 236 |
| &nbsp;&nbsp;&nbsp;Seres Therapeutics, Inc.\* | 42 | 235 |
| &nbsp;&nbsp;&nbsp;Sutro Biopharma, Inc.\* | 29 | 234 |
| &nbsp;&nbsp;&nbsp;Paysafe Ltd.\* | 17 | 234 |
| &nbsp;&nbsp;&nbsp;Inovio Pharmaceuticals, Inc.\* | 145 | 226 |
| &nbsp;&nbsp;&nbsp;SomaLogic, Inc.\* | 90 | 226 |
| &nbsp;&nbsp;&nbsp;Central Garden & Pet Co.\* | 6 | 225 |
| &nbsp;&nbsp;&nbsp;Marathon Digital Holdings, Inc.\* | 65 | 222 |
| &nbsp;&nbsp;&nbsp;Atea Pharmaceuticals, Inc.\* | 46 | 221 |
| &nbsp;&nbsp;&nbsp;Custom Truck One Source, Inc.\* | 35 | 221 |
| &nbsp;&nbsp;&nbsp;Vita Coco Company, Inc.\* | 16 | 221 |
| &nbsp;&nbsp;&nbsp;Dyne Therapeutics, Inc.\* | 19 | 220 |
| &nbsp;&nbsp;&nbsp;Kezar Life Sciences, Inc.\* | 31 | 218 |
| &nbsp;&nbsp;&nbsp;LifeStance Health Group, Inc.\* | 44 | 217 |
| &nbsp;&nbsp;&nbsp;Sterling Check Corp.\* | 14 | 217 |
| &nbsp;&nbsp;&nbsp;Turning Point Brands, Inc. | 10 | 216 |
| &nbsp;&nbsp;&nbsp;Albireo Pharma, Inc.\* | 10 | 216 |
| &nbsp;&nbsp;&nbsp;NanoString Technologies, Inc.\* | 27 | 215 |
| &nbsp;&nbsp;&nbsp;Aaron's Company, Inc. | 18 | 215 |
| &nbsp;&nbsp;&nbsp;Mirum Pharmaceuticals, Inc.\* | 11 | 215 |
| &nbsp;&nbsp;&nbsp;Clover Health Investments Corp.\* | 226 | 210 |
| &nbsp;&nbsp;&nbsp;Sana Biotechnology, Inc.\* | 53 | 209 |
| &nbsp;&nbsp;&nbsp;Zynex, Inc. | 15 | 209 |
| &nbsp;&nbsp;&nbsp;Caribou Biosciences, Inc.\* | 33 | 207 |
| &nbsp;&nbsp;&nbsp;2seventy bio, Inc.\* | 22 | 206 |
| &nbsp;&nbsp;&nbsp;SIGA Technologies, Inc. | 28 | 206 |
| &nbsp;&nbsp;&nbsp;Veru, Inc.\* | 39 | 206 |
| &nbsp;&nbsp;&nbsp;Design Therapeutics, Inc.\* | 20 | 205 |
| &nbsp;&nbsp;&nbsp;Sorrento Therapeutics, Inc.\* | 230 | 204 |
| &nbsp;&nbsp;&nbsp;Tango Therapeutics, Inc.\* | 28 | 203 |
| &nbsp;&nbsp;&nbsp;Utah Medical Products, Inc. | 2 | 201 |
| &nbsp;&nbsp;&nbsp;Butterfly Network, Inc.\* | 81 | 199 |
| &nbsp;&nbsp;&nbsp;Nano-X Imaging Ltd.\*<sup>,1</sup> | 27 | 199 |
| &nbsp;&nbsp;&nbsp;PMV Pharmaceuticals, Inc.\* | 22 | 191 |
| &nbsp;&nbsp;&nbsp;Cullinan Oncology, Inc.\* | 18 | 190 |
| &nbsp;&nbsp;&nbsp;MiMedx Group, Inc.\* | 68 | 189 |
| &nbsp;&nbsp;&nbsp;Pennant Group, Inc.\* | 17 | 187 |
| &nbsp;&nbsp;&nbsp;Intercept Pharmaceuticals, Inc.\* | 15 | 186 |
| &nbsp;&nbsp;&nbsp;Alta Equipment Group, Inc. | 14 | 185 |
| &nbsp;&nbsp;&nbsp;Seneca Foods Corp. — Class A\* | 3 | 183 |
| &nbsp;&nbsp;&nbsp;Seer, Inc.\* | 31 | 180 |
| &nbsp;&nbsp;&nbsp;BrightView Holdings, Inc.\* | 26 | 179 |
| &nbsp;&nbsp;&nbsp;Arlo Technologies, Inc.\* | 51 | 179 |
| &nbsp;&nbsp;&nbsp;Liquidia Corp.\* | 28 | 178 |
| &nbsp;&nbsp;&nbsp;Atara Biotherapeutics, Inc.\* | 54 | 177 |
| &nbsp;&nbsp;&nbsp;Oscar Health, Inc. — Class A\* | 72 | 177 |
| &nbsp;&nbsp;&nbsp;Pulmonx Corp.\* | 21 | 177 |
| &nbsp;&nbsp;&nbsp;Eagle Pharmaceuticals, Inc.\* | 6 | 175 |
| &nbsp;&nbsp;&nbsp;SeaSpine Holdings Corp.\* | 21 | 175 |
| &nbsp;&nbsp;&nbsp;European Wax Center, Inc. — Class A | 14 | 174 |
| &nbsp;&nbsp;&nbsp;ShotSpotter, Inc.\* | 5 | 169 |
| &nbsp;&nbsp;&nbsp;Erasca, Inc.\* | 39 | 168 |
| &nbsp;&nbsp;&nbsp;Ocugen, Inc.\*<sup>,1</sup> | 128 | 166 |
| &nbsp;&nbsp;&nbsp;RxSight, Inc.\* | 13 | 165 |
| &nbsp;&nbsp;&nbsp;Tarsus Pharmaceuticals, Inc.\* | 11 | 161 |
| &nbsp;&nbsp;&nbsp;Phibro Animal Health Corp. — Class A | 12 | 161 |
| &nbsp;&nbsp;&nbsp;Edgewise Therapeutics, Inc.\* | 18 | 161 |
| &nbsp;&nbsp;&nbsp;OmniAb, Inc.\* | 44 | 158 |
| &nbsp;&nbsp;&nbsp;Evolus, Inc.\* | 21 | 158 |
| &nbsp;&nbsp;&nbsp;Rigel Pharmaceuticals, Inc.\* | 105 | 158 |
| &nbsp;&nbsp;&nbsp;Phathom Pharmaceuticals, Inc.\* | 14 | 157 |
| &nbsp;&nbsp;&nbsp;PetIQ, Inc.\* | 17 | 157 |
| &nbsp;&nbsp;&nbsp;Karyopharm Therapeutics, Inc.\* | 46 | 156 |
| &nbsp;&nbsp;&nbsp;Heron Therapeutics, Inc.\* | 62 | 155 |
| &nbsp;&nbsp;&nbsp;Vera Therapeutics, Inc.\* | 8 | 155 |
| &nbsp;&nbsp;&nbsp;Fulcrum Therapeutics, Inc.\* | 21 | 153 |
| &nbsp;&nbsp;&nbsp;Adicet Bio, Inc.\* | 17 | 152 |
| &nbsp;&nbsp;&nbsp;Arbutus Biopharma Corp.\* | 65 | 151 |
| &nbsp;&nbsp;&nbsp;Kodiak Sciences, Inc.\* | 21 | 150 |
| &nbsp;&nbsp;&nbsp;C4 Therapeutics, Inc.\* | 25 | 148 |
| &nbsp;&nbsp;&nbsp;CinCor Pharma, Inc.\* | 12 | 148 |
| &nbsp;&nbsp;&nbsp;ALX Oncology Holdings, Inc.\* | 13 | 147 |
| &nbsp;&nbsp;&nbsp;Aerovate Therapeutics, Inc.\* | 5 | 147 |
| &nbsp;&nbsp;&nbsp;Janux Therapeutics, Inc.\* | 11 | 145 |
| &nbsp;&nbsp;&nbsp;iRadimed Corp. | 5 | 141 |
| &nbsp;&nbsp;&nbsp;Village Super Market, Inc. — Class A | 6 | 140 |
| &nbsp;&nbsp;&nbsp;Tactile Systems Technology, Inc.\* | 12 | 138 |
| &nbsp;&nbsp;&nbsp;Nuvation Bio, Inc.\* | 71 | 136 |
| &nbsp;&nbsp;&nbsp;American Public Education, Inc.\* | 11 | 135 |
| &nbsp;&nbsp;&nbsp;Cano Health, Inc.\* | 98 | 134 |
| &nbsp;&nbsp;&nbsp;HilleVax, Inc.\* | 8 | 134 |
| &nbsp;&nbsp;&nbsp;Cue Health, Inc.\* | 64 | 132 |
| &nbsp;&nbsp;&nbsp;Monte Rosa Therapeutics, Inc.\* | 17 | 129 |
| &nbsp;&nbsp;&nbsp;Ocular Therapeutix, Inc.\* | 46 | 129 |
| &nbsp;&nbsp;&nbsp;CareMax, Inc.\* | 35 | 128 |
| &nbsp;&nbsp;&nbsp;Universal Technical Institute, Inc.\* | 19 | 128 |
| &nbsp;&nbsp;&nbsp;WW International, Inc.\* | 33 | 127 |
| &nbsp;&nbsp;&nbsp;Joint Corp.\* | 9 | 126 |
| &nbsp;&nbsp;&nbsp;Willdan Group, Inc.\* | 7 | 125 |
| &nbsp;&nbsp;&nbsp;Amneal Pharmaceuticals, Inc.\* | 62 | 123 |
| &nbsp;&nbsp;&nbsp;Zimvie, Inc.\* | 13 | 121 |
| &nbsp;&nbsp;&nbsp;Honest Company, Inc.\* | 40 | 120 |
| &nbsp;&nbsp;&nbsp;Stoke Therapeutics, Inc.\* | 13 | 120 |
| &nbsp;&nbsp;&nbsp;Nkarta, Inc.\* | 20 | 120 |
| &nbsp;&nbsp;&nbsp;MeiraGTx Holdings plc\* | 18 | 117 |
| &nbsp;&nbsp;&nbsp;Aura Biosciences, Inc.\* | 11 | 116 |
| &nbsp;&nbsp;&nbsp;Aadi Bioscience, Inc.\* | 9 | 115 |
| &nbsp;&nbsp;&nbsp;NGM Biopharmaceuticals, Inc.\* | 23 | 115 |
| &nbsp;&nbsp;&nbsp;Organogenesis Holdings, Inc.\* | 42 | 113 |
| &nbsp;&nbsp;&nbsp;Prime Medicine, Inc.\* | 6 | 112 |
| &nbsp;&nbsp;&nbsp;Distribution Solutions Group, Inc.\* | 3 | 111 |
| &nbsp;&nbsp;&nbsp;Information Services Group, Inc. | 24 | 110 |
| &nbsp;&nbsp;&nbsp;Generation Bio Co.\* | 28 | 110 |
| &nbsp;&nbsp;&nbsp;Kinnate Biopharma, Inc.\* | 18 | 110 |
| &nbsp;&nbsp;&nbsp;Y-mAbs Therapeutics, Inc.\* | 22 | 107 |
| &nbsp;&nbsp;&nbsp;Xeris Biopharma Holdings, Inc.\* | 80 | 106 |
| &nbsp;&nbsp;&nbsp;Affimed N.V.\* | 85 | 105 |
| &nbsp;&nbsp;&nbsp;Lifecore Biomedical, Inc.\* | 16 | 104 |
| &nbsp;&nbsp;&nbsp;Icosavax, Inc.\* | 13 | 103 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 97

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;IGM Biosciences, Inc.\* | 6 | $| 102 |
| &nbsp;&nbsp;&nbsp;HF Foods Group, Inc.\* | 25 |  | 101 |
| &nbsp;&nbsp;&nbsp;KalVista Pharmaceuticals, Inc.\* | 15 |  | 101 |
| &nbsp;&nbsp;&nbsp;Quantum-Si, Inc.\* | 55 |  | 101 |
| &nbsp;&nbsp;&nbsp;Quad/Graphics, Inc.\* | 24 |  | 98 |
| &nbsp;&nbsp;&nbsp;Whole Earth Brands, Inc.\* | 24 |  | 98 |
| &nbsp;&nbsp;&nbsp;Alico, Inc. | 4 |  | 96 |
| &nbsp;&nbsp;&nbsp;Chimerix, Inc.\* | 51 |  | 95 |
| &nbsp;&nbsp;&nbsp;Lexicon Pharmaceuticals, Inc.\* | 49 |  | 94 |
| &nbsp;&nbsp;&nbsp;Allovir, Inc.\* | 18 |  | 92 |
| &nbsp;&nbsp;&nbsp;BRC, Inc. — Class A\* | 15 |  | 92 |
| &nbsp;&nbsp;&nbsp;Precigen, Inc.\* | 60 |  | 91 |
| &nbsp;&nbsp;&nbsp;Berkeley Lights, Inc.\* | 34 |  | 91 |
| &nbsp;&nbsp;&nbsp;22nd Century Group, Inc.\*<sup>,1</sup> | 98 |  | 90 |
| &nbsp;&nbsp;&nbsp;Akoya Biosciences, Inc.\* | 9 |  | 86 |
| &nbsp;&nbsp;&nbsp;Rent the Runway, Inc. — Class A\* | 28 |  | 85 |
| &nbsp;&nbsp;&nbsp;Foghorn Therapeutics, Inc.\* | 13 |  | 83 |
| &nbsp;&nbsp;&nbsp;Gossamer Bio, Inc.\* | 38 |  | 82 |
| &nbsp;&nbsp;&nbsp;PepGen, Inc.\* | 6 |  | 80 |
| &nbsp;&nbsp;&nbsp;Innovage Holding Corp.\*<sup>,1</sup> | 11 |  | 79 |
| &nbsp;&nbsp;&nbsp;Outlook Therapeutics, Inc.\* | 71 |  | 77 |
| &nbsp;&nbsp;&nbsp;Bright Health Group, Inc.\* | 117 |  | 76 |
| &nbsp;&nbsp;&nbsp;Nature's Sunshine Products, Inc.\* | 9 |  | 75 |
| &nbsp;&nbsp;&nbsp;Spire Global, Inc.\* | 76 |  | 73 |
| &nbsp;&nbsp;&nbsp;Vaxart, Inc.\* | 75 |  | 72 |
| &nbsp;&nbsp;&nbsp;Vintage Wine Estates, Inc.\* | 21 |  | 68 |
| &nbsp;&nbsp;&nbsp;Singular Genomics Systems, Inc.\* | 34 |  | 68 |
| &nbsp;&nbsp;&nbsp;Absci Corp.\* | 32 |  | 67 |
| &nbsp;&nbsp;&nbsp;Century Therapeutics, Inc.\* | 13 |  | 67 |
| &nbsp;&nbsp;&nbsp;Vicarious Surgical, Inc.\*<sup>,1</sup> | 33 |  | 67 |
| &nbsp;&nbsp;&nbsp;Alpine Immune Sciences, Inc.\* | 9 |  | 66 |
| &nbsp;&nbsp;&nbsp;Rallybio Corp.\* | 10 |  | 66 |
| &nbsp;&nbsp;&nbsp;Athira Pharma, Inc.\* | 20 |  | 63 |
| &nbsp;&nbsp;&nbsp;PFSweb, Inc. | 10 |  | 61 |
| &nbsp;&nbsp;&nbsp;Tyra Biosciences, Inc.\* | 8 |  | 61 |
| &nbsp;&nbsp;&nbsp;Moneylion, Inc.\* | 98 |  | 61 |
| &nbsp;&nbsp;&nbsp;Relmada Therapeutics, Inc.\* | 17 |  | 59 |
| &nbsp;&nbsp;&nbsp;Priority Technology Holdings, Inc.\* | 11 |  | 58 |
| &nbsp;&nbsp;&nbsp;EyePoint Pharmaceuticals, Inc.\* | 16 |  | 56 |
| &nbsp;&nbsp;&nbsp;Theseus Pharmaceuticals, Inc.\* | 11 |  | 55 |
| &nbsp;&nbsp;&nbsp;Inotiv, Inc.\* | 11 |  | 54 |
| &nbsp;&nbsp;&nbsp;Praxis Precision Medicines, Inc.\* | 22 |  | 52 |
| &nbsp;&nbsp;&nbsp;Nautilus Biotechnology, Inc.\* | 29 |  | 52 |
| &nbsp;&nbsp;&nbsp;Celularity, Inc.\* | 39 |  | 50 |
| &nbsp;&nbsp;&nbsp;Bioventus, Inc. — Class A\* | 18 |  | 47 |
| &nbsp;&nbsp;&nbsp;Invivyd, Inc.\* | 31 |  | 47 |
| &nbsp;&nbsp;&nbsp;VBI Vaccines, Inc.\* | 117 |  | 46 |
| &nbsp;&nbsp;&nbsp;Natural Grocers by Vitamin Cottage, Inc. | 5 |  | 46 |
| &nbsp;&nbsp;&nbsp;Bakkt Holdings, Inc.\*<sup>,1</sup> | 37 |  | 44 |
| &nbsp;&nbsp;&nbsp;Kronos Bio, Inc.\* | 25 |  | 41 |
| &nbsp;&nbsp;&nbsp;Tattooed Chef, Inc.\* | 30 |  | 37 |
| &nbsp;&nbsp;&nbsp;Tenaya Therapeutics, Inc.\* | 17 |  | 34 |
| &nbsp;&nbsp;&nbsp;Beachbody Company, Inc.\* | 63 |  | 33 |
| &nbsp;&nbsp;&nbsp;Pardes Biosciences, Inc.\* | 19 |  | 32 |
| &nbsp;&nbsp;&nbsp;P3 Health Partners, Inc.\* | 17 |  | 31 |
| &nbsp;&nbsp;&nbsp;Thorne HealthTech, Inc.\* | 8 |  | 29 |
| &nbsp;&nbsp;&nbsp;Jounce Therapeutics, Inc.\* | 26 |  | 29 |
| &nbsp;&nbsp;&nbsp;AN2 Therapeutics, Inc.\*<sup>,1</sup> | 3 |  | 29 |
| &nbsp;&nbsp;&nbsp;Eiger BioPharmaceuticals, Inc.\* | 24 |  | 28 |
| &nbsp;&nbsp;&nbsp;Instil Bio, Inc.\* | 42 |  | 26 |
| &nbsp;&nbsp;&nbsp;AirSculpt Technologies, Inc. | 7 |  | 26 |
| &nbsp;&nbsp;&nbsp;Sema4 Holdings Corp.\* | 95 |  | 25 |
| &nbsp;&nbsp;&nbsp;CompoSecure, Inc.\* | 5 |  | 25 |
| &nbsp;&nbsp;&nbsp;AppHarvest, Inc.\* | 43 |  | 24 |
| &nbsp;&nbsp;&nbsp;Humacyte, Inc.\* | 11 |  | 23 |
| &nbsp;&nbsp;&nbsp;Alpha Teknova, Inc.\* | 4 |  | 23 |
| &nbsp;&nbsp;&nbsp;Oncology Institute, Inc.\* | 13 |  | 22 |
| &nbsp;&nbsp;&nbsp;Aveanna Healthcare Holdings, Inc.\* | 27 |  | 21 |
| &nbsp;&nbsp;&nbsp;Bird Global, Inc. — Class A\* | 103 |  | 19 |
| &nbsp;&nbsp;&nbsp;MarketWise, Inc.\* | 11 |  | 18 |
| &nbsp;&nbsp;&nbsp;Local Bounti Corp.\* | 13 |  | 18 |
| &nbsp;&nbsp;&nbsp;Science 37 Holdings, Inc.\* | 37 |  | 15 |
| &nbsp;&nbsp;&nbsp;ATI Physical Therapy, Inc.\* | 45 |  | 14 |
| &nbsp;&nbsp;&nbsp;Babylon Holdings Ltd. — Class A\* | 2 |  | 14 |
| &nbsp;&nbsp;&nbsp;Cipher Mining, Inc.\* | 24 |  | 13 |
| &nbsp;&nbsp;&nbsp;Talaris Therapeutics, Inc.\* | 13 |  | 13 |
| &nbsp;&nbsp;&nbsp;Enochian Biosciences, Inc.\* | 12 |  | 12 |
| &nbsp;&nbsp;&nbsp;VistaGen Therapeutics, Inc.\* | 117 |  | 12 |
| &nbsp;&nbsp;&nbsp;GreenLight Biosciences Holdings PBC\*<sup>,1</sup> | 10 |  | 12 |
| &nbsp;&nbsp;&nbsp;Wejo Group Ltd.\* | 14 |  | 7 |
| &nbsp;&nbsp;&nbsp;Owlet, Inc.\* | 10 |  | 6 |
| &nbsp;&nbsp;&nbsp;Tenon Medical, Inc.\* | 2 |  | 3 |
| &nbsp;&nbsp;&nbsp;Tricida, Inc.\* | 20 |  | 3 |
| &nbsp;&nbsp;&nbsp;Greenidge Generation Holdings, Inc.\* | 8 |  | 2 |
| &nbsp;&nbsp;&nbsp;Gelesis Holdings, Inc.\* | 7 |  | 2 |
| &nbsp;&nbsp;&nbsp;Leafly Holdings, Inc.\* | 3 |  | 2 |
| &nbsp;&nbsp;&nbsp;Boxed, Inc.\* | 8 |  | 2 |
| &nbsp;&nbsp;&nbsp;Ligand Pharmaceuticals Inc\*<sup>,††</sup> | 3 |  |  |
| &nbsp;&nbsp;&nbsp;Ligand Pharmaceuticals Inc\*<sup>,††</sup> | 3 |  |  |
| **Total Consumer, Non-cyclical** |  |  | 325903 |
| **Financial - 9.5%** | **Financial - 9.5%** | **Financial - 9.5%** | **Financial - 9.5%** |
| &nbsp;&nbsp;&nbsp;Agree Realty Corp. REIT | 52 |  | 3688 |
| &nbsp;&nbsp;&nbsp;STAG Industrial, Inc. REIT | 109 |  | 3522 |
| &nbsp;&nbsp;&nbsp;SouthState Corp. | 45 |  | 3436 |
| &nbsp;&nbsp;&nbsp;Kinsale Capital Group, Inc. | 13 |  | 3400 |
| &nbsp;&nbsp;&nbsp;Glacier Bancorp, Inc. | 66 |  | 3262 |
| &nbsp;&nbsp;&nbsp;Selective Insurance Group, Inc. | 36 |  | 3190 |
| &nbsp;&nbsp;&nbsp;Old National Bancorp | 176 |  | 3164 |
| &nbsp;&nbsp;&nbsp;United Bankshares, Inc. | 78 |  | 3158 |
| &nbsp;&nbsp;&nbsp;RLI Corp. | 23 |  | 3019 |
| &nbsp;&nbsp;&nbsp;Valley National Bancorp | 260 |  | 2941 |
| &nbsp;&nbsp;&nbsp;Kite Realty Group Trust REIT | 132 |  | 2779 |
| &nbsp;&nbsp;&nbsp;First Financial Bankshares, Inc. | 79 |  | 2718 |
| &nbsp;&nbsp;&nbsp;Home BancShares, Inc. | 115 |  | 2621 |
| &nbsp;&nbsp;&nbsp;Ryman Hospitality Properties, Inc. REIT | 32 |  | 2617 |
| &nbsp;&nbsp;&nbsp;Houlihan Lokey, Inc. | 30 |  | 2615 |
| &nbsp;&nbsp;&nbsp;Cadence Bank | 106 |  | 2614 |
| &nbsp;&nbsp;&nbsp;Terreno Realty Corp. REIT | 45 |  | 2559 |
| &nbsp;&nbsp;&nbsp;Hancock Whitney Corp. | 52 |  | 2516 |
| &nbsp;&nbsp;&nbsp;Essent Group Ltd. | 63 |  | 2449 |
| &nbsp;&nbsp;&nbsp;Independent Bank Corp. | 27 |  | 2280 |
| &nbsp;&nbsp;&nbsp;Independence Realty Trust, Inc. REIT | 134 |  | 2259 |

---

98 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| &nbsp;&nbsp;&nbsp;Phillips Edison & Company, Inc. REIT | 69 | $2197 |
| &nbsp;&nbsp;&nbsp;Blackstone Mortgage Trust, Inc. — Class A REIT | 103 | 2181 |
| &nbsp;&nbsp;&nbsp;UMB Financial Corp. | 26 | 2172 |
| &nbsp;&nbsp;&nbsp;United Community Banks, Inc. | 64 | 2163 |
| &nbsp;&nbsp;&nbsp;First Interstate BancSystem, Inc. — Class A | 54 | 2087 |
| &nbsp;&nbsp;&nbsp;PotlatchDeltic Corp. REIT | 47 | 2068 |
| &nbsp;&nbsp;&nbsp;ServisFirst Bancshares, Inc. | 30 | 2067 |
| &nbsp;&nbsp;&nbsp;Associated Banc-Corp. | 89 | 2055 |
| &nbsp;&nbsp;&nbsp;Apple Hospitality REIT, Inc. | 130 | 2051 |
| &nbsp;&nbsp;&nbsp;Community Bank System, Inc. | 32 | 2014 |
| &nbsp;&nbsp;&nbsp;CVB Financial Corp. | 78 | 2009 |
| &nbsp;&nbsp;&nbsp;Physicians Realty Trust REIT | 136 | 1968 |
| &nbsp;&nbsp;&nbsp;Essential Properties Realty Trust, Inc. REIT | 82 | 1925 |
| &nbsp;&nbsp;&nbsp;American Equity Investment Life Holding Co. | 42 | 1916 |
| &nbsp;&nbsp;&nbsp;Ameris Bancorp | 40 | 1886 |
| &nbsp;&nbsp;&nbsp;Federated Hermes, Inc. — Class B | 50 | 1816 |
| &nbsp;&nbsp;&nbsp;Radian Group, Inc. | 95 | 1812 |
| &nbsp;&nbsp;&nbsp;Pacific Premier Bancorp, Inc. | 56 | 1767 |
| &nbsp;&nbsp;&nbsp;Cathay General Bancorp | 43 | 1754 |
| &nbsp;&nbsp;&nbsp;Texas Capital Bancshares, Inc.\* | 29 | 1749 |
| &nbsp;&nbsp;&nbsp;Corporate Office Properties Trust REIT | 67 | 1738 |
| &nbsp;&nbsp;&nbsp;Sabra Health Care REIT, Inc. | 139 | 1728 |
| &nbsp;&nbsp;&nbsp;Innovative Industrial Properties, Inc. REIT | 17 | 1723 |
| &nbsp;&nbsp;&nbsp;Broadstone Net Lease, Inc. REIT | 104 | 1686 |
| &nbsp;&nbsp;&nbsp;WSFS Financial Corp. | 37 | 1678 |
| &nbsp;&nbsp;&nbsp;Mr Cooper Group, Inc.\* | 41 | 1645 |
| &nbsp;&nbsp;&nbsp;LXP Industrial Trust REIT | 162 | 1623 |
| &nbsp;&nbsp;&nbsp;Enstar Group Ltd.\* | 7 | 1617 |
| &nbsp;&nbsp;&nbsp;Atlantic Union Bankshares Corp. | 46 | 1616 |
| &nbsp;&nbsp;&nbsp;SITE Centers Corp. REIT | 118 | 1612 |
| &nbsp;&nbsp;&nbsp;Fulton Financial Corp. | 95 | 1599 |
| &nbsp;&nbsp;&nbsp;Eastern Bankshares, Inc. | 91 | 1570 |
| &nbsp;&nbsp;&nbsp;Jackson Financial, Inc. — Class A | 45 | 1566 |
| &nbsp;&nbsp;&nbsp;BankUnited, Inc. | 46 | 1563 |
| &nbsp;&nbsp;&nbsp;Genworth Financial, Inc. — Class A\* | 294 | 1555 |
| &nbsp;&nbsp;&nbsp;Simmons First National Corp. — Class A | 72 | 1554 |
| &nbsp;&nbsp;&nbsp;Equity Commonwealth REIT | 62 | 1548 |
| &nbsp;&nbsp;&nbsp;CNO Financial Group, Inc. | 67 | 1531 |
| &nbsp;&nbsp;&nbsp;Walker & Dunlop, Inc. | 19 | 1491 |
| &nbsp;&nbsp;&nbsp;Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT | 51 | 1478 |
| &nbsp;&nbsp;&nbsp;Macerich Co. REIT | 131 | 1475 |
| &nbsp;&nbsp;&nbsp;Outfront Media, Inc. REIT | 88 | 1459 |
| &nbsp;&nbsp;&nbsp;Moelis & Co. — Class A | 38 | 1458 |
| &nbsp;&nbsp;&nbsp;First Merchants Corp. | 35 | 1439 |
| &nbsp;&nbsp;&nbsp;International Bancshares Corp. | 31 | 1419 |
| &nbsp;&nbsp;&nbsp;First BanCorp | 109 | 1386 |
| &nbsp;&nbsp;&nbsp;Columbia Banking System, Inc. | 46 | 1386 |
| &nbsp;&nbsp;&nbsp;McGrath RentCorp | 14 | 1382 |
| &nbsp;&nbsp;&nbsp;Hamilton Lane, Inc. — Class A | 21 | 1341 |
| &nbsp;&nbsp;&nbsp;Axos Financial, Inc.\* | 35 | 1338 |
| &nbsp;&nbsp;&nbsp;First Financial Bancorp | 55 | 1333 |
| &nbsp;&nbsp;&nbsp;Banner Corp. | 21 | 1327 |
| &nbsp;&nbsp;&nbsp;Washington Federal, Inc. | 39 | 1308 |
| &nbsp;&nbsp;&nbsp;National Health Investors, Inc. REIT | 25 | 1305 |
| &nbsp;&nbsp;&nbsp;Focus Financial Partners, Inc. — Class A\* | 35 | 1304 |
| &nbsp;&nbsp;&nbsp;Piper Sandler Cos. | 10 | 1302 |
| &nbsp;&nbsp;&nbsp;WesBanco, Inc. | 35 | 1294 |
| &nbsp;&nbsp;&nbsp;Arbor Realty Trust, Inc. REIT | 97 | 1279 |
| &nbsp;&nbsp;&nbsp;Park National Corp. | 9 | 1267 |
| &nbsp;&nbsp;&nbsp;Independent Bank Group, Inc. | 21 | 1262 |
| &nbsp;&nbsp;&nbsp;Trustmark Corp. | 36 | 1257 |
| &nbsp;&nbsp;&nbsp;Four Corners Property Trust, Inc. REIT | 48 | 1245 |
| &nbsp;&nbsp;&nbsp;TowneBank | 40 | 1234 |
| &nbsp;&nbsp;&nbsp;Renasant Corp. | 32 | 1203 |
| &nbsp;&nbsp;&nbsp;Sunstone Hotel Investors, Inc. REIT | 124 | 1198 |
| &nbsp;&nbsp;&nbsp;Cushman & Wakefield plc\* | 96 | 1196 |
| &nbsp;&nbsp;&nbsp;Bread Financial Holdings, Inc. | 31 | 1167 |
| &nbsp;&nbsp;&nbsp;Kennedy-Wilson Holdings, Inc. | 72 | 1133 |
| &nbsp;&nbsp;&nbsp;Seacoast Banking Corporation of Florida | 36 | 1123 |
| &nbsp;&nbsp;&nbsp;Heartland Financial USA, Inc. | 24 | 1119 |
| &nbsp;&nbsp;&nbsp;Stock Yards Bancorp, Inc. | 17 | 1105 |
| &nbsp;&nbsp;&nbsp;Artisan Partners Asset Management, Inc. — Class A | 37 | 1099 |
| &nbsp;&nbsp;&nbsp;Retail Opportunity Investments Corp. REIT | 73 | 1097 |
| &nbsp;&nbsp;&nbsp;CareTrust REIT, Inc. | 59 | 1096 |
| &nbsp;&nbsp;&nbsp;Lakeland Financial Corp. | 15 | 1095 |
| &nbsp;&nbsp;&nbsp;Tanger Factory Outlet Centers, Inc. REIT | 61 | 1094 |
| &nbsp;&nbsp;&nbsp;Trupanion, Inc.\* | 23 | 1093 |
| &nbsp;&nbsp;&nbsp;Navient Corp. | 65 | 1069 |
| &nbsp;&nbsp;&nbsp;BancFirst Corp. | 12 | 1058 |
| &nbsp;&nbsp;&nbsp;Pebblebrook Hotel Trust REIT | 78 | 1044 |
| &nbsp;&nbsp;&nbsp;NBT Bancorp, Inc. | 24 | 1042 |
| &nbsp;&nbsp;&nbsp;DiamondRock Hospitality Co. REIT | 127 | 1040 |
| &nbsp;&nbsp;&nbsp;PJT Partners, Inc. — Class A | 14 | 1032 |
| &nbsp;&nbsp;&nbsp;Enterprise Financial Services Corp. | 21 | 1028 |
| &nbsp;&nbsp;&nbsp;NMI Holdings, Inc. — Class A\* | 49 | 1024 |
| &nbsp;&nbsp;&nbsp;Northwest Bancshares, Inc. | 72 | 1007 |
| &nbsp;&nbsp;&nbsp;RLJ Lodging Trust REIT | 94 | 995 |
| &nbsp;&nbsp;&nbsp;Urban Edge Properties REIT | 69 | 972 |
| &nbsp;&nbsp;&nbsp;TriCo Bancshares | 19 | 969 |
| &nbsp;&nbsp;&nbsp;Cohen & Steers, Inc. | 15 | 968 |
| &nbsp;&nbsp;&nbsp;PennyMac Financial Services, Inc. | 17 | 963 |
| &nbsp;&nbsp;&nbsp;StoneX Group, Inc.\* | 10 | 953 |
| &nbsp;&nbsp;&nbsp;InvenTrust Properties Corp. REIT | 40 | 947 |
| &nbsp;&nbsp;&nbsp;Westamerica BanCorp | 16 | 944 |
| &nbsp;&nbsp;&nbsp;Bancorp, Inc.\* | 33 | 937 |
| &nbsp;&nbsp;&nbsp;Horace Mann Educators Corp. | 25 | 934 |
| &nbsp;&nbsp;&nbsp;Veritex Holdings, Inc. | 33 | 927 |
| &nbsp;&nbsp;&nbsp;Elme Communities REIT | 52 | 926 |
| &nbsp;&nbsp;&nbsp;Xenia Hotels & Resorts, Inc. REIT | 70 | 923 |
| &nbsp;&nbsp;&nbsp;Provident Financial Services, Inc. | 43 | 919 |
| &nbsp;&nbsp;&nbsp;Sandy Spring Bancorp, Inc. | 26 | 916 |
| &nbsp;&nbsp;&nbsp;Hope Bancorp, Inc. | 71 | 910 |
| &nbsp;&nbsp;&nbsp;Apollo Commercial Real Estate Finance, Inc. REIT | 84 | 904 |
| &nbsp;&nbsp;&nbsp;Hilltop Holdings, Inc. | 30 | 900 |
| &nbsp;&nbsp;&nbsp;First Bancorp | 21 | 900 |
| &nbsp;&nbsp;&nbsp;Bank of NT Butterfield & Son Ltd. | 30 | 894 |
| &nbsp;&nbsp;&nbsp;BRP Group, Inc. — Class A\* | 35 | 880 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 99

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| &nbsp;&nbsp;&nbsp;Cannae Holdings, Inc.\* | 42 | $868 |
| &nbsp;&nbsp;&nbsp;Getty Realty Corp. REIT | 25 | 846 |
| &nbsp;&nbsp;&nbsp;City Holding Co. | 9 | 838 |
| &nbsp;&nbsp;&nbsp;Eagle Bancorp, Inc. | 19 | 837 |
| &nbsp;&nbsp;&nbsp;FB Financial Corp. | 23 | 831 |
| &nbsp;&nbsp;&nbsp;S&T Bancorp, Inc. | 24 | 820 |
| &nbsp;&nbsp;&nbsp;Two Harbors Investment Corp. REIT | 52 | 820 |
| &nbsp;&nbsp;&nbsp;LTC Properties, Inc. REIT | 23 | 817 |
| &nbsp;&nbsp;&nbsp;Nelnet, Inc. — Class A | 9 | 817 |
| &nbsp;&nbsp;&nbsp;Veris Residential, Inc. REIT\* | 51 | 812 |
| &nbsp;&nbsp;&nbsp;St. Joe Co. | 21 | 812 |
| &nbsp;&nbsp;&nbsp;Flywire Corp.\* | 33 | 808 |
| &nbsp;&nbsp;&nbsp;Alexander & Baldwin, Inc. REIT | 43 | 805 |
| &nbsp;&nbsp;&nbsp;Global Net Lease, Inc. REIT | 64 | 804 |
| &nbsp;&nbsp;&nbsp;Acadia Realty Trust REIT | 56 | 804 |
| &nbsp;&nbsp;&nbsp;Uniti Group, Inc. REIT | 144 | 796 |
| &nbsp;&nbsp;&nbsp;Stellar Bancorp, Inc. | 27 | 795 |
| &nbsp;&nbsp;&nbsp;American Assets Trust, Inc. REIT | 30 | 795 |
| &nbsp;&nbsp;&nbsp;Claros Mortgage Trust, Inc. | 54 | 794 |
| &nbsp;&nbsp;&nbsp;First Busey Corp. | 32 | 791 |
| &nbsp;&nbsp;&nbsp;Easterly Government Properties, Inc. REIT | 55 | 785 |
| &nbsp;&nbsp;&nbsp;First Commonwealth Financial Corp. | 56 | 782 |
| &nbsp;&nbsp;&nbsp;StepStone Group, Inc. — Class A | 31 | 781 |
| &nbsp;&nbsp;&nbsp;Berkshire Hills Bancorp, Inc. | 26 | 777 |
| &nbsp;&nbsp;&nbsp;PRA Group, Inc.\* | 23 | 777 |
| &nbsp;&nbsp;&nbsp;Virtus Investment Partners, Inc. | 4 | 766 |
| &nbsp;&nbsp;&nbsp;National Bank Holdings Corp. — Class A | 18 | 757 |
| &nbsp;&nbsp;&nbsp;Chimera Investment Corp. REIT | 136 | 748 |
| &nbsp;&nbsp;&nbsp;OFG Bancorp | 27 | 744 |
| &nbsp;&nbsp;&nbsp;Pathward Financial, Inc. | 17 | 732 |
| &nbsp;&nbsp;&nbsp;BGC Partners, Inc. — Class A | 193 | 728 |
| &nbsp;&nbsp;&nbsp;OceanFirst Financial Corp. | 34 | 723 |
| &nbsp;&nbsp;&nbsp;Service Properties Trust REIT | 99 | 722 |
| &nbsp;&nbsp;&nbsp;Blucora, Inc.\* | 28 | 715 |
| &nbsp;&nbsp;&nbsp;Tompkins Financial Corp. | 9 | 698 |
| &nbsp;&nbsp;&nbsp;Brookline Bancorp, Inc. | 49 | 693 |
| &nbsp;&nbsp;&nbsp;Ladder Capital Corp. — Class A REIT | 69 | 693 |
| &nbsp;&nbsp;&nbsp;Enova International, Inc.\* | 18 | 691 |
| &nbsp;&nbsp;&nbsp;Employers Holdings, Inc. | 16 | 690 |
| &nbsp;&nbsp;&nbsp;Triumph Financial, Inc.\* | 14 | 684 |
| &nbsp;&nbsp;&nbsp;Southside Bancshares, Inc. | 19 | 684 |
| &nbsp;&nbsp;&nbsp;Stewart Information Services Corp. | 16 | 684 |
| &nbsp;&nbsp;&nbsp;Capitol Federal Financial, Inc. | 79 | 683 |
| &nbsp;&nbsp;&nbsp;Piedmont Office Realty Trust, Inc. — Class A REIT | 74 | 679 |
| &nbsp;&nbsp;&nbsp;Safety Insurance Group, Inc. | 8 | 674 |
| &nbsp;&nbsp;&nbsp;Encore Capital Group, Inc.\* | 14 | 671 |
| &nbsp;&nbsp;&nbsp;Paramount Group, Inc. REIT | 112 | 665 |
| &nbsp;&nbsp;&nbsp;Newmark Group, Inc. — Class A | 83 | 661 |
| &nbsp;&nbsp;&nbsp;Franklin BSP Realty Trust, Inc. REIT | 51 | 658 |
| &nbsp;&nbsp;&nbsp;PennyMac Mortgage Investment Trust REIT | 53 | 657 |
| &nbsp;&nbsp;&nbsp;Compass Diversified Holdings | 36 | 656 |
| &nbsp;&nbsp;&nbsp;Lakeland Bancorp, Inc. | 37 | 652 |
| &nbsp;&nbsp;&nbsp;Apartment Investment and Management Co. — Class A REIT | 91 | 648 |
| &nbsp;&nbsp;&nbsp;Dime Community Bancshares, Inc. | 20 | 637 |
| &nbsp;&nbsp;&nbsp;German American Bancorp, Inc. | 17 | 634 |
| &nbsp;&nbsp;&nbsp;Palomar Holdings, Inc.\* | 14 | 632 |
| &nbsp;&nbsp;&nbsp;Brandywine Realty Trust REIT | 102 | 627 |
| &nbsp;&nbsp;&nbsp;Cowen, Inc. — Class A | 16 | 618 |
| &nbsp;&nbsp;&nbsp;Heritage Financial Corp. | 20 | 613 |
| &nbsp;&nbsp;&nbsp;MFA Financial, Inc. REIT | 62 | 611 |
| &nbsp;&nbsp;&nbsp;NETSTREIT Corp. | 33 | 605 |
| &nbsp;&nbsp;&nbsp;Preferred Bank/Los Angeles CA | 8 | 597 |
| &nbsp;&nbsp;&nbsp;New York Mortgage Trust, Inc. REIT | 230 | 589 |
| &nbsp;&nbsp;&nbsp;Mercury General Corp. | 17 | 581 |
| &nbsp;&nbsp;&nbsp;Live Oak Bancshares, Inc. | 19 | 574 |
| &nbsp;&nbsp;&nbsp;AMERISAFE, Inc. | 11 | 572 |
| &nbsp;&nbsp;&nbsp;Premier Financial Corp. | 21 | 566 |
| &nbsp;&nbsp;&nbsp;NexPoint Residential Trust, Inc. REIT | 13 | 566 |
| &nbsp;&nbsp;&nbsp;Farmer Mac — Class C | 5 | 564 |
| &nbsp;&nbsp;&nbsp;ProAssurance Corp. | 32 | 559 |
| &nbsp;&nbsp;&nbsp;Nicolet Bankshares, Inc.\* | 7 | 559 |
| &nbsp;&nbsp;&nbsp;Empire State Realty Trust, Inc. — Class A REIT | 80 | 539 |
| &nbsp;&nbsp;&nbsp;ConnectOne Bancorp, Inc. | 22 | 533 |
| &nbsp;&nbsp;&nbsp;Radius Global Infrastructure, Inc. — Class A\* | 45 | 532 |
| &nbsp;&nbsp;&nbsp;1st Source Corp. | 10 | 531 |
| &nbsp;&nbsp;&nbsp;Centerspace REIT | 9 | 528 |
| &nbsp;&nbsp;&nbsp;LendingClub Corp.\* | 60 | 528 |
| &nbsp;&nbsp;&nbsp;Washington Trust Bancorp, Inc. | 11 | 519 |
| &nbsp;&nbsp;&nbsp;Argo Group International Holdings Ltd. | 20 | 517 |
| &nbsp;&nbsp;&nbsp;Marcus & Millichap, Inc. | 15 | 517 |
| &nbsp;&nbsp;&nbsp;Customers Bancorp, Inc.\* | 18 | 510 |
| &nbsp;&nbsp;&nbsp;Ready Capital Corp. REIT | 45 | 501 |
| &nbsp;&nbsp;&nbsp;Community Healthcare Trust, Inc. REIT | 14 | 501 |
| &nbsp;&nbsp;&nbsp;Banc of California, Inc. | 31 | 494 |
| &nbsp;&nbsp;&nbsp;RPT Realty REIT | 49 | 492 |
| &nbsp;&nbsp;&nbsp;Amerant Bancorp, Inc. | 18 | 483 |
| &nbsp;&nbsp;&nbsp;UMH Properties, Inc. REIT | 30 | 483 |
| &nbsp;&nbsp;&nbsp;Peoples Bancorp, Inc. | 17 | 480 |
| &nbsp;&nbsp;&nbsp;Origin Bancorp, Inc. | 13 | 477 |
| &nbsp;&nbsp;&nbsp;Columbia Financial, Inc.\* | 22 | 476 |
| &nbsp;&nbsp;&nbsp;Necessity Retail REIT, Inc. | 80 | 474 |
| &nbsp;&nbsp;&nbsp;Ambac Financial Group, Inc.\* | 27 | 471 |
| &nbsp;&nbsp;&nbsp;Univest Financial Corp. | 18 | 470 |
| &nbsp;&nbsp;&nbsp;Hanmi Financial Corp. | 19 | 470 |
| &nbsp;&nbsp;&nbsp;Heritage Commerce Corp. | 36 | 468 |
| &nbsp;&nbsp;&nbsp;International Money Express, Inc.\* | 19 | 463 |
| &nbsp;&nbsp;&nbsp;KKR Real Estate Finance Trust, Inc. REIT | 33 | 461 |
| &nbsp;&nbsp;&nbsp;James River Group Holdings Ltd. | 22 | 460 |
| &nbsp;&nbsp;&nbsp;Redwood Trust, Inc. REIT | 68 | 460 |
| &nbsp;&nbsp;&nbsp;Community Trust Bancorp, Inc. | 10 | 459 |
| &nbsp;&nbsp;&nbsp;Safehold, Inc. REIT | 16 | 458 |
| &nbsp;&nbsp;&nbsp;Northfield Bancorp, Inc. | 29 | 456 |
| &nbsp;&nbsp;&nbsp;Summit Hotel Properties, Inc. REIT | 63 | 455 |
| &nbsp;&nbsp;&nbsp;eXp World Holdings, Inc. | 41 | 454 |
| &nbsp;&nbsp;&nbsp;WisdomTree, Inc. | 83 | 452 |
| &nbsp;&nbsp;&nbsp;TrustCo Bank Corporation NY | 12 | 451 |
| &nbsp;&nbsp;&nbsp;Armada Hoffler Properties, Inc. REIT | 39 | 448 |
| &nbsp;&nbsp;&nbsp;QCR Holdings, Inc. | 9 | 447 |

---

100 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| &nbsp;&nbsp;&nbsp;ARMOUR Residential REIT, Inc. | 79 | $445 |
| &nbsp;&nbsp;&nbsp;First Foundation, Inc. | 31 | 444 |
| &nbsp;&nbsp;&nbsp;Plymouth Industrial REIT, Inc. | 23 | 441 |
| &nbsp;&nbsp;&nbsp;Enact Holdings, Inc. | 18 | 434 |
| &nbsp;&nbsp;&nbsp;Ellington Financial, Inc. REIT | 35 | 433 |
| &nbsp;&nbsp;&nbsp;Gladstone Commercial Corp. REIT | 23 | 425 |
| &nbsp;&nbsp;&nbsp;Anywhere Real Estate, Inc.\* | 66 | 422 |
| &nbsp;&nbsp;&nbsp;Old Second Bancorp, Inc. | 26 | 417 |
| &nbsp;&nbsp;&nbsp;Goosehead Insurance, Inc. — Class A\* | 12 | 412 |
| &nbsp;&nbsp;&nbsp;B Riley Financial, Inc. | 12 | 410 |
| &nbsp;&nbsp;&nbsp;Peapack-Gladstone Financial Corp. | 11 | 409 |
| &nbsp;&nbsp;&nbsp;Brightsphere Investment Group, Inc. | 19 | 391 |
| &nbsp;&nbsp;&nbsp;First Bancshares, Inc. | 12 | 384 |
| &nbsp;&nbsp;&nbsp;Universal Health Realty Income Trust REIT | 8 | 382 |
| &nbsp;&nbsp;&nbsp;Camden National Corp. | 9 | 375 |
| &nbsp;&nbsp;&nbsp;Office Properties Income Trust REIT | 28 | 374 |
| &nbsp;&nbsp;&nbsp;First Community Bankshares, Inc. | 11 | 373 |
| &nbsp;&nbsp;&nbsp;Compass, Inc. — Class A\* | 160 | 373 |
| &nbsp;&nbsp;&nbsp;MBIA, Inc.\* | 29 | 373 |
| &nbsp;&nbsp;&nbsp;Bank First Corp. | 4 | 371 |
| &nbsp;&nbsp;&nbsp;Diamond Hill Investment Group, Inc. | 2 | 370 |
| &nbsp;&nbsp;&nbsp;Lemonade, Inc.\* | 27 | 369 |
| &nbsp;&nbsp;&nbsp;CBL & Associates Properties, Inc. REIT | 16 | 369 |
| &nbsp;&nbsp;&nbsp;Flushing Financial Corp. | 19 | 368 |
| &nbsp;&nbsp;&nbsp;Gladstone Land Corp. REIT | 20 | 367 |
| &nbsp;&nbsp;&nbsp;Kearny Financial Corp. | 36 | 365 |
| &nbsp;&nbsp;&nbsp;Horizon Bancorp, Inc. | 24 | 362 |
| &nbsp;&nbsp;&nbsp;HarborOne Bancorp, Inc. | 26 | 361 |
| &nbsp;&nbsp;&nbsp;Great Southern Bancorp, Inc. | 6 | 357 |
| &nbsp;&nbsp;&nbsp;First Mid Bancshares, Inc. | 11 | 353 |
| &nbsp;&nbsp;&nbsp;Metropolitan Bank Holding Corp.\* | 6 | 352 |
| &nbsp;&nbsp;&nbsp;Global Medical REIT, Inc. | 37 | 351 |
| &nbsp;&nbsp;&nbsp;BrightSpire Capital, Inc. REIT | 56 | 349 |
| &nbsp;&nbsp;&nbsp;Farmland Partners, Inc. REIT | 28 | 349 |
| &nbsp;&nbsp;&nbsp;CrossFirst Bankshares, Inc.\* | 28 | 347 |
| &nbsp;&nbsp;&nbsp;Byline Bancorp, Inc. | 15 | 345 |
| &nbsp;&nbsp;&nbsp;Chatham Lodging Trust REIT | 28 | 344 |
| &nbsp;&nbsp;&nbsp;Urstadt Biddle Properties, Inc. — Class A REIT | 18 | 341 |
| &nbsp;&nbsp;&nbsp;Cambridge Bancorp | 4 | 332 |
| &nbsp;&nbsp;&nbsp;Silvergate Capital Corp. — Class A\*<sup>,1</sup> | 19 | 331 |
| &nbsp;&nbsp;&nbsp;Bank of Marin Bancorp | 10 | 329 |
| &nbsp;&nbsp;&nbsp;United Fire Group, Inc. | 12 | 328 |
| &nbsp;&nbsp;&nbsp;SiriusPoint Ltd.\* | 55 | 325 |
| &nbsp;&nbsp;&nbsp;Central Pacific Financial Corp. | 16 | 324 |
| &nbsp;&nbsp;&nbsp;First Financial Corp. | 7 | 323 |
| &nbsp;&nbsp;&nbsp;Midland States Bancorp, Inc. | 12 | 319 |
| &nbsp;&nbsp;&nbsp;Dynex Capital, Inc. REIT | 25 | 318 |
| &nbsp;&nbsp;&nbsp;Independent Bank Corp. | 13 | 311 |
| &nbsp;&nbsp;&nbsp;Ares Commercial Real Estate Corp. REIT | 30 | 309 |
| &nbsp;&nbsp;&nbsp;iStar, Inc. REIT | 40 | 305 |
| &nbsp;&nbsp;&nbsp;HomeStreet, Inc. | 11 | 303 |
| &nbsp;&nbsp;&nbsp;Mercantile Bank Corp. | 9 | 301 |
| &nbsp;&nbsp;&nbsp;Brookfield Business Corp. — Class A | 16 | 301 |
| &nbsp;&nbsp;&nbsp;AssetMark Financial Holdings, Inc.\* | 13 | 299 |
| &nbsp;&nbsp;&nbsp;Orion Office REIT, Inc. | 35 | 299 |
| &nbsp;&nbsp;&nbsp;Equity Bancshares, Inc. — Class A | 9 | 294 |
| &nbsp;&nbsp;&nbsp;Bar Harbor Bankshares | 9 | 288 |
| &nbsp;&nbsp;&nbsp;MidWestOne Financial Group, Inc. | 9 | 286 |
| &nbsp;&nbsp;&nbsp;TPG RE Finance Trust, Inc. REIT | 42 | 285 |
| &nbsp;&nbsp;&nbsp;Coastal Financial Corp.\* | 6 | 285 |
| &nbsp;&nbsp;&nbsp;Saul Centers, Inc. REIT | 7 | 285 |
| &nbsp;&nbsp;&nbsp;National Western Life Group, Inc. — Class A | 1 | 281 |
| &nbsp;&nbsp;&nbsp;Broadmark Realty Capital, Inc. REIT | 78 | 278 |
| &nbsp;&nbsp;&nbsp;Hingham Institution For Savings The | 1 | 276 |
| &nbsp;&nbsp;&nbsp;SmartFinancial, Inc. | 10 | 275 |
| &nbsp;&nbsp;&nbsp;Arrow Financial Corp. | 8 | 271 |
| &nbsp;&nbsp;&nbsp;Whitestone REIT — Class B | 28 | 270 |
| &nbsp;&nbsp;&nbsp;Mid Penn Bancorp, Inc. | 9 | 270 |
| &nbsp;&nbsp;&nbsp;Victory Capital Holdings, Inc. — Class A | 10 | 268 |
| &nbsp;&nbsp;&nbsp;Farmers National Banc Corp. | 19 | 268 |
| &nbsp;&nbsp;&nbsp;Business First Bancshares, Inc. | 12 | 266 |
| &nbsp;&nbsp;&nbsp;Redfin Corp.\* | 62 | 263 |
| &nbsp;&nbsp;&nbsp;Capital City Bank Group, Inc. | 8 | 260 |
| &nbsp;&nbsp;&nbsp;Invesco Mortgage Capital, Inc. REIT | 20 | 255 |
| &nbsp;&nbsp;&nbsp;RMR Group, Inc. — Class A | 9 | 254 |
| &nbsp;&nbsp;&nbsp;Oppenheimer Holdings, Inc. — Class A | 6 | 254 |
| &nbsp;&nbsp;&nbsp;Indus Realty Trust, Inc. REIT | 4 | 254 |
| &nbsp;&nbsp;&nbsp;First of Long Island Corp. | 14 | 252 |
| &nbsp;&nbsp;&nbsp;Carter Bankshares, Inc.\* | 15 | 249 |
| &nbsp;&nbsp;&nbsp;Bridgewater Bancshares, Inc.\* | 14 | 248 |
| &nbsp;&nbsp;&nbsp;EZCORP, Inc. — Class A\* | 30 | 244 |
| &nbsp;&nbsp;&nbsp;Merchants Bancorp | 10 | 243 |
| &nbsp;&nbsp;&nbsp;City Office REIT, Inc. | 29 | 243 |
| &nbsp;&nbsp;&nbsp;RE/MAX Holdings, Inc. — Class A | 13 | 242 |
| &nbsp;&nbsp;&nbsp;HomeTrust Bancshares, Inc. | 10 | 242 |
| &nbsp;&nbsp;&nbsp;Waterstone Financial, Inc. | 14 | 241 |
| &nbsp;&nbsp;&nbsp;Metrocity Bankshares, Inc. | 11 | 238 |
| &nbsp;&nbsp;&nbsp;CNB Financial Corp. | 10 | 238 |
| &nbsp;&nbsp;&nbsp;Perella Weinberg Partners | 24 | 235 |
| &nbsp;&nbsp;&nbsp;Amalgamated Financial Corp. | 10 | 230 |
| &nbsp;&nbsp;&nbsp;West BanCorp, Inc. | 9 | 230 |
| &nbsp;&nbsp;&nbsp;Capstar Financial Holdings, Inc. | 13 | 230 |
| &nbsp;&nbsp;&nbsp;Southern Missouri Bancorp, Inc. | 5 | 229 |
| &nbsp;&nbsp;&nbsp;Southern First Bancshares, Inc.\* | 5 | 229 |
| &nbsp;&nbsp;&nbsp;One Liberty Properties, Inc. REIT | 10 | 222 |
| &nbsp;&nbsp;&nbsp;American National Bankshares, Inc. | 6 | 222 |
| &nbsp;&nbsp;&nbsp;GCM Grosvenor, Inc. — Class A | 29 | 221 |
| &nbsp;&nbsp;&nbsp;Orchid Island Capital, Inc. REIT | 21 | 220 |
| &nbsp;&nbsp;&nbsp;Alexander's, Inc. REIT | 1 | 220 |
| &nbsp;&nbsp;&nbsp;Financial Institutions, Inc. | 9 | 219 |
| &nbsp;&nbsp;&nbsp;Five Star Bancorp | 8 | 218 |
| &nbsp;&nbsp;&nbsp;Esquire Financial Holdings, Inc. | 5 | 216 |
| &nbsp;&nbsp;&nbsp;FRP Holdings, Inc.\* | 4 | 215 |
| &nbsp;&nbsp;&nbsp;Enterprise Bancorp, Inc. | 6 | 212 |
| &nbsp;&nbsp;&nbsp;Alerus Financial Corp. | 9 | 210 |
| &nbsp;&nbsp;&nbsp;RBB Bancorp | 10 | 209 |
| &nbsp;&nbsp;&nbsp;Guaranty Bancshares, Inc. | 6 | 208 |
| &nbsp;&nbsp;&nbsp;Peoples Financial Services Corp. | 4 | 207 |
| &nbsp;&nbsp;&nbsp;Citizens & Northern Corp. | 9 | 206 |
| &nbsp;&nbsp;&nbsp;Blue Foundry Bancorp\* | 16 | 206 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 101

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;Republic Bancorp, Inc. — Class A | 5 | $| 205 |
| &nbsp;&nbsp;&nbsp;John Marshall Bancorp, Inc. | 7 |  | 201 |
| &nbsp;&nbsp;&nbsp;ACNB Corp. | 5 |  | 199 |
| &nbsp;&nbsp;&nbsp;Civista Bancshares, Inc. | 9 |  | 198 |
| &nbsp;&nbsp;&nbsp;World Acceptance Corp.\* | 3 |  | 198 |
| &nbsp;&nbsp;&nbsp;Tiptree, Inc. — Class A | 14 |  | 194 |
| &nbsp;&nbsp;&nbsp;Granite Point Mortgage Trust, Inc. REIT | 36 |  | 193 |
| &nbsp;&nbsp;&nbsp;South Plains Financial, Inc. | 7 |  | 193 |
| &nbsp;&nbsp;&nbsp;Shore Bancshares, Inc. | 11 |  | 192 |
| &nbsp;&nbsp;&nbsp;Farmers & Merchants Bancorp Incorporated/Archbold OH | 7 |  | 190 |
| &nbsp;&nbsp;&nbsp;Douglas Elliman, Inc. | 45 |  | 183 |
| &nbsp;&nbsp;&nbsp;CTO Realty Growth, Inc. REIT | 10 |  | 183 |
| &nbsp;&nbsp;&nbsp;First Business Financial Services, Inc. | 5 |  | 183 |
| &nbsp;&nbsp;&nbsp;First Bancorp, Inc. | 6 |  | 180 |
| &nbsp;&nbsp;&nbsp;Macatawa Bank Corp. | 16 |  | 176 |
| &nbsp;&nbsp;&nbsp;Summit Financial Group, Inc. | 7 |  | 174 |
| &nbsp;&nbsp;&nbsp;Sierra Bancorp | 8 |  | 170 |
| &nbsp;&nbsp;&nbsp;Universal Insurance Holdings, Inc. | 16 |  | 170 |
| &nbsp;&nbsp;&nbsp;Braemar Hotels & Resorts, Inc. REIT | 41 |  | 169 |
| &nbsp;&nbsp;&nbsp;Northeast Bank | 4 |  | 168 |
| &nbsp;&nbsp;&nbsp;Franklin Street Properties Corp. REIT | 60 |  | 164 |
| &nbsp;&nbsp;&nbsp;Orrstown Financial Services, Inc. | 7 |  | 162 |
| &nbsp;&nbsp;&nbsp;BCB Bancorp, Inc. | 9 |  | 162 |
| &nbsp;&nbsp;&nbsp;Home Bancorp, Inc. | 4 |  | 160 |
| &nbsp;&nbsp;&nbsp;Postal Realty Trust, Inc. — Class A REIT | 11 |  | 160 |
| &nbsp;&nbsp;&nbsp;HCI Group, Inc. | 4 |  | 158 |
| &nbsp;&nbsp;&nbsp;AFC Gamma, Inc. REIT | 10 |  | 157 |
| &nbsp;&nbsp;&nbsp;Sculptor Capital Management, Inc. | 18 |  | 156 |
| &nbsp;&nbsp;&nbsp;MVB Financial Corp. | 7 |  | 154 |
| &nbsp;&nbsp;&nbsp;Primis Financial Corp. | 13 |  | 154 |
| &nbsp;&nbsp;&nbsp;Hersha Hospitality Trust — Class A REIT | 18 |  | 153 |
| &nbsp;&nbsp;&nbsp;Red River Bancshares, Inc. | 3 |  | 153 |
| &nbsp;&nbsp;&nbsp;BayCom Corp. | 8 |  | 152 |
| &nbsp;&nbsp;&nbsp;Investors Title Co. | 1 |  | 148 |
| &nbsp;&nbsp;&nbsp;Third Coast Bancshares, Inc.\* | 8 |  | 147 |
| &nbsp;&nbsp;&nbsp;First Internet Bancorp | 6 |  | 146 |
| &nbsp;&nbsp;&nbsp;NerdWallet, Inc. — Class A\* | 15 |  | 144 |
| &nbsp;&nbsp;&nbsp;First Western Financial, Inc.\* | 5 |  | 141 |
| &nbsp;&nbsp;&nbsp;Regional Management Corp. | 5 |  | 140 |
| &nbsp;&nbsp;&nbsp;BRT Apartments Corp. REIT | 7 |  | 137 |
| &nbsp;&nbsp;&nbsp;Blue Ridge Bankshares, Inc. | 11 |  | 137 |
| &nbsp;&nbsp;&nbsp;FVCBankcorp, Inc.\* | 7 |  | 134 |
| &nbsp;&nbsp;&nbsp;PCSB Financial Corp. | 7 |  | 133 |
| &nbsp;&nbsp;&nbsp;LendingTree, Inc.\* | 6 |  | 128 |
| &nbsp;&nbsp;&nbsp;Donegal Group, Inc. — Class A | 9 |  | 128 |
| &nbsp;&nbsp;&nbsp;Industrial Logistics Properties Trust REIT | 39 |  | 128 |
| &nbsp;&nbsp;&nbsp;Colony Bankcorp, Inc. | 10 |  | 127 |
| &nbsp;&nbsp;&nbsp;Parke Bancorp, Inc. | 6 |  | 124 |
| &nbsp;&nbsp;&nbsp;First Bank/Hamilton NJ | 9 |  | 124 |
| &nbsp;&nbsp;&nbsp;PCB Bancorp | 7 |  | 124 |
| &nbsp;&nbsp;&nbsp;Hippo Holdings, Inc.\* | 9 |  | 122 |
| &nbsp;&nbsp;&nbsp;Greenlight Capital Re Ltd. — Class A\* | 15 |  | 122 |
| &nbsp;&nbsp;&nbsp;Capital Bancorp, Inc. | 5 |  | 118 |
| &nbsp;&nbsp;&nbsp;HBT Financial, Inc. | 6 |  | 117 |
| &nbsp;&nbsp;&nbsp;Greene County Bancorp, Inc. | 2 |  | 115 |
| &nbsp;&nbsp;&nbsp;Silvercrest Asset Management Group, Inc. — Class A | 6 |  | 113 |
| &nbsp;&nbsp;&nbsp;Unity Bancorp, Inc. | 4 |  | 109 |
| &nbsp;&nbsp;&nbsp;Luther Burbank Corp. | 9 |  | 100 |
| &nbsp;&nbsp;&nbsp;Legacy Housing Corp.\* | 5 |  | 95 |
| &nbsp;&nbsp;&nbsp;Ashford Hospitality Trust, Inc. REIT\* | 21 |  | 94 |
| &nbsp;&nbsp;&nbsp;First Guaranty Bancshares, Inc. | 4 |  | 94 |
| &nbsp;&nbsp;&nbsp;Oportun Financial Corp.\* | 17 |  | 94 |
| &nbsp;&nbsp;&nbsp;Diversified Healthcare Trust REIT | 143 |  | 92 |
| &nbsp;&nbsp;&nbsp;Bankwell Financial Group, Inc. | 3 |  | 88 |
| &nbsp;&nbsp;&nbsp;Pioneer Bancorp, Inc.\* | 7 |  | 80 |
| &nbsp;&nbsp;&nbsp;NI Holdings, Inc.\* | 6 |  | 80 |
| &nbsp;&nbsp;&nbsp;Nexpoint Real Estate Finance, Inc. REIT | 5 |  | 79 |
| &nbsp;&nbsp;&nbsp;Atlanticus Holdings Corp.\* | 3 |  | 79 |
| &nbsp;&nbsp;&nbsp;Trean Insurance Group, Inc.\* | 13 |  | 78 |
| &nbsp;&nbsp;&nbsp;USCB Financial Holdings, Inc.\* | 6 |  | 73 |
| &nbsp;&nbsp;&nbsp;eHealth, Inc.\* | 14 |  | 68 |
| &nbsp;&nbsp;&nbsp;Sterling Bancorp, Inc.\* | 11 |  | 67 |
| &nbsp;&nbsp;&nbsp;Provident Bancorp, Inc. | 9 |  | 66 |
| &nbsp;&nbsp;&nbsp;Republic First Bancorp, Inc.\* | 29 |  | 62 |
| &nbsp;&nbsp;&nbsp;Crawford & Co. — Class A | 11 |  | 61 |
| &nbsp;&nbsp;&nbsp;Chicago Atlantic Real Estate Finance, Inc. | 4 |  | 60 |
| &nbsp;&nbsp;&nbsp;Stratus Properties, Inc. | 3 |  | 58 |
| &nbsp;&nbsp;&nbsp;Selectquote, Inc.\* | 81 |  | 54 |
| &nbsp;&nbsp;&nbsp;Consumer Portfolio Services, Inc.\* | 6 |  | 53 |
| &nbsp;&nbsp;&nbsp;Velocity Financial, Inc.\* | 5 |  | 48 |
| &nbsp;&nbsp;&nbsp;Curo Group Holdings Corp.\* | 13 |  | 46 |
| &nbsp;&nbsp;&nbsp;Clipper Realty, Inc. REIT | 7 |  | 45 |
| &nbsp;&nbsp;&nbsp;Transcontinental Realty Investors, Inc.\* | 1 |  | 44 |
| &nbsp;&nbsp;&nbsp;Bluerock Homes Trust, Inc.\* | 2 |  | 43 |
| &nbsp;&nbsp;&nbsp;Associated Capital Group, Inc. — Class A | 1 |  | 42 |
| &nbsp;&nbsp;&nbsp;Doma Holdings, Inc.\* | 83 |  | 38 |
| &nbsp;&nbsp;&nbsp;SWK Holdings Corp.\* | 2 |  | 35 |
| &nbsp;&nbsp;&nbsp;Angel Oak Mortgage, Inc. REIT | 7 |  | 33 |
| &nbsp;&nbsp;&nbsp;Finance of America Companies, Inc. — Class A\* | 23 |  | 29 |
| &nbsp;&nbsp;&nbsp;American Realty Investors, Inc.\* | 1 |  | 26 |
| &nbsp;&nbsp;&nbsp;Root, Inc. — Class A\* | 5 |  | 23 |
| &nbsp;&nbsp;&nbsp;Sunlight Financial Holdings, Inc.\* | 15 |  | 19 |
| &nbsp;&nbsp;&nbsp;Offerpad Solutions, Inc.\*<sup>,1</sup> | 41 |  | 19 |
| &nbsp;&nbsp;&nbsp;OppFi, Inc.\* | 8 |  | 16 |
| &nbsp;&nbsp;&nbsp;Applied Digital Corp.\* | 5 |  | 9 |
| &nbsp;&nbsp;&nbsp;Home Point Capital, Inc.\* | 5 |  | 7 |
| &nbsp;&nbsp;&nbsp;Cryptyde, Inc.\* | 12 |  | 2 |
| **Total Financial** |  |  | 320831 |
| **Industrial - 5.7%** | **Industrial - 5.7%** | **Industrial - 5.7%** | **Industrial - 5.7%** |
| &nbsp;&nbsp;&nbsp;EMCOR Group, Inc. | 28 |  | 4147 |
| &nbsp;&nbsp;&nbsp;RBC Bearings, Inc.\* | 17 |  | 3559 |
| &nbsp;&nbsp;&nbsp;Saia, Inc.\* | 16 |  | 3355 |
| &nbsp;&nbsp;&nbsp;Chart Industries, Inc.\* | 26 |  | 2996 |
| &nbsp;&nbsp;&nbsp;Fluor Corp.\* | 86 |  | 2981 |
| &nbsp;&nbsp;&nbsp;Exponent, Inc. | 30 |  | 2973 |
| &nbsp;&nbsp;&nbsp;Applied Industrial Technologies, Inc. | 23 |  | 2899 |
| &nbsp;&nbsp;&nbsp;Novanta, Inc.\* | 21 |  | 2853 |
| &nbsp;&nbsp;&nbsp;Atkore, Inc.\* | 25 |  | 2835 |
| &nbsp;&nbsp;&nbsp;Fabrinet\* | 22 |  | 2821 |

---

102 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| &nbsp;&nbsp;&nbsp;Evoqua Water Technologies Corp.\* | 71 | $2812 |
| &nbsp;&nbsp;&nbsp;UFP Industries, Inc. | 35 | 2774 |
| &nbsp;&nbsp;&nbsp;Aerojet Rocketdyne Holdings, Inc.\* | 48 | 2685 |
| &nbsp;&nbsp;&nbsp;Comfort Systems USA, Inc. | 21 | 2417 |
| &nbsp;&nbsp;&nbsp;Casella Waste Systems, Inc. — Class A\* | 30 | 2379 |
| &nbsp;&nbsp;&nbsp;Watts Water Technologies, Inc. — Class A | 16 | 2340 |
| &nbsp;&nbsp;&nbsp;Altra Industrial Motion Corp. | 39 | 2330 |
| &nbsp;&nbsp;&nbsp;Simpson Manufacturing Company, Inc. | 26 | 2305 |
| &nbsp;&nbsp;&nbsp;GATX Corp. | 21 | 2233 |
| &nbsp;&nbsp;&nbsp;Franklin Electric Company, Inc. | 28 | 2233 |
| &nbsp;&nbsp;&nbsp;Summit Materials, Inc. — Class A\* | 73 | 2079 |
| &nbsp;&nbsp;&nbsp;Bloom Energy Corp. — Class A\* | 106 | 2027 |
| &nbsp;&nbsp;&nbsp;Badger Meter, Inc. | 18 | 1963 |
| &nbsp;&nbsp;&nbsp;AAON, Inc. | 26 | 1958 |
| &nbsp;&nbsp;&nbsp;Sanmina Corp.\* | 34 | 1948 |
| &nbsp;&nbsp;&nbsp;Mueller Industries, Inc. | 33 | 1947 |
| &nbsp;&nbsp;&nbsp;Advanced Energy Industries, Inc. | 22 | 1887 |
| &nbsp;&nbsp;&nbsp;Albany International Corp. — Class A | 19 | 1873 |
| &nbsp;&nbsp;&nbsp;Belden, Inc. | 25 | 1798 |
| &nbsp;&nbsp;&nbsp;EnerSys | 24 | 1772 |
| &nbsp;&nbsp;&nbsp;Cactus, Inc. — Class A | 35 | 1759 |
| &nbsp;&nbsp;&nbsp;Hillenbrand, Inc. | 41 | 1750 |
| &nbsp;&nbsp;&nbsp;John Bean Technologies Corp. | 19 | 1735 |
| &nbsp;&nbsp;&nbsp;Atlas Air Worldwide Holdings, Inc.\* | 17 | 1714 |
| &nbsp;&nbsp;&nbsp;SPX Technologies, Inc.\* | 26 | 1707 |
| &nbsp;&nbsp;&nbsp;Vishay Intertechnology, Inc. | 78 | 1682 |
| &nbsp;&nbsp;&nbsp;Forward Air Corp. | 16 | 1678 |
| &nbsp;&nbsp;&nbsp;Federal Signal Corp. | 36 | 1673 |
| &nbsp;&nbsp;&nbsp;Terex Corp. | 39 | 1666 |
| &nbsp;&nbsp;&nbsp;Boise Cascade Co. | 24 | 1648 |
| &nbsp;&nbsp;&nbsp;Plexus Corp.\* | 16 | 1647 |
| &nbsp;&nbsp;&nbsp;Dycom Industries, Inc.\* | 17 | 1591 |
| &nbsp;&nbsp;&nbsp;Hub Group, Inc. — Class A\* | 20 | 1590 |
| &nbsp;&nbsp;&nbsp;Arcosa, Inc. | 29 | 1576 |
| &nbsp;&nbsp;&nbsp;O-I Glass, Inc.\* | 95 | 1574 |
| &nbsp;&nbsp;&nbsp;Zurn Elkay Water Solutions Corp. | 74 | 1565 |
| &nbsp;&nbsp;&nbsp;Scorpio Tankers, Inc. | 29 | 1559 |
| &nbsp;&nbsp;&nbsp;Encore Wire Corp. | 11 | 1513 |
| &nbsp;&nbsp;&nbsp;Moog, Inc. — Class A | 17 | 1492 |
| &nbsp;&nbsp;&nbsp;Werner Enterprises, Inc. | 37 | 1490 |
| &nbsp;&nbsp;&nbsp;Matson, Inc. | 23 | 1438 |
| &nbsp;&nbsp;&nbsp;Trinity Industries, Inc. | 48 | 1419 |
| &nbsp;&nbsp;&nbsp;Golar LNG Ltd.\* | 61 | 1390 |
| &nbsp;&nbsp;&nbsp;Itron, Inc.\* | 27 | 1368 |
| &nbsp;&nbsp;&nbsp;Energizer Holdings, Inc. | 40 | 1342 |
| &nbsp;&nbsp;&nbsp;ESCO Technologies, Inc. | 15 | 1313 |
| &nbsp;&nbsp;&nbsp;EnPro Industries, Inc. | 12 | 1304 |
| &nbsp;&nbsp;&nbsp;Brady Corp. — Class A | 27 | 1272 |
| &nbsp;&nbsp;&nbsp;Kadant, Inc. | 7 | 1243 |
| &nbsp;&nbsp;&nbsp;Barnes Group, Inc. | 30 | 1225 |
| &nbsp;&nbsp;&nbsp;AeroVironment, Inc.\* | 14 | 1199 |
| &nbsp;&nbsp;&nbsp;Kennametal, Inc. | 48 | 1155 |
| &nbsp;&nbsp;&nbsp;Lindsay Corp. | 7 | 1140 |
| &nbsp;&nbsp;&nbsp;Masonite International Corp.\* | 14 | 1128 |
| &nbsp;&nbsp;&nbsp;International Seaways, Inc. | 29 | 1074 |
| &nbsp;&nbsp;&nbsp;NV5 Global, Inc.\* | 8 | 1058 |
| &nbsp;&nbsp;&nbsp;ArcBest Corp. | 15 | 1051 |
| &nbsp;&nbsp;&nbsp;Materion Corp. | 12 | 1050 |
| &nbsp;&nbsp;&nbsp;CSW Industrials, Inc. | 9 | 1043 |
| &nbsp;&nbsp;&nbsp;Helios Technologies, Inc. | 19 | 1034 |
| &nbsp;&nbsp;&nbsp;Frontdoor, Inc.\* | 49 | 1019 |
| &nbsp;&nbsp;&nbsp;Mueller Water Products, Inc. — Class A | 94 | 1011 |
| &nbsp;&nbsp;&nbsp;Greif, Inc. — Class A | 15 | 1006 |
| &nbsp;&nbsp;&nbsp;Griffon Corp. | 28 | 1002 |
| &nbsp;&nbsp;&nbsp;Worthington Industries, Inc. | 19 | 945 |
| &nbsp;&nbsp;&nbsp;Air Transport Services Group, Inc.\* | 36 | 935 |
| &nbsp;&nbsp;&nbsp;TTM Technologies, Inc.\* | 62 | 935 |
| &nbsp;&nbsp;&nbsp;Frontline plc\* | 76 | 923 |
| &nbsp;&nbsp;&nbsp;MYR Group, Inc.\* | 10 | 921 |
| &nbsp;&nbsp;&nbsp;Granite Construction, Inc. | 26 | 912 |
| &nbsp;&nbsp;&nbsp;AAR Corp.\* | 20 | 898 |
| &nbsp;&nbsp;&nbsp;Enerpac Tool Group Corp. | 35 | 891 |
| &nbsp;&nbsp;&nbsp;Knowles Corp.\* | 54 | 887 |
| &nbsp;&nbsp;&nbsp;Gibraltar Industries, Inc.\* | 19 | 872 |
| &nbsp;&nbsp;&nbsp;Alamo Group, Inc. | 6 | 850 |
| &nbsp;&nbsp;&nbsp;Enovix Corp.\* | 65 | 809 |
| &nbsp;&nbsp;&nbsp;Kratos Defense & Security Solutions, Inc.\* | 75 | 774 |
| &nbsp;&nbsp;&nbsp;Montrose Environmental Group, Inc.\* | 17 | 755 |
| &nbsp;&nbsp;&nbsp;CTS Corp. | 19 | 749 |
| &nbsp;&nbsp;&nbsp;Tennant Co. | 12 | 739 |
| &nbsp;&nbsp;&nbsp;Standex International Corp. | 7 | 717 |
| &nbsp;&nbsp;&nbsp;OSI Systems, Inc.\* | 9 | 716 |
| &nbsp;&nbsp;&nbsp;DHT Holdings, Inc. | 80 | 710 |
| &nbsp;&nbsp;&nbsp;Primoris Services Corp. | 32 | 702 |
| &nbsp;&nbsp;&nbsp;Vicor Corp.\* | 13 | 699 |
| &nbsp;&nbsp;&nbsp;TriMas Corp. | 25 | 693 |
| &nbsp;&nbsp;&nbsp;Marten Transport Ltd. | 35 | 692 |
| &nbsp;&nbsp;&nbsp;Xometry, Inc. — Class A\* | 21 | 677 |
| &nbsp;&nbsp;&nbsp;Energy Recovery, Inc.\* | 33 | 676 |
| &nbsp;&nbsp;&nbsp;SFL Corporation Ltd. | 70 | 645 |
| &nbsp;&nbsp;&nbsp;Golden Ocean Group Ltd. | 74 | 643 |
| &nbsp;&nbsp;&nbsp;Construction Partners, Inc. — Class A\* | 24 | 640 |
| &nbsp;&nbsp;&nbsp;Greenbrier Companies, Inc. | 19 | 637 |
| &nbsp;&nbsp;&nbsp;PGT Innovations, Inc.\* | 35 | 629 |
| &nbsp;&nbsp;&nbsp;AZZ, Inc. | 15 | 603 |
| &nbsp;&nbsp;&nbsp;Modine Manufacturing Co.\* | 30 | 596 |
| &nbsp;&nbsp;&nbsp;Sterling Infrastructure, Inc.\* | 18 | 590 |
| &nbsp;&nbsp;&nbsp;LSB Industries, Inc.\* | 44 | 585 |
| &nbsp;&nbsp;&nbsp;Hillman Solutions Corp.\* | 81 | 584 |
| &nbsp;&nbsp;&nbsp;Apogee Enterprises, Inc. | 13 | 578 |
| &nbsp;&nbsp;&nbsp;Benchmark Electronics, Inc. | 21 | 560 |
| &nbsp;&nbsp;&nbsp;Sturm Ruger & Company, Inc. | 11 | 557 |
| &nbsp;&nbsp;&nbsp;FLEX LNG Ltd. | 17 | 556 |
| &nbsp;&nbsp;&nbsp;GrafTech International Ltd. | 116 | 552 |
| &nbsp;&nbsp;&nbsp;Columbus McKinnon Corp. | 17 | 552 |
| &nbsp;&nbsp;&nbsp;Mirion Technologies, Inc.\* | 83 | 549 |
| &nbsp;&nbsp;&nbsp;Matthews International Corp. — Class A | 18 | 548 |
| &nbsp;&nbsp;&nbsp;Astec Industries, Inc. | 13 | 528 |
| &nbsp;&nbsp;&nbsp;Joby Aviation, Inc.\* | 151 | 506 |
| &nbsp;&nbsp;&nbsp;Mesa Laboratories, Inc. | 3 | 499 |
| &nbsp;&nbsp;&nbsp;Napco Security Technologies, Inc.\* | 18 | 495 |
| &nbsp;&nbsp;&nbsp;TimkenSteel Corp.\* | 27 | 491 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 103

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;Myers Industries, Inc. | 22 | $| 489 |
| &nbsp;&nbsp;&nbsp;American Woodmark Corp.\* | 10 |  | 489 |
| &nbsp;&nbsp;&nbsp;JELD-WEN Holding, Inc.\* | 50 |  | 482 |
| &nbsp;&nbsp;&nbsp;Rocket Lab USA, Inc.\* | 126 |  | 475 |
| &nbsp;&nbsp;&nbsp;UFP Technologies, Inc.\* | 4 |  | 472 |
| &nbsp;&nbsp;&nbsp;Janus International Group, Inc.\* | 49 |  | 466 |
| &nbsp;&nbsp;&nbsp;Ichor Holdings Ltd.\* | 17 |  | 456 |
| &nbsp;&nbsp;&nbsp;CryoPort, Inc.\* | 26 |  | 451 |
| &nbsp;&nbsp;&nbsp;PureCycle Technologies, Inc.\* | 65 |  | 440 |
| &nbsp;&nbsp;&nbsp;Proto Labs, Inc.\* | 17 |  | 434 |
| &nbsp;&nbsp;&nbsp;Chase Corp. | 5 |  | 431 |
| &nbsp;&nbsp;&nbsp;Heartland Express, Inc. | 28 |  | 429 |
| &nbsp;&nbsp;&nbsp;GoPro, Inc. — Class A\* | 86 |  | 428 |
| &nbsp;&nbsp;&nbsp;Thermon Group Holdings, Inc.\* | 20 |  | 402 |
| &nbsp;&nbsp;&nbsp;Teekay Tankers Ltd. — Class A\* | 13 |  | 401 |
| &nbsp;&nbsp;&nbsp;Triumph Group, Inc.\* | 38 |  | 400 |
| &nbsp;&nbsp;&nbsp;Eagle Bulk Shipping, Inc. | 8 |  | 399 |
| &nbsp;&nbsp;&nbsp;Li-Cycle Holdings Corp.\* | 80 |  | 381 |
| &nbsp;&nbsp;&nbsp;Kaman Corp. | 17 |  | 379 |
| &nbsp;&nbsp;&nbsp;Dorian LPG Ltd. | 19 |  | 360 |
| &nbsp;&nbsp;&nbsp;Gorman-Rupp Co. | 14 |  | 359 |
| &nbsp;&nbsp;&nbsp;Nordic American Tankers Ltd. | 116 |  | 355 |
| &nbsp;&nbsp;&nbsp;Genco Shipping & Trading Ltd. | 23 |  | 353 |
| &nbsp;&nbsp;&nbsp;Stoneridge, Inc.\* | 16 |  | 345 |
| &nbsp;&nbsp;&nbsp;Costamare, Inc. | 37 |  | 343 |
| &nbsp;&nbsp;&nbsp;Ryerson Holding Corp. | 11 |  | 333 |
| &nbsp;&nbsp;&nbsp;Argan, Inc. | 9 |  | 332 |
| &nbsp;&nbsp;&nbsp;Insteel Industries, Inc. | 12 |  | 330 |
| &nbsp;&nbsp;&nbsp;Heritage-Crystal Clean, Inc.\* | 10 |  | 325 |
| &nbsp;&nbsp;&nbsp;FARO Technologies, Inc.\* | 11 |  | 323 |
| &nbsp;&nbsp;&nbsp;Kimball Electronics, Inc.\* | 14 |  | 316 |
| &nbsp;&nbsp;&nbsp;Ardmore Shipping Corp.\* | 21 |  | 303 |
| &nbsp;&nbsp;&nbsp;Ducommun, Inc.\* | 6 |  | 300 |
| &nbsp;&nbsp;&nbsp;Pactiv Evergreen, Inc. | 26 |  | 295 |
| &nbsp;&nbsp;&nbsp;Harsco Corp.\* | 46 |  | 289 |
| &nbsp;&nbsp;&nbsp;Allied Motion Technologies, Inc. | 8 |  | 278 |
| &nbsp;&nbsp;&nbsp;Blink Charging Co.\*<sup>,1</sup> | 25 |  | 274 |
| &nbsp;&nbsp;&nbsp;Vishay Precision Group, Inc.\* | 7 |  | 271 |
| &nbsp;&nbsp;&nbsp;nLight, Inc.\* | 26 |  | 264 |
| &nbsp;&nbsp;&nbsp;CIRCOR International, Inc.\* | 11 |  | 263 |
| &nbsp;&nbsp;&nbsp;Luxfer Holdings plc | 19 |  | 261 |
| &nbsp;&nbsp;&nbsp;DXP Enterprises, Inc.\* | 9 |  | 248 |
| &nbsp;&nbsp;&nbsp;Smith & Wesson Brands, Inc. | 28 |  | 243 |
| &nbsp;&nbsp;&nbsp;Covenant Logistics Group, Inc. — Class A | 7 |  | 242 |
| &nbsp;&nbsp;&nbsp;Greif, Inc. — Class B | 3 |  | 235 |
| &nbsp;&nbsp;&nbsp;MicroVision, Inc.\* | 99 |  | 233 |
| &nbsp;&nbsp;&nbsp;Great Lakes Dredge & Dock Corp.\* | 39 |  | 232 |
| &nbsp;&nbsp;&nbsp;Centrus Energy Corp. — Class A\* | 7 |  | 227 |
| &nbsp;&nbsp;&nbsp;Cadre Holdings, Inc. | 11 |  | 221 |
| &nbsp;&nbsp;&nbsp;IES Holdings, Inc.\* | 6 |  | 213 |
| &nbsp;&nbsp;&nbsp;Powell Industries, Inc. | 6 |  | 211 |
| &nbsp;&nbsp;&nbsp;Babcock & Wilcox Enterprises, Inc.\* | 36 |  | 208 |
| &nbsp;&nbsp;&nbsp;National Presto Industries, Inc. | 3 |  | 205 |
| &nbsp;&nbsp;&nbsp;Northwest Pipe Co.\* | 6 |  | 202 |
| &nbsp;&nbsp;&nbsp;Olympic Steel, Inc. | 6 |  | 201 |
| &nbsp;&nbsp;&nbsp;Comtech Telecommunications Corp. | 16 |  | 194 |
| &nbsp;&nbsp;&nbsp;Manitowoc Company, Inc.\* | 21 |  | 192 |
| &nbsp;&nbsp;&nbsp;Tutor Perini Corp.\* | 25 |  | 189 |
| &nbsp;&nbsp;&nbsp;Omega Flex, Inc. | 2 |  | 187 |
| &nbsp;&nbsp;&nbsp;Teekay Corp.\* | 41 |  | 186 |
| &nbsp;&nbsp;&nbsp;NuScale Power Corp.\* | 18 |  | 185 |
| &nbsp;&nbsp;&nbsp;SmartRent, Inc.\* | 71 |  | 172 |
| &nbsp;&nbsp;&nbsp;Tredegar Corp. | 16 |  | 164 |
| &nbsp;&nbsp;&nbsp;AerSale Corp.\* | 10 |  | 162 |
| &nbsp;&nbsp;&nbsp;Sight Sciences, Inc.\* | 13 |  | 159 |
| &nbsp;&nbsp;&nbsp;Archer Aviation, Inc. — Class A\* | 83 |  | 155 |
| &nbsp;&nbsp;&nbsp;Astronics Corp.\* | 15 |  | 154 |
| &nbsp;&nbsp;&nbsp;Hyster-Yale Materials Handling, Inc. | 6 |  | 152 |
| &nbsp;&nbsp;&nbsp;Ranpak Holdings Corp.\* | 26 |  | 150 |
| &nbsp;&nbsp;&nbsp;Park Aerospace Corp. | 11 |  | 148 |
| &nbsp;&nbsp;&nbsp;Daseke, Inc.\* | 25 |  | 142 |
| &nbsp;&nbsp;&nbsp;Universal Logistics Holdings, Inc. | 4 |  | 134 |
| &nbsp;&nbsp;&nbsp;Evolv Technologies Holdings, Inc.\* | 51 |  | 132 |
| &nbsp;&nbsp;&nbsp;Safe Bulkers, Inc. | 44 |  | 128 |
| &nbsp;&nbsp;&nbsp;ESS Tech, Inc.\* | 49 |  | 119 |
| &nbsp;&nbsp;&nbsp;Radiant Logistics, Inc.\* | 23 |  | 117 |
| &nbsp;&nbsp;&nbsp;Pure Cycle Corp.\* | 11 |  | 115 |
| &nbsp;&nbsp;&nbsp;Eastman Kodak Co.\* | 35 |  | 107 |
| &nbsp;&nbsp;&nbsp;PAM Transportation Services, Inc.\* | 4 |  | 104 |
| &nbsp;&nbsp;&nbsp;Identiv, Inc.\* | 14 |  | 101 |
| &nbsp;&nbsp;&nbsp;908 Devices, Inc.\* | 13 |  | 99 |
| &nbsp;&nbsp;&nbsp;Latham Group, Inc.\* | 30 |  | 97 |
| &nbsp;&nbsp;&nbsp;Concrete Pumping Holdings, Inc.\* | 16 |  | 94 |
| &nbsp;&nbsp;&nbsp;Charge Enterprises, Inc.\* | 73 |  | 90 |
| &nbsp;&nbsp;&nbsp;AMMO, Inc.\* | 52 |  | 90 |
| &nbsp;&nbsp;&nbsp;Akoustis Technologies, Inc.\* | 31 |  | 87 |
| &nbsp;&nbsp;&nbsp;Caesarstone Ltd. | 13 |  | 74 |
| &nbsp;&nbsp;&nbsp;Transphorm, Inc.\* | 13 |  | 71 |
| &nbsp;&nbsp;&nbsp;View, Inc.\*<sup>,1</sup> | 67 |  | 65 |
| &nbsp;&nbsp;&nbsp;Turtle Beach Corp.\* | 9 |  | 65 |
| &nbsp;&nbsp;&nbsp;Atlas Technical Consultants, Inc.\* | 11 |  | 57 |
| &nbsp;&nbsp;&nbsp;Karat Packaging, Inc. | 3 |  | 43 |
| &nbsp;&nbsp;&nbsp;Hydrofarm Holdings Group, Inc.\* | 27 |  | 42 |
| &nbsp;&nbsp;&nbsp;Astra Space, Inc.\* | 89 |  | 39 |
| &nbsp;&nbsp;&nbsp;NL Industries, Inc. | 5 |  | 34 |
| &nbsp;&nbsp;&nbsp;Sarcos Technology and Robotics Corp.\* | 51 |  | 29 |
| &nbsp;&nbsp;&nbsp;Momentus, Inc.\* | 32 |  | 25 |
| &nbsp;&nbsp;&nbsp;Redwire Corp.\* | 11 |  | 22 |
| &nbsp;&nbsp;&nbsp;Berkshire Grey, Inc.\* | 29 |  | 17 |
| &nbsp;&nbsp;&nbsp;Fathom Digital Manufacturing C\* | 7 |  | 9 |
| &nbsp;&nbsp;&nbsp;AEye, Inc.\* | 15 |  | 7 |
| **Total Industrial** |  |  | 192473 |
| **Consumer, Cyclical - 4.6%** | **Consumer, Cyclical - 4.6%** | **Consumer, Cyclical - 4.6%** | **Consumer, Cyclical - 4.6%** |
| &nbsp;&nbsp;&nbsp;Crocs, Inc.\* | 36 |  | 3904 |
| &nbsp;&nbsp;&nbsp;Texas Roadhouse, Inc. — Class A | 40 |  | 3638 |
| &nbsp;&nbsp;&nbsp;Murphy USA, Inc. | 13 |  | 3634 |
| &nbsp;&nbsp;&nbsp;Light & Wonder, Inc. — Class A\* | 57 |  | 3340 |
| &nbsp;&nbsp;&nbsp;Wingstop, Inc. | 18 |  | 2477 |
| &nbsp;&nbsp;&nbsp;Academy Sports & Outdoors, Inc. | 46 |  | 2417 |
| &nbsp;&nbsp;&nbsp;Asbury Automotive Group, Inc.\* | 13 |  | 2330 |
| &nbsp;&nbsp;&nbsp;Fox Factory Holding Corp.\* | 25 |  | 2281 |
| &nbsp;&nbsp;&nbsp;Visteon Corp.\* | 17 |  | 2224 |

---

104 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| &nbsp;&nbsp;&nbsp;Meritage Homes Corp.\* | 22 | $2028 |
| &nbsp;&nbsp;&nbsp;FirstCash Holdings, Inc. | 23 | 1999 |
| &nbsp;&nbsp;&nbsp;Hilton Grand Vacations, Inc.\* | 51 | 1966 |
| &nbsp;&nbsp;&nbsp;Adient plc\* | 56 | 1943 |
| &nbsp;&nbsp;&nbsp;Taylor Morrison Home Corp. — Class A\* | 64 | 1942 |
| &nbsp;&nbsp;&nbsp;Signet Jewelers Ltd. | 27 | 1836 |
| &nbsp;&nbsp;&nbsp;Foot Locker, Inc. | 48 | 1814 |
| &nbsp;&nbsp;&nbsp;National Vision Holdings, Inc.\* | 46 | 1783 |
| &nbsp;&nbsp;&nbsp;UniFirst Corp. | 9 | 1737 |
| &nbsp;&nbsp;&nbsp;Goodyear Tire & Rubber Co.\* | 169 | 1715 |
| &nbsp;&nbsp;&nbsp;Topgolf Callaway Brands Corp.\* | 84 | 1659 |
| &nbsp;&nbsp;&nbsp;Skyline Champion Corp.\* | 32 | 1648 |
| &nbsp;&nbsp;&nbsp;Beacon Roofing Supply, Inc.\* | 31 | 1637 |
| &nbsp;&nbsp;&nbsp;Papa John's International, Inc. | 19 | 1564 |
| &nbsp;&nbsp;&nbsp;Steven Madden Ltd. | 46 | 1470 |
| &nbsp;&nbsp;&nbsp;KB Home | 46 | 1465 |
| &nbsp;&nbsp;&nbsp;Group 1 Automotive, Inc. | 8 | 1443 |
| &nbsp;&nbsp;&nbsp;Resideo Technologies, Inc.\* | 87 | 1431 |
| &nbsp;&nbsp;&nbsp;LCI Industries | 15 | 1387 |
| &nbsp;&nbsp;&nbsp;Rush Enterprises, Inc. — Class A | 26 | 1359 |
| &nbsp;&nbsp;&nbsp;Kontoor Brands, Inc. | 33 | 1320 |
| &nbsp;&nbsp;&nbsp;Sonos, Inc.\* | 78 | 1318 |
| &nbsp;&nbsp;&nbsp;American Eagle Outfitters, Inc.\* | 94 | 1312 |
| &nbsp;&nbsp;&nbsp;Gentherm, Inc.\* | 20 | 1306 |
| &nbsp;&nbsp;&nbsp;GMS, Inc.\* | 26 | 1295 |
| &nbsp;&nbsp;&nbsp;Dorman Products, Inc.\* | 16 | 1294 |
| &nbsp;&nbsp;&nbsp;International Game Technology plc | 57 | 1293 |
| &nbsp;&nbsp;&nbsp;SeaWorld Entertainment, Inc.\* | 24 | 1284 |
| &nbsp;&nbsp;&nbsp;Spirit Airlines, Inc.\* | 65 | 1266 |
| &nbsp;&nbsp;&nbsp;Nu Skin Enterprises, Inc. — Class A | 30 | 1265 |
| &nbsp;&nbsp;&nbsp;Cracker Barrel Old Country Store, Inc. | 13 | 1232 |
| &nbsp;&nbsp;&nbsp;Red Rock Resorts, Inc. — Class A | 30 | 1200 |
| &nbsp;&nbsp;&nbsp;Installed Building Products, Inc. | 14 | 1198 |
| &nbsp;&nbsp;&nbsp;Dana, Inc. | 78 | 1180 |
| &nbsp;&nbsp;&nbsp;Cavco Industries, Inc.\* | 5 | 1131 |
| &nbsp;&nbsp;&nbsp;Boot Barn Holdings, Inc.\* | 18 | 1125 |
| &nbsp;&nbsp;&nbsp;LGI Homes, Inc.\* | 12 | 1111 |
| &nbsp;&nbsp;&nbsp;Tri Pointe Homes, Inc.\* | 59 | 1097 |
| &nbsp;&nbsp;&nbsp;ODP Corp.\* | 24 | 1093 |
| &nbsp;&nbsp;&nbsp;MDC Holdings, Inc. | 34 | 1074 |
| &nbsp;&nbsp;&nbsp;Bloomin' Brands, Inc. | 53 | 1066 |
| &nbsp;&nbsp;&nbsp;World Fuel Services Corp. | 37 | 1011 |
| &nbsp;&nbsp;&nbsp;Veritiv Corp. | 8 | 974 |
| &nbsp;&nbsp;&nbsp;MillerKnoll, Inc. | 46 | 966 |
| &nbsp;&nbsp;&nbsp;Shake Shack, Inc. — Class A\* | 23 | 955 |
| &nbsp;&nbsp;&nbsp;Winnebago Industries, Inc. | 18 | 949 |
| &nbsp;&nbsp;&nbsp;Methode Electronics, Inc. | 21 | 932 |
| &nbsp;&nbsp;&nbsp;Dave & Buster's Entertainment, Inc.\* | 26 | 921 |
| &nbsp;&nbsp;&nbsp;Cheesecake Factory, Inc.<sup>1</sup> | 29 | 920 |
| &nbsp;&nbsp;&nbsp;PriceSmart, Inc. | 15 | 912 |
| &nbsp;&nbsp;&nbsp;H&E Equipment Services, Inc. | 20 | 908 |
| &nbsp;&nbsp;&nbsp;Urban Outfitters, Inc.\* | 37 | 882 |
| &nbsp;&nbsp;&nbsp;KAR Auction Services, Inc.\* | 67 | 874 |
| &nbsp;&nbsp;&nbsp;Century Communities, Inc. | 17 | 850 |
| &nbsp;&nbsp;&nbsp;Acushnet Holdings Corp. | 20 | 849 |
| &nbsp;&nbsp;&nbsp;Oxford Industries, Inc. | 9 | 839 |
| &nbsp;&nbsp;&nbsp;Brinker International, Inc.\* | 26 | 830 |
| &nbsp;&nbsp;&nbsp;Vista Outdoor, Inc.\* | 34 | 829 |
| &nbsp;&nbsp;&nbsp;Jack in the Box, Inc. | 12 | 819 |
| &nbsp;&nbsp;&nbsp;Buckle, Inc. | 18 | 816 |
| &nbsp;&nbsp;&nbsp;Sally Beauty Holdings, Inc.\* | 65 | 814 |
| &nbsp;&nbsp;&nbsp;Patrick Industries, Inc. | 13 | 788 |
| &nbsp;&nbsp;&nbsp;XPEL, Inc.\* | 13 | 781 |
| &nbsp;&nbsp;&nbsp;iRobot Corp.\* | 16 | 770 |
| &nbsp;&nbsp;&nbsp;Liberty Media Corporation-Liberty Braves — Class C\* | 23 | 741 |
| &nbsp;&nbsp;&nbsp;M/I Homes, Inc.\* | 16 | 739 |
| &nbsp;&nbsp;&nbsp;Everi Holdings, Inc.\* | 50 | 717 |
| &nbsp;&nbsp;&nbsp;Luminar Technologies, Inc.\*<sup>,1</sup> | 144 | 713 |
| &nbsp;&nbsp;&nbsp;Fisker, Inc.\*<sup>,1</sup> | 98 | 713 |
| &nbsp;&nbsp;&nbsp;Abercrombie & Fitch Co. — Class A\* | 31 | 710 |
| &nbsp;&nbsp;&nbsp;HNI Corp. | 24 | 682 |
| &nbsp;&nbsp;&nbsp;Madison Square Garden Entertainment Corp.\* | 15 | 675 |
| &nbsp;&nbsp;&nbsp;Warby Parker, Inc. — Class A\* | 50 | 675 |
| &nbsp;&nbsp;&nbsp;Wabash National Corp. | 29 | 655 |
| &nbsp;&nbsp;&nbsp;Dillard's, Inc. — Class A | 2 | 646 |
| &nbsp;&nbsp;&nbsp;Malibu Boats, Inc. — Class A\* | 12 | 640 |
| &nbsp;&nbsp;&nbsp;Monarch Casino & Resort, Inc.\* | 8 | 615 |
| &nbsp;&nbsp;&nbsp;Allegiant Travel Co. — Class A\* | 9 | 612 |
| &nbsp;&nbsp;&nbsp;La-Z-Boy, Inc. | 26 | 593 |
| &nbsp;&nbsp;&nbsp;Dine Brands Global, Inc. | 9 | 581 |
| &nbsp;&nbsp;&nbsp;Cinemark Holdings, Inc.\* | 66 | 572 |
| &nbsp;&nbsp;&nbsp;MRC Global, Inc.\* | 49 | 568 |
| &nbsp;&nbsp;&nbsp;Hibbett, Inc. | 8 | 546 |
| &nbsp;&nbsp;&nbsp;Sonic Automotive, Inc. — Class A | 11 | 542 |
| &nbsp;&nbsp;&nbsp;American Axle & Manufacturing Holdings, Inc.\* | 68 | 532 |
| &nbsp;&nbsp;&nbsp;Clean Energy Fuels Corp.\* | 102 | 530 |
| &nbsp;&nbsp;&nbsp;Camping World Holdings, Inc. — Class A | 23 | 513 |
| &nbsp;&nbsp;&nbsp;Proterra, Inc.\* | 132 | 498 |
| &nbsp;&nbsp;&nbsp;Shyft Group, Inc. | 20 | 497 |
| &nbsp;&nbsp;&nbsp;SkyWest, Inc.\* | 30 | 495 |
| &nbsp;&nbsp;&nbsp;Wolverine World Wide, Inc. | 45 | 492 |
| &nbsp;&nbsp;&nbsp;Titan International, Inc.\* | 32 | 490 |
| &nbsp;&nbsp;&nbsp;Titan Machinery, Inc.\* | 12 | 477 |
| &nbsp;&nbsp;&nbsp;Virgin Galactic Holdings, Inc.\*<sup>,1</sup> | 137 | 477 |
| &nbsp;&nbsp;&nbsp;Winmark Corp. | 2 | 472 |
| &nbsp;&nbsp;&nbsp;Douglas Dynamics, Inc. | 13 | 470 |
| &nbsp;&nbsp;&nbsp;Caleres, Inc. | 21 | 468 |
| &nbsp;&nbsp;&nbsp;ScanSource, Inc.\* | 16 | 468 |
| &nbsp;&nbsp;&nbsp;RCI Hospitality Holdings, Inc. | 5 | 466 |
| &nbsp;&nbsp;&nbsp;Golden Entertainment, Inc.\* | 12 | 449 |
| &nbsp;&nbsp;&nbsp;Sweetgreen, Inc. — Class A\* | 51 | 437 |
| &nbsp;&nbsp;&nbsp;Arko Corp. | 50 | 433 |
| &nbsp;&nbsp;&nbsp;BlueLinx Holdings, Inc.\* | 6 | 427 |
| &nbsp;&nbsp;&nbsp;Bally's Corp.\* | 22 | 426 |
| &nbsp;&nbsp;&nbsp;Nikola Corp.\*<sup>,1</sup> | 194 | 419 |
| &nbsp;&nbsp;&nbsp;Standard Motor Products, Inc. | 12 | 418 |
| &nbsp;&nbsp;&nbsp;Guess?, Inc.<sup>1</sup> | 20 | 414 |
| &nbsp;&nbsp;&nbsp;Lions Gate Entertainment Corp. — Class B\* | 76 | 413 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 105

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| &nbsp;&nbsp;&nbsp;Green Brick Partners, Inc.\* | 17 | $412 |
| &nbsp;&nbsp;&nbsp;IMAX Corp.\* | 28 | 410 |
| &nbsp;&nbsp;&nbsp;Franchise Group, Inc. | 17 | 405 |
| &nbsp;&nbsp;&nbsp;A-Mark Precious Metals, Inc. | 11 | 382 |
| &nbsp;&nbsp;&nbsp;Ermenegildo Zegna N.V. | 36 | 377 |
| &nbsp;&nbsp;&nbsp;MarineMax, Inc.\* | 12 | 375 |
| &nbsp;&nbsp;&nbsp;OneSpaWorld Holdings Ltd.\* | 40 | 373 |
| &nbsp;&nbsp;&nbsp;G-III Apparel Group Ltd.\* | 27 | 370 |
| &nbsp;&nbsp;&nbsp;Genesco, Inc.\* | 8 | 368 |
| &nbsp;&nbsp;&nbsp;Chico's FAS, Inc.\* | 74 | 364 |
| &nbsp;&nbsp;&nbsp;Sleep Number Corp.\* | 14 | 364 |
| &nbsp;&nbsp;&nbsp;Steelcase, Inc. — Class A | 51 | 361 |
| &nbsp;&nbsp;&nbsp;TravelCenters of America, Inc.\* | 8 | 358 |
| &nbsp;&nbsp;&nbsp;Interface, Inc. — Class A | 36 | 355 |
| &nbsp;&nbsp;&nbsp;indie Semiconductor, Inc. — Class A\* | 60 | 350 |
| &nbsp;&nbsp;&nbsp;Ethan Allen Interiors, Inc. | 13 | 344 |
| &nbsp;&nbsp;&nbsp;BJ's Restaurants, Inc.\* | 13 | 343 |
| &nbsp;&nbsp;&nbsp;Ruth's Hospitality Group, Inc. | 22 | 341 |
| &nbsp;&nbsp;&nbsp;Qurate Retail, Inc. — Class A\* | 208 | 339 |
| &nbsp;&nbsp;&nbsp;PC Connection, Inc. | 7 | 328 |
| &nbsp;&nbsp;&nbsp;Children's Place, Inc.\* | 9 | 328 |
| &nbsp;&nbsp;&nbsp;Designer Brands, Inc. — Class A | 33 | 323 |
| &nbsp;&nbsp;&nbsp;Sun Country Airlines Holdings, Inc.\* | 20 | 317 |
| &nbsp;&nbsp;&nbsp;Sovos Brands, Inc.\* | 22 | 316 |
| &nbsp;&nbsp;&nbsp;Chuy's Holdings, Inc.\* | 11 | 311 |
| &nbsp;&nbsp;&nbsp;MasterCraft Boat Holdings, Inc.\* | 12 | 310 |
| &nbsp;&nbsp;&nbsp;Accel Entertainment, Inc.\* | 40 | 308 |
| &nbsp;&nbsp;&nbsp;Hawaiian Holdings, Inc.\* | 30 | 308 |
| &nbsp;&nbsp;&nbsp;Denny's Corp.\* | 33 | 304 |
| &nbsp;&nbsp;&nbsp;Vizio Holding Corp. — Class A\* | 41 | 304 |
| &nbsp;&nbsp;&nbsp;REV Group, Inc. | 24 | 303 |
| &nbsp;&nbsp;&nbsp;Haverty Furniture Companies, Inc. | 10 | 299 |
| &nbsp;&nbsp;&nbsp;Life Time Group Holdings, Inc.\* | 25 | 299 |
| &nbsp;&nbsp;&nbsp;Movado Group, Inc. | 9 | 290 |
| &nbsp;&nbsp;&nbsp;America's Car-Mart, Inc.\* | 4 | 289 |
| &nbsp;&nbsp;&nbsp;Shoe Carnival, Inc. | 12 | 287 |
| &nbsp;&nbsp;&nbsp;VSE Corp. | 6 | 281 |
| &nbsp;&nbsp;&nbsp;Destination XL Group, Inc.\* | 41 | 277 |
| &nbsp;&nbsp;&nbsp;Hudson Technologies, Inc.\* | 26 | 263 |
| &nbsp;&nbsp;&nbsp;Big Lots, Inc. | 17 | 250 |
| &nbsp;&nbsp;&nbsp;Sportsman's Warehouse Holdings, Inc.\* | 26 | 245 |
| &nbsp;&nbsp;&nbsp;Bowlero Corp.\* | 18 | 243 |
| &nbsp;&nbsp;&nbsp;Beazer Homes USA, Inc.\* | 18 | 230 |
| &nbsp;&nbsp;&nbsp;Xponential Fitness, Inc. — Class A\* | 10 | 229 |
| &nbsp;&nbsp;&nbsp;Frontier Group Holdings, Inc.\* | 22 | 226 |
| &nbsp;&nbsp;&nbsp;Rush Enterprises, Inc. — Class B | 4 | 225 |
| &nbsp;&nbsp;&nbsp;Zumiez, Inc.\* | 10 | 217 |
| &nbsp;&nbsp;&nbsp;Xperi, Inc.\* | 25 | 215 |
| &nbsp;&nbsp;&nbsp;Build-A-Bear Workshop, Inc. — Class A\* | 9 | 215 |
| &nbsp;&nbsp;&nbsp;Miller Industries, Inc. | 8 | 213 |
| &nbsp;&nbsp;&nbsp;PetMed Express, Inc. | 12 | 212 |
| &nbsp;&nbsp;&nbsp;Aspen Aerogels, Inc.\* | 18 | 212 |
| &nbsp;&nbsp;&nbsp;Portillo's, Inc. — Class A\* | 13 | 212 |
| &nbsp;&nbsp;&nbsp;Funko, Inc. — Class A\* | 19 | 207 |
| &nbsp;&nbsp;&nbsp;Marcus Corp. | 14 | 201 |
| &nbsp;&nbsp;&nbsp;OneWater Marine, Inc. — Class A\* | 7 | 200 |
| &nbsp;&nbsp;&nbsp;Lions Gate Entertainment Corp. — Class A\* | 35 | 200 |
| &nbsp;&nbsp;&nbsp;Bluegreen Vacations Holding Corp. | 8 | 200 |
| &nbsp;&nbsp;&nbsp;Johnson Outdoors, Inc. — Class A | 3 | 198 |
| &nbsp;&nbsp;&nbsp;Liberty Media Corporation-Liberty Braves — Class A\* | 6 | 196 |
| &nbsp;&nbsp;&nbsp;Solid Power, Inc.\* | 77 | 196 |
| &nbsp;&nbsp;&nbsp;Global Industrial Co. | 8 | 188 |
| &nbsp;&nbsp;&nbsp;Hyliion Holdings Corp.\* | 80 | 187 |
| &nbsp;&nbsp;&nbsp;EVgo, Inc.\*<sup>,1</sup> | 41 | 183 |
| &nbsp;&nbsp;&nbsp;Microvast Holdings, Inc.\* | 116 | 177 |
| &nbsp;&nbsp;&nbsp;Lovesac Co.\* | 8 | 176 |
| &nbsp;&nbsp;&nbsp;Forestar Group, Inc.\* | 11 | 170 |
| &nbsp;&nbsp;&nbsp;Citi Trends, Inc.\* | 6 | 159 |
| &nbsp;&nbsp;&nbsp;Purple Innovation, Inc.\* | 33 | 158 |
| &nbsp;&nbsp;&nbsp;Lindblad Expeditions Holdings, Inc.\* | 20 | 154 |
| &nbsp;&nbsp;&nbsp;Kimball International, Inc. — Class B | 23 | 150 |
| &nbsp;&nbsp;&nbsp;Universal Electronics, Inc.\* | 7 | 146 |
| &nbsp;&nbsp;&nbsp;Tilly's, Inc. — Class A\* | 16 | 145 |
| &nbsp;&nbsp;&nbsp;Kura Sushi USA, Inc. — Class A\* | 3 | 143 |
| &nbsp;&nbsp;&nbsp;Full House Resorts, Inc.\* | 19 | 143 |
| &nbsp;&nbsp;&nbsp;Clarus Corp. | 18 | 141 |
| &nbsp;&nbsp;&nbsp;TuSimple Holdings, Inc. — Class A\* | 85 | 139 |
| &nbsp;&nbsp;&nbsp;Sonder Holdings, Inc.\* | 111 | 138 |
| &nbsp;&nbsp;&nbsp;Noodles & Co.\* | 25 | 137 |
| &nbsp;&nbsp;&nbsp;Workhorse Group, Inc.\* | 89 | 135 |
| &nbsp;&nbsp;&nbsp;GrowGeneration Corp.\* | 34 | 133 |
| &nbsp;&nbsp;&nbsp;Motorcar Parts of America, Inc.\* | 11 | 130 |
| &nbsp;&nbsp;&nbsp;Rush Street Interactive, Inc.\* | 36 | 129 |
| &nbsp;&nbsp;&nbsp;Weber, Inc. — Class A\*<sup>,1</sup> | 16 | 129 |
| &nbsp;&nbsp;&nbsp;Tupperware Brands Corp.\* | 31 | 128 |
| &nbsp;&nbsp;&nbsp;Hovnanian Enterprises, Inc. — Class A\* | 3 | 126 |
| &nbsp;&nbsp;&nbsp;Fossil Group, Inc.\* | 28 | 121 |
| &nbsp;&nbsp;&nbsp;Bed Bath & Beyond, Inc.\*<sup>,1</sup> | 48 | 120 |
| &nbsp;&nbsp;&nbsp;Rocky Brands, Inc. | 5 | 118 |
| &nbsp;&nbsp;&nbsp;Big 5 Sporting Goods Corp. | 13 | 115 |
| &nbsp;&nbsp;&nbsp;Century Casinos, Inc.\* | 16 | 112 |
| &nbsp;&nbsp;&nbsp;LL Flooring Holdings, Inc.\* | 20 | 112 |
| &nbsp;&nbsp;&nbsp;Cato Corp. — Class A | 12 | 112 |
| &nbsp;&nbsp;&nbsp;Lordstown Motors Corp. — Class A\* | 98 | 112 |
| &nbsp;&nbsp;&nbsp;Rite Aid Corp.\* | 33 | 110 |
| &nbsp;&nbsp;&nbsp;NEOGAMES S.A.\* | 9 | 110 |
| &nbsp;&nbsp;&nbsp;El Pollo Loco Holdings, Inc. | 11 | 110 |
| &nbsp;&nbsp;&nbsp;Blue Bird Corp.\* | 10 | 107 |
| &nbsp;&nbsp;&nbsp;Dream Finders Homes, Inc. — Class A\* | 12 | 104 |
| &nbsp;&nbsp;&nbsp;Tile Shop Holdings, Inc.\* | 23 | 101 |
| &nbsp;&nbsp;&nbsp;Wheels Up Experience, Inc.\* | 96 | 99 |
| &nbsp;&nbsp;&nbsp;Canoo, Inc.\* | 78 | 96 |
| &nbsp;&nbsp;&nbsp;ONE Group Hospitality, Inc.\* | 14 | 88 |
| &nbsp;&nbsp;&nbsp;Velodyne Lidar, Inc.\* | 117 | 86 |
| &nbsp;&nbsp;&nbsp;Hyzon Motors, Inc.\* | 53 | 82 |
| &nbsp;&nbsp;&nbsp;Container Store Group, Inc.\* | 19 | 82 |
| &nbsp;&nbsp;&nbsp;Snap One Holdings Corp.\* | 11 | 82 |
| &nbsp;&nbsp;&nbsp;First Watch Restaurant Group, Inc.\* | 6 | 81 |
| &nbsp;&nbsp;&nbsp;Aeva Technologies, Inc.\* | 58 | 79 |
| &nbsp;&nbsp;&nbsp;Reservoir Media, Inc.\* | 12 | 72 |

---

106 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;Superior Group of Companies, Inc. | 7 | $| 70 |
| &nbsp;&nbsp;&nbsp;Holley, Inc.\* | 31 |  | 66 |
| &nbsp;&nbsp;&nbsp;F45 Training Holdings, Inc.\* | 23 |  | 66 |
| &nbsp;&nbsp;&nbsp;Weyco Group, Inc. | 3 |  | 63 |
| &nbsp;&nbsp;&nbsp;Lifetime Brands, Inc. | 8 |  | 61 |
| &nbsp;&nbsp;&nbsp;Marine Products Corp. | 5 |  | 59 |
| &nbsp;&nbsp;&nbsp;Vinco Ventures, Inc.\* | 124 |  | 58 |
| &nbsp;&nbsp;&nbsp;Traeger, Inc.\* | 20 |  | 56 |
| &nbsp;&nbsp;&nbsp;Mullen Automotive, Inc.\* | 193 |  | 55 |
| &nbsp;&nbsp;&nbsp;Conn's, Inc.\* | 8 |  | 55 |
| &nbsp;&nbsp;&nbsp;PLBY Group, Inc.\* | 19 |  | 52 |
| &nbsp;&nbsp;&nbsp;Duluth Holdings, Inc. — Class B\* | 8 |  | 49 |
| &nbsp;&nbsp;&nbsp;Cenntro Electric Group Ltd.\* | 111 |  | 49 |
| &nbsp;&nbsp;&nbsp;ThredUp, Inc. — Class A\* | 35 |  | 46 |
| &nbsp;&nbsp;&nbsp;Express, Inc.\* | 39 |  | 40 |
| &nbsp;&nbsp;&nbsp;Landsea Homes Corp.\* | 7 |  | 37 |
| &nbsp;&nbsp;&nbsp;Aterian, Inc.\* | 39 |  | 30 |
| &nbsp;&nbsp;&nbsp;Torrid Holdings, Inc.\*<sup>,1</sup> | 10 |  | 30 |
| &nbsp;&nbsp;&nbsp;Volta, Inc.\*<sup>,1</sup> | 73 |  | 26 |
| &nbsp;&nbsp;&nbsp;Party City Holdco, Inc.\* | 65 |  | 24 |
| &nbsp;&nbsp;&nbsp;CompX International, Inc. | 1 |  | 18 |
| &nbsp;&nbsp;&nbsp;JOANN, Inc.\*<sup>,1</sup> | 6 |  | 17 |
| &nbsp;&nbsp;&nbsp;Xos, Inc.\* | 33 |  | 15 |
| &nbsp;&nbsp;&nbsp;Lightning eMotors, Inc.\* | 24 |  | 9 |
| &nbsp;&nbsp;&nbsp;Cepton, Inc.\* | 5 |  | 6 |
| **Total Consumer, Cyclical** |  |  | 154826 |
| **Technology - 3.9%** | **Technology - 3.9%** | **Technology - 3.9%** | **Technology - 3.9%** |
| &nbsp;&nbsp;&nbsp;ExlService Holdings, Inc.\* | 19 |  | 3219 |
| &nbsp;&nbsp;&nbsp;SPS Commerce, Inc.\* | 22 |  | 2825 |
| &nbsp;&nbsp;&nbsp;Silicon Laboratories, Inc.\* | 20 |  | 2713 |
| &nbsp;&nbsp;&nbsp;Maximus, Inc. | 36 |  | 2640 |
| &nbsp;&nbsp;&nbsp;Qualys, Inc.\* | 23 |  | 2581 |
| &nbsp;&nbsp;&nbsp;Tenable Holdings, Inc.\* | 67 |  | 2556 |
| &nbsp;&nbsp;&nbsp;Box, Inc. — Class A\* | 82 |  | 2553 |
| &nbsp;&nbsp;&nbsp;Power Integrations, Inc. | 34 |  | 2438 |
| &nbsp;&nbsp;&nbsp;Workiva, Inc.\* | 29 |  | 2435 |
| &nbsp;&nbsp;&nbsp;Super Micro Computer, Inc.\* | 28 |  | 2299 |
| &nbsp;&nbsp;&nbsp;Rambus, Inc.\* | 64 |  | 2292 |
| &nbsp;&nbsp;&nbsp;Synaptics, Inc.\* | 24 |  | 2284 |
| &nbsp;&nbsp;&nbsp;Blackline, Inc.\* | 33 |  | 2220 |
| &nbsp;&nbsp;&nbsp;Diodes, Inc.\* | 27 |  | 2056 |
| &nbsp;&nbsp;&nbsp;Onto Innovation, Inc.\* | 30 |  | 2043 |
| &nbsp;&nbsp;&nbsp;Envestnet, Inc.\* | 32 |  | 1974 |
| &nbsp;&nbsp;&nbsp;Insight Enterprises, Inc.\* | 19 |  | 1905 |
| &nbsp;&nbsp;&nbsp;MACOM Technology Solutions Holdings, Inc.\* | 30 |  | 1889 |
| &nbsp;&nbsp;&nbsp;Ambarella, Inc.\* | 22 |  | 1809 |
| &nbsp;&nbsp;&nbsp;1Life Healthcare, Inc.\* | 108 |  | 1805 |
| &nbsp;&nbsp;&nbsp;CommVault Systems, Inc.\* | 27 |  | 1697 |
| &nbsp;&nbsp;&nbsp;Blackbaud, Inc.\* | 27 |  | 1589 |
| &nbsp;&nbsp;&nbsp;Axcelis Technologies, Inc.\* | 20 |  | 1587 |
| &nbsp;&nbsp;&nbsp;ACI Worldwide, Inc.\* | 69 |  | 1587 |
| &nbsp;&nbsp;&nbsp;Varonis Systems, Inc.\* | 66 |  | 1580 |
| &nbsp;&nbsp;&nbsp;Sprout Social, Inc. — Class A\* | 27 |  | 1524 |
| &nbsp;&nbsp;&nbsp;Kulicke & Soffa Industries, Inc. | 34 |  | 1505 |
| &nbsp;&nbsp;&nbsp;Amkor Technology, Inc. | 61 |  | 1463 |
| &nbsp;&nbsp;&nbsp;MaxLinear, Inc. — Class A\* | 43 |  | 1460 |
| &nbsp;&nbsp;&nbsp;Impinj, Inc.\* | 13 |  | 1419 |
| &nbsp;&nbsp;&nbsp;Altair Engineering, Inc. — Class A\* | 31 |  | 1410 |
| &nbsp;&nbsp;&nbsp;PagerDuty, Inc.\* | 52 |  | 1381 |
| &nbsp;&nbsp;&nbsp;Verint Systems, Inc.\* | 38 |  | 1379 |
| &nbsp;&nbsp;&nbsp;Evolent Health, Inc. — Class A\* | 49 |  | 1376 |
| &nbsp;&nbsp;&nbsp;Progress Software Corp. | 26 |  | 1312 |
| &nbsp;&nbsp;&nbsp;NetScout Systems, Inc.\* | 40 |  | 1300 |
| &nbsp;&nbsp;&nbsp;Appfolio, Inc. — Class A\* | 12 |  | 1265 |
| &nbsp;&nbsp;&nbsp;Rapid7, Inc.\* | 35 |  | 1189 |
| &nbsp;&nbsp;&nbsp;Verra Mobility Corp.\* | 84 |  | 1162 |
| &nbsp;&nbsp;&nbsp;Veradigm, Inc.\* | 64 |  | 1129 |
| &nbsp;&nbsp;&nbsp;Semtech Corp.\* | 39 |  | 1119 |
| &nbsp;&nbsp;&nbsp;CSG Systems International, Inc. | 19 |  | 1087 |
| &nbsp;&nbsp;&nbsp;KnowBe4, Inc. — Class A\* | 43 |  | 1066 |
| &nbsp;&nbsp;&nbsp;DigitalOcean Holdings, Inc.\* | 41 |  | 1044 |
| &nbsp;&nbsp;&nbsp;Clear Secure, Inc. — Class A | 38 |  | 1042 |
| &nbsp;&nbsp;&nbsp;FormFactor, Inc.\* | 46 |  | 1023 |
| &nbsp;&nbsp;&nbsp;Xerox Holdings Corp. | 70 |  | 1022 |
| &nbsp;&nbsp;&nbsp;SiTime Corp.\* | 10 |  | 1016 |
| &nbsp;&nbsp;&nbsp;Duolingo, Inc.\* | 14 |  | 996 |
| &nbsp;&nbsp;&nbsp;Agilysys, Inc.\* | 12 |  | 950 |
| &nbsp;&nbsp;&nbsp;Phreesia, Inc.\* | 29 |  | 938 |
| &nbsp;&nbsp;&nbsp;Cohu, Inc.\* | 29 |  | 929 |
| &nbsp;&nbsp;&nbsp;Parsons Corp.\* | 20 |  | 925 |
| &nbsp;&nbsp;&nbsp;Ultra Clean Holdings, Inc.\* | 27 |  | 895 |
| &nbsp;&nbsp;&nbsp;AvidXchange Holdings, Inc.\* | 88 |  | 875 |
| &nbsp;&nbsp;&nbsp;Model N, Inc.\* | 21 |  | 852 |
| &nbsp;&nbsp;&nbsp;MicroStrategy, Inc. — Class A\*<sup>,1</sup> | 6 |  | 849 |
| &nbsp;&nbsp;&nbsp;Digital Turbine, Inc.\* | 55 |  | 838 |
| &nbsp;&nbsp;&nbsp;Appian Corp. — Class A\* | 24 |  | 781 |
| &nbsp;&nbsp;&nbsp;Digi International, Inc.\* | 21 |  | 768 |
| &nbsp;&nbsp;&nbsp;Outset Medical, Inc.\* | 28 |  | 723 |
| &nbsp;&nbsp;&nbsp;E2open Parent Holdings, Inc.\* | 120 |  | 704 |
| &nbsp;&nbsp;&nbsp;Alignment Healthcare, Inc.\* | 59 |  | 694 |
| &nbsp;&nbsp;&nbsp;Apollo Medical Holdings, Inc.\* | 23 |  | 681 |
| &nbsp;&nbsp;&nbsp;Everbridge, Inc.\* | 23 |  | 680 |
| &nbsp;&nbsp;&nbsp;PowerSchool Holdings, Inc. — Class A\* | 28 |  | 646 |
| &nbsp;&nbsp;&nbsp;NextGen Healthcare, Inc.\* | 33 |  | 620 |
| &nbsp;&nbsp;&nbsp;Asana, Inc. — Class A\* | 45 |  | 620 |
| &nbsp;&nbsp;&nbsp;Schrodinger Incorporated/United States\* | 33 |  | 617 |
| &nbsp;&nbsp;&nbsp;Adeia, Inc. | 64 |  | 607 |
| &nbsp;&nbsp;&nbsp;PROS Holdings, Inc.\* | 25 |  | 607 |
| &nbsp;&nbsp;&nbsp;Photronics, Inc.\* | 36 |  | 606 |
| &nbsp;&nbsp;&nbsp;Consensus Cloud Solutions, Inc.\* | 11 |  | 591 |
| &nbsp;&nbsp;&nbsp;Privia Health Group, Inc.\* | 26 |  | 590 |
| &nbsp;&nbsp;&nbsp;Donnelley Financial Solutions, Inc.\* | 15 |  | 580 |
| &nbsp;&nbsp;&nbsp;3D Systems Corp.\* | 76 |  | 562 |
| &nbsp;&nbsp;&nbsp;Avid Technology, Inc.\* | 21 |  | 558 |
| &nbsp;&nbsp;&nbsp;Veeco Instruments, Inc.\* | 30 |  | 557 |
| &nbsp;&nbsp;&nbsp;ACV Auctions, Inc. — Class A\* | 67 |  | 550 |
| &nbsp;&nbsp;&nbsp;Momentive Global, Inc.\* | 78 |  | 546 |
| &nbsp;&nbsp;&nbsp;Duck Creek Technologies, Inc.\* | 45 |  | 542 |
| &nbsp;&nbsp;&nbsp;Fastly, Inc. — Class A\* | 66 |  | 541 |
| &nbsp;&nbsp;&nbsp;Sumo Logic, Inc.\* | 66 |  | 535 |
| &nbsp;&nbsp;&nbsp;ForgeRock, Inc. — Class A\* | 23 |  | 524 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 107

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;Zeta Global Holdings Corp. — Class A\* | 64 | $| 523 |
| &nbsp;&nbsp;&nbsp;PDF Solutions, Inc.\* | 18 |  | 513 |
| &nbsp;&nbsp;&nbsp;TTEC Holdings, Inc. | 11 |  | 486 |
| &nbsp;&nbsp;&nbsp;Hims & Hers Health, Inc.\* | 73 |  | 468 |
| &nbsp;&nbsp;&nbsp;Zuora, Inc. — Class A\* | 71 |  | 452 |
| &nbsp;&nbsp;&nbsp;Cerence, Inc.\* | 24 |  | 445 |
| &nbsp;&nbsp;&nbsp;Yext, Inc.\* | 67 |  | 438 |
| &nbsp;&nbsp;&nbsp;LivePerson, Inc.\* | 43 |  | 436 |
| &nbsp;&nbsp;&nbsp;SMART Global Holdings, Inc.\* | 29 |  | 432 |
| &nbsp;&nbsp;&nbsp;N-able, Inc.\* | 41 |  | 422 |
| &nbsp;&nbsp;&nbsp;Conduent, Inc.\* | 103 |  | 417 |
| &nbsp;&nbsp;&nbsp;PAR Technology Corp.\* | 16 |  | 417 |
| &nbsp;&nbsp;&nbsp;Amplitude, Inc. — Class A\* | 33 |  | 399 |
| &nbsp;&nbsp;&nbsp;Pitney Bowes, Inc. | 104 |  | 395 |
| &nbsp;&nbsp;&nbsp;C3.ai, Inc. — Class A\* | 35 |  | 392 |
| &nbsp;&nbsp;&nbsp;EngageSmart, Inc.\* | 22 |  | 387 |
| &nbsp;&nbsp;&nbsp;Alpha & Omega Semiconductor Ltd.\* | 13 |  | 371 |
| &nbsp;&nbsp;&nbsp;Matterport, Inc.\* | 129 |  | 361 |
| &nbsp;&nbsp;&nbsp;Olo, Inc. — Class A\* | 55 |  | 344 |
| &nbsp;&nbsp;&nbsp;Health Catalyst, Inc.\* | 32 |  | 340 |
| &nbsp;&nbsp;&nbsp;Sapiens International Corporation N.V. | 18 |  | 333 |
| &nbsp;&nbsp;&nbsp;CEVA, Inc.\* | 13 |  | 333 |
| &nbsp;&nbsp;&nbsp;BigCommerce Holdings, Inc.\* | 38 |  | 332 |
| &nbsp;&nbsp;&nbsp;Simulations Plus, Inc. | 9 |  | 329 |
| &nbsp;&nbsp;&nbsp;Grid Dynamics Holdings, Inc.\* | 29 |  | 325 |
| &nbsp;&nbsp;&nbsp;Bandwidth, Inc. — Class A\* | 14 |  | 321 |
| &nbsp;&nbsp;&nbsp;PubMatic, Inc. — Class A\* | 25 |  | 320 |
| &nbsp;&nbsp;&nbsp;AvePoint, Inc.\* | 77 |  | 317 |
| &nbsp;&nbsp;&nbsp;Corsair Gaming, Inc.\* | 23 |  | 312 |
| &nbsp;&nbsp;&nbsp;American Software, Inc. — Class A | 21 |  | 308 |
| &nbsp;&nbsp;&nbsp;Alkami Technology, Inc.\* | 21 |  | 306 |
| &nbsp;&nbsp;&nbsp;8x8, Inc.\* | 70 |  | 302 |
| &nbsp;&nbsp;&nbsp;Ebix, Inc. | 15 |  | 299 |
| &nbsp;&nbsp;&nbsp;Vimeo, Inc.\* | 87 |  | 298 |
| &nbsp;&nbsp;&nbsp;OneSpan, Inc.\* | 26 |  | 291 |
| &nbsp;&nbsp;&nbsp;Nutex Health, Inc.\* | 150 |  | 285 |
| &nbsp;&nbsp;&nbsp;Sharecare, Inc.\* | 172 |  | 275 |
| &nbsp;&nbsp;&nbsp;SolarWinds Corp.\* | 29 |  | 271 |
| &nbsp;&nbsp;&nbsp;Domo, Inc. — Class B\* | 18 |  | 256 |
| &nbsp;&nbsp;&nbsp;IonQ, Inc.\* | 73 |  | 252 |
| &nbsp;&nbsp;&nbsp;Daily Journal Corp.\* | 1 |  | 251 |
| &nbsp;&nbsp;&nbsp;Mitek Systems, Inc.\* | 25 |  | 242 |
| &nbsp;&nbsp;&nbsp;Instructure Holdings, Inc.\* | 10 |  | 234 |
| &nbsp;&nbsp;&nbsp;ACM Research, Inc. — Class A\* | 29 |  | 224 |
| &nbsp;&nbsp;&nbsp;Computer Programs and Systems, Inc.\* | 8 |  | 218 |
| &nbsp;&nbsp;&nbsp;Desktop Metal, Inc. — Class A\* | 160 |  | 218 |
| &nbsp;&nbsp;&nbsp;ON24, Inc.\* | 25 |  | 216 |
| &nbsp;&nbsp;&nbsp;Integral Ad Science Holding Corp.\* | 24 |  | 211 |
| &nbsp;&nbsp;&nbsp;UserTesting, Inc.\* | 28 |  | 210 |
| &nbsp;&nbsp;&nbsp;MeridianLink, Inc.\* | 15 |  | 206 |
| &nbsp;&nbsp;&nbsp;Unisys Corp.\* | 40 |  | 204 |
| &nbsp;&nbsp;&nbsp;Intapp, Inc.\* | 8 |  | 200 |
| &nbsp;&nbsp;&nbsp;Inspired Entertainment, Inc.\* | 15 |  | 190 |
| &nbsp;&nbsp;&nbsp;Playstudios, Inc.\* | 47 |  | 182 |
| &nbsp;&nbsp;&nbsp;Telos Corp.\* | 33 |  | 168 |
| &nbsp;&nbsp;&nbsp;Blend Labs, Inc. — Class A\* | 111 |  | 160 |
| &nbsp;&nbsp;&nbsp;Benefitfocus, Inc.\* | 15 |  | 157 |
| &nbsp;&nbsp;&nbsp;Cantaloupe, Inc.\* | 36 |  | 157 |
| &nbsp;&nbsp;&nbsp;Digimarc Corp.\* | 8 |  | 148 |
| &nbsp;&nbsp;&nbsp;Cvent Holding Corp.\* | 27 |  | 146 |
| &nbsp;&nbsp;&nbsp;Enfusion, Inc. — Class A\* | 15 |  | 145 |
| &nbsp;&nbsp;&nbsp;HireRight Holdings Corp.\* | 12 |  | 142 |
| &nbsp;&nbsp;&nbsp;Red Violet, Inc.\* | 6 |  | 138 |
| &nbsp;&nbsp;&nbsp;Vuzix Corp.\*<sup>,1</sup> | 36 |  | 131 |
| &nbsp;&nbsp;&nbsp;Brightcove, Inc.\* | 25 |  | 131 |
| &nbsp;&nbsp;&nbsp;Upland Software, Inc.\* | 18 |  | 128 |
| &nbsp;&nbsp;&nbsp;Cardlytics, Inc.\* | 22 |  | 127 |
| &nbsp;&nbsp;&nbsp;Rimini Street, Inc.\* | 29 |  | 111 |
| &nbsp;&nbsp;&nbsp;AXT, Inc.\* | 25 |  | 109 |
| &nbsp;&nbsp;&nbsp;eGain Corp.\* | 12 |  | 108 |
| &nbsp;&nbsp;&nbsp;EverCommerce, Inc.\* | 14 |  | 104 |
| &nbsp;&nbsp;&nbsp;Rackspace Technology, Inc.\* | 35 |  | 103 |
| &nbsp;&nbsp;&nbsp;Veritone, Inc.\* | 19 |  | 101 |
| &nbsp;&nbsp;&nbsp;Outbrain, Inc.\* | 27 |  | 98 |
| &nbsp;&nbsp;&nbsp;NextNav, Inc.\* | 33 |  | 97 |
| &nbsp;&nbsp;&nbsp;Skillz, Inc.\* | 184 |  | 93 |
| &nbsp;&nbsp;&nbsp;Porch Group, Inc.\* | 49 |  | 92 |
| &nbsp;&nbsp;&nbsp;Weave Communications, Inc.\* | 18 |  | 82 |
| &nbsp;&nbsp;&nbsp;CS Disco, Inc.\* | 13 |  | 82 |
| &nbsp;&nbsp;&nbsp;Markforged Holding Corp.\* | 66 |  | 77 |
| &nbsp;&nbsp;&nbsp;Atomera, Inc.\* | 12 |  | 75 |
| &nbsp;&nbsp;&nbsp;IBEX Holdings Ltd.\* | 3 |  | 75 |
| &nbsp;&nbsp;&nbsp;Ouster, Inc.\* | 84 |  | 72 |
| &nbsp;&nbsp;&nbsp;Cerberus Cyber Sentinel Corp.\* | 28 |  | 71 |
| &nbsp;&nbsp;&nbsp;Skillsoft Corp.\* | 49 |  | 64 |
| &nbsp;&nbsp;&nbsp;Diebold Nixdorf, Inc.\* | 44 |  | 63 |
| &nbsp;&nbsp;&nbsp;Velo3D, Inc.\* | 34 |  | 61 |
| &nbsp;&nbsp;&nbsp;Pear Therapeutics, Inc.\* | 40 |  | 47 |
| &nbsp;&nbsp;&nbsp;WM Technology, Inc.\*<sup>,1</sup> | 43 |  | 43 |
| &nbsp;&nbsp;&nbsp;Arteris, Inc.\* | 10 |  | 43 |
| &nbsp;&nbsp;&nbsp;SkyWater Technology, Inc.\* | 6 |  | 43 |
| &nbsp;&nbsp;&nbsp;LiveVox Holdings, Inc.\* | 13 |  | 39 |
| &nbsp;&nbsp;&nbsp;SecureWorks Corp. — Class A\* | 6 |  | 38 |
| &nbsp;&nbsp;&nbsp;Latch, Inc.\* | 48 |  | 34 |
| &nbsp;&nbsp;&nbsp;Viant Technology, Inc. — Class A\* | 8 |  | 32 |
| &nbsp;&nbsp;&nbsp;Loyalty Ventures, Inc.\* | 13 |  | 31 |
| &nbsp;&nbsp;&nbsp;Faraday Future Intelligent Electric, Inc.\* | 59 |  | 17 |
| &nbsp;&nbsp;&nbsp;Kaleyra, Inc.\* | 20 |  | 15 |
| &nbsp;&nbsp;&nbsp;Rigetti Computing, Inc.\*<sup>,1</sup> | 19 |  | 14 |
| &nbsp;&nbsp;&nbsp;Avaya Holdings Corp.\* | 50 |  | 10 |
| &nbsp;&nbsp;&nbsp;IronNet, Inc.\* | 39 |  | 9 |
| &nbsp;&nbsp;&nbsp;Rockley Photonics Holdings Ltd.\* | 61 |  | 9 |
| **Total Technology** |  |  | 129895 |
| **Energy - 2.8%** | **Energy - 2.8%** | **Energy - 2.8%** | **Energy - 2.8%** |
| &nbsp;&nbsp;&nbsp;Matador Resources Co. | 67 |  | 3835 |
| &nbsp;&nbsp;&nbsp;Murphy Oil Corp. | 88 |  | 3785 |
| &nbsp;&nbsp;&nbsp;ChampionX Corp. | 120 |  | 3479 |
| &nbsp;&nbsp;&nbsp;Chord Energy Corp. | 25 |  | 3420 |
| &nbsp;&nbsp;&nbsp;Helmerich & Payne, Inc. | 61 |  | 3024 |
| &nbsp;&nbsp;&nbsp;Denbury, Inc.\* | 30 |  | 2611 |
| &nbsp;&nbsp;&nbsp;Civitas Resources, Inc. | 44 |  | 2549 |
| &nbsp;&nbsp;&nbsp;SM Energy Co. | 73 |  | 2543 |

---

108 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;Magnolia Oil & Gas Corp. — Class A | 104 | $| 2439 |
| &nbsp;&nbsp;&nbsp;Valaris Ltd.\* | 36 |  | 2434 |
| &nbsp;&nbsp;&nbsp;PBF Energy, Inc. — Class A | 59 |  | 2406 |
| &nbsp;&nbsp;&nbsp;Weatherford International plc\* | 43 |  | 2190 |
| &nbsp;&nbsp;&nbsp;Patterson-UTI Energy, Inc. | 129 |  | 2172 |
| &nbsp;&nbsp;&nbsp;Shoals Technologies Group, Inc. — Class A\* | 83 |  | 2048 |
| &nbsp;&nbsp;&nbsp;Noble Corporation plc\* | 51 |  | 1923 |
| &nbsp;&nbsp;&nbsp;California Resources Corp. | 44 |  | 1914 |
| &nbsp;&nbsp;&nbsp;Peabody Energy Corp.\* | 71 |  | 1876 |
| &nbsp;&nbsp;&nbsp;CNX Resources Corp.\* | 110 |  | 1852 |
| &nbsp;&nbsp;&nbsp;Array Technologies, Inc.\* | 90 |  | 1740 |
| &nbsp;&nbsp;&nbsp;Kosmos Energy Ltd.\* | 273 |  | 1736 |
| &nbsp;&nbsp;&nbsp;Equitrans Midstream Corp. | 248 |  | 1661 |
| &nbsp;&nbsp;&nbsp;Liberty Energy, Inc. — Class A | 83 |  | 1329 |
| &nbsp;&nbsp;&nbsp;Alpha Metallurgical Resources, Inc. | 9 |  | 1318 |
| &nbsp;&nbsp;&nbsp;CONSOL Energy, Inc. | 20 |  | 1300 |
| &nbsp;&nbsp;&nbsp;Arch Resources, Inc. | 9 |  | 1285 |
| &nbsp;&nbsp;&nbsp;Sitio Royalties Corp. — Class A | 42 |  | 1215 |
| &nbsp;&nbsp;&nbsp;Northern Oil and Gas, Inc. | 39 |  | 1202 |
| &nbsp;&nbsp;&nbsp;Permian Resources Corp. | 124 |  | 1166 |
| &nbsp;&nbsp;&nbsp;Delek US Holdings, Inc. | 43 |  | 1161 |
| &nbsp;&nbsp;&nbsp;Callon Petroleum Co.\* | 30 |  | 1113 |
| &nbsp;&nbsp;&nbsp;Warrior Met Coal, Inc. | 31 |  | 1074 |
| &nbsp;&nbsp;&nbsp;Oceaneering International, Inc.\* | 61 |  | 1067 |
| &nbsp;&nbsp;&nbsp;Sunnova Energy International, Inc.\* | 59 |  | 1063 |
| &nbsp;&nbsp;&nbsp;Tidewater, Inc.\* | 28 |  | 1032 |
| &nbsp;&nbsp;&nbsp;NexTier Oilfield Solutions, Inc.\* | 106 |  | 979 |
| &nbsp;&nbsp;&nbsp;Green Plains, Inc.\* | 32 |  | 976 |
| &nbsp;&nbsp;&nbsp;SunPower Corp. — Class A\* | 49 |  | 884 |
| &nbsp;&nbsp;&nbsp;Expro Group Holdings N.V.\* | 47 |  | 852 |
| &nbsp;&nbsp;&nbsp;NOW, Inc.\* | 66 |  | 838 |
| &nbsp;&nbsp;&nbsp;Stem, Inc.\* | 87 |  | 778 |
| &nbsp;&nbsp;&nbsp;Nabors Industries Ltd.\* | 5 |  | 774 |
| &nbsp;&nbsp;&nbsp;Talos Energy, Inc.\* | 40 |  | 755 |
| &nbsp;&nbsp;&nbsp;Comstock Resources, Inc. | 55 |  | 754 |
| &nbsp;&nbsp;&nbsp;Archrock, Inc. | 81 |  | 727 |
| &nbsp;&nbsp;&nbsp;Par Pacific Holdings, Inc.\* | 29 |  | 674 |
| &nbsp;&nbsp;&nbsp;Helix Energy Solutions Group, Inc.\* | 87 |  | 642 |
| &nbsp;&nbsp;&nbsp;FuelCell Energy, Inc.\* | 228 |  | 634 |
| &nbsp;&nbsp;&nbsp;Diamond Offshore Drilling, Inc.\* | 59 |  | 614 |
| &nbsp;&nbsp;&nbsp;Borr Drilling Ltd.\* | 114 |  | 567 |
| &nbsp;&nbsp;&nbsp;CVR Energy, Inc. | 18 |  | 564 |
| &nbsp;&nbsp;&nbsp;US Silica Holdings, Inc.\* | 45 |  | 563 |
| &nbsp;&nbsp;&nbsp;Dril-Quip, Inc.\* | 20 |  | 543 |
| &nbsp;&nbsp;&nbsp;ProPetro Holding Corp.\* | 52 |  | 539 |
| &nbsp;&nbsp;&nbsp;Tellurian, Inc.\* | 308 |  | 517 |
| &nbsp;&nbsp;&nbsp;Gulfport Energy Corp.\* | 7 |  | 516 |
| &nbsp;&nbsp;&nbsp;Laredo Petroleum, Inc.\* | 10 |  | 514 |
| &nbsp;&nbsp;&nbsp;Ranger Oil Corp. — Class A | 12 |  | 485 |
| &nbsp;&nbsp;&nbsp;Bristow Group, Inc.\* | 16 |  | 434 |
| &nbsp;&nbsp;&nbsp;SunCoke Energy, Inc. | 50 |  | 431 |
| &nbsp;&nbsp;&nbsp;Montauk Renewables, Inc.\* | 39 |  | 430 |
| &nbsp;&nbsp;&nbsp;Select Energy Services, Inc. — Class A | 43 |  | 397 |
| &nbsp;&nbsp;&nbsp;RPC, Inc. | 44 |  | 391 |
| &nbsp;&nbsp;&nbsp;Fluence Energy, Inc.\* | 22 |  | 377 |
| &nbsp;&nbsp;&nbsp;Earthstone Energy, Inc. — Class A\* | 26 |  | 370 |
| &nbsp;&nbsp;&nbsp;Berry Corp. | 46 |  | 368 |
| &nbsp;&nbsp;&nbsp;ProFrac Holding Corp. — Class A\* | 14 |  | 353 |
| &nbsp;&nbsp;&nbsp;REX American Resources Corp.\* | 11 |  | 350 |
| &nbsp;&nbsp;&nbsp;SandRidge Energy, Inc.\* | 20 |  | 341 |
| &nbsp;&nbsp;&nbsp;Kinetik Holdings, Inc. — Class A<sup>1</sup> | 10 |  | 331 |
| &nbsp;&nbsp;&nbsp;W&T Offshore, Inc.\* | 57 |  | 318 |
| &nbsp;&nbsp;&nbsp;Excelerate Energy, Inc. — Class A | 12 |  | 301 |
| &nbsp;&nbsp;&nbsp;VAALCO Energy, Inc. | 64 |  | 292 |
| &nbsp;&nbsp;&nbsp;Oil States International, Inc.\* | 37 |  | 276 |
| &nbsp;&nbsp;&nbsp;TETRA Technologies, Inc.\* | 74 |  | 256 |
| &nbsp;&nbsp;&nbsp;DMC Global, Inc.\* | 12 |  | 233 |
| &nbsp;&nbsp;&nbsp;Crescent Energy Co. — Class A | 19 |  | 228 |
| &nbsp;&nbsp;&nbsp;Gevo, Inc.\* | 118 |  | 224 |
| &nbsp;&nbsp;&nbsp;TPI Composites, Inc.\* | 22 |  | 223 |
| &nbsp;&nbsp;&nbsp;Newpark Resources, Inc.\* | 50 |  | 208 |
| &nbsp;&nbsp;&nbsp;Vertex Energy, Inc.\* | 32 |  | 198 |
| &nbsp;&nbsp;&nbsp;SilverBow Resources, Inc.\* | 7 |  | 198 |
| &nbsp;&nbsp;&nbsp;Solaris Oilfield Infrastructure, Inc. — Class A | 19 |  | 189 |
| &nbsp;&nbsp;&nbsp;Aris Water Solution, Inc. — Class A | 13 |  | 187 |
| &nbsp;&nbsp;&nbsp;Amplify Energy Corp.\* | 21 |  | 185 |
| &nbsp;&nbsp;&nbsp;Riley Exploration Permian, Inc. | 6 |  | 177 |
| &nbsp;&nbsp;&nbsp;National Energy Services Reunited Corp.\* | 23 |  | 160 |
| &nbsp;&nbsp;&nbsp;Eneti, Inc. | 14 |  | 141 |
| &nbsp;&nbsp;&nbsp;Ring Energy, Inc.\* | 53 |  | 130 |
| &nbsp;&nbsp;&nbsp;FutureFuel Corp. | 16 |  | 130 |
| &nbsp;&nbsp;&nbsp;Alto Ingredients, Inc.\* | 44 |  | 127 |
| &nbsp;&nbsp;&nbsp;Energy Vault Holdings, Inc.\* | 37 |  | 115 |
| &nbsp;&nbsp;&nbsp;Ramaco Resources, Inc. | 13 |  | 114 |
| &nbsp;&nbsp;&nbsp;NextDecade Corp.\* | 19 |  | 94 |
| &nbsp;&nbsp;&nbsp;HighPeak Energy, Inc. | 4 |  | 91 |
| &nbsp;&nbsp;&nbsp;NACCO Industries, Inc. — Class A | 2 |  | 76 |
| &nbsp;&nbsp;&nbsp;Aemetis, Inc.\* | 17 |  | 67 |
| &nbsp;&nbsp;&nbsp;Empire Petroleum Corp.\* | 5 |  | 62 |
| &nbsp;&nbsp;&nbsp;Cleanspark, Inc.\* | 27 |  | 55 |
| &nbsp;&nbsp;&nbsp;Heliogen, Inc.\* | 53 |  | 37 |
| &nbsp;&nbsp;&nbsp;Battalion Oil Corp.\* | 2 |  | 19 |
| **Total Energy** |  |  | 92335 |
| **Communications - 1.7%** | **Communications - 1.7%** | **Communications - 1.7%** | **Communications - 1.7%** |
| &nbsp;&nbsp;&nbsp;Iridium Communications, Inc. | 75 |  | 3855 |
| &nbsp;&nbsp;&nbsp;TEGNA, Inc. | 133 |  | 2818 |
| &nbsp;&nbsp;&nbsp;Calix, Inc.\* | 34 |  | 2327 |
| &nbsp;&nbsp;&nbsp;Maxar Technologies, Inc. | 43 |  | 2225 |
| &nbsp;&nbsp;&nbsp;Ziff Davis, Inc.\* | 28 |  | 2215 |
| &nbsp;&nbsp;&nbsp;Marqeta, Inc. — Class A\* | 261 |  | 1595 |
| &nbsp;&nbsp;&nbsp;Cogent Communications Holdings, Inc. | 26 |  | 1484 |
| &nbsp;&nbsp;&nbsp;Perficient, Inc.\* | 21 |  | 1466 |
| &nbsp;&nbsp;&nbsp;Viavi Solutions, Inc.\* | 137 |  | 1440 |
| &nbsp;&nbsp;&nbsp;Extreme Networks, Inc.\* | 77 |  | 1410 |
| &nbsp;&nbsp;&nbsp;Yelp, Inc. — Class A\* | 42 |  | 1148 |
| &nbsp;&nbsp;&nbsp;Bumble, Inc. — Class A\* | 51 |  | 1074 |
| &nbsp;&nbsp;&nbsp;DigitalBridge Group, Inc. | 95 |  | 1039 |
| &nbsp;&nbsp;&nbsp;Q2 Holdings, Inc.\* | 34 |  | 914 |
| &nbsp;&nbsp;&nbsp;CommScope Holding Company, Inc.\* | 124 |  | 911 |
| &nbsp;&nbsp;&nbsp;Cargurus, Inc.\* | 62 |  | 869 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 109

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;Magnite, Inc.\* | 80 | $| 847 |
| &nbsp;&nbsp;&nbsp;InterDigital, Inc. | 17 |  | 841 |
| &nbsp;&nbsp;&nbsp;ADTRAN Holdings, Inc. | 43 |  | 808 |
| &nbsp;&nbsp;&nbsp;Upwork, Inc.\* | 73 |  | 762 |
| &nbsp;&nbsp;&nbsp;Infinera Corp.\* | 113 |  | 762 |
| &nbsp;&nbsp;&nbsp;TechTarget, Inc.\* | 17 |  | 749 |
| &nbsp;&nbsp;&nbsp;Credo Technology Group Holding Ltd.\* | 56 |  | 745 |
| &nbsp;&nbsp;&nbsp;Shutterstock, Inc. | 14 |  | 738 |
| &nbsp;&nbsp;&nbsp;Harmonic, Inc.\* | 55 |  | 720 |
| &nbsp;&nbsp;&nbsp;ePlus, Inc.\* | 16 |  | 708 |
| &nbsp;&nbsp;&nbsp;Scholastic Corp. | 17 |  | 671 |
| &nbsp;&nbsp;&nbsp;A10 Networks, Inc. | 40 |  | 665 |
| &nbsp;&nbsp;&nbsp;Liberty Latin America Ltd. — Class C\* | 87 |  | 661 |
| &nbsp;&nbsp;&nbsp;Clearfield, Inc.\* | 7 |  | 659 |
| &nbsp;&nbsp;&nbsp;Telephone & Data Systems, Inc. | 60 |  | 629 |
| &nbsp;&nbsp;&nbsp;Revolve Group, Inc.\* | 25 |  | 556 |
| &nbsp;&nbsp;&nbsp;Cars.com, Inc.\* | 40 |  | 551 |
| &nbsp;&nbsp;&nbsp;Globalstar, Inc.\* | 412 |  | 548 |
| &nbsp;&nbsp;&nbsp;Gray Television, Inc. | 48 |  | 537 |
| &nbsp;&nbsp;&nbsp;Figs, Inc. — Class A\* | 77 |  | 518 |
| &nbsp;&nbsp;&nbsp;Overstock.com, Inc.\* | 26 |  | 503 |
| &nbsp;&nbsp;&nbsp;Poshmark, Inc. — Class A\* | 27 |  | 483 |
| &nbsp;&nbsp;&nbsp;EW Scripps Co. — Class A\* | 35 |  | 462 |
| &nbsp;&nbsp;&nbsp;Shenandoah Telecommunications Co. | 29 |  | 460 |
| &nbsp;&nbsp;&nbsp;iHeartMedia, Inc. — Class A\* | 74 |  | 453 |
| &nbsp;&nbsp;&nbsp;QuinStreet, Inc.\* | 31 |  | 445 |
| &nbsp;&nbsp;&nbsp;Gogo, Inc.\* | 30 |  | 443 |
| &nbsp;&nbsp;&nbsp;Open Lending Corp. — Class A\* | 64 |  | 432 |
| &nbsp;&nbsp;&nbsp;Planet Labs PBC\* | 93 |  | 405 |
| &nbsp;&nbsp;&nbsp;Squarespace, Inc. — Class A\* | 18 |  | 399 |
| &nbsp;&nbsp;&nbsp;EchoStar Corp. — Class A\* | 23 |  | 384 |
| &nbsp;&nbsp;&nbsp;Sinclair Broadcast Group, Inc. — Class A | 23 |  | 357 |
| &nbsp;&nbsp;&nbsp;Anterix, Inc.\* | 11 |  | 354 |
| &nbsp;&nbsp;&nbsp;HealthStream, Inc.\* | 14 |  | 348 |
| &nbsp;&nbsp;&nbsp;Boston Omaha Corp. — Class A\* | 13 |  | 344 |
| &nbsp;&nbsp;&nbsp;NETGEAR, Inc.\* | 17 |  | 308 |
| &nbsp;&nbsp;&nbsp;WideOpenWest, Inc.\* | 33 |  | 301 |
| &nbsp;&nbsp;&nbsp;AMC Networks, Inc. — Class A\* | 19 |  | 298 |
| &nbsp;&nbsp;&nbsp;Stagwell, Inc.\* | 47 |  | 292 |
| &nbsp;&nbsp;&nbsp;Thryv Holdings, Inc.\* | 15 |  | 285 |
| &nbsp;&nbsp;&nbsp;ATN International, Inc. | 6 |  | 272 |
| &nbsp;&nbsp;&nbsp;Eventbrite, Inc. — Class A\* | 45 |  | 264 |
| &nbsp;&nbsp;&nbsp;IDT Corp. — Class B\* | 9 |  | 253 |
| &nbsp;&nbsp;&nbsp;Clear Channel Outdoor Holdings, Inc.\* | 216 |  | 227 |
| &nbsp;&nbsp;&nbsp;Liquidity Services, Inc.\* | 16 |  | 225 |
| &nbsp;&nbsp;&nbsp;Couchbase, Inc.\* | 16 |  | 212 |
| &nbsp;&nbsp;&nbsp;Rover Group, Inc.\*<sup>,1</sup> | 56 |  | 206 |
| &nbsp;&nbsp;&nbsp;Tucows, Inc. — Class A\* | 6 |  | 204 |
| &nbsp;&nbsp;&nbsp;Ooma, Inc.\* | 14 |  | 191 |
| &nbsp;&nbsp;&nbsp;Liberty Latin America Ltd. — Class A\* | 25 |  | 188 |
| &nbsp;&nbsp;&nbsp;CarParts.com, Inc.\* | 30 |  | 188 |
| &nbsp;&nbsp;&nbsp;United States Cellular Corp.\* | 9 |  | 188 |
| &nbsp;&nbsp;&nbsp;Aviat Networks, Inc.\* | 6 |  | 187 |
| &nbsp;&nbsp;&nbsp;fuboTV, Inc.\*<sup>,1</sup> | 107 |  | 186 |
| &nbsp;&nbsp;&nbsp;OptimizeRx Corp.\* | 11 |  | 185 |
| &nbsp;&nbsp;&nbsp;Quotient Technology, Inc.\* | 53 |  | 182 |
| &nbsp;&nbsp;&nbsp;Gannett Company, Inc.\* | 87 |  | 176 |
| &nbsp;&nbsp;&nbsp;Entravision Communications Corp. — Class A | 35 |  | 168 |
| &nbsp;&nbsp;&nbsp;Preformed Line Products Co. | 2 |  | 167 |
| &nbsp;&nbsp;&nbsp;ContextLogic, Inc. — Class A\* | 338 |  | 165 |
| &nbsp;&nbsp;&nbsp;EverQuote, Inc. — Class A\* | 11 |  | 162 |
| &nbsp;&nbsp;&nbsp;Consolidated Communications Holdings, Inc.\* | 44 |  | 157 |
| &nbsp;&nbsp;&nbsp;1-800-Flowers.com, Inc. — Class A\* | 16 |  | 153 |
| &nbsp;&nbsp;&nbsp;Stitch Fix, Inc. — Class A\* | 49 |  | 152 |
| &nbsp;&nbsp;&nbsp;Cambium Networks Corp.\* | 7 |  | 152 |
| &nbsp;&nbsp;&nbsp;MediaAlpha, Inc. — Class A\* | 14 |  | 139 |
| &nbsp;&nbsp;&nbsp;Allbirds, Inc. — Class A\* | 56 |  | 136 |
| &nbsp;&nbsp;&nbsp;DHI Group, Inc.\* | 25 |  | 132 |
| &nbsp;&nbsp;&nbsp;DZS, Inc.\* | 10 |  | 127 |
| &nbsp;&nbsp;&nbsp;Blade Air Mobility, Inc.\* | 34 |  | 122 |
| &nbsp;&nbsp;&nbsp;Ribbon Communications, Inc.\* | 43 |  | 120 |
| &nbsp;&nbsp;&nbsp;Groupon, Inc.\*<sup>,1</sup> | 13 |  | 112 |
| &nbsp;&nbsp;&nbsp;Vivid Seats, Inc. — Class A\*<sup>,1</sup> | 15 |  | 109 |
| &nbsp;&nbsp;&nbsp;BARK, Inc.\* | 70 |  | 104 |
| &nbsp;&nbsp;&nbsp;Advantage Solutions, Inc.\* | 49 |  | 102 |
| &nbsp;&nbsp;&nbsp;Edgio, Inc.\* | 83 |  | 94 |
| &nbsp;&nbsp;&nbsp;Arena Group Holdings, Inc.\* | 8 |  | 85 |
| &nbsp;&nbsp;&nbsp;Vacasa, Inc. — Class A\* | 65 |  | 82 |
| &nbsp;&nbsp;&nbsp;Cumulus Media, Inc. — Class A\* | 13 |  | 81 |
| &nbsp;&nbsp;&nbsp;Innovid Corp.\* | 45 |  | 77 |
| &nbsp;&nbsp;&nbsp;Nerdy, Inc.\* | 33 |  | 74 |
| &nbsp;&nbsp;&nbsp;1stdibs.com, Inc.\* | 14 |  | 71 |
| &nbsp;&nbsp;&nbsp;Focus Universal, Inc.\*<sup>,1</sup> | 11 |  | 71 |
| &nbsp;&nbsp;&nbsp;Lands' End, Inc.\* | 9 |  | 68 |
| &nbsp;&nbsp;&nbsp;RealReal, Inc.\* | 50 |  | 62 |
| &nbsp;&nbsp;&nbsp;Casa Systems, Inc.\* | 21 |  | 57 |
| &nbsp;&nbsp;&nbsp;Gambling.com Group Ltd.\* | 6 |  | 55 |
| &nbsp;&nbsp;&nbsp;Value Line, Inc. | 1 |  | 51 |
| &nbsp;&nbsp;&nbsp;Solo Brands, Inc. — Class A\*<sup>,1</sup> | 13 |  | 48 |
| &nbsp;&nbsp;&nbsp;Cyxtera Technologies, Inc.\* | 25 |  | 48 |
| &nbsp;&nbsp;&nbsp;Inseego Corp.\* | 52 |  | 44 |
| &nbsp;&nbsp;&nbsp;RumbleON, Inc. — Class B\* | 6 |  | 39 |
| &nbsp;&nbsp;&nbsp;Ondas Holdings, Inc.\* | 21 |  | 33 |
| &nbsp;&nbsp;&nbsp;Urban One, Inc.\* | 8 |  | 30 |
| &nbsp;&nbsp;&nbsp;KORE Group Holdings, Inc.\* | 22 |  | 28 |
| &nbsp;&nbsp;&nbsp;Urban One, Inc.\* | 5 |  | 23 |
| &nbsp;&nbsp;&nbsp;Terran Orbital Corp.\*<sup>,1</sup> | 14 |  | 22 |
| &nbsp;&nbsp;&nbsp;AdTheorent Holding Company, Inc.\* | 11 |  | 18 |
| &nbsp;&nbsp;&nbsp;Audacy, Inc.\* | 71 |  | 16 |
| &nbsp;&nbsp;&nbsp;Lulu's Fashion Lounge Holdings, Inc.\* | 4 |  | 10 |
| &nbsp;&nbsp;&nbsp;aka Brands Holding Corp.\* | 7 |  | 9 |
| &nbsp;&nbsp;&nbsp;Inspirato, Inc.\* | 7 |  | 8 |
| **Total Communications** |  |  | 55538 |
| **Basic Materials - 1.4%** | **Basic Materials - 1.4%** | **Basic Materials - 1.4%** | **Basic Materials - 1.4%** |
| &nbsp;&nbsp;&nbsp;Commercial Metals Co. | 70 |  | 3381 |
| &nbsp;&nbsp;&nbsp;Balchem Corp. | 19 |  | 2320 |
| &nbsp;&nbsp;&nbsp;HB Fuller Co. | 32 |  | 2292 |
| &nbsp;&nbsp;&nbsp;ATI, Inc.\* | 75 |  | 2240 |
| &nbsp;&nbsp;&nbsp;Cabot Corp. | 33 |  | 2206 |
| &nbsp;&nbsp;&nbsp;Livent Corp.\* | 98 |  | 1947 |

---

110 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;Avient Corp. | 56 | $| 1891 |
| &nbsp;&nbsp;&nbsp;Sensient Technologies Corp. | 25 |  | 1823 |
| &nbsp;&nbsp;&nbsp;Hecla Mining Co. | 324 |  | 1801 |
| &nbsp;&nbsp;&nbsp;Ingevity Corp.\* | 23 |  | 1620 |
| &nbsp;&nbsp;&nbsp;Innospec, Inc. | 15 |  | 1543 |
| &nbsp;&nbsp;&nbsp;Stepan Co. | 13 |  | 1384 |
| &nbsp;&nbsp;&nbsp;Quaker Chemical Corp. | 8 |  | 1335 |
| &nbsp;&nbsp;&nbsp;Rogers Corp.\* | 11 |  | 1313 |
| &nbsp;&nbsp;&nbsp;Arconic Corp.\* | 60 |  | 1270 |
| &nbsp;&nbsp;&nbsp;Minerals Technologies, Inc. | 19 |  | 1154 |
| &nbsp;&nbsp;&nbsp;Sylvamo Corp. | 22 |  | 1069 |
| &nbsp;&nbsp;&nbsp;Carpenter Technology Corp. | 28 |  | 1034 |
| &nbsp;&nbsp;&nbsp;Tronox Holdings plc — Class A | 70 |  | 960 |
| &nbsp;&nbsp;&nbsp;Constellium SE\* | 74 |  | 875 |
| &nbsp;&nbsp;&nbsp;Novagold Resources, Inc.\* | 144 |  | 861 |
| &nbsp;&nbsp;&nbsp;Compass Minerals International, Inc. | 20 |  | 820 |
| &nbsp;&nbsp;&nbsp;Kaiser Aluminum Corp. | 10 |  | 760 |
| &nbsp;&nbsp;&nbsp;Uranium Energy Corp.\*<sup>,1</sup> | 193 |  | 749 |
| &nbsp;&nbsp;&nbsp;Perimeter Solutions S.A.\* | 74 |  | 676 |
| &nbsp;&nbsp;&nbsp;Mativ Holdings, Inc. | 32 |  | 669 |
| &nbsp;&nbsp;&nbsp;Orion Engineered Carbons S.A. | 36 |  | 641 |
| &nbsp;&nbsp;&nbsp;AdvanSix, Inc. | 16 |  | 608 |
| &nbsp;&nbsp;&nbsp;Energy Fuels, Inc.\* | 94 |  | 584 |
| &nbsp;&nbsp;&nbsp;Resolute Forest Products, Inc.\* | 27 |  | 583 |
| &nbsp;&nbsp;&nbsp;Coeur Mining, Inc.\* | 169 |  | 568 |
| &nbsp;&nbsp;&nbsp;Schnitzer Steel Industries, Inc. — Class A | 16 |  | 490 |
| &nbsp;&nbsp;&nbsp;Trinseo plc | 21 |  | 477 |
| &nbsp;&nbsp;&nbsp;Hawkins, Inc. | 12 |  | 463 |
| &nbsp;&nbsp;&nbsp;Piedmont Lithium, Inc.\* | 10 |  | 440 |
| &nbsp;&nbsp;&nbsp;Ecovyst, Inc.\* | 43 |  | 381 |
| &nbsp;&nbsp;&nbsp;Clearwater Paper Corp.\* | 10 |  | 378 |
| &nbsp;&nbsp;&nbsp;American Vanguard Corp. | 17 |  | 369 |
| &nbsp;&nbsp;&nbsp;Rayonier Advanced Materials, Inc.\* | 38 |  | 365 |
| &nbsp;&nbsp;&nbsp;Koppers Holdings, Inc. | 12 |  | 338 |
| &nbsp;&nbsp;&nbsp;Haynes International, Inc. | 7 |  | 320 |
| &nbsp;&nbsp;&nbsp;Origin Materials, Inc.\* | 69 |  | 318 |
| &nbsp;&nbsp;&nbsp;Lightwave Logic, Inc.\* | 68 |  | 293 |
| &nbsp;&nbsp;&nbsp;Century Aluminum Co.\* | 30 |  | 245 |
| &nbsp;&nbsp;&nbsp;Intrepid Potash, Inc.\* | 7 |  | 202 |
| &nbsp;&nbsp;&nbsp;Diversey Holdings Ltd.\* | 47 |  | 200 |
| &nbsp;&nbsp;&nbsp;Amyris, Inc.\*<sup>,1</sup> | 118 |  | 181 |
| &nbsp;&nbsp;&nbsp;Codexis, Inc.\* | 37 |  | 172 |
| &nbsp;&nbsp;&nbsp;5E Advanced Materials, Inc.\* | 19 |  | 150 |
| &nbsp;&nbsp;&nbsp;Ur-Energy, Inc.\* | 126 |  | 145 |
| &nbsp;&nbsp;&nbsp;United States Lime & Minerals, Inc. | 1 |  | 141 |
| &nbsp;&nbsp;&nbsp;Kronos Worldwide, Inc. | 13 |  | 122 |
| &nbsp;&nbsp;&nbsp;Ivanhoe Electric Incorporated / US\* | 9 |  | 109 |
| &nbsp;&nbsp;&nbsp;Danimer Scientific, Inc.\* | 55 |  | 98 |
| &nbsp;&nbsp;&nbsp;Dakota Gold Corp.\* | 30 |  | 92 |
| &nbsp;&nbsp;&nbsp;Glatfelter Corp.\* | 27 |  | 75 |
| &nbsp;&nbsp;&nbsp;Unifi, Inc.\* | 8 |  | 69 |
| &nbsp;&nbsp;&nbsp;Hycroft Mining Holding Corp.\* | 91 |  | 48 |
| &nbsp;&nbsp;&nbsp;PolyMet Mining Corp.\* | 18 |  | 48 |
| &nbsp;&nbsp;&nbsp;Valhi, Inc. | 2 |  | 44 |
| &nbsp;&nbsp;&nbsp;Terawulf, Inc.\* | 13 |  | 9 |
| **Total Basic Materials** |  |  | 47759 |
| **Utilities - 1.4%** | **Utilities - 1.4%** | **Utilities - 1.4%** | **Utilities - 1.4%** |
| &nbsp;&nbsp;&nbsp;New Jersey Resources Corp. | 58 |  | 2878 |
| &nbsp;&nbsp;&nbsp;Black Hills Corp. | 38 |  | 2673 |
| &nbsp;&nbsp;&nbsp;South Jersey Industries, Inc. | 74 |  | 2629 |
| &nbsp;&nbsp;&nbsp;Portland General Electric Co. | 53 |  | 2597 |
| &nbsp;&nbsp;&nbsp;Ormat Technologies, Inc. | 30 |  | 2594 |
| &nbsp;&nbsp;&nbsp;PNM Resources, Inc. | 51 |  | 2488 |
| &nbsp;&nbsp;&nbsp;Southwest Gas Holdings, Inc. | 40 |  | 2475 |
| &nbsp;&nbsp;&nbsp;ONE Gas, Inc. | 32 |  | 2423 |
| &nbsp;&nbsp;&nbsp;ALLETE, Inc. | 35 |  | 2258 |
| &nbsp;&nbsp;&nbsp;Brookfield Infrastructure Corp. — Class A | 58 |  | 2256 |
| &nbsp;&nbsp;&nbsp;NorthWestern Corp. | 35 |  | 2077 |
| &nbsp;&nbsp;&nbsp;Spire, Inc. | 30 |  | 2066 |
| &nbsp;&nbsp;&nbsp;American States Water Co. | 22 |  | 2036 |
| &nbsp;&nbsp;&nbsp;California Water Service Group | 32 |  | 1940 |
| &nbsp;&nbsp;&nbsp;Avista Corp. | 43 |  | 1907 |
| &nbsp;&nbsp;&nbsp;Clearway Energy, Inc. — Class C | 49 |  | 1562 |
| &nbsp;&nbsp;&nbsp;MGE Energy, Inc. | 22 |  | 1549 |
| &nbsp;&nbsp;&nbsp;Otter Tail Corp. | 25 |  | 1468 |
| &nbsp;&nbsp;&nbsp;SJW Group | 16 |  | 1299 |
| &nbsp;&nbsp;&nbsp;Chesapeake Utilities Corp. | 10 |  | 1182 |
| &nbsp;&nbsp;&nbsp;Ameresco, Inc. — Class A\* | 19 |  | 1086 |
| &nbsp;&nbsp;&nbsp;Northwest Natural Holding Co. | 20 |  | 952 |
| &nbsp;&nbsp;&nbsp;Middlesex Water Co. | 10 |  | 787 |
| &nbsp;&nbsp;&nbsp;Clearway Energy, Inc. — Class A | 22 |  | 658 |
| &nbsp;&nbsp;&nbsp;Unitil Corp. | 10 |  | 513 |
| &nbsp;&nbsp;&nbsp;York Water Co. | 9 |  | 405 |
| &nbsp;&nbsp;&nbsp;Artesian Resources Corp. — Class A | 5 |  | 293 |
| &nbsp;&nbsp;&nbsp;Altus Power, Inc.\* | 25 |  | 163 |
| &nbsp;&nbsp;&nbsp;Global Water Resources, Inc. | 8 |  | 106 |
| &nbsp;&nbsp;&nbsp;FTC Solar, Inc.\* | 25 |  | 67 |
| &nbsp;&nbsp;&nbsp;Via Renewables, Inc. | 7 |  | 36 |
| **Total Utilities** |  |  | 47423 |
| **Government - 0.0%** | **Government - 0.0%** | **Government - 0.0%** | **Government - 0.0%** |
| &nbsp;&nbsp;&nbsp;Banco Latinoamericano de Comercio Exterior S.A. — Class E | 17 |  | 275 |
| **Diversified - 0.0%** | **Diversified - 0.0%** | **Diversified - 0.0%** | **Diversified - 0.0%** |
| &nbsp;&nbsp;&nbsp;Professional Holding Corp. — Class A\* | 8 |  | 222 |
| **Total Common Stocks** | **Total Common Stocks** |  |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,530,437) |  |  | 1367480 |
| **WARRANTS<sup>†</sup>** **- 0.0%** | **WARRANTS<sup>†</sup>** **- 0.0%** | **WARRANTS<sup>†</sup>** **- 0.0%** | **WARRANTS<sup>†</sup>** **- 0.0%** |
| &nbsp;&nbsp;&nbsp;Triumph Group, Inc. |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Expiring 12/19/23\* |  |  |  |
| **Total Warrants** | **Total Warrants** |  |  |
| &nbsp;&nbsp;&nbsp;(Cost $1) |  |  |  |
| **RIGHTS<sup>†††</sup>** **- 0.0%** | **RIGHTS<sup>†††</sup>** **- 0.0%** | **RIGHTS<sup>†††</sup>** **- 0.0%** | **RIGHTS<sup>†††</sup>** **- 0.0%** |
| **Consumer, Non-cyclical - 0.0%** | **Consumer, Non-cyclical - 0.0%** | **Consumer, Non-cyclical - 0.0%** | **Consumer, Non-cyclical - 0.0%** |
| &nbsp;&nbsp;&nbsp;Tobira Therapeutics, Inc.\* | 8 |  |  |
| &nbsp;&nbsp;&nbsp;UCB\* | 39 |  |  |
| **Total Consumer, Non-cyclical** |  |  |  |
| **Total Rights** | **Total Rights** |  |  |
| &nbsp;&nbsp;&nbsp;(Cost $—) |  |  |  |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 111

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **EXCHANGE-TRADED FUNDS<sup>†</sup>** **- 19.6%** | **EXCHANGE-TRADED FUNDS<sup>†</sup>** **- 19.6%** | **EXCHANGE-TRADED FUNDS<sup>†</sup>** **- 19.6%** |
| &nbsp;&nbsp;&nbsp;iShares Russell 2000 Index ETF | 1889 | $329366 |
| &nbsp;&nbsp;&nbsp;Vanguard Russell 2000 ETF | 4679 | 329261 |
| **Total Exchange-Traded Funds** | **Total Exchange-Traded Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $827,474) |  | 658627 |
| **MUTUAL FUNDS<sup>†</sup>** **- 19.4%** | **MUTUAL FUNDS<sup>†</sup>** **- 19.4%** | **MUTUAL FUNDS<sup>†</sup>** **- 19.4%** |
| &nbsp;&nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class<sup>2</sup> | 43160 | 416065 |
| &nbsp;&nbsp;&nbsp;Guggenheim Strategy Fund II<sup>2</sup> | 9842 | 236612 |
| **Total Mutual Funds** | **Total Mutual Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $667,545) |  | 652677 |
|  | **Face<br> Amount** |  |
| **U.S. TREASURY BILLS<sup>††</sup>** **- 15.7%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 15.7%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 15.7%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.89% due 01/12/23<sup>3,4</sup> | $500000 | 499566 |
| &nbsp;&nbsp;&nbsp;3.79% due 01/17/23<sup>4,5</sup> | 30000 | 29957 |
| **Total U.S. Treasury Bills** | **Total U.S. Treasury Bills** |  |
| &nbsp;&nbsp;&nbsp;(Cost $529,355) |  | 529523 |

---

---

| | | |
|:---|:---|:---|
| **REPURCHASE AGREEMENTS<sup>††,6</sup>** **- 8.1%** | **REPURCHASE AGREEMENTS<sup>††,6</sup>** **- 8.1%** | **REPURCHASE AGREEMENTS<sup>††,6</sup>** **- 8.1%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23<sup>3</sup> | 153864 | 153864 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23<sup>3</sup> | 59179 | 59179 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23<sup>3</sup> | 58995 | 58995 |
| **Total Repurchase Agreements** |  |  |
| (Cost $272,038) |  | 272038 |
|  | **Shares**  |  |
| **SECURITIES LENDING COLLATERAL<sup>†,7</sup> - 0.2%** | **SECURITIES LENDING COLLATERAL<sup>†,7</sup> - 0.2%** | **SECURITIES LENDING COLLATERAL<sup>†,7</sup> - 0.2%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>8</sup> | 7530 | 7530 |
| **Total Securities Lending Collateral** |  |  |
| (Cost $7,530) |  | 7530 |
| **Total Investments - 103.7%** |  |  |
| (Cost $3,834,380) |  | $3487875 |
| **Other Assets & Liabilities, net - (3.7)%** |  | (123394) |
| **Total Net Assets - 100.0%** |  | $3364481 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Depreciation\*\*** |
| **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** |
| Russell 2000 Index Mini Futures Contracts | 11 | Mar 2023 | $974215 | $(22029) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** |
| **Counterparty** | **Index** | **Type** | **Financing <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Units** | **Notional <br> Amount** | **Value and <br> Unrealized <br> Depreciation** |
| **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** |
| BNP Paribas | Russell 2000 Index | Pay | 4.53% (Federal Funds Rate + 0.20%) | At Maturity | 01/26/23 | 129 | $226905 | $(6753) |
| Goldman Sachs International | Russell 2000 Index | Pay | 4.43% (Federal Funds Rate + 0.10%) | At Maturity | 01/26/23 | 244 | 428906 | (19278) |
| Barclays Bank plc | Russell 2000 Index | Pay | 4.30% (SOFR) | At Maturity | 01/25/23 | 794 | 1398921 | (101440) |
|  |  |  |  |  |  |  | $2054732 | $(127471) |

---

112 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| \*\* | &nbsp;&nbsp;&nbsp;Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>†††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 3 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Affiliated issuer. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as equity index swap collateral at December 31, 2022. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>5</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as futures collateral at December 31, 2022. |
| <sup>6</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>7</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>8</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;REIT — Real Estate Investment Trust |
|  | &nbsp;&nbsp;&nbsp;SOFR — Secured Overnight Financing Rate |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $1367480 | $— \* | $— | $1367480 |
| Warrants | — \* |  |  |  |
| Rights |  |  | — \* |  |
| Exchange-Traded Funds | 658627 |  |  | 658627 |
| Mutual Funds | 652677 |  |  | 652677 |
| U.S. Treasury Bills |  | 529523 |  | 529523 |
| Repurchase Agreements |  | 272038 |  | 272038 |
| Securities Lending Collateral | 7530 |  |  | 7530 |
| Total Assets | $2686314 | $801561 | $— | $3487875 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Liabilities)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Equity Futures Contracts\*\* | $22029 | $— | $— | $22029 |
| Equity Index Swap Agreements\*\* |  | 127471 |  | 127471 |
| Total Liabilities | $22029 | $127471 | $— | $149500 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Security has a market value of $0. |
| \*\* | &nbsp;&nbsp;&nbsp;This derivative is reported as unrealized appreciation/depreciation at period end. |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 113

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND** |  |

---

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $1224265 | $— | $(975000) | $(3455) | $(9198) | $236612 | 9842 | $8474 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 831794 | 800000 | (1200000) | (4612) | (11117) | 416065 | 43160 | 10202 |
|  | $2056059 | $800000 | $(2175000) | $(8067) | $(20315) | $652677 |  | $18676 |

---

114 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments in unaffiliated issuers, at value - including $7,247 of securities loaned (cost $2,894,797) | $2563160 |
| Investments in affiliated issuers, at value (cost $667,545) | 652677 |
| Repurchase agreements, at value (cost $272,038) | 272038 |
| Cash | 51 |
| Segregated cash with broker | 22400 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 66422 |
| &nbsp;&nbsp;&nbsp;Dividends | 4129 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 178 |
| &nbsp;&nbsp;&nbsp;Interest | 64 |
| **Total assets** | 3581119 |
| **Liabilities:** | **Liabilities:** |
| Unrealized depreciation on OTC swap agreements | 127471 |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Swap settlement | 63011 |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 7530 |
| &nbsp;&nbsp;&nbsp;Management fees | 2611 |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 2574 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 1036 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 750 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 315 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 77 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 50 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 11213 |
| **Total liabilities** | 216638 |
| **Net assets** | $3364481 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $5312904 |
| Total distributable earnings (loss) | (1948423) |
| Net assets | $3364481 |
| Capital shares outstanding | 57763 |
| Net asset value per share | $58.25 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $35) | $30942 |
| Dividends from securities of affiliated issuers | 18676 |
| Interest | 14153 |
| Income from securities lending, net | 2404 |
| &nbsp;&nbsp;&nbsp;Total investment income | 66175 |
| **Expenses:** | **Expenses:** |
| Management fees | 36640 |
| Investor service fees | 10178 |
| Transfer agent fees | 11712 |
| Portfolio accounting and administration fees | 5061 |
| Professional fees | 4055 |
| Custodian fees | 780 |
| Trustees' fees\* | 762 |
| Line of credit fees | 126 |
| Interest expense | 37 |
| Miscellaneous | 6919 |
| &nbsp;&nbsp;&nbsp;Total expenses | 76270 |
| Less: | Less: |
| Expenses reimbursed by Adviser | (2035) |
| Expenses waived by Adviser | (1248) |
| &nbsp;&nbsp;&nbsp;Total waived/reimbursed expenses | (3283) |
| Net expenses | 72987 |
| Net investment loss | (6812) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (314060) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (8067) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (835946) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (290121) |
| Net realized loss | (1448194) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (367290) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (20315) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (354596) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (22029) |
| Net change in unrealized appreciation (depreciation) | (764230) |
| Net realized and unrealized loss | (2212424) |
| **Net decrease in net assets resulting from operations** | $(2219236) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 115

**RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment loss | $(6812) | $(83419) |
| Net realized gain (loss) on investments | (1448194) | 1623989 |
| Net change in unrealized appreciation (depreciation) on investments | (764230) | 232499 |
| Net increase (decrease) in net assets resulting from operations | (2219236) | 1773069 |
| Distributions to shareholders |  | (1625256) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 6721718 | 21435557 |
| Distributions reinvested |  | 1625256 |
| Cost of shares redeemed | (9123001) | (26507249) |
| Net decrease from capital share transactions | (2401283) | (3446436) |
| Net decrease in net assets | (4620519) | (3298623) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 7985000 | 11283623 |
| &nbsp;&nbsp;&nbsp;End of year | $3364481 | $7985000 |
| **Capital share activity:** |  |  |
| Shares sold | 98521 | 217271 |
| Shares issued from reinvestment of distributions |  | 18583 |
| Shares redeemed | (131987) | (270189) |
| Net decrease in shares | (33466) | (34335) |

---

116 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**RUSSELL 2000<sup>®</sup>** **1.5x STRATEGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $87.53 | $89.86 | $77.94 | $57.58 | $74.58 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | (.11) | (.96) | (.67) | .41 | .34 |
| Net gain (loss) on investments (realized and unrealized) | (29.17) | 18.02 | 15.02 | 19.95 | (13.90) |
| Total from investment operations | (29.28) | 17.06 | 14.35 | 20.36 | (13.56) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  | (.07) |  |  |  |
| Net realized gains |  | (19.32) | (2.43) |  | (3.44) |
| Total distributions |  | (19.39) | (2.43) |  | (3.44) |
| Net asset value, end of period | $58.25 | $87.53 | $89.86 | $77.94 | $57.58 |
| **Total Return<sup>b</sup>** | **(33.45** **%)** | **19.00%** | **20.04%** | **35.36%** | **(19.57** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $3364 | $7985 | $11284 | $5345 | $6473 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | (0.17%) | (0.96%) | (1.01%) | 0.58% | 0.45% |
| Total expenses<sup>c</sup> | 1.87% | 1.79% | 1.92% | 1.92% | 1.82% |
| Net expenses<sup>d</sup> | 1.79% | 1.71% | 1.85% | 1.85% | 1.81% |
| Portfolio turnover rate | 88% | 99% | 148% | 127% | 268% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 117

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**INVERSE RUSSELL 2000<sup>®</sup>** **STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund's current benchmark is the inverse (opposite) of the performance of the Russell 2000<sup>®</sup> Index (the "underlying index"). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the Reporting Period, Inverse Russell 2000 Strategy Fund maintained a daily correlation of over 99% to its benchmark of -100% of the daily price movement of the Russell 2000 Index. Inverse Russell 2000 Strategy Fund returned 17.33%, while the Russell 2000 Index returned -20.44% over the same time period.

The only sectors contributing to the return of the underlying index for the Reporting Period were Energy and Communication Services. The sectors detracting the most from the return of the underlying index were Information Technology, Health Care, and Consumer Discretionary.

Madrigal Pharmaceuticals, Inc., Halozyme Therapeutics, Inc., and Antero Resources Corp. contributed the most to performance of the underlying index for 2022. Synaptics, Inc., AMC Entertainment Holdings, Inc. Class A, and Omnicell, Inc. detracted the most from performance of the underlying index.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds' 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 funds' holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.**

118 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-2_119.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-2_119a.jpg)

**Inception Date:** May 3, 2004<br>

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

---

| | |
|:---|:---|
| **Largest Holdings**  | **(% of Total Net Assets)** |
| Guggenheim Ultra Short Duration Fund — Institutional Class | 3.1% |
| Guggenheim Strategy Fund II | 3.0% |
| Total | 6.1% |
| "Largest Holdings" excludes any temporary cash or derivative investments. | "Largest Holdings" excludes any temporary cash or derivative investments. |

---

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Inverse Russell 2000<sup>®</sup> Strategy Fund  | 17.33%  | (10.20%)  | (12.80%)  |
| Russell 2000 Index  | (20.44%)  | 4.13%  | 10.47%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Russell 2000 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 119

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **INVERSE RUSSELL 2000<sup>®</sup>** **STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **MUTUAL FUNDS<sup>†</sup>** **- 6.1%** | **MUTUAL FUNDS<sup>†</sup>** **- 6.1%** | **MUTUAL FUNDS<sup>†</sup>** **- 6.1%** |
| &nbsp;&nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class<sup>1</sup> | 6762 | $65189 |
| &nbsp;&nbsp;&nbsp;Guggenheim Strategy Fund II<sup>1</sup> | 2575 | 61898 |
| **Total Mutual Funds** | **Total Mutual Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $128,416) |  | 127087 |
|  | **Face<br> Amount** |  |
| **FEDERAL AGENCY NOTES<sup>††</sup>** **- 7.2%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 7.2%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 7.2%** |
| Fannie Mae | Fannie Mae | Fannie Mae |
| &nbsp;&nbsp;&nbsp;2.38% due 01/19/23 | $150000 | 149853 |
| **Total Federal Agency Notes** | **Total Federal Agency Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $149,861) |  | 149853 |
| **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 4.8%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 4.8%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 4.8%** |
| Federal Farm Credit Bank | Federal Farm Credit Bank | Federal Farm Credit Bank |
| &nbsp;&nbsp;&nbsp;4.14% due 02/02/23<sup>2</sup> | 100000 | 99632 |
| **Total Federal Agency Discount Notes** | **Total Federal Agency Discount Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $99,632) |  | 99632 |

---

---

| | |
|:---|:---|
| **REPURCHASE AGREEMENTS<sup>††,3</sup>** **- 69.1%** | **REPURCHASE AGREEMENTS<sup>††,3</sup>** **- 69.1%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23<sup>4</sup> | 813960 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23<sup>4</sup> | 313061 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23<sup>4</sup> | 312092 |
| **Total Repurchase Agreements** |  |
| (Cost $1,439,113) | 1439113 |
| **Total Investments - 87.2%** |  |
| (Cost $1,817,022) | $1815685 |
| **Other Assets & Liabilities, net - 12.8%** | 266614 |
| **Total Net Assets - 100.0%** | $2082299 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** |
| **Counterparty** | **Index** | **Type** | **Financing <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Units** | **Notional <br> Amount** | **Value and <br> Unrealized <br> Appreciation** |
| **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** |
| Goldman Sachs International | Russell 2000 Index | Receive | 4.18% (Federal Funds Rate - 0.15%) | At Maturity | 01/26/23 | 661 | $1163632 | $38665 |
| Barclays Bank plc | Russell 2000 Index | Receive | 3.80% (SOFR - 0.50%) | At Maturity | 01/25/23 | 201 | 354550 | 25759 |
| BNP Paribas | Russell 2000 Index | Receive | 4.13% (Federal Funds Rate - 0.20%) | At Maturity | 01/26/23 | 315 | 555158 | 14189 |
|  |  |  |  |  |  |  | $2073340 | $78613 |

---

---

| | |
|:---|:---|
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Affiliated issuer. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as equity index swap collateral at December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;SOFR — Secured Overnight Financing Rate |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

120 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **INVERSE RUSSELL 2000<sup>®</sup>** **STRATEGY FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Mutual Funds | $127087 | $— | $— | $127087 |
| Federal Agency Notes |  | 149853 |  | 149853 |
| Federal Agency Discount Notes |  | 99632 |  | 99632 |
| Repurchase Agreements |  | 1439113 |  | 1439113 |
| Equity Index Swap Agreements\*\* |  | 78613 |  | 78613 |
| Total Assets | $127087 | $1767211 | $— | $1894298 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $64060 | $— | $— | $— | $(2162) | $61898 | 2575 | $1760 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 67082 |  |  |  | (1893) | 65189 | 6762 | 1480 |
|  | $131142 | $— | $— | $— | $(4055) | $127087 |  | $3240 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 121

**INVERSE RUSSELL 2000<sup>®</sup>** **STRATEGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments in unaffiliated issuers, at value (cost $249,493) | $249485 |
| Investments in affiliated issuers, at value (cost $128,416) | 127087 |
| Repurchase agreements, at value (cost $1,439,113) | 1439113 |
| Segregated cash with broker | 30000 |
| Unrealized appreciation on OTC swap agreements | 78613 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 168052 |
| &nbsp;&nbsp;&nbsp;Swap settlement | 14647 |
| &nbsp;&nbsp;&nbsp;Interest | 1949 |
| &nbsp;&nbsp;&nbsp;Dividends | 490 |
| **Total assets** | 2109436 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 19283 |
| &nbsp;&nbsp;&nbsp;Professional fees | 3628 |
| &nbsp;&nbsp;&nbsp;Management fees | 1245 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 655 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 350 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 147 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 23 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 1806 |
| **Total liabilities** | 27137 |
| **Net assets** | $2082299 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $10147361 |
| Total distributable earnings (loss) | (8065062) |
| Net assets | $2082299 |
| Capital shares outstanding | 58922 |
| Net asset value per share | $35.34 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of affiliated issuers | $3240 |
| Interest | 36601 |
| &nbsp;&nbsp;&nbsp;Total investment income | 39841 |
| **Expenses:** | **Expenses:** |
| Management fees | 23052 |
| Investor service fees | 6404 |
| Transfer agent fees | 6552 |
| Professional fees | 4295 |
| Portfolio accounting and administration fees | 3220 |
| Custodian fees | 358 |
| Interest expense | 297 |
| Trustees' fees\* | 243 |
| Miscellaneous | 3748 |
| &nbsp;&nbsp;&nbsp;Total expenses | 48169 |
| Less: | Less: |
| Expenses reimbursed by Adviser | (1281) |
| Expenses waived by Adviser | (164) |
| &nbsp;&nbsp;&nbsp;Total waived/reimbursed expenses | (1445) |
| Net expenses | 46724 |
| Net investment loss | (6883) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Swap agreements | (304791) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (25930) |
| Net realized loss | (330721) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (8) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (4055) |
| &nbsp;&nbsp;&nbsp;Swap agreements | 84430 |
| Net change in unrealized appreciation (depreciation) | 80367 |
| Net realized and unrealized loss | (250354) |
| **Net decrease in net assets resulting from operations** | $(257237) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

122 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**INVERSE RUSSELL 2000<sup>®</sup>** **STRATEGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment loss | $(6883) | $(6001) |
| Net realized loss on investments | (330721) | (152911) |
| Net change in unrealized appreciation (depreciation) on investments | 80367 | (6917) |
| Net decrease in net assets resulting from operations | (257237) | (165829) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 29715097 | 11317875 |
| Cost of shares redeemed | (27719896) | (11181212) |
| Net increase from capital share transactions | 1995201 | 136663 |
| Net increase (decrease) in net assets | 1737964 | (29166) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 344335 | 373501 |
| &nbsp;&nbsp;&nbsp;End of year | $2082299 | $344335 |
| **Capital share activity:** |  |  |
| Shares sold | 854303 | 358949 |
| Shares redeemed | (806814) | (357622) |
| Net increase in shares | 47489 | 1327 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 123

**INVERSE RUSSELL 2000<sup>®</sup>** **STRATEGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $30.12 | $36.96 | $53.82 | $68.28 | $61.44 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | (.09) | (.39) | (.57) | .46 | .31 |
| Net gain (loss) on investments (realized and unrealized) | 5.31 <sup>e</sup> | (6.45) | (15.89) | (14.50) | 6.53 |
| Total from investment operations | 5.22 | (6.84) | (16.46) | (14.04) | 6.84 |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  | (.40) | (.42) |  |
| Total distributions |  |  | (.40) | (.42) |  |
| Net asset value, end of period | $35.34 | $30.12 | $36.96 | $53.82 | $68.28 |
| **Total Return<sup>b</sup>** | **17.33%** | **(18.51** **%)** | **(30.81** **%)** | **(20.62** **%)** | **11.13%** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $2082 | $344 | $374 | $612 | $3782 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | (0.27 %) | (1.25%) | (1.05%) | 0.76% | 0.51% |
| Total expenses<sup>c</sup> | 1.88% | 1.79% | 1.93% | 1.93% | 1.83% |
| Net expenses<sup>d</sup> | 1.82% | 1.71% | 1.87% | 1.85% | 1.82% |
| Portfolio turnover rate |  | 250% | 275% | 164% | 287% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

<sup>e</sup> The amount shown for a share outstanding throughout the period does not agree with the aggregate net loss on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

124 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**DOW 2x STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund's current benchmark is 200% of the performance of the Dow Jones Industrial Average<sup>®</sup> (the "underlying index"). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the Reporting Period, Dow 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the Dow Jones Industrial Average Index. Dow 2x Strategy Fund lost -20.49% while the Dow Jones Industrial Average Index returned -6.86% over the same time period.

The only sectors contributing to the return of the underlying index for the Reporting Period were Health Care and Energy. The sectors detracting the most from the return of the underlying index were Information Technology, Consumer Discretionary, and Communication Services.

Chevron Corp., Amgen, Inc., and UnitedHealth Group, Inc. contributed the most to performance of the underlying index for 2022. Salesforce, Inc., Microsoft Corp., and Home Depot, Inc. detracted the most from performance of the underlying index.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds' 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 funds' holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short-Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.**

THE RYDEX FUNDS ANNUAL REPORT \| 125

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-2_126.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-2_126a.jpg)

**Inception Date:** May 3, 2004<br>

---

| | |
|:---|:---|
| **Ten Largest Holdings** | **(% of Total Net Assets)** |
| UnitedHealth Group, Inc. | 7.2% |
| Goldman Sachs Group, Inc. | 4.6% |
| Home Depot, Inc. | 4.3% |
| McDonald's Corp. | 3.6% |
| Amgen, Inc. | 3.5% |
| Microsoft Corp. | 3.2% |
| Caterpillar, Inc. | 3.2% |
| Honeywell International, Inc. | 2.9% |
| Visa, Inc. — Class A | 2.8% |
| Boeing Co. | 2.6% |
| Top Ten Total | 37.9% |
| "Ten Largest Holdings" excludes any temporary cash or derivative investments. | "Ten Largest Holdings" excludes any temporary cash or derivative investments. |

---

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Dow 2x Strategy Fund  | (20.49%)  | 7.54%  | 18.43%  |
| Dow Jones Industrial Average Index  | (6.86%)  | 8.38%  | 12.30%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Dow Jones Industrial Average Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

126 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **DOW 2x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 67.9%** | **COMMON STOCKS<sup>†</sup>** **- 67.9%** | **COMMON STOCKS<sup>†</sup>** **- 67.9%** |
| **Consumer, Non-cyclical - 17.5%** | **Consumer, Non-cyclical - 17.5%** | **Consumer, Non-cyclical - 17.5%** |
| &nbsp;&nbsp;&nbsp;UnitedHealth Group, Inc. | 1941 | $1029079 |
| &nbsp;&nbsp;&nbsp;Amgen, Inc. | 1941 | 509784 |
| &nbsp;&nbsp;&nbsp;Johnson & Johnson | 1941 | 342878 |
| &nbsp;&nbsp;&nbsp;Procter & Gamble Co. | 1941 | 294178 |
| &nbsp;&nbsp;&nbsp;Merck & Company, Inc. | 1941 | 215354 |
| &nbsp;&nbsp;&nbsp;Coca-Cola Co. | 1941 | 123467 |
| **Total Consumer, Non-cyclical** |  | 2514740 |
| **Financial - 13.8%** | **Financial - 13.8%** | **Financial - 13.8%** |
| &nbsp;&nbsp;&nbsp;Goldman Sachs Group, Inc. | 1941 | 666501 |
| &nbsp;&nbsp;&nbsp;Visa, Inc. — Class A | 1941 | 403262 |
| &nbsp;&nbsp;&nbsp;Travelers Companies, Inc. | 1941 | 363918 |
| &nbsp;&nbsp;&nbsp;American Express Co. | 1941 | 286783 |
| &nbsp;&nbsp;&nbsp;JPMorgan Chase & Co. | 1941 | 260288 |
| **Total Financial** |  | 1980752 |
| **Consumer, Cyclical - 11.8%** | **Consumer, Cyclical - 11.8%** | **Consumer, Cyclical - 11.8%** |
| &nbsp;&nbsp;&nbsp;Home Depot, Inc. | 1941 | 613084 |
| &nbsp;&nbsp;&nbsp;McDonald's Corp. | 1941 | 511512 |
| &nbsp;&nbsp;&nbsp;Walmart, Inc. | 1941 | 275214 |
| &nbsp;&nbsp;&nbsp;NIKE, Inc. — Class B | 1941 | 227116 |
| &nbsp;&nbsp;&nbsp;Walgreens Boots Alliance, Inc. | 1941 | 72516 |
| **Total Consumer, Cyclical** |  | 1699442 |
| **Industrial - 10.3%** | **Industrial - 10.3%** | **Industrial - 10.3%** |
| &nbsp;&nbsp;&nbsp;Caterpillar, Inc. | 1941 | 464986 |
| &nbsp;&nbsp;&nbsp;Honeywell International, Inc. | 1941 | 415956 |
| &nbsp;&nbsp;&nbsp;Boeing Co.\* | 1941 | 369741 |
| &nbsp;&nbsp;&nbsp;3M Co. | 1941 | 232765 |
| **Total Industrial** |  | 1483448 |
| **Technology - 9.0%** | **Technology - 9.0%** | **Technology - 9.0%** |
| &nbsp;&nbsp;&nbsp;Microsoft Corp. | 1941 | 465491 |
| &nbsp;&nbsp;&nbsp;International Business Machines Corp. | 1941 | 273467 |
| &nbsp;&nbsp;&nbsp;Salesforce, Inc.\* | 1941 | 257357 |
| &nbsp;&nbsp;&nbsp;Apple, Inc. | 1941 | 252194 |
| &nbsp;&nbsp;&nbsp;Intel Corp. | 1941 | 51301 |
| **Total Technology** |  | 1299810 |
| **Energy - 2.4%** | **Energy - 2.4%** | **Energy - 2.4%** |
| &nbsp;&nbsp;&nbsp;Chevron Corp. | 1941 | 348390 |
| **Communications - 2.4%** | **Communications - 2.4%** | **Communications - 2.4%** |
| &nbsp;&nbsp;&nbsp;Walt Disney Co.\* | 1941 | 168634 |
| &nbsp;&nbsp;&nbsp;Cisco Systems, Inc. | 1941 | 92469 |
| &nbsp;&nbsp;&nbsp;Verizon Communications, Inc. | 1941 | 76476 |
| **Total Communications** |  | 337579 |
| **Basic Materials - 0.7%** | **Basic Materials - 0.7%** | **Basic Materials - 0.7%** |
| &nbsp;&nbsp;&nbsp;Dow, Inc. | 1941 | 97807 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $8,052,021) |  | 9761968 |
|  | **Face<br> Amount** |  |
| **U.S. TREASURY BILLS<sup>††</sup>** **- 16.0%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 16.0%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 16.0%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.89% due 01/12/23<sup>1,2</sup> | $2300000 | 2298003 |
| **Total U.S. Treasury Bills** | **Total U.S. Treasury Bills** |  |
| &nbsp;&nbsp;&nbsp;(Cost $2,297,270) |  | 2298003 |
| **REPURCHASE AGREEMENTS<sup>††,3</sup>** **- 16.1%** | **REPURCHASE AGREEMENTS<sup>††,3</sup>** **- 16.1%** | **REPURCHASE AGREEMENTS<sup>††,3</sup>** **- 16.1%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23<sup>3</sup> | 1305815 | 1305815 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23<sup>3</sup> | 502237 | 502237 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23<sup>3</sup> | 500681 | 500681 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $2,308,733) |  | 2308733 |
| **Total Investments - 100.0%** | **Total Investments - 100.0%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $12,658,024) | &nbsp;&nbsp;&nbsp;(Cost $12,658,024) | $14368704 |
| **Other Assets & Liabilities, net - 0.0%** | **Other Assets & Liabilities, net - 0.0%** | 3711 |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $14372415 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Depreciation\*\*** |
| **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** |
| Dow Jones Industrial Average Index Mini Futures Contracts | 19 | Mar 2023 | $3162835 | $(18901) |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 127

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **DOW 2x STRATEGY FUND** |  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** |
| **Counterparty** | **Index** | **Type** | **Financing <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Units** | **Notional <br> Amount** | **Value and <br> Unrealized <br> Depreciation** |
| **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** | **OTC Equity Index Swap Agreements<sup>††</sup>** |
| BNP Paribas | Dow Jones Industrial Average Index | Pay | 4.88% (Federal Funds Rate + 0.55%) | At Maturity | 01/26/23 | 167 | $5529193 | $(19914) |
| Barclays Bank plc | Dow Jones Industrial Average Index | Pay | 4.80% (SOFR + 0.50%) | At Maturity | 01/25/23 | 309 | 10233746 | (157704) |
|  |  |  |  |  |  |  | $15762939 | $(177618) |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| \*\* | &nbsp;&nbsp;&nbsp;Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as equity index swap collateral at December 31, 2022. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;SOFR — Secured Overnight Financing Rate |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $9761968 | $— | $— | $9761968 |
| U.S. Treasury Bills |  | 2298003 |  | 2298003 |
| Repurchase Agreements |  | 2308733 |  | 2308733 |
| Total Assets | $9761968 | $4606736 | $— | $14368704 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Liabilities)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Equity Futures Contracts\*\* | $18901 | $— | $— | $18901 |
| Equity Index Swap Agreements\*\* |  | 177618 |  | 177618 |
| Total Liabilities | $18901 | $177618 | $— | $196519 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

128 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **DOW 2x STRATEGY FUND** |  |

---

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $568050 | $350000 | $(903321) | $(1348) | $(13381) | $— |  | $5500 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 1626744 | 1000000 | (2559020) | (64059) | (3665) |  |  | 16097 |
|  | $2194794 | $1350000 | $(3462341) | $(65407) | $(17046) | $— |  | $21597 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 129

**DOW 2x STRATEGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value (cost $10,349,291) | $12059971 |
| Repurchase agreements, at value (cost $2,308,733) | 2308733 |
| Segregated cash with broker | 142500 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 211003 |
| &nbsp;&nbsp;&nbsp;Dividends | 2976 |
| &nbsp;&nbsp;&nbsp;Interest | 545 |
| **Total assets** | 14725728 |
| **Liabilities:** | **Liabilities:** |
| Unrealized depreciation on OTC swap agreements | 177618 |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Swap settlement | 101811 |
| &nbsp;&nbsp;&nbsp;Management fees | 11506 |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 7790 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 3830 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 3196 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 1342 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 181 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 219 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 45820 |
| **Total liabilities** | 353313 |
| **Net assets** | $14372415 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $16197377 |
| Total distributable earnings (loss) | (1824962) |
| Net assets | $14372415 |
| Capital shares outstanding | 91978 |
| Net asset value per share | $156.26 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of unaffiliated issuers | $203728 |
| Dividends from securities of affiliated issuers | 21597 |
| Interest | 56095 |
| Income from securities lending, net | 789 |
| &nbsp;&nbsp;&nbsp;Total investment income | 282209 |
| **Expenses:** | **Expenses:** |
| Management fees | 123400 |
| Investor service fees | 34278 |
| Transfer agent fees | 37378 |
| Professional fees | 21313 |
| Portfolio accounting and administration fees | 17146 |
| Custodian fees | 2129 |
| Trustees' fees\* | 1974 |
| Interest expense | 1087 |
| Line of credit fees | 138 |
| Miscellaneous | 18870 |
| &nbsp;&nbsp;&nbsp;Total expenses | 257713 |
| Less: | Less: |
| Expenses reimbursed by Adviser | (6856) |
| Expenses waived by Adviser | (3270) |
| &nbsp;&nbsp;&nbsp;Total waived/reimbursed expenses | (10126) |
| Net expenses | 247587 |
| Net investment income | 34622 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (1056552) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (65407) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (1372151) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (327123) |
| Net realized loss | (2821233) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (170348) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (17046) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (481331) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (48800) |
| Net change in unrealized appreciation (depreciation) | (717525) |
| Net realized and unrealized loss | (3538758) |
| **Net decrease in net assets resulting from operations** | $(3504136) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

130 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**DOW 2x STRATEGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income (loss) | $34622 | $(57403) |
| Net realized gain (loss) on investments | (2821233) | 3615305 |
| Net change in unrealized appreciation (depreciation) on investments | (717525) | 1354249 |
| Net increase (decrease) in net assets resulting from operations | (3504136) | 4912151 |
| Distributions to shareholders | (577032) |  |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 95949497 | 90643185 |
| Distributions reinvested | 577032 |  |
| Cost of shares redeemed | (97954549) | (89926680) |
| Net increase (decrease) from capital share transactions | (1428020) | 716505 |
| Net increase (decrease) in net assets | (5509188) | 5628656 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 19881603 | 14252947 |
| &nbsp;&nbsp;&nbsp;End of year | $14372415 | $19881603 |
| **Capital share activity:** |  |  |
| Shares sold | 573452 | 481953 |
| Shares issued from reinvestment of distributions | 3905 |  |
| Shares redeemed | (581034) | (482709) |
| Net decrease in shares | (3677) | (756) |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 131

**DOW 2x STRATEGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $207.85 | $147.84 | $163.38 | $111.50 | $171.44 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .42 | (.68) | (.53) | .91 | 1.01 |
| Net gain (loss) on investments (realized and unrealized) | (43.46) | 60.69 | (.73) | 51.94 | (18.55) |
| Total from investment operations | (43.04) | 60.01 | (1.26) | 52.85 | (17.54) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  | (.92) | (.97) | (.36) |
| Net realized gains | (8.55) |  | (13.36) |  | (42.04) |
| Total distributions | (8.55) |  | (14.28) | (.97) | (42.40) |
| Net asset value, end of period | $156.26 | $207.85 | $147.84 | $163.38 | $111.50 |
| **Total Return<sup>b</sup>** | **(20.49** **%)** | **40.59%** | **1.73%** | **47.47%** | **(14.23** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $14372 | $19882 | $14253 | $15519 | $14209 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.25% | (0.37%) | (0.42%) | 0.65% | 0.65% |
| Total expenses<sup>c</sup> | 1.88% | 1.78% | 1.91% | 1.91% | 1.80% |
| Net expenses<sup>d</sup> | 1.81% | 1.72% | 1.85% | 1.84% | 1.80% |
| Portfolio turnover rate | 458% | 489% | 607% | 256% | 362% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

132 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**INVERSE DOW 2x STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund's current benchmark is 200% of the inverse (opposite) of the performance of the Dow Jones Industrial Average<sup>®</sup> (the "underlying index"). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the Reporting Period, Inverse Dow 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of -200% of the daily price movement of the Dow Jones Industrial Average Index. Inverse Dow 2x Strategy Fund returned 5.00% while the Dow Jones Industrial Average Index returned -6.86% over the same time period.

The only sectors contributing to the return of the underlying index for the Reporting Period were Health Care and Energy. The sectors detracting the most from the return of the underlying index were Information Technology, Consumer Discretionary, and Communication Services.

Chevron Corp., Amgen, Inc., and UnitedHealth Group, Inc. contributed the most to performance of the underlying index for 2022. Salesforce, Inc., Microsoft Corp., and Home Depot, Inc. detracted the most from performance of the underlying index.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds' 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 funds' holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short-Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.**

THE RYDEX FUNDS ANNUAL REPORT \| 133

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-2_134.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-2_134a.jpg)

**Inception Date:** May 3, 2004<br>

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Inverse Dow 2x Strategy Fund  | 5.00%  | (24.90%)  | (27.27%)  |
| Dow Jones Industrial Average Index  | (6.86%)  | 8.38%  | 12.30%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Dow Jones Industrial Average Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

134 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **INVERSE DOW 2x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Face<br> Amount** | **Value** |
| **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 22.5%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 22.5%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 22.5%** |
| Federal Farm Credit Bank | Federal Farm Credit Bank | Federal Farm Credit Bank |
| &nbsp;&nbsp;&nbsp;4.10% due 01/26/23<sup>1</sup> | $500000 | $498576 |
| **Total Federal Agency Discount Notes** | **Total Federal Agency Discount Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $498,576) |  | 498576 |
| **U.S. TREASURY BILLS<sup>††</sup>** **- 11.2%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 11.2%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 11.2%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.61% due 01/12/23<sup>1,2</sup> | 150000 | 149870 |
| &nbsp;&nbsp;&nbsp;3.89% due 01/12/23<sup>1,2</sup> | 100000 | 99913 |
| **Total U.S. Treasury Bills** | **Total U.S. Treasury Bills** |  |
| &nbsp;&nbsp;&nbsp;(Cost $249,716) |  | 249783 |
| **FEDERAL AGENCY NOTES<sup>††</sup>** **- 4.5%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 4.5%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 4.5%** |
| Fannie Mae | Fannie Mae | Fannie Mae |
| &nbsp;&nbsp;&nbsp;2.38% due 01/19/23 | 100000 | 99903 |
| **Total Federal Agency Notes** | **Total Federal Agency Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $99,907) |  | 99903 |
| **REPURCHASE AGREEMENTS<sup>††,3</sup>** **- 65.9%** | **REPURCHASE AGREEMENTS<sup>††,3</sup>** **- 65.9%** | **REPURCHASE AGREEMENTS<sup>††,3</sup>** **- 65.9%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23<sup>2</sup> | 826875 | 826875 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23<sup>2</sup> | 318029 | 318029 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23<sup>2</sup> | 317044 | 317044 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,461,948) |  | 1461948 |
| **Total Investments - 104.1%** | **Total Investments - 104.1%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $2,310,147) | &nbsp;&nbsp;&nbsp;(Cost $2,310,147) | $2310210 |
| **Other Assets & Liabilities, net - (4.1)%** | **Other Assets & Liabilities, net - (4.1)%** | (90437) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $2219773 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** |
| **Counterparty** | **Index** | **Type** | **Financing <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Units** | **Notional <br> Amount** | **Value and <br> Unrealized <br> Appreciation** |
| **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Equity Index Swap Agreements Sold Short<sup>††</sup>** |
| Barclays Bank plc | Dow Jones Industrial Average Index | Receive | 4.55% (SOFR + 0.25%) | At Maturity | 01/25/23 | 99 | $3296889 | $41844 |
| BNP Paribas | Dow Jones Industrial Average Index | Receive | 4.48% (Federal Funds Rate + 0.15%) | At Maturity | 01/26/23 | 34 | 1131120 | 28386 |
|  |  |  |  |  |  |  | $4428009 | $70230 |

---

---

| | |
|:---|:---|
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as equity index swap collateral at December 31, 2022. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;SOFR — Secured Overnight Financing Rate |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 135

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **INVERSE DOW 2x STRATEGY FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Federal Agency Discount Notes | $— | $498576 | $— | $498576 |
| U.S. Treasury Bills |  | 249783 |  | 249783 |
| Federal Agency Notes |  | 99903 |  | 99903 |
| Repurchase Agreements |  | 1461948 |  | 1461948 |
| Equity Index Swap Agreements\*\* |  | 70230 |  | 70230 |
| Total Assets | $— | $2380440 | $— | $2380440 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $656701 | $— | $(646733) | $(1006) | $(8962) | $— |  | $3326 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 671291 |  | (661355) | (6457) | (3479) |  |  | 2407 |
|  | $1327992 | $— | $(1308088) | $(7463) | $(12441) | $— |  | $5733 |

---

136 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**INVERSE DOW 2x STRATEGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value (cost $848,199) | $848262 |
| Repurchase agreements, at value (cost $1,461,948) | 1461948 |
| Segregated cash with broker | 93311 |
| Unrealized appreciation on OTC swap agreements | 70230 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Interest | 1418 |
| **Total assets** | 2475169 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 215363 |
| &nbsp;&nbsp;&nbsp;Swap settlement | 29445 |
| &nbsp;&nbsp;&nbsp;Management fees | 1753 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 911 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 487 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 204 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 32 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 7201 |
| **Total liabilities** | 255396 |
| **Net assets** | $2219773 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $25759336 |
| Total distributable earnings (loss) | (23539563) |
| Net assets | $2219773 |
| Capital shares outstanding | 46338 |
| Net asset value per share | $47.90 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of affiliated issuers | $5733 |
| Interest | 47196 |
| &nbsp;&nbsp;&nbsp;Total investment income | 52929 |
| **Expenses:** | **Expenses:** |
| Management fees | 23995 |
| Investor service fees | 6665 |
| Transfer agent fees | 6966 |
| Professional fees | 4685 |
| Portfolio accounting and administration fees | 3567 |
| Interest expense | 653 |
| Trustees' fees\* | 412 |
| Custodian fees | 395 |
| Miscellaneous | 3253 |
| &nbsp;&nbsp;&nbsp;Total expenses | 50591 |
| Less: | Less: |
| Expenses reimbursed by Adviser | (1333) |
| Expenses waived by Adviser | (515) |
| &nbsp;&nbsp;&nbsp;Total waived/reimbursed expenses | (1848) |
| Net expenses | 48743 |
| Net investment income | 4186 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (437) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (7463) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (749547) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (16922) |
| Net realized loss | (774369) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | 95 |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (12441) |
| &nbsp;&nbsp;&nbsp;Swap agreements | 188770 |
| Net change in unrealized appreciation (depreciation) | 176424 |
| Net realized and unrealized loss | (597945) |
| **Net decrease in net assets resulting from operations** | $(593759) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 137

**INVERSE DOW 2x STRATEGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income (loss) | $4186 | $(35020) |
| Net realized loss on investments | (774369) | (1457950) |
| Net change in unrealized appreciation (depreciation) on investments | 176424 | (69128) |
| Net decrease in net assets resulting from operations | (593759) | (1562098) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 29976510 | 29026264 |
| Cost of shares redeemed | (30445843) | (27611803) |
| Net increase (decrease) from capital share transactions | (469333) | 1414461 |
| Net decrease in net assets | (1063092) | (147637) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 3282865 | 3430502 |
| &nbsp;&nbsp;&nbsp;End of year | $2219773 | $3282865 |
| **Capital share activity:** |  |  |
| Shares sold | 555807 | 579392 |
| Shares redeemed | (581432) | (556060) |
| Net increase (decrease) in shares | (25625) | 23332 |

---

138 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**INVERSE DOW 2x STRATEGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019<sup>e</sup>** | **Year Ended <br> December 31, <br> 2018<sup>e</sup>** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $45.62 | $70.54 | $131.01 | $204.97 | $202.08 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .08 | (.63) | (.34) | .90 | 1.25 |
| Net gain (loss) on investments (realized and unrealized) | 2.20 <sup>f</sup> | (24.29) | (59.99) | (74.86) | 1.64 |
| Total from investment operations | 2.28 | (24.92) | (60.33) | (73.96) | 2.89 |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  | (.14) |  |  |
| Total distributions |  |  | (.14) |  |  |
| Net asset value, end of period | $47.90 | $45.62 | $70.54 | $131.01 | $204.97 |
| **Total Return<sup>b</sup>** | **5.00%** | **(35.33** **%)** | **(45.76** **%)** | **(36.08** **%)** | **1.43%** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $2220 | $3283 | $3431 | $3275 | $2122 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.16% | (1.15%) | (1.04%) | 0.56% | 0.67% |
| Total expenses<sup>c</sup> | 1.90% | 1.79% | 1.92% | 1.92% | 1.81% |
| Net expenses<sup>d</sup> | 1.83% | 1.70% | 1.86% | 1.86% | 1.80% |
| Portfolio turnover rate |  | 116% | 616% | 427% | 524% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

<sup>e</sup> Reverse share split — Per share amounts for the years presented through December 31, 2019 have been restated to reflect a 1:5 reverse share split effective August 24, 2020. 

<sup>f</sup> The amount shown for a share outstanding throughout the period does not agree with the aggregate net loss on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments in the Fund.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 139

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**GOVERNMENT LONG BOND 1.2x STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide investment results that correspond, before fees and expenses, to a benchmark for U.S. Government securities on a daily basis. The Fund's current benchmark is 120% of the daily price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the longest maturity, which is currently 30 years. The price movement of the Long Treasury Bond is based on the daily price change of the most recently issued Long Treasury Bond. The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the Reporting Period, the Government Long Bond 1.2x Strategy Fund returned -40.83%. The Price Movement of the Long Treasury Bond was -35.82% for the period. The return of a comparison index, the Bloomberg U.S. Long Treasury Index was -29.26%. The return of a comparison Index, the Bloomberg U.S. Treasury Bellwethers 30 Yr. Index was -33.29%.

Bonds had one of their worst years on record, and those with the longest duration got hit the hardest. As prices of long-term Treasury bonds fell over the period, their yields rose from 2.01% to 3.97%. Yields of on-the-run U.S. Treasury 30 year bonds reached their 2022 peak in October, around 4.38%. The performance was largely due to the U.S. Federal Reserve's aggressive pace of interest rate hikes—seven times for a cumulative total of 4.25%, the most since 1980.

The hikes were in response to inflation that soared to a 40-year high in 2022, due in part to consumer demand and a tight labor market. Inflation cooled in the last months of 2022, but is still above its 2% long-term target. The Fed has indicated that it will likely push the rate above 5%, implying another 75 basis points, before holding at that level for most of 2023, which could lead to slower growth and higher unemployment. GDP grew 2.1% in 2022, down from 5.9% in 2021, which had provided the fastest growth since 1984.

Derivatives in the Fund are used to provide additional exposure to composition of the benchmark in the most efficient manner possible and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds' returns over periods other than one day will likely differ in amounts and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds' holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.**

140 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-2_141.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-2_141a.jpg)

**Inception Date:** August 18, 1997<br>

The Fund invests principally in U.S. Government securities and in derivative investments such as futures contracts.

---

| | |
|:---|:---|
| **Largest Holdings**  | **(% of Total Net Assets)** |
| U.S. Treasury Bonds | 44.5% |
| Guggenheim Strategy Fund II | 5.8% |
| Guggenheim Ultra Short Duration Fund — Institutional Class | 5.4% |
| Total | 55.7% |
| "Largest Holdings" excludes any temporary cash or derivative investments. | "Largest Holdings" excludes any temporary cash or derivative investments. |

---

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Government Long Bond 1.2x Strategy Fund  | (40.83%)  | (5.89%)  | (1.70%)  |
| Price Movement of Long Treasury Bond\*\*  | (35.82%)  | (5.43%)  | (2.69%)  |
| Bloomberg U.S. Long Treasury Index  | (29.26%)  | (2.20%)  | 0.60%  |
| Bloomberg U.S. Treasury Bellwethers 30 Yr. Index  | (33.29%)  | (3.07%)  | 0.03% |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Bloomberg U.S. Long Treasury Index, the Price Movement of Long Treasury Bond and the Bloomberg U.S. Treasury Bellwethers 30 Yr. Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. |
| \*\* | &nbsp;&nbsp;&nbsp;Does not reflect any interest. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 141

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **GOVERNMENT LONG BOND 1.2x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **MUTUAL FUNDS<sup>†</sup>** **- 11.2%** | **MUTUAL FUNDS<sup>†</sup>** **- 11.2%** | **MUTUAL FUNDS<sup>†</sup>** **- 11.2%** |
| &nbsp;&nbsp;&nbsp;Guggenheim Strategy Fund II<sup>1</sup> | 19093 | $458993 |
| &nbsp;&nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class<sup>1</sup> | 44947 | 433293 |
| **Total Mutual Funds** | **Total Mutual Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $902,681) |  | 892286 |
|  | **Face<br> Amount** |  |
| **U.S. GOVERNMENT SECURITIES<sup>††</sup>** **- 44.5%** | **U.S. GOVERNMENT SECURITIES<sup>††</sup>** **- 44.5%** | **U.S. GOVERNMENT SECURITIES<sup>††</sup>** **- 44.5%** |
| U.S. Treasury Bonds | U.S. Treasury Bonds | U.S. Treasury Bonds |
| &nbsp;&nbsp;&nbsp;4.00% due 11/15/52 | $3500000 | 3539922 |
| **Total U.S. Government Securities** | **Total U.S. Government Securities** |  |
| &nbsp;&nbsp;&nbsp;(Cost $3,510,368) |  | 3539922 |
| **FEDERAL AGENCY NOTES<sup>††</sup>** **- 12.6%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 12.6%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 12.6%** |
| Fannie Mae | Fannie Mae | Fannie Mae |
| &nbsp;&nbsp;&nbsp;2.38% due 01/19/23 | 1000000 | 999022 |
| **Total Federal Agency Notes** | **Total Federal Agency Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $999,068) |  | 999022 |
| **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 12.5%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 12.5%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 12.5%** |
| Federal Farm Credit Bank | Federal Farm Credit Bank | Federal Farm Credit Bank |
| &nbsp;&nbsp;&nbsp;4.10% due 01/26/23<sup>2</sup> | 1000000 | 997153 |
| **Total Federal Agency Discount Notes** | **Total Federal Agency Discount Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $997,153) |  | 997153 |

---

---

| | | |
|:---|:---|:---|
| **U.S. TREASURY BILLS<sup>††</sup>** **- 1.7%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 1.7%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 1.7%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.80% due 01/17/23<sup>2,3</sup> | 132000 | 131811 |
| **Total U.S. Treasury Bills** |  |  |
| (Cost $131,772) |  | 131811 |
| **REPURCHASE AGREEMENTS<sup>††,4</sup> - 18.1%** | **REPURCHASE AGREEMENTS<sup>††,4</sup> - 18.1%** | **REPURCHASE AGREEMENTS<sup>††,4</sup> - 18.1%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | 815013 | 815013 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 313467 | 313467 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 312496 | 312496 |
| **Total Repurchase Agreements** |  |  |
| (Cost $1,440,976) |  | 1440976 |
| **Total Investments - 100.6%** |  |  |
| (Cost $7,982,018) |  | $8001170 |
| **Other Assets & Liabilities, net - (0.6)%** |  | (44246) |
| **Total Net Assets - 100.0%** |  | $7956924 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Depreciation\*\*** |
| **Interest Rate Futures Contracts Purchased<sup>†</sup>** | **Interest Rate Futures Contracts Purchased<sup>†</sup>** | **Interest Rate Futures Contracts Purchased<sup>†</sup>** | **Interest Rate Futures Contracts Purchased<sup>†</sup>** | **Interest Rate Futures Contracts Purchased<sup>†</sup>** |
| U.S. Treasury Ultra Long Bond Futures Contracts | 49 | Mar 2023 | $6595094 | $(234531) |

---

---

| | |
|:---|:---|
| \*\* | &nbsp;&nbsp;&nbsp;Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Affiliated issuer. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as futures collateral at December 31, 2022. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

142 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **GOVERNMENT LONG BOND 1.2x STRATEGY FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Mutual Funds | $892286 | $— | $— | $892286 |
| U.S. Government Securities |  | 3539922 |  | 3539922 |
| Federal Agency Notes |  | 999022 |  | 999022 |
| Federal Agency Discount Notes |  | 997153 |  | 997153 |
| U.S. Treasury Bills |  | 131811 |  | 131811 |
| Repurchase Agreements |  | 1440976 |  | 1440976 |
| Total Assets | $892286 | $7108884 | $— | $8001170 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Investments in Securities (Liabilities)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Total** |
| Interest Rate Futures Contracts\*\* | $234531 | $– $– $| 234531 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $1430596 | $— | $(950000) | $(1511) | $(20092) | $458993 | 19093 | $14501 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 2151720 |  | (1700001) | (6288) | (12138) | 433293 | 44947 | 10734 |
|  | $3582316 | $— | $(2650001) | $(7799) | $(32230) | $892286 |  | $25235 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 143

**GOVERNMENT LONG BOND 1.2x STRATEGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments in unaffiliated issuers, at value (cost $5,638,361) | $5667908 |
| Investments in affiliated issuers, at value (cost $902,681) | 892286 |
| Repurchase agreements, at value (cost $1,440,976) | 1440976 |
| Cash | 130 |
| Segregated cash with broker | 193882 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Securities sold | 505703 |
| &nbsp;&nbsp;&nbsp;Interest | 31801 |
| &nbsp;&nbsp;&nbsp;Dividends | 3452 |
| **Total assets** | 8736138 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 738257 |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 11257 |
| &nbsp;&nbsp;&nbsp;Management fees | 3544 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 2327 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 1818 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 1127 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 122 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 20762 |
| **Total liabilities** | 779214 |
| **Net assets** | $7956924 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $28922443 |
| Total distributable earnings (loss) | (20965519) |
| Net assets | $7956924 |
| Capital shares outstanding | 356722 |
| Net asset value per share | $22.31 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of affiliated issuers | $25235 |
| Interest | 254069 |
| &nbsp;&nbsp;&nbsp;Total investment income | 279304 |
| **Expenses:** | **Expenses:** |
| Management fees | 51619 |
| Investor service fees | 25810 |
| Transfer agent fees | 26932 |
| Professional fees | 18812 |
| Portfolio accounting and administration fees | 12542 |
| Trustees' fees\* | 1863 |
| Custodian fees | 1504 |
| Line of credit fees | 59 |
| Miscellaneous | 3902 |
| &nbsp;&nbsp;&nbsp;Total expenses | 143043 |
| Less: | Less: |
| Expenses waived by Adviser | (1320) |
| Net expenses | 141723 |
| Net investment income | 137581 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (4829920) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (7799) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (2166154) |
| Net realized loss | (7003873) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (143036) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (32230) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (293078) |
| Net change in unrealized appreciation (depreciation) | (468344) |
| Net realized and unrealized loss | (7472217) |
| **Net decrease in net assets resulting from operations** | $(7334636) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

144 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**GOVERNMENT LONG BOND 1.2x STRATEGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income | $137581 | $60023 |
| Net realized loss on investments | (7003873) | (2586134) |
| Net change in unrealized appreciation (depreciation) on investments | (468344) | 136866 |
| Net decrease in net assets resulting from operations | (7334636) | (2389245) |
| Distributions to shareholders | (153140) | (43932) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 151092344 | 129964059 |
| Distributions reinvested | 153140 | 43932 |
| Cost of shares redeemed | (148173588) | (130673587) |
| Net increase (decrease) from capital share transactions | 3071896 | (665596) |
| Net decrease in net assets | (4415880) | (3098773) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 12372804 | 15471577 |
| &nbsp;&nbsp;&nbsp;End of year | $7956924 | $12372804 |
| **Capital share activity:** |  |  |
| Shares sold | 5177215 | 3568192 |
| Shares issued from reinvestment of distributions | 5873 | 1193 |
| Shares redeemed | (5149199) | (3618542) |
| Net increase (decrease) in shares | 33889 | (49157) |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 145

**GOVERNMENT LONG BOND 1.2x STRATEGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $38.33 | $41.59 | $34.15 | $29.60 | $31.79 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .38 | .17 | .02 | .39 | .46 |
| Net gain (loss) on investments (realized and unrealized) | (15.96) | (3.29) | 7.48 <sup>e</sup> | 4.55 | (2.16) |
| Total from investment operations | (15.58) | (3.12) | 7.50 | 4.94 | (1.70) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (.44) | (.14) | (.03) | (.39) | (.46) |
| Net realized gains |  |  |  |  | (.03) |
| Return of capital |  |  | (.03) |  |  |
| Total distributions | (.44) | (.14) | (.06) | (.39) | (.49) |
| Net asset value, end of period | $22.31 | $38.33 | $41.59 | $34.15 | $29.60 |
| **Total Return<sup>b</sup>** | **(40.83** **%)** | **(7.49** **%)** | **21.96%** | **16.78%** | **(5.32** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $7957 | $12373 | $15472 | $10353 | $13436 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 1.33% | 0.47% | 0.06% | 1.19% | 1.58% |
| Total expenses<sup>c</sup> | 1.39% | 1.30% | 1.43% | 1.41% | 1.32% |
| Net expenses<sup>d</sup> | 1.37% | 1.28% | 1.40% | 1.38% | 1.32% |
| Portfolio turnover rate | 1890% | 1382% | 1887% | 2060% | 2292% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

<sup>e</sup> The amount shown for a share outstanding throughout the period does not agree with the aggregate net loss on investments for the year because of sales and repurchases for fund shares in relation to fluctuating market value of the investments of the Fund.

146 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**INVERSE GOVERNMENT LONG BOND STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide total returns that inversely correlate, before fees and expenses, to the price movements of a benchmark for U.S. Treasury debt instruments or futures contract on a specified debt instrument on a daily basis. The Fund's current benchmark is the inverse (opposite) of the daily price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the longest maturity, which is currently 30 years. The price movement of the Long Treasury Bond is based on the daily price change of the most recently issued Long Treasury Bond. The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the Reporting Period, the Inverse Government Long Bond Strategy Fund returned 46.17%. The Price Movement of the Long Treasury Bond was -35.82% for the period. The return of a comparison index, the Bloomberg U.S. Long Treasury Index was -29.26%. The return of a comparison Index, the Bloomberg U.S. Treasury Bellwethers 30 Yr. Index was -33.29%.

Bonds had one of their worst years on record, and those with the longest duration got hit the hardest. As prices of long-term Treasury bonds fell over the period, their yields rose from 2.01% to 3.97%. Yields of on-the-run U.S. Treasury 30 year bonds reached their 2022 peak in October, around 4.38%. The performance was largely due to the U.S. Federal Reserve's aggressive pace of interest rate hikes—seven times for a cumulative total of 4.25%, the most since 1980.

The hikes were in response to inflation that soared to a 40-year high in 2022, due in part to consumer demand and a tight labor market. Inflation cooled in the last months of 2022, but is still above its 2% long-term target. The Fed has indicated that it will likely push the rate above 5%, implying another 75 basis points, before holding at that level for most of 2023, which could lead to slower growth and higher unemployment. GDP grew 2.1% in 2022, down from 5.9% in 2021, which had provided the fastest growth since 1984.

Derivatives in the Fund are used to provide additional exposure to composition of the benchmark in the most efficient manner possible and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to the compounding of daily returns, leveraged and inverse funds' returns over periods other than one day will likely differ in amounts and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds' holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.**

THE RYDEX FUNDS ANNUAL REPORT \| 147

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-2_148.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-2_148a.jpg)

**Inception Date:** May 1, 2003<br>

The Fund invests principally in short sales and derivative investments such as futures contracts.

---

| | |
|:---|:---|
| **Largest Holdings**  | **(% of Total Net Assets)** |
| Guggenheim Strategy Fund II | 15.2% |
| Guggenheim Ultra Short Duration Fund — Institutional Class | 12.7% |
| Total | 27.9% |
| "Largest Holdings" excludes any temporary cash or derivative investments. | "Largest Holdings" excludes any temporary cash or derivative investments. |

---

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Inverse Government Long Bond Strategy Fund  | 46.17%  | 0.95%  | (2.30%)  |
| Price Movement of Long Treasury Bond\*\*  | (35.82%)  | (5.43%)  | (2.69%)  |
| Bloomberg U.S. Long Treasury Index  | (29.26%)  | (2.20%)  | 0.60%  |
| Bloomberg U.S. Treasury Bellwethers 30 Yr. Index\*\*\* | (33.29%) | (3.07%) | 0.03% |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Bloomberg U.S. Long Treasury Index, the Price Movement of Long Treasury Bond and the Bloomberg U.S. Treasury Bellwethers 30 Yr. Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.  |
| \*\* | &nbsp;&nbsp;&nbsp;Does not reflect any interest. |
| \*\*\* | &nbsp;&nbsp;&nbsp;Effective August 1, 2022, the Fund changed its comparative benchmark to the Bloomberg U.S. Treasury Bellwethers 30 Yr. Index. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

148 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **INVERSE GOVERNMENT LONG BOND STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **MUTUAL FUNDS<sup>†</sup>** **- 27.9%** | **MUTUAL FUNDS<sup>†</sup>** **- 27.9%** | **MUTUAL FUNDS<sup>†</sup>** **- 27.9%** |
| &nbsp;&nbsp;&nbsp;Guggenheim Strategy Fund II<sup>1</sup> | 24812 | $596469 |
| &nbsp;&nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class<sup>1</sup> | 51575 | 497184 |
| **Total Mutual Funds** | **Total Mutual Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,122,058) |  | 1093653 |
|  | **Face<br> Amount** |  |
| **FEDERAL AGENCY NOTES<sup>††</sup>** **- 10.2%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 10.2%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 10.2%** |
| Fannie Mae | Fannie Mae | Fannie Mae |
| &nbsp;&nbsp;&nbsp;2.38% due 01/19/23 | $300000 | 299707 |
| Federal Farm Credit Bank | Federal Farm Credit Bank | Federal Farm Credit Bank |
| &nbsp;&nbsp;&nbsp;4.35% (SOFR + 0.05%, Rate Floor: 0.00%) due 02/17/23<sup>◊</sup> | 100000 | 100006 |
| **Total Federal Agency Notes** | **Total Federal Agency Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $399,700) |  | 399713 |
| **U.S. TREASURY BILLS<sup>††</sup>** **- 1.0%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 1.0%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 1.0%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.79% due 01/17/23<sup>2,3</sup> | 40000 | 39943 |
| **Total U.S. Treasury Bills** | **Total U.S. Treasury Bills** |  |
| &nbsp;&nbsp;&nbsp;(Cost $39,931) |  | 39943 |
| **REPURCHASE AGREEMENTS<sup>††</sup>** **- 106.1%** | **REPURCHASE AGREEMENTS<sup>††</sup>** **- 106.1%** | **REPURCHASE AGREEMENTS<sup>††</sup>** **- 106.1%** |
| **Individual Repurchase Agreements<sup>4</sup>** | **Individual Repurchase Agreements<sup>4</sup>** | **Individual Repurchase Agreements<sup>4</sup>** |
| Mizuho Securities USA LLC<br> issued 12/30/22 at 4.10% <br> due 01/03/23 (secured by a U.S. Treasury Bond, at a rate of 4.00% and maturing 11/15/52 as collateral, with a value of $1,632,383) to be repurchased at $1,600,749 | 1600202 | 1600202 |

---

---

| | | |
|:---|:---|:---|
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.00% <br> due 01/03/23 (secured by a U.S. Treasury Bond, at a rate of 4.00% and maturing 11/15/52 as collateral, with a value of $1,017,560) to be repurchased at $997,833 | 997500 | 997500 |
| **Joint Repurchase Agreements<sup>5</sup>**  |  |  |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | 886057 | 886057 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 340791 | 340791 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 339735 | 339735 |
| **Total Repurchase Agreements** |  |  |
| (Cost $4,164,285) |  | 4164285 |
| **Total Investments - 145.2%** |  |  |
| (Cost $5,725,974) |  | $5697594 |
| **U.S. Government Securities Sold Short<sup>††</sup> - (82.5)%** | **U.S. Government Securities Sold Short<sup>††</sup> - (82.5)%** | **U.S. Government Securities Sold Short<sup>††</sup> - (82.5)%** |
| U.S. Treasury Bonds | U.S. Treasury Bonds | U.S. Treasury Bonds |
| 4.00% due 11/15/52 | 3200000 | (3236500) |
| **Total U.S Government Securities Sold Short** |  |  |
| (Proceeds $3,299,726) |  | $(3236500) |
| **Other Assets & Liabilities, net - 37.3%** |  | 1462658 |
| **Total Net Assets - 100.0%** |  | $3923752 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation\*\*** |
| **Interest Rate Futures Contracts Sold Short<sup>†</sup>** | **Interest Rate Futures Contracts Sold Short<sup>†</sup>** | **Interest Rate Futures Contracts Sold Short<sup>†</sup>** | **Interest Rate Futures Contracts Sold Short<sup>†</sup>** | **Interest Rate Futures Contracts Sold Short<sup>†</sup>** |
| U.S. Treasury Ultra Long Bond Futures Contracts | 4 | Mar 2023 | $538375 | $23496 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 149

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **INVERSE GOVERNMENT LONG BOND STRATEGY FUND** |  |

---

---

| | |
|:---|:---|
| \*\* | &nbsp;&nbsp;&nbsp;Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>◊</sup> | &nbsp;&nbsp;&nbsp;Variable rate security. Rate indicated is the rate effective at December 31, 2022. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Affiliated issuer. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as futures collateral at December 31, 2022. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as short security collateral at December 31, 2022. |
| <sup>5</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;SOFR — Secured Overnight Financing Rate |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Mutual Funds | $1093653 | $— | $— | $1093653 |
| Federal Agency Notes |  | 399713 |  | 399713 |
| U.S. Treasury Bills |  | 39943 |  | 39943 |
| Repurchase Agreements |  | 4164285 |  | 4164285 |
| Interest Rate Futures Contracts\*\* | 23496 |  |  | 23496 |
| Total Assets | $1117149 | $4603941 | $— | $5721090 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Liabilities)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| U.S. Government Securities Sold Short | $– $| 3236500 | $– $| 3236500 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

150 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **INVERSE GOVERNMENT LONG BOND STRATEGY FUND** |  |

---

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $1334993 | $1000000 | $(1700000) | $(26410) | $(12114) | $596469 | 24812 | $30352 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 1329112 |  | (800000) | (19546) | (12382) | 497184 | 51575 | 23950 |
|  | $2664105 | $1000000 | $(2500000) | $(45956) | $(24496) | $1093653 |  | $54302 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 151

**INVERSE GOVERNMENT LONG BOND STRATEGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments in unaffiliated issuers, at value (cost $439,631) | $439656 |
| Investments in affiliated issuers, at value (cost $1,122,058) | 1093653 |
| Repurchase agreements, at value (cost $4,164,285) | 4164285 |
| Cash | 7 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 878196 |
| &nbsp;&nbsp;&nbsp;Securities sold | 606844 |
| &nbsp;&nbsp;&nbsp;Interest | 4678 |
| &nbsp;&nbsp;&nbsp;Dividends | 6662 |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 336 |
| **Total assets** | 7194317 |
| **Liabilities:** | **Liabilities:** |
| Securities sold short, at value (proceeds $3,299,726) | 3236500 |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 5152 |
| &nbsp;&nbsp;&nbsp;Management fees | 2705 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 1771 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 802 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 337 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 53 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 23245 |
| **Total liabilities** | 3270565 |
| **Net assets** | $3923752 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $10120080 |
| Total distributable earnings (loss) | (6196328) |
| Net assets | $3923752 |
| Capital shares outstanding | 39633 |
| Net asset value per share | $99.00 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of affiliated issuers | $54302 |
| Interest | 151826 |
| &nbsp;&nbsp;&nbsp;Total investment income | 206128 |
| **Expenses:** | **Expenses:** |
| Management fees | 63412 |
| Investor service fees | 17614 |
| Transfer agent fees | 18973 |
| Interest expense | 186939 |
| Professional fees | 10639 |
| Portfolio accounting and administration fees | 8866 |
| Custodian fees | 995 |
| Trustees' fees\* | 913 |
| Miscellaneous | 6732 |
| &nbsp;&nbsp;&nbsp;Total expenses | 315083 |
| Less: | Less: |
| Expenses reimbursed by Adviser | (3523) |
| Expenses waived by Adviser | (2718) |
| &nbsp;&nbsp;&nbsp;Total waived/reimbursed expenses | (6241) |
| Net expenses | 308842 |
| Net investment loss | (102714) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | 6 |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (45956) |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers sold short | 955000 |
| &nbsp;&nbsp;&nbsp;Futures contracts | 277424 |
| Net realized gain | 1186474 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (173) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (24496) |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers sold short | 114652 |
| &nbsp;&nbsp;&nbsp;Futures contracts | 15036 |
| Net change in unrealized appreciation (depreciation) | 105019 |
| Net realized and unrealized gain | 1291493 |
| **Net increase in net assets resulting from operations** | $1188779 |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

152 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**INVERSE GOVERNMENT LONG BOND STRATEGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment loss | $(102714) | $(180645) |
| Net realized gain on investments | 1186474 | 183224 |
| Net change in unrealized appreciation (depreciation) on investments | 105019 | (66830) |
| Net increase (decrease) in net assets resulting from operations | 1188779 | (64251) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 156688377 | 94566480 |
| Cost of shares redeemed | (157301837) | (93801820) |
| Net increase (decrease) from capital share transactions | (613460) | 764660 |
| Net increase in net assets | 575319 | 700409 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 3348433 | 2648024 |
| &nbsp;&nbsp;&nbsp;End of year | $3923752 | $3348433 |
| **Capital share activity:** |  |  |
| Shares sold | 1895649 | 1275434 |
| Shares redeemed | (1905451) | (1265473) |
| Net increase (decrease) in shares | (9802) | 9961 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 153

**INVERSE GOVERNMENT LONG BOND STRATEGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $67.73 | $67.08 | $85.27 | $98.33 | $94.75 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | (1.24) | (2.10) | (1.48) | .26 | (.64) |
| Net gain (loss) on investments (realized and unrealized) | 32.51 | 2.75 | (16.51) | (13.32) | 4.22 |
| Total from investment operations | 31.27 | .65 | (17.99) | (13.06) | 3.58 |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  | (.20) |  |  |
| Total distributions |  |  | (.20) |  |  |
| Net asset value, end of period | $99.00 | $67.73 | $67.08 | $85.27 | $98.33 |
| **Total Return<sup>b</sup>** | **46.17%** | **0.97%** | **(21.09** **%)** | **(13.28** **%)** | **3.79%** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $3924 | $3348 | $2648 | $2382 | $4426 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | (1.46%) | (2.89%) | (2.23%) | 0.29% | (0.63%) |
| Total expenses<sup>c</sup> | 4.47% | 3.46% | 3.01% | 3.58% | 4.31% |
| Net expenses<sup>d,e</sup> | 4.38% | 3.38% | 2.97% | 3.49% | 4.30% |
| Portfolio turnover rate | 1849% | 1451% | 2529% | 966% | 907% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

<sup>e</sup> Net expense may include expenses related to short sales. Excluding these expenses, the net expense ratios for the years presented would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **12/31/22** | **12/31/21** | **12/31/20** | **12/31/19** | **12/31/18** |
| 1.73% | 1.65% | 1.83% | 1.79% | 1.75% |

---

154 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**HIGH YIELD STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide investment results that correlate, before fees and expenses, to the performance of the high yield bond market.

For Reporting Period, High Yield Strategy Fund returned -11.48%. For comparison, the Bloomberg U.S. Corporate High Yield Index returned -11.19% for the same period.

The Fund primarily invests in credit default swaps to gain exposure similar to the high yield bond market. Credit default swaps are instruments which allow for the full or partial transfer of third party credit risk, with respect to a particular entity or entities, from one counterparty to the other. A buyer of credit default swaps is buying credit protection or mitigating credit risk. A seller of credit default swaps is selling credit protection or assuming credit risk. The Fund will normally be a seller of credit protection (assuming credit risk) as it seeks to gain exposure to the high yield bond market. In addition, the Fund may invest in bond futures for the purpose of managing duration risk. For cash management purposes, the Fund may invest in other fixed income securities and money market instruments.

The high yield sector lost ground in 2022 amid the sharp rise in interest rates, due to the ongoing conflict in Ukraine, elevated inflation, and the potential for recession. The sector also had $33 billion in outflows during the year, which pressured trading levels. All sectors and rating categories generated negative returns, while interest rates continued to climb as the Federal Reserve attempted to rein in inflation. Issues in the communications, consumer cyclical and consumer non-cyclical sectors detracted the most from return for the index, with issues in the financial sector being relative outperformers. Higher-rated bonds outperformed, with BBs and Bs outperforming CCC rated bonds. High yield fundamentals remain on solid footing with gross leverage and interest coverage metrics ahead of historical averages. Rating agency downgrades did accelerate in the fourth quarter, with twice as many downgrades as upgrades. However, the high yield default rate at 1.5 percent remains below its long-term average of 4 percent.

Derivatives in the Fund are used to help provide exposure to the composition of the benchmark in the most efficient manner possible and not for hedging purposes. Derivatives performed as expected.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.**

THE RYDEX FUNDS ANNUAL REPORT \| 155

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-2_156.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-2_156a.jpg)

**Inception Date:** October 15, 2014<br>

---

| | |
|:---|:---|
| **Largest Holdings**  | **(% of Total Net Assets)** |
| Guggenheim Strategy Fund II | 12.5% |
| Guggenheim Ultra Short Duration Fund — Institutional Class | 12.5% |
| iShares iBoxx High Yield Corporate Bond ETF | 2.6% |
| SPDR Bloomberg High Yield Bond ETF | 2.5% |
| Total | 30.1% |
| "Largest Holdings" excludes any temporary cash or derivative investments. | "Largest Holdings" excludes any temporary cash or derivative investments. |

---

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **Since <br> Inception <br> (10/15/14)**  |
| High Yield Strategy Fund  | (11.48%)  | 0.22%  | 2.40%  |
| Bloomberg U.S. Corporate High Yield Index  | (11.19%)  | 2.31%  | 3.72%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Bloomberg U.S. Corporate High Yield Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

156 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **HIGH YIELD STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **EXCHANGE-TRADED FUNDS<sup>†</sup>** **- 5.1%** | **EXCHANGE-TRADED FUNDS<sup>†</sup>** **- 5.1%** | **EXCHANGE-TRADED FUNDS<sup>†</sup>** **- 5.1%** |
| &nbsp;&nbsp;&nbsp;iShares iBoxx High Yield Corporate Bond ETF | 1556 | $114599 |
| &nbsp;&nbsp;&nbsp;SPDR Bloomberg High Yield Bond ETF | 1245 | 112063 |
| **Total Exchange-Traded Funds** | **Total Exchange-Traded Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $263,173) |  | 226662 |
| **MUTUAL FUNDS<sup>†</sup>** **- 25.0%** | **MUTUAL FUNDS<sup>†</sup>** **- 25.0%** | **MUTUAL FUNDS<sup>†</sup>** **- 25.0%** |
| &nbsp;&nbsp;&nbsp;Guggenheim Strategy Fund II<sup>1</sup> | 23000 | 552911 |
| &nbsp;&nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class<sup>1</sup> | 57301 | 552379 |
| **Total Mutual Funds** | **Total Mutual Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,124,043) |  | 1105290 |
|  | **Face<br> Amount** |  |
| **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 22.6%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 22.6%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 22.6%** |
| Federal Farm Credit Bank | Federal Farm Credit Bank | Federal Farm Credit Bank |
| &nbsp;&nbsp;&nbsp;4.10% due 01/26/23<sup>2</sup> | $1000000 | 997153 |
| **Total Federal Agency Discount Notes** | **Total Federal Agency Discount Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $997,153) |  | 997153 |
| **FEDERAL AGENCY NOTES<sup>††</sup>** **- 11.3%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 11.3%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 11.3%** |
| Fannie Mae | Fannie Mae | Fannie Mae |
| &nbsp;&nbsp;&nbsp;2.38% due 01/19/23 | 500000 | 499511 |
| **Total Federal Agency Notes** | **Total Federal Agency Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $499,534) |  | 499511 |

---

---

| | | |
|:---|:---|:---|
| **U.S. TREASURY BILLS<sup>††</sup>** **- 1.3%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 1.3%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 1.3%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.79% due 01/17/23<sup>2,3</sup> | 60000 | 59914 |
| **Total U.S. Treasury Bills** |  |  |
| (Cost $59,897) |  | 59914 |
| **REPURCHASE AGREEMENTS††,4 - 25.9%** | **REPURCHASE AGREEMENTS††,4 - 25.9%** | **REPURCHASE AGREEMENTS††,4 - 25.9%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | 646869 | 646869 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 248796 | 248796 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 248025 | 248025 |
| **Total Repurchase Agreements** |  |  |
| (Cost $1,143,690) |  | 1143690 |
| **Total Investments - 91.2%** |  |  |
| (Cost $4,087,490) |  | $4032220 |
| **Other Assets & Liabilities, net - 8.8%** |  | 389565 |
| **Total Net Assets - 100.0%** |  | $4421785 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Depreciation\*\*** |
| **Interest Rate Futures Contracts Purchased<sup>†</sup>** | **Interest Rate Futures Contracts Purchased<sup>†</sup>** | **Interest Rate Futures Contracts Purchased<sup>†</sup>** | **Interest Rate Futures Contracts Purchased<sup>†</sup>** | **Interest Rate Futures Contracts Purchased<sup>†</sup>** |
| U.S. Treasury 5 Year Note Futures Contracts | 34 | Mar 2023 | $3672797 | $(7026) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Centrally Cleared Credit Default Swap Agreements Protection Sold<sup>††</sup>** | **Centrally Cleared Credit Default Swap Agreements Protection Sold<sup>††</sup>** | **Centrally Cleared Credit Default Swap Agreements Protection Sold<sup>††</sup>** | **Centrally Cleared Credit Default Swap Agreements Protection Sold<sup>††</sup>** | **Centrally Cleared Credit Default Swap Agreements Protection Sold<sup>††</sup>** | **Centrally Cleared Credit Default Swap Agreements Protection Sold<sup>††</sup>** | **Centrally Cleared Credit Default Swap Agreements Protection Sold<sup>††</sup>** | **Centrally Cleared Credit Default Swap Agreements Protection Sold<sup>††</sup>** | **Centrally Cleared Credit Default Swap Agreements Protection Sold<sup>††</sup>** |
| **Counterparty** | **Index** | **Protection <br> Premium <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Notional <br> Amount** | **Value** | **Upfront <br> Premiums <br> Received** | **Value and <br> Unrealized <br> Appreciation\*\*** |
| Barclays Bank plc<br> ICE | CDX.NA.HY.39.V1 | 5.00% | Quarterly | 12/20/27 | $4050000 | $25149 | $(104163) | $129312 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 157

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **HIGH YIELD STRATEGY FUND** |  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** |
| **Counterparty** | **Index** | **Type** | **Financing <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Units** | **Notional <br> Amount** | **Value and <br> Unrealized <br> Depreciation** |
| **OTC Credit Index Swap Agreements<sup>††</sup>** | **OTC Credit Index Swap Agreements<sup>††</sup>** | **OTC Credit Index Swap Agreements<sup>††</sup>** | **OTC Credit Index Swap Agreements<sup>††</sup>** | **OTC Credit Index Swap Agreements<sup>††</sup>** | **OTC Credit Index Swap Agreements<sup>††</sup>** | **OTC Credit Index Swap Agreements<sup>††</sup>** | **OTC Credit Index Swap Agreements<sup>††</sup>** | **OTC Credit Index Swap Agreements<sup>††</sup>** |
| Goldman Sachs International | iShares iBoxx $ High Yield Corporate Bond ETF | Pay | 4.73% (Federal Funds Rate + 0.40%) | At Maturity | 01/06/23 | 86 | $6334 | $(49) |
| BNP Paribas | SPDR Bloomberg High Yield Bond ETF | Pay | 4.78% (Federal Funds Rate + 0.45%) | At Maturity | 01/26/23 | 192 | 17292 | (229) |
| BNP Paribas | iShares iBoxx $ High Yield Corporate Bond ETF | Pay | 4.73% (Federal Funds Rate + 0.40%) | At Maturity | 01/26/23 | 364 | 26795 | (269) |
|  |  |  |  |  |  |  | $50421 | $(547) |

---

---

| | |
|:---|:---|
| \*\* | &nbsp;&nbsp;&nbsp;Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Affiliated issuer. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as futures collateral at December 31, 2022. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;CDX.NA.HY.39.V1 — Credit Default Swap North American High Yield Series 39 Index Version 1 |
|  | &nbsp;&nbsp;&nbsp;ICE — Intercontinental Exchange |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Exchange-Traded Funds | $226662 | $— | $— | $226662 |
| Mutual Funds | 1105290 |  |  | 1105290 |
| Federal Agency Discount Notes |  | 997153 |  | 997153 |
| Federal Agency Notes |  | 499511 |  | 499511 |
| U.S. Treasury Bills |  | 59914 |  | 59914 |
| Repurchase Agreements |  | 1143690 |  | 1143690 |
| Credit Default Swap Agreements\*\* |  | 129312 |  | 129312 |
| Total Assets | $1331952 | $2829580 | $— | $4161532 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Liabilities)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Interest Rate Futures Contracts\*\* | $7026 | $— | $— | $7026 |
| Credit Index Swap Agreements\*\* |  | 547 |  | 547 |
| Total Liabilities | $7026 | $547 | $— | $7573 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

158 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **HIGH YIELD STRATEGY FUND** |  |

---

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment <br> Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $1232538 | $700000 | $(1345000) | $(15806) | $(18821) | $552911 | 23000 | $20361 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 1169480 | 800000 | (1380000) | (21582) | (15519) | 552379 | 57301 | 16921 |
|  | $2402018 | $1500000 | $(2725000) | $(37388) | $(34340) | $1105290 |  | $37282 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 159

**HIGH YIELD STRATEGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments in unaffiliated issuers, at value (cost $1,819,757) | $1783240 |
| Investments in affiliated issuers, at value (cost $1,124,043) | 1105290 |
| Repurchase agreements, at value (cost $1,143,690) | 1143690 |
| Segregated cash with broker | 497070 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Protection fees on credit default swap agreements | 6750 |
| &nbsp;&nbsp;&nbsp;Interest | 5614 |
| &nbsp;&nbsp;&nbsp;Dividends | 4270 |
| &nbsp;&nbsp;&nbsp;Swap settlement | 264 |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 248 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 3 |
| **Total assets** | 4546439 |
| **Liabilities:** | **Liabilities:** |
| Unamortized upfront premiums received on credit default swap agreements | 104163 |
| Unrealized depreciation on OTC swap agreements | 547 |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Management fees | 2995 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 1186 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 1078 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 1037 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 643 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 71 |
| &nbsp;&nbsp;&nbsp;Variation margin on credit default swap agreements | 57 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 12877 |
| **Total liabilities** | 124654 |
| **Net assets** | $4421785 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $5169389 |
| Total distributable earnings (loss) | (747604) |
| Net assets | $4421785 |
| Capital shares outstanding | 62154 |
| Net asset value per share | $71.14 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of unaffiliated issuers | $23655 |
| Dividends from securities of affiliated issuers | 37282 |
| Interest | 33878 |
| Income from securities lending, net | 5428 |
| &nbsp;&nbsp;&nbsp;Total investment income | 100243 |
| **Expenses:** | **Expenses:** |
| Management fees | 32591 |
| Investor service fees | 10864 |
| Transfer agent fees | 11992 |
| Portfolio accounting and administration fees | 5399 |
| Professional fees | 5259 |
| Trustees' fees\* | 660 |
| Custodian fees | 619 |
| Miscellaneous | 4927 |
| &nbsp;&nbsp;&nbsp;Total expenses | 72311 |
| Less: | Less: |
| Expenses waived by Adviser | (2369) |
| Net expenses | 69942 |
| Net investment income | 30301 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (72267) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (37388) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (285319) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (423902) |
| Net realized loss | (818876) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (43763) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (34340) |
| &nbsp;&nbsp;&nbsp;Swap agreements | 128927 |
| &nbsp;&nbsp;&nbsp;Futures contracts | (170) |
| Net change in unrealized appreciation (depreciation) | 50654 |
| Net realized and unrealized loss | (768222) |
| **Net decrease in net assets resulting from operations** | $(737921) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

160 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**HIGH YIELD STRATEGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income (loss) | $30301 | $(28436) |
| Net realized gain (loss) on investments | (818876) | 425327 |
| Net change in unrealized appreciation (depreciation) on investments | 50654 | (378984) |
| Net increase (decrease) in net assets resulting from operations | (737921) | 17907 |
| Distributions to shareholders | (58130) |  |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 16051078 | 26495380 |
| Distributions reinvested | 58130 |  |
| Cost of shares redeemed | (16176936) | (32002879) |
| Net decrease from capital share transactions | (67728) | (5507499) |
| Net decrease in net assets | (863779) | (5489592) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 5285564 | 10775156 |
| &nbsp;&nbsp;&nbsp;End of year | $4421785 | $5285564 |
| **Capital share activity:** |  |  |
| Shares sold | 217639 | 326996 |
| Shares issued from reinvestment of distributions | 831 |  |
| Shares redeemed | (220898) | (396286) |
| Net decrease in shares | (2428) | (69290) |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 161

**HIGH YIELD STRATEGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $81.84 | $80.49 | $86.60 | $77.95 | $83.54 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .51 | (.35) | (.20) | .64 | .71 |
| Net gain (loss) on investments (realized and unrealized) | (9.94) | 1.70 | (.60) | 10.08 | (1.39) |
| Total from investment operations | (9.43) | 1.35 | (.80) | 10.72 | (.68) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (1.27) |  | (4.92) | (2.07) | (4.91) |
| Net realized gains |  |  | (.39) |  |  |
| Total distributions | (1.27) |  | (5.31) | (2.07) | (4.91) |
| Net asset value, end of period | $71.14 | $81.84 | $80.49 | $86.60 | $77.95 |
| **Total Return<sup>b</sup>** | **(11.48** **%)** | **1.68%** | **(0.47** **%)** | **13.84%** | **(0.87** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $4422 | $5286 | $10775 | $10508 | $4113 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.70% | (0.44%) | (0.25%) | 0.76% | 0.88% |
| Total expenses<sup>c</sup> | 1.66% | 1.60% | 1.72% | 1.72% | 1.62% |
| Net expenses<sup>d</sup> | 1.61% | 1.54% | 1.67% | 1.65% | 1.61% |
| Portfolio turnover rate | 111% | 117% | 460% | 299% | 116% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

162 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**U.S. GOVERNMENT MONEY MARKET FUND** 

**OBJECTIVE:** Seeks to provide security of principal, high current income, and liquidity.

For Reporting Period, U.S. Government Money Market Fund returned 0.73%.

The U.S. Federal Reserve ("Fed") raised its benchmark federal funds rate seven times during 2022, taking it to its highest level in 15 years. At the last rate adjustment in December 2022, the Fed's target rate was in the 4.25% to 4.50%, up from 0% to 0.25% range a year ago.

The hikes were in response to inflation that soared to a 40-year high in 2022, due in part to consumer demand and a tight labor market. Inflation cooled in the last months of 2022, but is still above its 2% long-term target. The Fed has indicated that it will likely push the rate above 5%, implying another 75 basis points, before holding at that level for most of 2023, which could lead to slower growth and higher unemployment. GDP grew 2.1% in 2022, down from 5.9% in 2021, which had provided the fastest growth since 1984.

**Performance displayed represents past performance, which is no guarantee of future results.** 

**An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-2_163.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

FADN – Federal Agency Discount Note<br> FAN – Federal Agency Note

**Inception Date:** May 7, 1997<br>

The Fund invests principally in money market instruments issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities and enters into repurchase agreements fully collateralized by U.S. government securities.

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| U.S. Government Money Market Fund  | 0.73%  | 0.45%  | 0.23%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 163

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **U.S. GOVERNMENT MONEY MARKET FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Face<br> Amount** | **Value** |
| **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 37.5%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 37.5%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 37.5%** |
| Federal Home Loan Bank | Federal Home Loan Bank | Federal Home Loan Bank |
| &nbsp;&nbsp;&nbsp;4.22% due 02/08/23<sup>1</sup> | $4000000 | $3982182 |
| &nbsp;&nbsp;&nbsp;4.34% due 02/23/23<sup>1</sup> | 3400000 | 3378301 |
| &nbsp;&nbsp;&nbsp;4.01% due 01/12/23<sup>1</sup> | 3000000 | 2996329 |
| &nbsp;&nbsp;&nbsp;4.16% due 02/01/23<sup>1</sup> | 3000000 | 2989253 |
| &nbsp;&nbsp;&nbsp;3.84% due 01/13/23<sup>1</sup> | 2500000 | 2496675 |
| &nbsp;&nbsp;&nbsp;4.40% due 04/21/23<sup>1</sup> | 1000000 | 986555 |
| Federal Farm Credit Bank | Federal Farm Credit Bank | Federal Farm Credit Bank |
| &nbsp;&nbsp;&nbsp;4.14% due 02/02/23<sup>1</sup> | 6000000 | 5977920 |
| &nbsp;&nbsp;&nbsp;4.10% due 01/26/23<sup>1</sup> | 5000000 | 4985764 |
| Fannie Mae | Fannie Mae | Fannie Mae |
| &nbsp;&nbsp;&nbsp;3.90% due 01/03/23<sup>1</sup> | 5000000 | 4998917 |
| **Total Federal Agency Discount Notes** | **Total Federal Agency Discount Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $32,791,896) |  | 32791896 |
| **FEDERAL AGENCY NOTES<sup>††</sup>** **- 20.4%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 20.4%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 20.4%** |
| Federal Home Loan Bank | Federal Home Loan Bank | Federal Home Loan Bank |
| &nbsp;&nbsp;&nbsp;4.33% (SOFR + 0.03%, Rate Floor: 0.00%) due 01/27/23<sup>◊</sup> | 4000000 | 4000000 |
| &nbsp;&nbsp;&nbsp;4.31% (SOFR + 0.01%, Rate Floor: 0.00%) due 02/21/23<sup>◊</sup> | 3800000 | 3800000 |
| &nbsp;&nbsp;&nbsp;4.34% (SOFR + 0.04%, Rate Floor: 0.00%) due 01/26/23<sup>◊</sup> | 2500000 | 2500000 |
| &nbsp;&nbsp;&nbsp;4.35% (SOFR + 0.05%, Rate Floor: 0.00%) due 02/21/23<sup>◊</sup> | 2500000 | 2500000 |
| Farmer Mac | Farmer Mac | Farmer Mac |
| &nbsp;&nbsp;&nbsp;4.55% (Fed Funds Effective Rate + 0.22%, Rate Floor: 0.00%) due 02/14/23<sup>◊</sup> | 5000000 | 5002861 |
| **Total Federal Agency Notes** | **Total Federal Agency Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $17,802,861) |  | 17802861 |
| **U.S. GOVERNMENT SECURITIES<sup>††</sup>** **- 5.7%** | **U.S. GOVERNMENT SECURITIES<sup>††</sup>** **- 5.7%** | **U.S. GOVERNMENT SECURITIES<sup>††</sup>** **- 5.7%** |
| U.S. Treasury Floating Rate Note | U.S. Treasury Floating Rate Note | U.S. Treasury Floating Rate Note |
| &nbsp;&nbsp;&nbsp;4.45% (3 Month U.S. Treasury Bill Rate + 0.05%, Rate Floor: 0.00%) due 01/31/23<sup>◊</sup> | 5000000 | 5001192 |
| **Total U.S. Government Securities** | **Total U.S. Government Securities** |  |
| &nbsp;&nbsp;&nbsp;(Cost $5,001,192) |  | 5001192 |
| **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 36.6%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 36.6%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 36.6%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | 18075700 | 18075700 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 6952192 | 6952192 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 6930661 | 6930661 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $31,958,553) |  | 31958553 |
| **Total Investments - 100.2%** | **Total Investments - 100.2%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $87,554,502) | &nbsp;&nbsp;&nbsp;(Cost $87,554,502) | $87554502 |
| **Other Assets & Liabilities, net - (0.2)%** | **Other Assets & Liabilities, net - (0.2)%** | (152076) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | $87402426 |

---

---

| | |
|:---|:---|
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>◊</sup> | &nbsp;&nbsp;&nbsp;Variable rate security. Rate indicated is the rate effective at December 31, 2022. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;SOFR — Secured Overnight Financing Rate |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

164 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **U.S. GOVERNMENT MONEY MARKET FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Federal Agency Discount Notes | $— | $32791896 | $— | $32791896 |
| Federal Agency Notes |  | 17802861 |  | 17802861 |
| U.S. Government Securities |  | 5001192 |  | 5001192 |
| Repurchase Agreements |  | 31958553 |  | 31958553 |
| Total Assets | $— | $87554502 | $— | $87554502 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 165

**U.S. GOVERNMENT MONEY MARKET FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value (cost $55,595,949) | $55595949 |
| Repurchase agreements, at value (cost $31,958,553) | 31958553 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Interest | 149151 |
| **Total assets** | 87703653 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Professional fees | 119822 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 35074 |
| &nbsp;&nbsp;&nbsp;Management fees | 32766 |
| &nbsp;&nbsp;&nbsp;Printing | 26616 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 21071 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 16383 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 10157 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 1097 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 38241 |
| **Total liabilities** | 301227 |
| **Net assets** | $87402426 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $87401742 |
| Total distributable earnings (loss) | 684 |
| Net assets | $87402426 |
| Capital shares outstanding | 87389106 |
| Net asset value per share | $1.00 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Interest | $1137219 |
| &nbsp;&nbsp;&nbsp;Total investment income | 1137219 |
| **Expenses:** | **Expenses:** |
| Management fees | 352332 |
| Investor service fees | 176166 |
| Transfer agent fees | 168000 |
| Professional fees | 111802 |
| Portfolio accounting and administration fees | 89727 |
| Custodian fees | 9973 |
| Trustees' fees\* | 9150 |
| Miscellaneous | 63238 |
| &nbsp;&nbsp;&nbsp;Total expenses | 980388 |
| Less: | Less: |
| Expenses reimbursed by Adviser | (155307) |
| Expenses waived by Adviser | (180943) |
| &nbsp;&nbsp;&nbsp;Total waived/reimbursed expenses | (336250) |
| Net expenses | 644138 |
| Net investment income | 493081 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | 691 |
| Net realized gain | 691 |
| **Net increase in net assets resulting from operations** | $493772 |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

166 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**U.S. GOVERNMENT MONEY MARKET FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income | $493081 | $22 |
| Net realized gain on investments | 691 | 2431 |
| Net change in unrealized appreciation (depreciation) on investments |  |  |
| Net increase in net assets resulting from operations | 493772 | 2453 |
| Distributions to shareholders | (495519) | (596) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 163567812 | 116814171 |
| Distributions reinvested | 495519 | 596 |
| Cost of shares redeemed | (130391075) | (117741421) |
| Net increase (decrease) from capital share transactions | 33672256 | (926654) |
| Net increase (decrease) in net assets | 33670509 | (924797) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 53731917 | 54656714 |
| &nbsp;&nbsp;&nbsp;End of year | $87402426 | $53731917 |
| **Capital share activity:** |  |  |
| Shares sold | 163567812 | 116814171 |
| Shares issued from reinvestment of distributions | 495541 | 596 |
| Shares redeemed | (130391075) | (117741421) |
| Net increase (decrease) in shares | 33672278 | (926654) |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 167

**U.S. GOVERNMENT MONEY MARKET FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2022** | **Year Ended <br> December 31, <br> 2021** | **Year Ended <br> December 31, <br> 2020** | **Year Ended <br> December 31, <br> 2019** | **Year Ended <br> December 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .01 | — <sup>b</sup> | — <sup>b</sup> | .01 | .01 |
| Net gain (loss) on investments (realized and unrealized) |  | — <sup>b</sup> | — <sup>b</sup> |  |  |
| Total from investment operations | .01 |  |  | .01 | .01 |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (.01) | (—)<sup>b</sup> | (—)<sup>b</sup> | (.01) | (.01) |
| Net realized gains | (—)<sup>b</sup> | (—)<sup>b</sup> | (—)<sup>b</sup> | (—)<sup>b</sup> | (—)<sup>b</sup> |
| Total distributions | (.01) | (—)<sup>b</sup> | (—)<sup>b</sup> | (.01) | (.01) |
| Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| **Total Return<sup>c</sup>** | **0.73%** | **0.00%** | **0.07%** | **0.87%** | **0.58%** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $87402 | $53732 | $54657 | $49233 | $85008 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.70% | — <sup>e</sup> | 0.05% | 0.88% | 0.57% |
| Total expenses | 1.39% | 1.29% | 1.42% | 1.42% | 1.32% |
| Net expenses<sup>d</sup> | 0.91% | 0.08% | 0.41% | 1.42% | 1.32% |
| Portfolio turnover rate |  |  |  |  |  |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Less than $0.01 per share.

<sup>c</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

<sup>e</sup> Less than 0.1%.

168 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**NOTES TO FINANCIAL STATEMENTS** <br>

**Note 1 – Organization and Significant Accounting Policies** 

**Organization** 

The Rydex Variable Trust (the "Trust"), a Delaware statutory trust, is registered with the U.S. Securities and Exchange Commission (the "SEC") under the Investment Company Act of 1940 ("1940 Act"), as an open-ended investment company of the series type. Each series, in effect, is representing a separate fund (each, a "Fund"). The Trust may issue an unlimited number of authorized shares. The Trust accounts for the assets of each Fund separately. At December 31, 2022, the Trust consisted of forty-nine Funds. The Trust offers shares of the Funds to insurance companies for their variable annuity and variable life insurance contracts.

This report covers the following funds (collectively, the "Funds"):

---

| | |
|:---|:---|
| **Fund Name** | **Investment<br> Company Type** |
| Nova Fund | Non-diversified |
| Inverse S&P 500<sup>®</sup> Strategy Fund | Non-diversified |
| NASDAQ-100<sup>®</sup> Fund | Non-diversified |
| Inverse NASDAQ-100<sup>®</sup> Strategy Fund | Non-diversified |
| S&P 500<sup>®</sup> 2x Strategy Fund | Non-diversified |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund  | Non-diversified |
| Mid-Cap 1.5x Strategy Fund | Non-diversified |
| Inverse Mid-Cap Strategy Fund | Non-diversified |
| Russell 2000<sup>®</sup> 2x Strategy Fund  | Non-diversified |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | Non-diversified |
| Inverse Russell 2000<sup>®</sup> Strategy Fund | Non-diversified |
| Dow 2x Strategy Fund  | Non-diversified |
| Inverse Dow 2x Strategy Fund  | Non-diversified |
| Government Long Bond 1.2x Strategy Fund | Diversified |
| Inverse Government Long Bond Strategy Fund | Diversified |
| High Yield Strategy Fund | Non-diversified |
| U.S. Government Money Market Fund | Diversified |

---

The Funds are designed and operated to accommodate frequent trading by shareholders and, unlike most mutual funds, offer unlimited exchange privileges with no minimum holding periods or transactions fees, which may cause the Funds to experience high portfolio turnover.

Security Investors, LLC (the "Adviser"), which operates under the name Guggenheim Investments ("GI"), provides advisory services. Guggenheim Funds Distributors, LLC ("GFD") acts as principal underwriter for the Trust. GI and GFD are affiliated entities.

**Significant Accounting Policies** 

The Funds operate as investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All time references are based on Eastern Time.

The net asset value per share ("NAV") of each Fund is calculated by dividing the market value of the Fund's securities and other assets, less all liabilities, by the number of outstanding shares of that Fund.

**(a) Valuation of Investments** 

The Board of Trustees of the Funds (the "Board") has adopted policies and procedures for the valuation of the Funds' investments (the "Valuation Procedures"). The SEC adopted Rule 2a-5 under the 1940 Act ("Rule 2a-5") which establishes requirements for determining fair value in good faith and became effective September 8, 2022. Rule 2a-5 also defines "readily available market quotations" for purposes of the 1940 Act and establishes requirements for determining whether a fund must fair value a security in good faith.

Pursuant to Rule 2a-5, the Board has designated the Adviser as the valuation designee to perform fair valuation determinations for the Funds with respect to all Fund investments and other assets. As the Funds' valuation designee pursuant to Rule 2a-5, the Adviser has adopted separate procedures (the "Valuation Designee Procedures") reasonably designed to prevent violations of the requirements of Rule 2a-5 and Rule 31a-4. The Adviser, in its role as valuation designee, utilizes the assistance of a valuation committee, consisting of representatives from Guggenheim's investment management, fund administration, legal and compliance departments (the "Valuation Committee"), in determining the fair value of the Funds' securities and/or other assets.

Valuations of the Funds' securities and other assets are supplied primarily by pricing services appointed pursuant to the processes set forth in the Valuation Procedures. The Adviser, with the assistance of the Valuation Committee, convenes monthly, or more frequently as needed, to review the valuation of all assets which have been fair valued for reasonableness. The Adviser, consistent with the monitoring and review responsibilities set forth in the Valuation Designee Procedures, regularly reviews the appropriateness of the inputs, methods, models and assumptions employed by the pricing services.

THE RYDEX FUNDS ANNUAL REPORT \| 169

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

If the pricing service cannot or does not provide a valuation for a particular investment or such valuation is deemed unreliable, the investment is fair valued by the Adviser.

Equity securities listed or traded on a recognized U.S. securities exchange or the National Association of Securities Dealers Automated Quotations ("NASDAQ") National Market System shall generally be valued on the basis of the last sale price on the primary U.S. exchange or market on which the security is listed or traded; provided, however, that securities listed on NASDAQ will be valued at the NASDAQ official closing price, which may not necessarily represent the last sale price.

Open-end investment companies are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds and closed-end investment companies are generally valued at the last quoted sale price.

The U.S. Government Money Market Fund values debt securities at amortized cost pursuant to Rule 2a-7 of the 1940 Act, which approximates market value.

With the exception of the U.S. Government Money Market Fund, U.S. government securities are valued by independent pricing services, the last traded fill price, or at the reported bid price at the close of business.

Commercial paper and discount notes with a maturity of greater than 60 days at acquisition are valued at prices that reflect broker-dealer supplied valuations or are obtained from independent pricing services, which may consider the trade activity, treasury spreads, yields or price of bonds of comparable quality, coupon, maturity, and type, as well as prices quoted by dealers who make markets in such securities. Commercial paper and discount notes with a maturity of 60 days or less at acquisition are valued at amortized cost, unless the Adviser concludes that amortized cost does not represent the fair value of the applicable asset in which case it will be valued using an independent pricing service.

Repurchase agreements are generally valued at amortized cost, provided such amounts approximate market value.

The value of futures contracts are valued on the basis of the last sale price at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the official settlement price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The values of swap agreements entered into by a fund will generally be valued using an evaluated price provided by a third-party pricing vendor.

Investments for which market quotations are not readily available are fair valued as determined in good faith by the Adviser. Valuations in accordance with these methods are intended to reflect each security's (or asset's or liability's) "fair value". Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over U.S. Treasury securities, and other information analysis.

In connection with futures contracts and other derivative investments, such factors may include obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

**(b) U.S. Government and Agency Obligations** 

Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the effective rates paid at the time of purchase by the Funds. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

**(c) Short Sales** 

When a Fund engages in a short sale of a security, an amount equal to the proceeds is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. The Fund maintains a segregated account of cash and/or securities as collateral for short sales.

Fees, if any, paid to brokers to borrow securities in connection with short sales are recorded as interest expense. In addition, the Fund must pay out the dividend rate of the equity or coupon rate of the obligation to the lender and record this as an expense. Short dividend or interest expense is a cost associated with the investment objective of short sales transactions, rather than an operational cost associated with the day-to-day management of any mutual fund. The Fund may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short.

170 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

**(d) Futures Contracts** 

Upon entering into a futures contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

**(e) Swap Agreements** 

Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized appreciation or depreciation. Payments received or made as a result of an agreement or termination of an agreement are recognized as realized gains or losses.

Upon entering into certain centrally-cleared swap transactions, a Fund is required to deposit with its clearing broker an amount of cash or securities as an initial margin. Subsequent variation margin receipts or payments are received or made by the Fund depending on fluctuations in the fair value of the reference entity and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Upfront payments received or made by a Fund on credit default swap agreements and interest rate swap agreements are amortized over the expected life of the agreement. Periodic payments received or paid by a Fund are recorded as realized gains or losses. Payments received or made as a result of a credit event or termination of the contract are recognized, net of a proportional amount of the upfront payment, as realized gains or losses.

**(f) Foreign Taxes** 

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and reflected in their Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income and foreign taxes on capital gains from sales of investments are included with the net realized gain (loss) on investments. Foreign taxes payable or deferred as of December 31, 2022, if any, are disclosed in the Funds' Statements of Assets and Liabilities.

**(g) Security Transactions** 

Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as a reduction to cost if the securities are still held and as realized gains if no longer held in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries, if any. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from Real Estate Investment Trusts ("REITs") is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to realized gains. The actual amounts of income, return of capital, and realized gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

**(h) Distributions** 

Dividends from net investment income are declared daily in the Government Long Bond 1.2x Strategy Fund and the U.S. Government Money Market Fund. Distributions of net investment income in the remaining Funds and distributions of net realized gains, if any, in all Funds are declared at least annually. Normally, all distributions of a Fund will automatically be reinvested without charge in additional shares of the same Fund. Distributions are recorded on the ex-dividend date and are determined in accordance with U.S. federal income tax regulations which may differ from U.S. GAAP.

**(i) Cash** 

The Funds may leave cash overnight in their cash account with the custodian. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate, which was 4.33% at December 31, 2022.

**(j) Indemnifications** 

Under the Funds' organizational documents, the Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide

THE RYDEX FUNDS ANNUAL REPORT \| 171

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

**Note 2 – Financial Instruments and Derivatives** 

As part of their investment strategy, the Funds may utilize short sales and a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of amounts recognized on the Funds' Statements of Assets and Liabilities. Valuation and accounting treatment of these instruments can be found under Significant Accounting Policies in Note 1 of these Notes to Financial Statements.

**Short Sales** 

A short sale is a transaction in which a Fund sells a security it does not own. If the security sold short decreases in price between the time the Fund sells the security and closes its short position, the Fund will realize a gain on the transaction. Conversely, if the security increases in price during the period, the Fund will realize a loss on the transaction. The risk of such price increases is the principal risk of engaging in short sales.

**Derivatives** 

Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to increase investment flexibility (including to maintain cash reserves while maintaining exposure to certain other assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Derivative instruments may also be used to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund's financial position and results of operations.

The Funds may utilize derivatives for the following purposes:

**Duration:** the use of an instrument to manage the interest rate risk of a portfolio.

**Index Exposure:** the use of an instrument to obtain exposure to a listed or other type of index.

**Leverage:** gaining total exposure to equities or other assets on the long and short sides at greater than 100% of invested capital.

**Liquidity:** the ability to buy or sell exposure with little price/market impact.

For any Fund whose investment strategy consistently involves applying leverage, the value of the Fund's shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index or other asset. In addition, because an investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, an opportunity for increased net income is created; but, at the same time, leverage risk will increase. The Fund's use of leverage, through borrowings or instruments such as derivatives, may cause the Fund to be more volatile and riskier than if they had not been leveraged.

**Futures Contracts** 

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund's use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to a Fund because futures are exchange-traded and the exchange's clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as segregated cash with broker on the Funds' Statements of Assets and Liabilities; securities held as collateral are noted on the Schedules of Investments.

172 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

The following table represents the Funds' use and volume of futures on a monthly basis:

---

| | | | |
|:---|:---|:---|:---|
| | | **Average Notional Amount** | **Average Notional Amount** |
| <br>**Fund** | <br>**Use** | **Long** | **Short** |
| Nova Fund | Index exposure, Leverage, Liquidity  | $5075060 | $— |
| Inverse S&P 500<sup>®</sup> Strategy Fund | Index exposure, Liquidity |  | 392556 |
| NASDAQ-100<sup>®</sup> Fund | Index exposure, Liquidity | 18598224 |  |
| Inverse NASDAQ-100<sup>®</sup> Strategy Fund | Index exposure, Liquidity |  | 19230 |
| S&P 500<sup>®</sup> 2x Strategy Fund | Index exposure, Leverage, Liquidity  | 10504902 |  |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund  | Index exposure, Leverage, Liquidity | 21363713 |  |
| Mid-Cap 1.5x Strategy Fund | Index exposure, Leverage, Liquidity | 227384 |  |
| Inverse Mid-Cap Strategy Fund | Index exposure, Liquidity |  |  |
| Russell 2000<sup>®</sup> 2x Strategy Fund  | Index exposure, Leverage, Liquidity | 331983 |  |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | Index exposure, Leverage, Liquidity | 227761 |  |
| Inverse Russell 2000<sup>®</sup> Strategy Fund | Index exposure,Liquidity |  | 61400 |
| Dow 2x Strategy Fund  | Index exposure, Leverage, Liquidity | 1941395 |  |
| Inverse Dow 2x Strategy Fund  | Index exposure, Leverage, Liquidity | 28208 | 12824 |
| Government Long Bond 1.2x Strategy Fund | Duration, Index exposure, Leverage, Liquidity | 5680565 |  |
| Inverse Government Long Bond Strategy Fund | Duration Index exposure,Liquidity | 855297 | 760792 |
| High Yield Strategy Fund | Duration, Index exposure, Liquidity | 3189815 |  |

---

**Swap Agreements** 

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. When utilizing over-the-counter ("OTC") swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing and are executed on a multi-lateral or other trade facility platform, such as a registered exchange. There is limited counterparty credit risk with respect to centrally-cleared swaps as the transaction is facilitated through a central clearinghouse, much like exchange-traded futures contracts. For a fund utilizing centrally-cleared swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. There is no guarantee that a fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

Total return swaps involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset (such as an index) for a fixed or variable interest rate. Total return swaps will usually be computed based on the current value of the reference asset as of the close of regular trading on the NYSE or other exchange, with the swap value being adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreement. When utilizing total return swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying reference asset declines in value.

The following table represents the Funds' use and volume of total return swaps on a monthly basis:

---

| | | | |
|:---|:---|:---|:---|
| | | **Average Notional Amount** | **Average Notional Amount** |
| <br>**Fund** | <br>**Use** | **Long** | **Short** |
| Nova Fund | Index exposure, Leverage, Liquidity | $20363889 | $— |
| Inverse S&P 500<sup>®</sup> Strategy Fund | Index exposure, Liquidity |  | 6556684 |
| NASDAQ-100<sup>®</sup> Fund | Index exposure, Liquidity | 11929426 |  |
| Inverse NASDAQ-100<sup>®</sup> Strategy Fund | Index exposure, Liquidity |  | 7542610 |
| S&P 500<sup>®</sup> 2x Strategy Fund | Index exposure, Leverage, Liquidity | 39166401 |  |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund  | Index exposure, Leverage, Liquidity | 57116771 |  |
| Mid-Cap 1.5x Strategy Fund | Index exposure, Leverage, Liquidity | 2914351 |  |
| Inverse Mid-Cap Strategy Fund | Index exposure, Liquidity |  | 376822 |
| Russell 2000<sup>®</sup> 2x Strategy Fund  | Index exposure, Leverage, Liquidity | 3756561 |  |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | Index exposure, Leverage, Liquidity | 3227093 |  |
| Inverse Russell 2000<sup>®</sup> Strategy Fund | Index exposure,Liquidity |  | 2564093 |
| Dow 2x Strategy Fund  | Index exposure, Leverage, Liquidity | 16238606 |  |
| Inverse Dow 2x Strategy Fund  | Index exposure, Leverage, Liquidity |  | 4973347 |
| High Yield Strategy Fund | Duration, Index exposure,Liquidity | 164378 |  |

---

THE RYDEX FUNDS ANNUAL REPORT \| 173

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

Credit default swaps are instruments which allow for the full or partial transfer of third party credit risk, with respect to a particular entity or entities, from one counterparty to the other. A fund enters into credit default swaps as a "seller" or "buyer" of protection primarily to gain or reduce exposure to the investment grade and/or high yield bond market. A seller of credit default swaps is selling credit protection or assuming credit risk with respect to the underlying entity or entities. The buyer in a credit default swap is obligated to pay the seller a periodic stream of payments over the term of the contract provided that no event of default on an underlying reference obligation has occurred. If a credit event occurs, as defined under the terms of the swap agreement, the seller will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. The notional amount reflects the maximum potential amount the seller of credit protection could be required to pay to the buyer if a credit event occurs. The seller of protection receives periodic premium payments from the buyer and may also receive or pay an upfront premium adjustment to the stated periodic payments. In the event a credit default occurs on a credit default swap referencing an index, a factor adjustment will take place and the buyer of protection will receive a payment reflecting the par less the default recovery rate of the defaulted index component based on its weighting in the index. If no default occurs, the counterparty will pay the stream of payments and have no further obligations to the fund selling the credit protection. For a fund utilizing centrally cleared credit default swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. For OTC credit default swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty, or in the case of a credit default swap in which a fund is selling credit protection, the default of a third party issuer.

The quoted market prices and resulting market values for credit default swap agreements on securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative had the notional amount of the swap agreement been closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The following table represents the Funds' use and volume of credit default swaps on a monthly basis:

---

| | | | |
|:---|:---|:---|:---|
| | | **Average Notional Amount** | **Average Notional Amount** |
| <br>**Fund** | <br>**Use** | **Protection <br> Sold** | **Protection <br> Purchased** |
| High Yield Strategy Fund | Duration, Index exposure, Liquidity | $3613167 | $— |

---

**Derivative Investment Holdings Categorized by Risk Exposure** 

The following is a summary of the location of derivative investments on the Funds' Statements of Assets and Liabilities as of December 31, 2022:

---

| | | |
|:---|:---|:---|
| **Derivative Investment Type** | **Asset Derivatives** | **Liability Derivatives** |
| Equity/interest rate futures contracts  | Variation margin on futures contracts  | Variation margin on futures contracts  |
| Credit/equity on swap contracts  | Unrealized appreciation on OTC swap agreements | Unamortized upfront premiums received on credit default swap agreements <br>Unrealized depreciation on OTC swap agreements <br>Variation margin on credit default swap agreements |

---

174 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

The following tables set forth the fair value of the Funds' derivative investments categorized by primary risk exposure at December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Asset Derivative Investments Value** | **Asset Derivative Investments Value** | **Asset Derivative Investments Value** | **Asset Derivative Investments Value** | **Asset Derivative Investments Value** | **Asset Derivative Investments Value** |
| **Fund** | **Futures <br> Equity <br> Risk\***  | **Swaps <br> Equity <br> Risk**  | **Futures <br> Interest Rate <br> Risk\***  | **Swaps <br> Credit <br> Risk\***  | **Total Value at <br> December 31, <br> 2022**  |
| Inverse S&P 500<sup>®</sup> Strategy Fund | $49069 | $133053 | $— | $— | $182122 |
| Inverse NASDAQ-100<sup>®</sup> Strategy Fund |  | 266898 |  |  | 266898 |
| Inverse Mid-Cap Strategy Fund |  | 5955 |  |  | 5955 |
| Inverse Russell 2000<sup>®</sup> Strategy Fund |  | 78613 |  |  | 78613 |
| Inverse Dow 2x Strategy Fund  |  | 70230 |  |  | 70230 |
| Inverse Government Long Bond Strategy Fund |  |  | 23496 |  | 23496 |
| High Yield Strategy Fund |  |  |  | 129312 | 129312 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Liability Derivative Investments Value** | **Liability Derivative Investments Value** | **Liability Derivative Investments Value** | **Liability Derivative Investments Value** | **Liability Derivative Investments Value** | **Liability Derivative Investments Value** |
| **Fund** | **Futures <br> Equity <br> Risk\***  | **Swaps <br> Equity <br> Risk**  | **Futures <br> Interest Rate <br> Risk\***  | **Swaps <br> Credit <br> Risk\***  | **Total Value at <br> December 31, <br> 2022**  |
| Nova Fund | $49063 | $400598 | $— | $— | $449661 |
| NASDAQ-100<sup>®</sup> Fund | 762866 | 913097 |  |  | 1675963 |
| S&P 500<sup>®</sup> 2x Strategy Fund | 20375 | 272164 |  |  | 292539 |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund  | 730404 | 1694212 |  |  | 2424616 |
| Mid-Cap 1.5x Strategy Fund |  | 103873 |  |  | 103873 |
| Russell 2000<sup>®</sup> 2x Strategy Fund  | 9490 | 68256 |  |  | 77746 |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | 22029 | 127471 |  |  | 149500 |
| Dow 2x Strategy Fund  | 18901 | 177618 |  |  | 196519 |
| Government Long Bond 1.2x Strategy Fund |  |  | 234531 |  | 234531 |
| High Yield Strategy Fund |  |  | 7026 | 547 | 7573 |

---

\* Includes cumulative appreciation (depreciation) of exchange-traded, OTC and centrally-cleared derivatives contracts as reported on the Funds' Schedules of Investments. For exchange-traded and centrally-cleared derivatives, variation margin is reported within the Funds' Statements of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Funds' Statements of Operations for the year ended December 31, 2022:

---

| | |
|:---|:---|
| **Derivative Investment Type** | **Location of Gain (Loss) on Derivatives** |
| Equity/interest rate futures contracts | Net realized gain (loss) on futures contracts <br>Net change in unrealized appreciation (depreciation) on futures contracts  |
| Credit/equity on swap contracts | Net realized gain (loss) on swap agreements <br>Net change in unrealized appreciation (depreciation) on swap agreements  |

---

THE RYDEX FUNDS ANNUAL REPORT \| 175

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

The following is a summary of the Funds' realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Funds' Statements of Operations categorized by primary risk exposure for the year ended December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations** | **Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations** | **Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations** | **Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations** | **Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations** | **Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations** |
| **Fund** | **Futures <br> Equity <br> Risk** | **Swaps <br> Equity <br> Risk**  | **Futures <br> Interest Rate <br> Risk**  | **Swaps <br> Credit <br> Risk** | **Total** |
| Nova Fund | $(1333084) | $(6501206) | $— | $— | $(7834290) |
| Inverse S&P 500<sup>®</sup> Strategy Fund | (46316) | (930028) |  |  | (976344) |
| NASDAQ-100<sup>®</sup> Fund | (7163223) | (3217104) |  |  | (10380327) |
| Inverse NASDAQ-100<sup>®</sup> Strategy Fund | (26248) | 80036 |  |  | 53788 |
| S&P 500<sup>®</sup> 2x Strategy Fund | (834413) | (15452330) |  |  | (16286743) |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund  | (3152647) | (41632827) |  |  | (44785474) |
| Mid-Cap 1.5x Strategy Fund | (10501) | (416429) |  |  | (426930) |
| Inverse Mid-Cap Strategy Fund |  | (78316) |  |  | (78316) |
| Russell 2000<sup>®</sup> 2x Strategy Fund  | 450520 | (820446) |  |  | (369926) |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | (290121) | (835946) |  |  | (1126067) |
| Inverse Russell 2000<sup>®</sup> Strategy Fund | (25930) | (304791) |  |  | (330721) |
| Dow 2x Strategy Fund  | (327123) | (1372151) |  |  | (1699274) |
| Inverse Dow 2x Strategy Fund  | (16922) | (749547) |  |  | (766469) |
| Government Long Bond 1.2x Strategy Fund |  |  | (2166154) |  | (2166154) |
| Inverse Government Long Bond Strategy Fund |  |  | 277424 |  | 277424 |
| High Yield Strategy Fund |  |  | (423902) | (285319) | (709221) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations**  | **Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations**  | **Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations**  | **Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations**  | **Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations**  | **Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations**  |
| **Fund** | **Futures <br> Equity <br> Risk** | **Swaps <br> Equity <br> Risk**  | **Futures <br> Interest Rate <br> Risk**  | **Swaps <br> Credit <br> Risk** | **Total** |
| Nova Fund | $(48964) | $(1218120) | $— | $— | $(1267084) |
| Inverse S&P 500<sup>®</sup> Strategy Fund | 54055 | 159108 |  |  | 213163 |
| NASDAQ-100<sup>®</sup> Fund | (964599) | (1007205) |  |  | (1971804) |
| Inverse NASDAQ-100<sup>®</sup> Strategy Fund |  | 270959 |  |  | 270959 |
| S&P 500<sup>®</sup> 2x Strategy Fund | (19659) | (2922305) |  |  | (2941964) |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund  | (876716) | (4589330) |  |  | (5466046) |
| Mid-Cap 1.5x Strategy Fund | (6729) | (243232) |  |  | (249961) |
| Inverse Mid-Cap Strategy Fund |  | 8675 |  |  | 8675 |
| Russell 2000<sup>®</sup> 2x Strategy Fund  | (9490) | (316077) |  |  | (325567) |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | (22029) | (354596) |  |  | (376625) |
| Inverse Russell 2000<sup>®</sup> Strategy Fund |  | 84430 |  |  | 84430 |
| Dow 2x Strategy Fund  | (48800) | (481331) |  |  | (530131) |
| Inverse Dow 2x Strategy Fund  |  | 188770 |  |  | 188770 |
| Government Long Bond 1.2x Strategy Fund |  |  | (293078) |  | (293078) |
| Inverse Government Long Bond Strategy Fund |  |  | 15036 |  | 15036 |
| High Yield Strategy Fund |  |  | (170) | 128927 | 128757 |

---

In conjunction with short sales and the use of derivative instruments, the Funds are required to maintain collateral in various forms. Depending on the financial instrument utilized and the broker involved, the Funds use margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or repurchase agreements allocated to the Funds as collateral.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

176 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

**Note 3 – Offsetting** 

In the normal course of business, the Funds enter into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Funds to counteract the exposure to a specific counterparty with collateral received from or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, are reported separately on the Funds' Statements of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Cash and/or securities pledged or received as collateral by the Funds in connection with an OTC derivative subject to an ISDA Master Agreement generally may not be invested, sold or rehypothecated by the counterparty or the Funds, as applicable, absent an event of default under such agreement, in which case such collateral generally may be applied towards obligations due to and payable by such counterparty or the Funds, as applicable. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Funds' Statements of Assets and Liabilities.

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **Gross Amounts Not Offset <br> in the Statements of <br> Assets and Liabilities** | **Gross Amounts Not Offset <br> in the Statements of <br> Assets and Liabilities** | |
| <br>**Fund** | <br>**Instrument** | <br>**Gross <br> Amounts of <br> Recognized <br> Assets<sup>1</sup>** | <br>**Gross <br> Amounts <br> Offset In the <br> Statements <br> of Assets and <br> Liabilities** | <br>**Net Amount <br> of Assets <br> Presented on <br> the Statements <br> of Assets and <br> Liabilities** | **Financial <br> Instruments** | **Cash <br> Collateral <br> Received** | <br>**Net <br> Amount** |
| Inverse S&P 500<sup>®</sup> Strategy Fund | Swap equity contracts | $133053 | $— | $133053 | $— | $— | $133053 |
| Inverse NASDAQ-100<sup>®</sup> Strategy Fund | Swap equity contracts | 266898 |  | 266898 |  | (88582) | 178316 |
| Inverse Mid-Cap Strategy Fund | Swap equity contracts | 5955 |  | 5955 |  |  | 5955 |
| Inverse Russell 2000<sup>®</sup> Strategy Fund | Swap equity contracts | 78613 |  | 78613 |  |  | 78613 |
| Inverse Dow 2x Strategy Fund  | Swap equity contracts | 70230 |  | 70230 |  |  | 70230 |

---

THE RYDEX FUNDS ANNUAL REPORT \| 177

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **Gross Amounts Not Offset <br> in the Statements of <br> Assets and Liabilities** | **Gross Amounts Not Offset <br> in the Statements of <br> Assets and Liabilities** | |
| <br>**Fund** | <br>**Instrument** | <br>**Gross <br> Amounts of <br> Recognized <br> Liabilities<sup>1</sup>** | <br>**Gross <br> Amounts <br> Offset In the <br> Statements <br> of Assets and <br> Liabilities** | <br>**Net Amount <br> of Liabilities <br> Presented on <br> the Statements <br> of Assets and <br> Liabilities** | **Financial <br> Instruments** | **Cash <br> Collateral <br> Pledged** | <br>**Net <br> Amount** |
| Nova Fund | Swap equity contracts | $400598 | $— | $400598 | $(400598) | $— | $— |
| NASDAQ-100<sup>®</sup> Fund | Swap equity contracts | 913097 |  | 913097 | (913097) |  |  |
| S&P 500<sup>®</sup> 2x Strategy Fund | Swap equity contracts | 272164 |  | 272164 | (172847) | (99317) |  |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund  | Swap equity contracts | 1694212 |  | 1694212 | (1694212) |  |  |
| Mid-Cap 1.5x Strategy Fund | Swap equity contracts | 103873 |  | 103873 | (103873) |  |  |
| Russell 2000<sup>®</sup> 2x Strategy Fund  | Swap equity contracts | 68256 |  | 68256 | (31157) | (31099) | 6000 |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | Swap equity contracts | 127471 |  | 127471 | (127471) |  |  |
| Dow 2x Strategy Fund  | Swap equity contracts | 177618 |  | 177618 | (177618) |  |  |
| High Yield Strategy Fund | Credit Index Swap Agreements | 547 |  | 547 |  |  | 547 |

---

<sup>1</sup> Exchange-traded or centrally-cleared derivatives are excluded from these reported amounts.

The Funds have the right to offset deposits against any related derivative liabilities outstanding with each counterparty with the exception of exchange-traded or centrally-cleared derivatives. The following table presents deposits held by others in connection with derivative investments as of December 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund** | **Counterparty** | **Asset Type** | **Cash Pledged** | **Cash Received** |
| Nova Fund | Goldman Sachs International | Futures contracts | $30821 | $— |
| Inverse S&P 500<sup>®</sup> Strategy Fund | Barclays Bank plc | Total return swap agreements | 40639 |  |
|  | Goldman Sachs International | Futures contracts | 9961 |  |
|  |  |  | 50600 |  |
| Inverse NASDAQ-100<sup>®</sup> Strategy Fund | Goldman Sachs International | Futures contracts | 31600 |  |
|  | Goldman Sachs International | Total return swap agreements |  | 120000 |
|  |  |  | 31600 | 120000 |
| S&P 500<sup>®</sup> 2x Strategy Fund | Barclays Bank plc | Total return swap agreements | 99317 |  |
| Inverse Mid-Cap Strategy Fund | Barclays Bank plc | Total return swap agreements | 10000 |  |
| Russell 2000<sup>®</sup> 2x Strategy Fund  | Barclays Bank plc | Total return swap agreements | 100632 |  |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | Goldman Sachs International | Futures contracts | 22400 |  |
| Inverse Russell 2000<sup>®</sup> Strategy Fund | Barclays Bank plc | Total return swap agreements | 30000 |  |
| Dow 2x Strategy Fund  | Goldman Sachs International | Futures contracts | 142500 |  |
| Inverse Dow 2x Strategy Fund  | Barclays Bank plc | Total return swap agreements | 93311 |  |
| Government Long Bond 1.2x Strategy Fund | Goldman Sachs International | Futures contracts | 193882 |  |
| High Yield Strategy Fund | Barclays Bank plc | Credit default swap agreements | 497070 |  |

---

178 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

**Note 4 – Fair Value Measurement** 

In accordance with U.S. GAAP, fair value is defined as the price that the Funds would receive to sell an investment or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a three-tier fair value hierarchy based on the types of inputs used to value assets and liabilities and requires corresponding disclosure. The hierarchy and the corresponding inputs are summarized below:

Level 1 — unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 — significant other observable inputs (for example quoted prices for securities that are similar based on characteristics such as interest rates, prepayment speeds, credit risk, etc.).

Level 3 — significant unobservable inputs based on the best information available under the circumstances, to the extent observable inputs are not available, which may include assumptions.

Rule 2a-5 sets forth a definition of "readily available market quotations," which is consistent with the definition of a Level 1 input under U.S. GAAP. Rule 2a-5 provides that "a market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable."

Securities for which market quotations are not readily available must be valued at fair value as determined in good faith. Accordingly, any security priced using inputs other than Level 1 inputs will be subject to fair value requirements. The types of inputs available depend on a variety of factors, such as the type of security and the characteristics of the markets in which it trades, if any. Fair valuation determinations that rely on fewer or no observable inputs require greater judgment. Accordingly, fair value determinations for Level 3 securities require the greatest amount of judgment.

The inputs or methodologies selected and applied for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The suitability, appropriateness and accuracy of the techniques, methodologies and sources employed to determine fair valuation are periodically reviewed and subject to change.

**Note 5 – Investment Advisory Agreement and Other Agreements** 

Under the terms of an investment advisory contract, the Funds pay GI investment advisory fees calculated at the annualized rates below, based on the average daily net assets of the Funds:

---

| | |
|:---|:---|
| **Fund** | **Management Fees<br> (as a % of Net Assets)** |
| Nova Fund | 0.75% |
| Inverse S&P 500<sup>®</sup> Strategy Fund | 0.90% |
| NASDAQ-100<sup>®</sup> Fund | 0.75% |
| Inverse NASDAQ-100<sup>®</sup> Strategy Fund | 0.90% |
| S&P 500<sup>®</sup> 2x Strategy Fund | 0.90% |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund  | 0.90% |
| Mid-Cap 1.5x Strategy Fund | 0.90% |
| Inverse Mid-Cap Strategy Fund | 0.90% |
| Russell 2000<sup>®</sup> 2x Strategy Fund  | 0.90% |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | 0.90% |
| Inverse Russell 2000<sup>®</sup> Strategy Fund | 0.90% |
| Dow 2x Strategy Fund  | 0.90% |
| Inverse Dow 2x Strategy Fund  | 0.90% |
| Government Long Bond 1.2x Strategy Fund | 0.50% |
| Inverse Government Long Bond Strategy Fund | 0.90% |
| High Yield Strategy Fund | 0.75% |
| U.S. Government Money Market Fund | 0.50% |

---

THE RYDEX FUNDS ANNUAL REPORT \| 179

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

GI pays operating expenses on behalf of the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, among others, on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

The Board has adopted an Investor Services Plan under which GFD and other firms that provide investor services ("Service Providers") may receive compensation. The Funds will pay investor service fees to GFD at an annual rate not to exceed 0.25% of average daily net assets. GFD, in turn, will compensate Service Providers for providing such services, while retaining a portion of such payments to compensate itself for investor services it performs.

GI and its affiliates have voluntarily agreed to waive their fees, including but not limited to accounting, shareholder investor services and investment advisory fees, in an attempt to maintain a positive net yield for the U.S. Government Money Market Fund. GI or its affiliates may terminate this voluntary waiver at any time upon notice to the Fund. When shareholder investor services fees are waived, dealer compensation will be reduced to the extent of such waiver.

If a Fund invests in a fund that is advised by the same adviser or an affiliated adviser, the investing Fund's adviser has agreed to waive fees at the investing Fund level to the extent necessary to offset the proportionate share of any management fee paid by each Fund with respect to its investment in such affiliated fund. Fee waivers will be calculated at the investing Fund level without regard to any expense cap in effect for the investing Fund. Fees waived under this arrangement are not subject to reimbursement to GI. For the year ended December 31, 2022, the following Funds waived fees related to investments in affiliated funds:

---

| | |
|:---|:---|
| **Fund** | **Amount Waived** |
| Nova Fund | $7830 |
| Inverse S&P 500<sup>®</sup> Strategy Fund | 1448 |
| NASDAQ-100<sup>®</sup> Fund | 28133 |
| Inverse NASDAQ-100<sup>®</sup> Strategy Fund | 735 |
| S&P 500<sup>®</sup> 2x Strategy Fund | 6064 |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund  | 7432 |
| Mid-Cap 1.5x Strategy Fund | 388 |
| Inverse Mid-Cap Strategy Fund | 79 |
| Russell 2000<sup>®</sup> 2x Strategy Fund  | 186 |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | 1248 |
| Inverse Russell 2000<sup>®</sup> Strategy Fund | 164 |
| Dow 2x Strategy Fund  | 3270 |
| Inverse Dow 2x Strategy Fund  | 515 |
| Government Long Bond 1.2x Strategy Fund | 1320 |
| Inverse Government Long Bond Strategy Fund | 2718 |
| High Yield Strategy Fund | 2369 |

---

GI has contractually agreed to waive and/or reimburse expenses for the Inverse S&P 500<sup>®</sup> Strategy Fund, Inverse NASDAQ-100<sup>®</sup> Strategy Fund, S&P 500<sup>®</sup> 2x Strategy Fund, NASDAQ-100<sup>®</sup> 2x Strategy Fund, Mid Cap 1.5x Strategy Fund, Inverse Mid-Cap Strategy Fund, Russell 2000<sup>®</sup> 2x Strategy Fund, Russell 2000<sup>®</sup> 1.5x Strategy Fund, Inverse Russell 2000<sup>®</sup> Strategy Fund, Dow 2x Strategy Fund, Inverse Dow 2x Strategy Fund and Inverse Government Long Bond Strategy Fund, in an amount equal to an annual percentage rate of 0.05% of each Fund's average daily net assets. This agreement shall automatically renew for one-year terms, unless GI provides written notice to the Funds of the termination at least thirty days prior to the end of the then-current term. This agreement may be terminated at any time by the Fund's Board upon sixty days' written notice.

Certain trustees and officers of the Trust are also officers of GI and/or GFD. The Trust does not compensate its officers or trustees who are officers, directors and/or employees of GI or GFD.

At December 31, 2022, GI and its affiliates owned over twenty percent of the outstanding shares of the Funds, as follows:

---

| | |
|:---|:---|
| **Fund** | **Percent of Outstanding <br> Shares Owned** |
| High Yield Strategy Fund | 47% |

---

180 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

MUFG Investor Services (US), LLC ("MUIS") acts as the Funds' administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS maintains the books and records of the Funds' securities and cash. U.S. Bank, N.A. ("U.S. Bank") acts as the Funds' custodian. As custodian, U.S. Bank is responsible for the custody of the Funds' assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of each Fund's average daily net assets and out of pocket expenses.

**Note 6 – Repurchase Agreements** 

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The joint account includes other Funds in the Guggenheim complex not covered in this report. The collateral is in the possession of the Funds' custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At December 31, 2022, the repurchase agreements in the joint account were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Counterparty and <br> Terms of Agreement** | **Face Value** | **Repurchase Price** | **Collateral** | **Par Value** | **Fair Value** |
| J.P. Morgan Securities LLC |  |  | U.S. Treasury Note |  |  |
| &nbsp;&nbsp;4.26% |  |  | &nbsp;&nbsp;2.25% |  |  |
| &nbsp;&nbsp;Due 01/03/23 | $60091722 | $60113055 | &nbsp;&nbsp;Due 11/15/24 | $63635200 | $61293613 |
| BofA Securities, Inc. |  |  | U.S. Treasury Note |  |  |
| &nbsp;&nbsp;4.25% |  |  | &nbsp;&nbsp;0.75% |  |  |
| &nbsp;&nbsp;Due 01/03/23 | 23112201 | 23120387 | &nbsp;&nbsp;Due 04/30/26 | 26301500 | 23574458 |
| Barclays Capital, Inc. |  |  | U.S. Treasury Inflation Indexed Bond |  |  |
| &nbsp;&nbsp;4.21% |  |  | &nbsp;&nbsp;0.13% |  |  |
| &nbsp;&nbsp;Due 01/03/23 | 23040622 | 23048705 | &nbsp;&nbsp;Due 01/15/31 | 26575915 | 23501502 |

---

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

**Note 7 – Portfolio Securities Loaned** 

The Funds may lend their securities to approved brokers to earn additional income. Securities lending income shown on the Funds' Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds' securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund — Class X. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

THE RYDEX FUNDS ANNUAL REPORT \| 181

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

At December 31, 2022, the following Funds participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Gross Amounts Not Offset in the <br> Statements of Assets and Liabilities** | **Gross Amounts Not Offset in the <br> Statements of Assets and Liabilities** | **Gross Amounts Not Offset in the <br> Statements of Assets and Liabilities** | **Securities Lending Collateral** | **Securities Lending Collateral** | **Securities Lending Collateral** |
| <br>**Fund** | **Value of <br> Securities<br> Loaned** | **Collateral<br> Received<sup>(a)</sup>** | **Net<br> Amount** | **Cash<br> Collateral<br> Invested** | **Cash<br> Collateral<br> Uninvested** | **Total<br> Collateral** |
| NASDAQ-100<sup>®</sup> Fund | $168000 | $(168000) | $— | $173078 | $— | $173078 |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund  | 124807 | (124807) |  | 128580 |  | 128580 |
| Mid-Cap 1.5x Strategy Fund | 5593 | (5593) |  | 5717 |  | 5717 |
| Russell 2000<sup>®</sup> 2x Strategy Fund  | 40626 | (40626) |  | 41852 |  | 41852 |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | 7247 | (7247) |  | 7530 |  | 7530 |

---

<sup>(a)</sup> Actual collateral received by the Fund is generally greater than the amount shown due to overcollateralization.

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers to evaluate potential risks.

**Note 8 – Federal Income Tax Information** 

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"), applicable to regulated investment companies and will distribute substantially all taxable net investment income and capital gains sufficient to relieve the Funds from all, or substantially all, federal income, excise and state income taxes. Therefore, no provision for federal or state income tax or federal excise tax is required.

Tax positions taken or expected to be taken in the course of preparing the Funds' tax returns are evaluated to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds' tax positions taken, or to be taken, on U.S. federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Funds' financial statements. The Funds' U.S. federal income tax returns are subject to examination by the Internal Revenue Service ("IRS") for a period of three years after they are filed.

The tax character of distributions paid during the year ended December 31, 2022 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Fund**  | **Ordinary<br> Income** | **Long-Term<br> Capital Gain** | **Total<br> Distributions** |
| Nova Fund | $3401154 | $– $| 3401154 |
| NASDAQ-100<sup>®</sup> Fund | 2858771 | – | 2858771 |
| S&P 500<sup>®</sup> 2x Strategy Fund | 3768617 | – | 3768617 |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund | 10383440 | – | 10383440 |
| Mid-Cap 1.5x Strategy Fund | 281786 | – | 281786 |
| Dow 2x Strategy Fund | 577032 | – | 577032 |
| Government Long Bond 1.2x Strategy Fund | 153140 | – | 153140 |
| High Yield Strategy Fund | 58130 | – | 58130 |
| U.S. Government Money Market Fund | 495519 | – | 495519 |

---

182 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

The tax character of distributions paid during the year ended December 31, 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Fund**  | **Ordinary<br> Income** | **Long-Term<br> Capital Gain** | **Total<br> Distributions** |
| Nova Fund | $2128912 | $– $| 2128912 |
| NASDAQ-100<sup>®</sup> Fund | 9244565 | – | 9244565 |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund | 19515328 | – | 19515328 |
| Mid-Cap 1.5x Strategy Fund | 866639 | – | 866639 |
| Russell 2000<sup>®</sup> 2x Strategy Fund | 991318 | – | 991318 |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | 1625256 | – | 1625256 |
| Government Long Bond 1.2x Strategy Fund | 43932 | – | 43932 |
| U.S. Government Money Market Fund | 596 | – | 596 |

---

Note: For U.S. federal income tax purposes, short-term capital gain distributions are treated as ordinary income distributions.

The tax components of distributable earnings/(loss) as of December 31, 2022 were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Fund**  | **Undistributed <br> Ordinary<br> Income**  | **Undistributed <br> Long-Term <br> Capital Gain**  | **Net Unrealized <br> Appreciation <br> (Depreciation)** | **Accumulated <br> Capital and <br> Other Losses** | **Other<br> Temporary<br> Differences** | **Total** |
| Nova Fund | $— | $– $| 664534 | $(12602634) | $(437) | $(11938537) |
| Inverse S&P 500<sup>®</sup> Strategy Fund | 45498 | – | 104043 | (18830706) |  | (18681165) |
| NASDAQ-100<sup>®</sup> Fund |  | – | 10560282 | (10819130) |  | (258848) |
| Inverse NASDAQ-100<sup>®</sup> Strategy Fund | 9114 | – | 251368 | (8184325) |  | (7923843) |
| S&P 500<sup>®</sup> 2x Strategy Fund | 20264 | – | (5395900) | (25049718) |  | (30425354) |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund |  | – | (16244824) | (34823255) |  | (51068079) |
| Mid-Cap 1.5x Strategy Fund |  | – | (98579) | (493505) | 33 | (592051) |
| Inverse Mid-Cap Strategy Fund | 747 | – | 4713 | (2006505) |  | (2001045) |
| Russell 2000<sup>®</sup> 2x Strategy Fund | 8943 | – | (152259) | (373064) |  | (516380) |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund |  | – | (691354) | (1257084) | 15 | (1948423) |
| Inverse Russell 2000<sup>®</sup> Strategy Fund |  | – | 75998 | (8141060) |  | (8065062) |
| Dow 2x Strategy Fund | 34622 | – | 429939 | (2289523) |  | (1824962) |
| Inverse Dow 2x Strategy Fund | 4186 | – | 70294 | (23614043) |  | (23539563) |
| Government Long Bond 1.2x Strategy Fund | 532 | – | (160478) | (20805573) |  | (20965519) |
| Inverse Government Long Bond Strategy Fund |  | – | (326445) | (5869883) |  | (6196328) |
| High Yield Strategy Fund | 188051 | – | 64010 | (999665) |  | (747604) |
| U.S. Government Money Market Fund | 684 | – |  |  |  | 684 |

---

THE RYDEX FUNDS ANNUAL REPORT \| 183

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

For U.S. federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward and applied against future capital gains. The Funds are permitted to carry forward capital losses for an unlimited period and such capital loss carryforwards retain their character as either short-term or long-term capital losses. As of December 31, 2022, capital loss carryforwards for the Funds were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Unlimited** | **Unlimited** | |
| <br>**Fund** | **Short-Term** | **Long-Term** | <br>**Total<br> Capital Loss <br> Carryforward** |
| Nova Fund | $(11028055) | $(1574579) | $(12602634) |
| Inverse S&P 500<sup>®</sup> Strategy Fund | (16973540) | (1857166) | (18830706) |
| NASDAQ-100<sup>®</sup> Fund | (10819130) |  | (10819130) |
| Inverse NASDAQ-100<sup>®</sup> Strategy Fund | (7342031) | (842294) | (8184325) |
| S&P 500<sup>®</sup> 2x Strategy Fund | (23910783) | (1138935) | (25049718) |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund | (34823255) |  | (34823255) |
| Mid-Cap 1.5x Strategy Fund | (442707) | (50798) | (493505) |
| Inverse Mid-Cap Strategy Fund | (1877435) | (129070) | (2006505) |
| Russell 2000<sup>®</sup> 2x Strategy Fund | (373064) |  | (373064) |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | (1058462) | (198622) | (1257084) |
| Inverse Russell 2000<sup>®</sup> Strategy Fund | (7281861) | (859199) | (8141060) |
| Dow 2x Strategy Fund | (1969141) | (320382) | (2289523) |
| Inverse Dow 2x Strategy Fund | (21384377) | (2229666) | (23614043) |
| Government Long Bond 1.2x Strategy Fund | (16539826) | (4265747) | (20805573) |
| Inverse Government Long Bond Strategy Fund | (3977466) | (1892417) | (5869883) |
| High Yield Strategy Fund | (710932) | (288733) | (999665) |

---

For the year ended December 31, 2022, the following capital loss carryforward amounts were utilized:

---

| | |
|:---|:---|
| **Fund** | **Utilized** |
| Inverse NASDAQ-100<sup>®</sup> Strategy Fund | $49541 |
| Inverse Government Long Bond Strategy Fund | 1340371 |

---

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to investments in real estate investment trusts and swap agreements, losses deferred due to wash sales, the "mark-to-market" of certain derivatives, return of capital distributions received, reclassification of distributions paid, and the "mark-to-market," recharacterization, or disposition of certain Passive Foreign Investment Companies (PFICs). Additional differences may result from the tax treatment of net operating losses. To the extent these differences are permanent and would require a reclassification between Paid in Capital and Total Distributable Earnings (Loss), such reclassifications are made in the period that the differences arise. These reclassifications have no effect on net assets or NAV per share.

The following adjustments were made on the Statements of Assets and Liabilities as of December 31, 2022 for permanent book/tax differences:

---

| | | |
|:---|:---|:---|
| **Fund**  | **Paid In<br> Capital** | **Total<br> Distributable <br> Earnings/(Loss)** |
| Nova Fund | $(84728) | $84728 |
| NASDAQ-100<sup>®</sup> Fund | (270589) | 270589 |
| S&P 500<sup>®</sup> 2x Strategy Fund | (3241) | 3241 |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund | (287664) | 287664 |
| Mid-Cap 1.5x Strategy Fund | (4852) | 4852 |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | (5192) | 5192 |
| Inverse Russell 2000<sup>®</sup> Strategy Fund | (6883) | 6883 |
| Inverse Government Long Bond Strategy Fund | (102714) | 102714 |
| U.S. Government Money Market Fund | 1 | (1) |

---

184 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

At December 31, 2022, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund**  | **Tax Cost** | **Tax Unrealized <br> Appreciation** | **Tax Unrealized <br> Depreciation** | **Net Tax Unrealized <br> Appreciation/ <br> (Depreciation)** |
| Nova Fund | $15291832 | $1294258 | $(629724) | $664534 |
| Inverse S&P 500<sup>®</sup> Strategy Fund | 6278699 | 133271 | (29228) | 104043 |
| NASDAQ-100<sup>®</sup> Fund | 55040074 | 12611228 | (2050946) | 10560282 |
| Inverse NASDAQ-100<sup>®</sup> Strategy Fund | 8231145 | 267247 | (15879) | 251368 |
| S&P 500<sup>®</sup> 2x Strategy Fund | 27578882 |  | (5395900) | (5395900) |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund | 50053237 |  | (16244824) | (16244824) |
| Mid-Cap 1.5x Strategy Fund | 4693711 | 281675 | (380254) | (98579) |
| Inverse Mid-Cap Strategy Fund | 222780 | 5954 | (1241) | 4713 |
| Russell 2000<sup>®</sup> 2x Strategy Fund | 2052561 | 176 | (152435) | (152259) |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | 4051758 | 90185 | (781539) | (691354) |
| Inverse Russell 2000<sup>®</sup> Strategy Fund | 1818300 | 78613 | (2615) | 75998 |
| Dow 2x Strategy Fund | 13761147 | 677117 | (247178) | 429939 |
| Inverse Dow 2x Strategy Fund | 2310146 | 70298 | (4) | 70294 |
| Government Long Bond 1.2x Strategy Fund | 8161648 |  | (160478) | (160478) |
| Inverse Government Long Bond Strategy Fund | 2787539 |  | (326445) | (326445) |
| High Yield Strategy Fund | 4096975 | 135965 | (71955) | 64010 |
| U.S. Government Money Market Fund | 87554502 |  |  |  |

---

**Note 9 – Securities Transactions** 

For the year ended December 31, 2022, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

---

| | | |
|:---|:---|:---|
| **Fund** | **Purchases** | **Sales** |
| Nova Fund | $208033301 | $242177029 |
| Inverse S&P 500<sup>®</sup> Strategy Fund | 250000 |  |
| NASDAQ-100<sup>®</sup> Fund | 142017229 | 177880069 |
| Inverse NASDAQ-100<sup>®</sup> Strategy Fund | 400000 | 360000 |
| S&P 500<sup>®</sup> 2x Strategy Fund | 539239523 | 580633964 |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund  | 451140945 | 526747029 |
| Mid-Cap 1.5x Strategy Fund | 6306926 | 7278397 |
| Inverse Mid-Cap Strategy Fund | 10021 | 5000 |
| Russell 2000<sup>®</sup> 2x Strategy Fund  | 5302521 | 7951466 |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | 2827621 | 4348553 |
| Dow 2x Strategy Fund  | 50091414 | 54399740 |
| Inverse Dow 2x Strategy Fund  |  | 1308088 |
| Government Long Bond 1.2x Strategy Fund |  | 2650000 |
| Inverse Government Long Bond Strategy Fund | 1000000 | 2500000 |
| High Yield Strategy Fund | 2499312 | 4122052 |
| U.S. Government Money Market Fund |  | 3171048 |

---

For the year ended December 31, 2022, the cost of purchases and proceeds from sales of government securities were as follows:

---

| | | |
|:---|:---|:---|
| **Fund** | **Purchases** | **Sales** |
| Government Long Bond 1.2x Strategy Fund | $152938454 | $150017610 |
| Inverse Government Long Bond Strategy Fund | 164901844 | 164617024 |
| U.S. Government Money Market Fund |  | 2400000 |

---

THE RYDEX FUNDS ANNUAL REPORT \| 185

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the year ended December 31, 2022, the Funds engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Fund** | **Purchases** | **Sales** | **Realized <br> Gain (Loss)** |
| Nova Fund | $67450045 | $74921545 | $(1422358) |
| NASDAQ-100<sup>®</sup> Fund | 117288860 | 106159242 | (912069) |
| S&P 500<sup>®</sup> 2x Strategy Fund | 335421930 | 197595413 | (2280653) |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund | 214234774 | 161130290 | (4091825) |
| Mid-Cap 1.5x Strategy Fund | 5847687 | 6532979 | (274193) |
| Russell 2000<sup>®</sup> 2x Strategy Fund | 1324055 | 3015422 | 53463 |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | 1818349 | 1872584 | (317919) |
| Dow 2x Strategy Fund | 18297843 | 17404555 | (372731) |

---

**Note 10 – Line of Credit** 

The Trust, along with other affiliated trusts, secured an uncommitted $150,000,000 line of credit from U.S. Bank, N.A., which was increased to $200,000,000 on February 10, 2021. On June 6, 2022, the line of credit agreement was renewed and expires on June 5, 2023. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 2.82% for the year ended December 31, 2022. The Funds did not have any borrowings outstanding under this agreement at December 31, 2022.

The average daily balances borrowed for the year ended December 31, 2022, were as follows:

---

| | |
|:---|:---|
| **Fund** | **Average Daily Balance** |
| Nova Fund | $4203 |
| Inverse S&P 500<sup>®</sup> Strategy Fund | 1948 |
| NASDAQ-100<sup>®</sup> Fund | 20805 |
| S&P 500<sup>®</sup> 2x Strategy Fund | 88559 |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund | 70551 |
| Mid-Cap 1.5x Strategy Fund | 2263 |
| Russell 2000<sup>®</sup> 2x Strategy Fund | 3249 |
| Russell 2000<sup>®</sup> 1.5x Strategy Fund | 9978 |
| Dow 2x Strategy Fund | 8512 |
| Inverse Dow 2x Strategy Fund | 63 |
| Government Long Bond 1.2x Strategy Fund | 3674 |

---

**Note 11 – Market Risks** 

The value of, or income generated by, the investments held by the Funds are subject to the possibility of rapid and unpredictable fluctuation, and loss that may result from various factors. These factors include, among others, developments affecting individual companies, or from broader influences, including real or perceived changes in prevailing interest rates (which have since risen and may continue to rise), changes in inflation rates or expectations about inflation rates (which are currently elevated relative to normal conditions), adverse investor confidence or sentiment, changing economic, political (including geopolitical), social or financial market conditions, increased instability or general uncertainty, environmental disasters, governmental actions, public health emergencies (such as the spread of infectious diseases, pandemics and epidemics), debt crises, actual or threatened wars or other armed conflicts (such as the current Russia-Ukraine conflict and its risk of expansion or collateral economic and other effects) or ratings downgrades, and other similar events, each of which may be temporary or last for extended periods. Moreover, changing economic, political, geopolitical, social, financial market or other conditions in one country or geographic region could adversely affect the value, yield and return of the investments held by the Funds in a different country or geographic region, economy, and market because of the increasingly interconnected global economies and financial markets. The duration and extent of the

186 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (concluded)<br>

foregoing types of factors or conditions are highly uncertain and difficult to predict and have in the past, and may in the future, cause volatility and distress in economies and financial markets or other adverse circumstances, which may negatively affect the value of the Funds' investments and performance of the Funds.

**Note 12 – Subsequent Events** 

The Funds evaluated subsequent events through the date the financial statements were available for issue and determined there were no material events that would require adjustment to or disclosure in the Funds' financial statements.

THE RYDEX FUNDS ANNUAL REPORT \| 187

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** <br>

To the Shareholders of Nova Fund, Inverse S&P 500<sup>®</sup> Strategy Fund, NASDAQ-100<sup>®</sup> Fund, Inverse NASDAQ-100<sup>®</sup> Strategy Fund, S&P 500<sup>®</sup> 2x Strategy Fund, NASDAQ-100<sup>®</sup> 2x Strategy Fund, Mid-Cap 1.5x Strategy Fund, Inverse Mid-Cap Strategy Fund, Russell 2000<sup>®</sup> 2x Strategy Fund, Russell 2000<sup>®</sup> 1.5x Strategy Fund, Inverse Russell 2000<sup>®</sup> Strategy Fund, Dow 2x Strategy Fund, Inverse Dow 2x Strategy Fund, Government Long Bond 1.2x Strategy Fund, Inverse Government Long Bond Strategy Fund, High Yield Strategy Fund and U.S. Government Money Market Fund and the Board of Trustees of Rydex Variable Trust

**Opinion on the Financial Statements** 

We have audited the accompanying statements of assets and liabilities of Nova Fund, Inverse S&P 500<sup>®</sup> Strategy Fund, NASDAQ-100<sup>®</sup> Fund, Inverse NASDAQ-100<sup>®</sup> Strategy Fund, S&P 500<sup>®</sup> 2x Strategy Fund, NASDAQ-100<sup>®</sup> 2x Strategy Fund, Mid-Cap 1.5x Strategy Fund, Inverse Mid-Cap Strategy Fund, Russell 2000<sup>®</sup> 2x Strategy Fund, Russell 2000<sup>®</sup> 1.5x Strategy Fund, Inverse Russell 2000<sup>®</sup> Strategy Fund, Dow 2x Strategy Fund, Inverse Dow 2x Strategy Fund, Government Long Bond 1.2x Strategy Fund, Inverse Government Long Bond Strategy Fund, High Yield Strategy Fund and U.S. Government Money Market Fund (collectively referred to as the "Funds"), (seventeen of the funds constituting Rydex Variable Trust (the "Trust")), including the schedules of investments, as of December 31, 2022, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (seventeen of the funds constituting Rydex Variable Trust) at December 31, 2022, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion** 

These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on each of the Funds' financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](fp0081230-2_188.jpg)

We have served as the auditor of one or more Guggenheim investment companies since 1979.

Tysons, Virginia<br> February 24, 2023

188 \| THE RYDEX FUNDS ANNUAL REPORT

**OTHER INFORMATION** (Unaudited)<br>

**Federal Income Tax Information** 

This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.

In January 2023, shareholders will be advised on IRS Form 1099 DIV or substitute 1099 DIV as to the federal tax status of the distributions received by shareholders in the calendar year 2022.

The Funds' investment income (dividend income plus short-term capital gains, if any) qualifies as follows:

Of the taxable ordinary income distributions paid during the fiscal year ended December 31, 2022, the following Funds had the corresponding percentages qualify for the dividends received deduction for corporations.

---

| | |
|:---|:---|
| **Fund** | **Dividend<br> Received <br> Deduction** |
| Nova Fund | 9.78% |
| NASDAQ-100<sup>®</sup> Fund | 20.60% |
| S&P 500<sup>®</sup> 2x Strategy Fund | 4.48% |
| NASDAQ-100<sup>®</sup> 2x Strategy Fund | 5.41% |
| Mid-Cap 1.5x Strategy Fund | 13.07% |
| Dow 2x Strategy Fund | 25.45% |
| High Yield Strategy Fund | 56.75% |

---

**Delivery of Shareholder Reports** 

Paper copies of the Funds' annual and semi-annual shareholder reports are not sent by mail, unless you specifically request paper copies of the reports from a Fund or from your financial intermediary. Instead, the reports are made available on a website, and you are notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future shareholder reports in paper free of charge. If you hold shares of a Fund directly, you can inform the Fund that you wish to receive paper copies of reports by calling 800.820.0888. If you hold shares of a Fund through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive reports in paper may apply to all Guggenheim Funds in which you are invested and may apply to all Guggenheim Funds held with your financial intermediary.

**Proxy Voting Information** 

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds' portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC's website at https://www.sec.gov.

Information regarding how the Funds' voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC's website at https://www.sec.gov.

**Sector Classification** 

Information in the Schedule of Investments is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. Each Fund's registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Funds usually classify sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

THE RYDEX FUNDS ANNUAL REPORT \| 189

**OTHER INFORMATION** (Unaudited)(concluded)<br>

**Quarterly Portfolio Schedules Information** 

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds' Forms N-PORT and N-Q are available on the SEC's website at https://www.sec.gov. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

190 \| THE RYDEX FUNDS ANNUAL REPORT

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited) <br>

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Funds' Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by visiting guggenheiminvestments.com or by calling 800.820.0888.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** | **Number of <br> Portfolios <br> in Fund <br> Complex <br> Overseen**  | **Other <br> Directorships Held <br> by Trustees\*\*\*** |
| **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** |  |  |  |
| **Randall C. Barnes** <br>(1951) | &nbsp;&nbsp;&nbsp;Trustee and Chair of the Valuation Oversight Committee | Since 2019 (Trustee) <br>Since 2020 (Chair of the Valuation Oversight Committee) | &nbsp;&nbsp;&nbsp;Current: Private Investor (2001-present). <br>Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990). | 155 | &nbsp;&nbsp;&nbsp;Current: Advent Convertible and Income Fund (2005-present); Purpose Investments Funds (2013-present). <br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2004-2022); Guggenheim Enhanced Equity Income Fund (2005-2021); Guggenheim Credit Allocation Fund (2013-2021). |
| **Angela Brock-Kyle** <br>(1959)  | &nbsp;&nbsp;&nbsp;Trustee | Since 2016 | &nbsp;&nbsp;&nbsp;Current: Founder and Chief Executive Officer, B.O.A.R.D.S. (2013-present); Director, Mutual Fund Directors Forum (2022-present). <br>Former: Senior Leader, TIAA (1987-2012). | 154 | &nbsp;&nbsp;&nbsp;Current: Bowhead Insurance GP, LLC (2020-present); Hunt Companies, Inc. (2019-present). <br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2019-2022); Guggenheim Enhanced Equity Income Fund (2019-2021); Guggenheim Credit Allocation Fund (2019-2021); Infinity Property & Casualty Corp. (2014-2018). |

---

THE RYDEX FUNDS ANNUAL REPORT \| 191

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(continued)<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** | **Number of <br> Portfolios <br> in Fund <br> Complex <br> Overseen**  | **Other <br> Directorships Held <br> by Trustees\*\*\*** |
| **INDEPENDENT TRUSTEES - continued** | **INDEPENDENT TRUSTEES - continued** | **INDEPENDENT TRUSTEES - continued** |  |  |  |
| **Thomas F. Lydon, Jr.** <br>(1960) | &nbsp;&nbsp;&nbsp;Trustee and Chair of the Contracts Review Committee | Since 2005 (Trustee) <br>Since 2020 (Chair of the Contracts Review Committee) | &nbsp;&nbsp;&nbsp;Current: President, Global Trends Investments (1996-present); Chief Executive Officer, ETF Flows, LLC (2019-present); Chief Executive Officer, Lydon Media (2016-present); Director, GDX Index Partners, LLC (2021-present); Vice Chairman, VettaFi (2022-present). | 154 | &nbsp;&nbsp;&nbsp;Current: US Global Investors, Inc. (GROW) (1995-present). <br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2019-2022); Guggenheim Enhanced Equity Income Fund (2019-2021); Guggenheim Credit Allocation Fund (2019-2021); Harvest Volatility Edge Trust (3) (2017-2019). |
| **Ronald A. Nyberg** <br>(1953) | &nbsp;&nbsp;&nbsp;Trustee and Chair of the Nominating and Governance Committee | Since 2019 | &nbsp;&nbsp;&nbsp;Current: Of Counsel, Momkus LLP (2016-present). <br>Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999).  | 155 | &nbsp;&nbsp;&nbsp;Current: Advent Convertible and Income Fund (2003-present); PPM Funds (2) (2018-present); NorthShore-Edward-Elmhurst Health (2012-present). <br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2004-2022); Guggenheim Enhanced Equity Income Fund (2005-2021); Guggenheim Credit Allocation Fund (2013-2021); Western Asset Inflation-Linked Opportunities & Income Fund (2004-2020); Western Asset Inflation-Linked Income Fund (2003-2020). |

---

192 \| THE RYDEX FUNDS ANNUAL REPORT

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(continued)<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** | **Number of <br> Portfolios <br> in Fund <br> Complex <br> Overseen**  | **Other <br> Directorships Held <br> by Trustees\*\*\*** |
| **INDEPENDENT TRUSTEES - concluded** | **INDEPENDENT TRUSTEES - concluded** | **INDEPENDENT TRUSTEES - concluded** | **INDEPENDENT TRUSTEES - concluded** |  |  |
| **Sandra G. Sponem** <br>(1958)  | &nbsp;&nbsp;&nbsp;Trustee and Chair of the Audit Committee | Since 2016 (Trustee) <br>Since 2019 (Chair of the Audit Committee) | &nbsp;&nbsp;&nbsp;Current: Retired. <br>Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson-Companies, Inc. (2007-2017). | 154 | &nbsp;&nbsp;&nbsp;Current: SPDR Series Trust (81) (2018-present); SPDR Index Shares Funds (30) (2018-present); SSGA Active Trust (14) (2018-present). <br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2019-2022); Guggenheim Enhanced Equity Income Fund (2019-2021); Guggenheim Credit Allocation Fund (2019-2021); SSGA Master Trust (1) (2018-2020). |
| **Ronald E. Toupin, Jr.** <br>(1958) | &nbsp;&nbsp;&nbsp;Trustee, Chair of the Board and Chair of the Executive Committee | Since 2019 | &nbsp;&nbsp;&nbsp;Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present). <br>Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999). | 154 | &nbsp;&nbsp;&nbsp;Former: Fiduciary/Claymore Energy Infrastructure Fund (2004-2022); Guggenheim Enhanced Equity Income Fund (2005-2021); Guggenheim Credit Allocation Fund (2013-2021); Western Asset Inflation-Linked Opportunities & Income Fund (2004-2020); Western Asset Inflation-Linked Income Fund (2003-2020). |

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THE RYDEX FUNDS ANNUAL REPORT \| 193

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(continued)<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** | **Number of <br> Portfolios <br> in Fund <br> Complex <br> Overseen**  | **Other <br> Directorships Held <br> by Trustees\*\*\*** |
| **INTERESTED TRUSTEE**  | **INTERESTED TRUSTEE**  |  |  |  |  |
| **Amy J. Lee\*\*\*\*** <br>(1961) | &nbsp;&nbsp;&nbsp;Trustee, Vice President and Chief Legal Officer | Since 2019 | &nbsp;&nbsp;&nbsp;Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present). <br>Former: President and Chief Executive Officer, certain other funds in the Fund Complex (2017-2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012). | 154 | &nbsp;&nbsp;&nbsp;Former: Fiduciary/Claymore Energy Infrastructure Fund (2018-2022); Guggenheim Enhanced Equity Income Fund (2018-2021); Guggenheim Credit Allocation Fund (2018-2021). |

---

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| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The business address of each Trustee is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606. |
| \*\* | &nbsp;&nbsp;&nbsp;Each Trustee serves an indefinite term, until his or her successor is elected and qualified.  |
| \*\*\* | &nbsp;&nbsp;&nbsp;Each Trustee also serves on the Boards of Trustees of Guggenheim Funds Trust, Guggenheim Variable Funds Trust, Guggenheim Strategy Funds Trust, Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust, Guggenheim Strategic Opportunities Fund, Guggenheim Energy & Income Fund, Guggenheim Active Allocation Fund, Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust and Transparent Value Trust. Messrs. Barnes and Nyberg also serve on the Board of Trustees of Advent Convertible & Income Fund. |
| \*\*\*\* | &nbsp;&nbsp;&nbsp;This Trustee is deemed to be an "interested person" of the Funds under the 1940 Act by reason of her position with the Adviser and/or the parent of the Adviser. |

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194 \| THE RYDEX FUNDS ANNUAL REPORT

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(continued)<br>

---

| | | | |
|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** |
| **OFFICERS** |  |  |  |
| **Brian E. Binder** <br>(1972) | &nbsp;&nbsp;&nbsp;President and Chief Executive Officer | Since 2019 | &nbsp;&nbsp;&nbsp;Current: President, Mutual Fund Boards, Guggenheim Investments (2022-present); President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President, Chief Executive Officer and Chairman of the Board of Managers, Guggenheim Funds Investment Advisors, LLC (2018-present); President and Chief Executive Officer, Security Investors, LLC (2018-present); Board Member, Guggenheim Partners Investment Funds plc (2022-present); Board Member, Guggenheim Global Investments plc (2022-present); Board Member, Guggenheim Partners Fund Management (Europe) Limited (2018-present). <br>Former: Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-2022); Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Chairman of North American Executive Committee and Head of Business Management and Consulting, Invesco Ltd. (2010-2012). |
| **James M. Howley** <br>(1972) | &nbsp;&nbsp;&nbsp;Chief Financial Officer, Chief Accounting Officer and Treasurer | Since 2022 | &nbsp;&nbsp;&nbsp;Current: Managing Director, Guggenheim Investments (2004-present); Chief Financial Officer, Chief Accounting Officer, and Treasurer, certain other funds in the Fund Complex (2022-present). <br>Former: Assistant Treasurer, certain other funds in the Fund Complex (2006-2022); Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004). |
| **Mark E. Mathiasen** <br>(1978)  | &nbsp;&nbsp;&nbsp;Secretary  | Since 2017  | &nbsp;&nbsp;&nbsp;Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present). |
| **Glenn McWhinnie** <br>(1969)  | &nbsp;&nbsp;&nbsp;Assistant Treasurer | Since 2016  | &nbsp;&nbsp;&nbsp;Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present). |
| **Michael P. Megaris** <br>(1984)  | &nbsp;&nbsp;&nbsp;Assistant Secretary  | Since 2018  | &nbsp;&nbsp;&nbsp;Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Managing Director, Guggenheim Investments (2012-present). |
| **Elisabeth Miller** <br>(1968)  | &nbsp;&nbsp;&nbsp;Chief Compliance Officer  | Since 2012  | &nbsp;&nbsp;&nbsp;Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present); Vice President, Guggenheim Funds Distributors, LLC (2014-present). <br>Former: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim <br>Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014). |
| **Margaux Misantone** <br>(1978)  | &nbsp;&nbsp;&nbsp;AML Officer  | Since 2017  | &nbsp;&nbsp;&nbsp;Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC <br>and certain other funds in the Fund Complex (2017-present); Managing Director, Guggenheim Investments (2015-present). <br>Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018). |

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THE RYDEX FUNDS ANNUAL REPORT \| 195

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(concluded)<br>

---

| | | | |
|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** |
| **OFFICERS - concluded** | **OFFICERS - concluded** | **OFFICERS - concluded** |  |
| **Kimberly J. Scott** <br>(1974)  | &nbsp;&nbsp;&nbsp;Assistant Treasurer  | Since 2016  | &nbsp;&nbsp;&nbsp;Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). <br>Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009). |
| **Bryan Stone** <br>(1979)  | &nbsp;&nbsp;&nbsp;Vice President  | Since 2019 | &nbsp;&nbsp;&nbsp;Current: Vice President, certain other funds in the Fund Complex (2014-present); Managing Director, Guggenheim Investments (2013-present). <br>Former: Senior Vice President, Neuberger Berman Group LLC (2009-2013); Vice President, Morgan Stanley (2002-2009). |
| **Jon Szafran** <br>(1989) | &nbsp;&nbsp;&nbsp;Assistant Treasurer | Since 2017 | &nbsp;&nbsp;&nbsp;Current: Director, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present). <br>Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. ("HGINA"), (2017); Senior Analyst of US Fund Administration, HGINA (2014–2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013). |

---

\* The business address of each officer is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606. <br> \*\* Each officer serves an indefinite term, until his or her successor is duly elected and qualified.

196 \| THE RYDEX FUNDS ANNUAL REPORT

**GUGGENHEIM INVESTMENTS PRIVACY NOTICE** (Unaudited)<br>

**Who We Are** 

This Privacy Notice describes the data protection practices of Guggenheim Investments. Guggenheim Investments as used herein refers to the affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Guggenheim Investment Advisors (Europe) Limited, Guggenheim Real Estate, LLC, GS Gamma Advisors, LLC, Guggenheim Partners India Management, LLC, Guggenheim Partners Europe Limited, as well as the funds in the Guggenheim Funds complex (the "Funds") ("Guggenheim Investments," "we," "us," or "our").

Guggenheim Partners Investment Management Holdings, LLC, located at 330 Madison Avenue, New York, New York 10017, is the data controller for your information. The affiliates who are also controllers of certain of your information are: Guggenheim Investment Advisors (Europe) Limited, Guggenheim Partners Europe Limited, Guggenheim Partners, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC and Security Investors, LLC, as well as the Funds.

**Our Commitment to You** 

Guggenheim Investments considers your privacy our utmost concern. When you become our client or investor, you entrust us with not only your hard-earned money but also with your personal and financial information. Because we have access to your private information, we hold ourselves to the highest standards in its safekeeping and use. We strictly limit how we share your information with others, whether you are a current or former Guggenheim Investments client or investor.

**The Information We Collect About You** 

We collect certain nonpublic personal information about you from information you provide on applications, other forms, our website, and/or from third parties including investment advisors. This information includes Social Security or other tax identification number, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, bank account information, marital status, family relationships, information that we collect on our website through the use of "cookies," and other personal information that you or others provide to us. We may also collect such information through your inquiries by mail, e-mail or telephone. We may also collect customer due diligence information, as required by applicable law and regulation, through third party service providers.

**How We Handle Your Personal Information** 

The legal basis for using your information as set out in this Privacy Notice is as follows: (a) use of your personal data is necessary to perform our obligations under any contract with you (such as a contract for us to provide financial services to you); or (b) where use of your personal data is not necessary for performance of a contract, use of your personal data is necessary for our legitimate interests or the legitimate interests of others (for example, to enforce the legal terms governing our services, operate and market our website and other services we offer, ensure safe environments for our personnel and others, make and receive payments, prevent fraud and to know the customer to whom we are providing the services). Some processing is done to comply with applicable law.

In addition to the specific uses described above, we also use your information in the following manner:

● We use your information in connection with servicing your accounts.

● We use information to respond to your requests or questions. For example, we might use your information to respond to your customer feedback.

● We use information to improve our products and services. We may use your information to make our website and products better. We may use your information to customize your experience with us.

● We use information for security purposes. We may use your information to protect our company and our customers.

● We use information to communicate with you. For example, we will communicate with you about your account or our relationship. We may contact you about your feedback. We might also contact you about this Privacy Notice. We may also enroll you in our email newsletter.

THE RYDEX FUNDS ANNUAL REPORT \| 197

**GUGGENHEIM INVESTMENTS PRIVACY NOTICE** (Unaudited)(continued)<br>

● We use information as otherwise permitted by law, as we may notify you.

● Aggregate/Anonymous Data. We may aggregate and/or anonymize any information collected through the website so that such information can no longer be linked to you or your device ("Aggregate/Anonymous Information"). We may use Aggregate/Anonymous Information for any purpose, including without limitation for research and marketing purposes, and may also share such data with any third parties, including advertisers, promotional partners, and sponsors.

We do not sell information about current or former clients or their accounts to third parties. Nor do we share this information, except when necessary to complete transactions at your request, to make you aware of investment products and services that we or our affiliates offer, or as permitted or required by law.

We provide information about you to companies and individuals not affiliated with Guggenheim Investments to complete certain transactions or account changes, or to perform services for us related to your account. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we must provide certain information about you to that company to complete the transaction. We provide the third party with only the information necessary to carry out its responsibilities and only for that purpose. And we require these third parties to treat your private information with the same high degree of confidentiality that we do. To alert you to other Guggenheim Investments products and services, we share your information within our family of affiliated companies. You may limit our sharing with affiliated companies as set out below. We may also share information with any successor to all or part of our business, or in connection with steps leading up to a merger or acquisition. For example, if part of our business was sold we may give customer information as part of that transaction. We may also share information about you with your consent.

We will release information about you if you direct us to do so, if we are compelled by law to do so, or in other circumstances as permitted by law (for example, to protect your account from fraud).

If you close your account(s) or become an inactive client or investor, we will continue to adhere to the privacy policies and practices described in this notice.

**Opt-Out Provisions and Your Data Choices** 

The law allows you to "opt out" of certain kinds of information sharing with third parties. We do not share personal information about you with any third parties that triggers this opt-out right. This means YOU ARE ALREADY OPTED OUT.

When you are no longer our client or investor, we continue to share your information as described in this notice, and you may contact us at any time to limit our sharing by sending an email to CorporateDataPrivacy@GuggenheimPartners.com.

European Union Data Subjects and certain others: In addition to the choices set forth above, residents of the European Union and certain other jurisdictions have certain rights to (1) request access to or rectification or deletion of information we collect about them, (2) request a restriction on the processing of their information, (3) object to the processing of their information, or (4) request the portability of certain information. To exercise these or other rights, please contact us using the contact information below. We will consider all requests and provide our response within the time period stated by applicable law. Please note, however, that certain information may be exempt from such requests in some circumstances, which may include if we need to keep processing your information for our legitimate interests or to comply with a legal obligation. We may request you provide us with information necessary to confirm your identity before responding to your request.

Residents of France and certain other jurisdictions may also provide us with instructions regarding the manner in which we may continue to store, erase and share your information after your death, and where applicable, the person you have designated to exercise these rights after your death.

198 \| THE RYDEX FUNDS ANNUAL REPORT

**GUGGENHEIM INVESTMENTS PRIVACY NOTICE** (Unaudited)(concluded)<br>

**How We Protect Privacy Online** 

**How We Safeguard Your Personal Information and Data Retention** 

We restrict access to nonpublic personal information about you to our employees and in some cases to third parties (for example, the service providers described above) as permitted by law. We maintain strict physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

We keep your information for no longer than necessary for the purposes for which it is processed. The length of time for which we retain information depends on the purposes for which we collected and use it and/or as required to comply with applicable laws. Information may persist in copies made for backup and business continuity purposes for additional time.

**International Visitors** 

If you are not a resident of the United States, please be aware that your information may be transferred to, stored and processed in the United States where our servers are located and our databases are operated. The data protection and other laws of the United States and other countries might not be as comprehensive as those in your country.

In such cases, we ensure that a legal basis for such a transfer exists and that adequate protection is provided as required by applicable law, for example, by using standard contractual clauses or by transferring your data to a jurisdiction that has obtained an adequacy finding. Individuals whose data may be transferred on the basis of standard contractual clauses may contact us as described below.

**We'll Keep You Informed** 

If you have any questions or concerns about how we treat your personal data, we encourage you to consult with us first. You may also contact the relevant supervisory authority.

We reserve the right to modify this policy at any time and will inform you promptly of material changes. You may access our privacy policy from our web site at www.guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us by email at CorporateDataPrivacy@GuggenheimPartners.com.

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![](fp0081230-3_i.jpg)<br>

**12.31.2022** 

**Rydex Variable Trust Funds Annual Report**

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| |
|:---|
| &nbsp;&nbsp;**Domestic Equity Funds** |
| &nbsp;&nbsp;**S&P 500<sup>®</sup>** **Pure Growth Fund** |
| &nbsp;&nbsp;**S&P 500<sup>®</sup>** **Pure Value Fund** |
| &nbsp;&nbsp;**S&P MidCap 400<sup>®</sup>** **Pure Growth Fund** |
| &nbsp;&nbsp;**S&P MidCap 400<sup>®</sup>** **Pure Value Fund** |
| &nbsp;&nbsp;**S&P SmallCap 600<sup>®</sup>** **Pure Growth Fund** |
| &nbsp;&nbsp;**S&P SmallCap 600<sup>®</sup>** **Pure Value Fund** |
| &nbsp;&nbsp;**International Equity Funds** |
| &nbsp;&nbsp;**Europe 1.25x Strategy Fund** |
| &nbsp;&nbsp;**Japan 2x Strategy Fund** |
| &nbsp;&nbsp;**Specialty Funds** |
| &nbsp;&nbsp;**Strengthening Dollar 2x Strategy Fund** |
| &nbsp;&nbsp;**Weakening Dollar 2x Strategy Fund** |

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| | |
|:---|:---|
| **GuggenheimInvestments.com** | &nbsp;&nbsp;RVATB2-ANN-1222x1223 |

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![](fp0081230-3_ii.jpg)

**TABLE OF CONTENTS** <br>

---

| | |
|:---|:---|
| DEAR SHAREHOLDER  | 2 |
| ECONOMIC AND MARKET OVERVIEW  | 4 |
| A BRIEF NOTE ON THE COMPOUNDING OF RETURNS  | 6 |
| ABOUT SHAREHOLDERS' FUND EXPENSES  | 7 |
| S&P 500<sup>®</sup> PURE GROWTH FUND  | 9 |
| S&P 500<sup>®</sup> PURE VALUE FUND  | 16 |
| S&P MIDCAP 400<sup>®</sup> PURE GROWTH FUND  | 24 |
| S&P MIDCAP 400<sup>®</sup> PURE VALUE FUND  | 31 |
| S&P SMALLCAP 600<sup>®</sup> PURE GROWTH FUND  | 38 |
| S&P SMALLCAP 600<sup>®</sup> PURE VALUE FUND  | 46 |
| EUROPE 1.25x STRATEGY FUND  | 54 |
| JAPAN 2x STRATEGY FUND  | 62 |
| STRENGTHENING DOLLAR 2x STRATEGY FUND  | 69 |
| WEAKENING DOLLAR 2x STRATEGY FUND  | 76 |
| NOTES TO FINANCIAL STATEMENTS  | 83 |
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  | 97 |
| OTHER INFORMATION  | 98 |
| INFORMATION ON BOARD OF TRUSTEES AND OFFICERS  | 100 |
| GUGGENHEIM INVESTMENTS PRIVACY NOTICE  | 106 |

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THE RYDEX FUNDS ANNUAL REPORT \| 1

  <u>December 31, 2022</u>

**Dear Shareholder:** 

Security Investors, LLC (the "Investment Adviser") is pleased to present the annual shareholder report for ten funds that are part of the Rydex Variable Trust (the "Funds"). This report covers performance of the Funds for the annual period ended December 31, 2022 (the "Reporting Period").

In December 2022, Guggenheim Partners announced the untimely and unexpected death of Scott Minerd, one of Guggenheim's Managing Partners and its Global Chief Investment Officer. He joined Guggenheim as a Managing Partner shortly after the firm was formed. He was a frequent commentator on markets and investments, both on television and via social media. He also was one of the designers of the organization, systems and processes that make Guggenheim Investments a strong, robust and scalable leader in the asset management business.

Guggenheim has implemented its succession plan, which is designed to deal with unexpected events. There has been and will continue to be no disruption of service to our clients, no change in the daily management of client portfolios and no change in the process of selecting investment assets, all of which continue to be handled by the longstanding committees and long-tenured investment professionals who, every day, implement our investment processes.

Guggenheim Investments continues to be led by its Co-Presidents, Dina DiLorenzo and David Rone, and by Anne B. Walsh, a Managing Partner and Chief Investment Officer of Guggenheim Partners Investment Management.

The Investment Adviser is a part of Guggenheim Investments, which represents the investment management businesses of Guggenheim Partners, LLC ("Guggenheim"), a global, diversified financial services firm.

Guggenheim Funds Distributors, LLC is the distributor of the Funds. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim and the Investment Adviser.

We encourage you to read the Economic and Market Overview section of the report, which follows this letter, and then the Performance Report and Fund Profile for each Fund.

We are committed to providing innovative investment solutions and appreciate the trust you place in us.

Sincerely,

*Security Investors, LLC* 

January 31, 2023

***Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at guggenheiminvestments.com or call 800.820.0888.***

***This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.***

**Inverse and leveraged Funds are not suitable for all investors. ● These Funds should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking daily leveraged investment results, (c) understand the risk of shorting, and (d) intend to actively monitor and manage their investments.** ● The more a Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● Inverse Funds involve certain risks, which include increased volatility due to the Funds' possible use of short sales of securities and derivatives, such as options and futures. ● The Funds' use of derivatives, such as futures, options, and swap agreements, may expose the Funds' 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 Funds seek to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. Because the Funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those Funds that use

2 \| THE RYDEX FUNDS ANNUAL REPORT

  <u>December 31, 2022</u>

leverage as part of their investment strategy, may prevent a Fund from correlating with the monthly, quarterly, annual, or other period performance of its benchmark. **Due to the compounding of daily returns, leveraged and inverse Funds' returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period.** For those Funds that consistently apply leverage, the value of the Fund's shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. The Funds rebalance their portfolios on a daily basis, increasing exposure in response to that day's gains or reducing exposure in response to that day's losses. Daily rebalancing will impair a Fund's performance if the benchmark experiences volatility. **Investors should monitor their leveraged and inverse Funds' holdings consistent with their strategies, as frequently as daily.** ● For more on these and other risks, please read the prospectus.

**Pure Style Funds may not be suitable for all investors.** ● The funds are subject to the risk that large, medium and small-capitalization stocks may under-perform other segments of the equity market or the equity market as a whole ● Value stocks are subject to the risk that the intrinsic value of the stock may never be realized by the market or that the price goes down. Growth stocks typically invest a high portion of their earnings back into their business and may lack the dividend yield that could cushion their decline in a market downturn. Growth stocks may be more volatile than other stocks because they are more sensitive to investor perceptions regarding the growth potential of the issuing company. ● The funds are subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the funds' inability to buy or sell securities or other financial instruments on that day. In certain circumstances, it may be difficult for the funds to purchase and sell particular investments within a reasonable time at a fair price. ● Unlike many investment companies, the funds are not actively "managed." This means that based on market and economic conditions, the funds' performance could be lower than other types of funds that may actively shift their portfolio assets to take advantage of market opportunities or to lessen the impact of a market decline ● The funds are subject to active trading and tracking error risks, which may increase volatility, impact the funds' ability to achieve its investment objective and may decrease the fund's performance. ● These funds are considered non-diversified 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. ● Securities are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. ● Please read the prospectus for more detailed information regarding these and other risks.

**The Strengthening Dollar 2x 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 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. ● The Fund's exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. ● The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. These risks may cause the Fund to experience higher losses and/or volatility than a Fund that does not invest in derivatives, use leverage or have exposure to foreign currencies. ● Also, the Fund is subject to active trading and tracking error risks that may increase volatility, decrease performance and impact the Fund's ability to achieve its investment objective. This fund is considered non-diversified 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. ● For more on these and other risks, please read the prospectus.

**The Weakening Dollar 2x 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 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. ● The Fund's indirect exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. ● The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. These risks may cause the Fund to experience higher losses and/or volatility than a fund that does not invest in derivatives, use leverage or have exposure to foreign currencies. ● Also, the Fund is subject to active trading and tracking error risks that may increase volatility, decrease performance and impact the Fund's ability to achieve its investment objective. This Fund is considered non-diversified 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. ● For more on these and other risks, please read the prospectus.

THE RYDEX FUNDS ANNUAL REPORT \| 3

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| | |
|:---|:---|
| **ECONOMIC AND MARKET OVERVIEW** (Unaudited) | December 31, 2022 |

---

Helped by lower energy prices, real economic growth reaccelerated in the fourth quarter of 2022. Amid this continued strong growth, the Federal Reserve (the "Fed") is explicitly targeting a weaker labor market, and several leading indicators point to rising unemployment by the middle of the year. Consumption also faces headwinds from dwindling excess savings buffers and a sharply negative wealth shock as financial asset and home prices fall. Business investment also appears to be weakening due to the sharp tightening in financial conditions and more challenging outlook for economic growth. The housing sector could subtract further from gross domestic product ("GDP") as the spike in mortgage rates has adversely impacted demand.

Because private sector balance sheets are generally healthy in the aggregate and the economy lacks major imbalances, we do not expect a particularly deep recession. But the likelihood of a limited monetary and fiscal policy response means the economic recovery could be weak, and certain highly levered companies may suffer.

Moderation in goods prices as supply chains normalize should bring inflation lower over the next several months, and shelter inflation should roll over by mid-2023. Services inflation outside of shelter is the main concern for the Fed, but a softening labor market and cooling wage growth may keep this category contained. As a result, core inflation could fall below 3 percent by the end of the year.

The Fed's continued rate hike campaign may cause the front end of the yield curve to remain elevated in the near term. But should the economic cycle roll over later this year, Treasury yields may see a significant decline. Weakening corporate earnings growth and an emerging recession would present downside risk to equity returns later in 2023 but, given corporate fundamentals remain solid, high quality fixed income and carefully selected high yield issuers should provide attractive returns.

For the Reporting Period, the S&P 500<sup>®</sup> Index\* returned -18.11%. The MSCI Europe-Australasia-Far East ("EAFE") Index\* returned -14.45%. The return of the MSCI Emerging Markets Index\* was -20.09%.

In the bond market, the Bloomberg U.S. Aggregate Bond Index\* posted a -13.01% return for the Reporting Period, while the Bloomberg U.S. Corporate High Yield Index\* returned -11.19%. The return of the ICE Bank of America ("BofA") 3-Month U.S. Treasury Bill Index\* was 1.47% for the Reporting Period.

*The opinions and forecasts expressed may not actually come to pass. This information is subject to change at any time, based on market and other conditions, and should not be construed as a recommendation of any specific security or strategy.*

**\*Index Definitions:** 

The following indices are referenced throughout this report. Indices are unmanaged and not available for direct investment. Index performance does not reflect transaction costs, fees, or expenses.

**Bloomberg U.S. Aggregate Bond Index** is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, mortgage-backed securities or "MBS" (agency fixed-rate and hybrid adjustable-rate mortgage, or "ARM", pass-throughs), asset-backed securities ("ABS"), and commercial mortgage-backed securities ("CMBS") (agency and non-agency).

**Bloomberg U.S. Corporate High Yield Index** measures the U.S. dollar-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody's, Fitch, and S&P is Ba1/BB +/BB + or below.

**ICE BofA 3-Month U.S. Treasury Bill Index** is an unmanaged market Index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income.

**MSCI EAFE Index** is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

**MSCI Emerging Markets Index** is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets.

**Nikkei-225 Stock Average Index** is a price-weighted index comprised of Japan's top 225 blue-chip companies on the Tokyo Stock Exchange.

**S&P 500**<sup>®</sup> **Index** is a broad-based index, the performance of which is based on the performance of 500 widely held common stocks chosen for market size, liquidity, and industry group representation.

**S&P 500**<sup>®</sup> **Pure Growth Index** is narrow in focus, containing only those S&P 500 Index companies with strong growth characteristics as selected by S&P. The S&P 500 Index is a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

4 \| THE RYDEX FUNDS ANNUAL REPORT

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| | |
|:---|:---|
| **ECONOMIC AND MARKET OVERVIEW** (Unaudited)(concluded) | December 31, 2022 |

---

**S&P 500**<sup>®</sup> **Pure Value Index** is narrow in focus, containing only those S&P 500 Index companies with strong value characteristics as selected by S&P. The S&P 500 Index is a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

**S&P MidCap 400**<sup>®</sup> **Pure Growth Index** is narrow in focus, containing only those S&P MidCap 400 Index companies with strong growth characteristics as selected by S&P. The S&P MidCap 400 Index measures the performance of the mid-capitalization sector of the U.S. equity market.

**S&P MidCap 400**<sup>®</sup> **Pure Value Index** is narrow in focus, containing only those S&P MidCap 400 Index companies with strong value characteristics as selected by S&P. The S&P MidCap 400 Index measures the performance of the mid-capitalization sector of the U.S. equity market.

**S&P SmallCap 600**<sup>®</sup> **Pure Growth Index** is narrow in focus, containing only those S&P SmallCap 600 Index companies with strong growth characteristics as selected by S&P. The S&P SmallCap 600 Index measures the performance of the small-capitalization sector of the U.S. equity market.

**S&P SmallCap 600**<sup>®</sup> **Pure Value Index** is narrow in focus, containing only those S&P SmallCap 600 Index companies with strong value characteristics as selected by S&P. The S&P SmallCap 600 Index measures the performance of the small-capitalization sector of the U.S. equity market.

**STOXX Europe 50**<sup>®</sup> **Index** provides a blue-chip representation of supersector leaders in Europe. The index covers 50 stocks from 17 European countries: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

**ICE USD or U.S. Dollar Index**<sup>®</sup> **(USDX)** is an index that determines the relative value of the United States dollar to a basket of foreign currencies. This formulated "basket" of currencies comprises the weighting of six other currencies as follows: Euro (EUR), 57.6% + Japanese Yen (JPY), 13.6% + Pound Sterling (GBP), 11.9% + Canadian Dollar (CAD), 9.1% + Swedish Krona (SEK), 4.2% + Swiss Franc (CHF) 3.6%.

THE RYDEX FUNDS ANNUAL REPORT \| 5

**A BRIEF NOTE ON THE COMPOUNDING OF RETURNS** (Unaudited)<br>

Many of the Funds described in this report are benchmarked daily to leveraged and/or inverse leveraged versions of published indices. To properly evaluate the performance of these funds, it is essential to understand the effect of mathematical compounding on their respective returns.

Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in-line with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire period on a cumulative basis. It is also possible that a fund that performs in-line with its benchmark on a daily basis may seem to outperform its benchmark over longer periods.

**An Example of Compounding** 

For example, consider a hypothetical fund that is designed to produce returns that correspond to 150% of an index. On the first day of a period, the index rises from a level of 100 to a level of 106, producing a 6.0% gain and an expectation that the fund will rise by 9.0%. On the same day, the fund's net asset value per share ("NAV") increases from $10.00 to $10.90 for a gain of 9.0% — in line with its benchmark.

On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The fund, as expected, falls 9.9% to a price of $9.82. On each day, the fund performed exactly in line with its benchmark, but for the two-day period, the fund was down 1.8%, while the index was down only 1.0%. Without taking into account the daily compounding of returns, one would expect the fund to lose 1.5% and would see the fund as trailing by 0.3% when in fact it had performed perfectly. This example is summarized in the table below.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Index <br> Level** | **Index <br> Performance** | **Fund <br> Expectation** | **Fund <br> NAV** | **Fund <br> Performance** | **Assessment** |
| Start | 100 |  |  | $10.00 |  |  |
| Day 1 | 106 | 6.0% | 9.0% | $10.90 | 9.0% | In line |
| Day 2 | 99 | -6.6% | -9.9% | $9.82 | -9.9% | In line |
| Cumulative |  | -1.0% | -1.5% |  | -1.8% | -0.3% |

---

As illustrated by this simple example, the effect of leverage can make it difficult to form expectations or judgments about fund performance given only the returns of the unleveraged index.

Because certain funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse funds' 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 funds' holdings to ensure that they are consistent with their strategies, as frequently as daily. For those funds that consistently apply leverage, the value of the fund'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.

In general, any change in direction in an index will produce compounding that seems to work against an investor. Were the index to move in the same direction (either up or down) for two or more periods in a row, the compounding of those returns would work in an investor's favor, causing the fund to seemingly beat its benchmark.

As a general rule of thumb, more leverage in a fund will magnify the compounding effect, while less leverage will generally produce results that are more in line with expectations. In addition, periods of high volatility in an underlying index will also cause the effects of compounding to be more pronounced, while lower volatility will produce a more muted effect.

6 \| THE RYDEX FUNDS ANNUAL REPORT

**ABOUT SHAREHOLDERS' FUND EXPENSES** (Unaudited)<br>

All mutual funds have operating expenses, and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, other distributions, and exchange fees, and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund's gross income and reduce the investment return of the fund.

A fund's expenses are expressed as a percentage of its average net assets, which is known as the expense ratio. The following examples are intended to help investors understand the ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning June 30, 2022 and ending December 31, 2022.

The following tables illustrate the Funds' costs in two ways:

**Table 1. Based on actual Fund return:** This section helps investors estimate the actual expenses paid over the period. The "Ending Account Value" shown is derived from the Fund's actual return, and the fifth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund's account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number provided under the heading "Expenses Paid During Period."

**Table 2. Based on hypothetical 5% return:** This section is intended to help investors compare a fund's cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the "SEC") requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a fund's costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchase payments, and contingent deferred sales charges ("CDSC") on redemptions, if any. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

More information about the Funds' expenses, including annual expense ratios for periods up to five years (subject to the Fund's inception date), can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

THE RYDEX FUNDS ANNUAL REPORT \| 7

**ABOUT SHAREHOLDERS' FUND EXPENSES** (Unaudited)(concluded)<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Expense <br> Ratio<sup>1</sup>** | **Fund <br> Return**  | **Beginning <br> Account Value <br> June 30, 2022** | **Ending <br> Account Value <br> December 31, 2022** | **Expenses <br> Paid During <br> Period<sup>2</sup>** |
| **Table 1. Based on actual Fund return<sup>3</sup>** |  |  |  |  |  |
| S&P 500<sup>®</sup> Pure Growth Fund | &nbsp;&nbsp;1.68% | &nbsp;&nbsp;2.61% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1026.10 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$8.58 |
| S&P 500<sup>®</sup> Pure Value Fund | &nbsp;&nbsp;1.68% | &nbsp;&nbsp;4.53% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1045.30 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.66 |
| S&P MidCap 400<sup>®</sup> Pure Growth Fund | &nbsp;&nbsp;1.68% | &nbsp;&nbsp;9.44% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1094.40 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.87 |
| S&P MidCap 400<sup>®</sup> Pure Value Fund | &nbsp;&nbsp;1.68% | &nbsp;&nbsp;9.14% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1091.40 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.86 |
| S&P SmallCap 600<sup>®</sup> Pure Growth Fund | &nbsp;&nbsp;1.68% | &nbsp;&nbsp;1.52% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1015.20 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.53 |
| S&P SmallCap 600<sup>®</sup> Pure Value Fund | &nbsp;&nbsp;1.68% | &nbsp;&nbsp;6.06% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1060.60 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.73 |
| Europe 1.25x Strategy Fund | &nbsp;&nbsp;1.84% | &nbsp;&nbsp;9.09% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1090.90 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.70 |
| Japan 2x Strategy Fund | &nbsp;&nbsp;1.67% | &nbsp;&nbsp;(2.24%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;977.60 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.32 |
| Strengthening Dollar 2x Strategy Fund | &nbsp;&nbsp;1.90% | &nbsp;&nbsp;(1.05%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;989.50 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.53 |
| Weakening Dollar 2x Strategy Fund | &nbsp;&nbsp;1.88% | &nbsp;&nbsp;(0.32%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;996.80 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.46 |
| **Table 2. Based on hypothetical 5% return (before expenses)** | **Table 2. Based on hypothetical 5% return (before expenses)** |  |  |  |  |
| S&P 500<sup>®</sup> Pure Growth Fund | &nbsp;&nbsp;1.68% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1016.74 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$8.54 |
| S&P 500<sup>®</sup> Pure Value Fund | &nbsp;&nbsp;1.68% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.74 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.54 |
| S&P MidCap 400<sup>®</sup> Pure Growth Fund | &nbsp;&nbsp;1.68% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.74 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.54 |
| S&P MidCap 400<sup>®</sup> Pure Value Fund | &nbsp;&nbsp;1.68% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.74 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.54 |
| S&P SmallCap 600<sup>®</sup> Pure Growth Fund | &nbsp;&nbsp;1.68% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.74 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.54 |
| S&P SmallCap 600<sup>®</sup> Pure Value Fund | &nbsp;&nbsp;1.68% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.74 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.54 |
| Europe 1.25x Strategy Fund | &nbsp;&nbsp;1.84% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1015.93 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.35 |
| Japan 2x Strategy Fund | &nbsp;&nbsp;1.67% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.79 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.49 |
| Strengthening Dollar 2x Strategy Fund | &nbsp;&nbsp;1.90% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1015.63 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.65 |
| Weakening Dollar 2x Strategy Fund | &nbsp;&nbsp;1.88% | &nbsp;&nbsp;5.00% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1015.73 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.55 |

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<sup>1</sup> Annualized and excludes expenses of the underlying funds in which the Funds invest, if any.

<sup>2</sup> Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses shown do not include fees charged by insurance companies.

<sup>3</sup> Actual cumulative return at net asset value for the period June 30, 2022 to December 31, 2022.

8 \| THE RYDEX FUNDS ANNUAL REPORT

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| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

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**S&P 500<sup>®</sup>** **PURE GROWTH FUND** 

**OBJECTIVE:** Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for large-cap growth securities on a daily basis. The Fund's current benchmark is the S&P 500<sup>®</sup> Pure Growth Index (the "underlying index").

For the Reporting Period, S&P 500<sup>®</sup> Pure Growth Fund returned -28.35%, compared with a return of -27.35% for the underlying index. The Fund maintained a daily correlation of over 99% to its benchmark for the period.

Energy was the only sector contributing to the return of the underlying index for the Reporting Period. Information Technology, Financials, and Consumer Discretionary were sectors detracting most from the return of the underlying index.

Stocks contributing the most to return of the underlying index for the Reporting Period were Enphase Energy, Inc., Eli Lilly and Co., and Devon Energy Corp. The stocks detracting the most from performance of the underlying index were SVB Financial Group, Tesla, Inc., and Generac Holdings, Inc.

**Performance displayed represents past performance, which is no guarantee of future results.** 

**Holdings Diversification (Market Exposure as % of Net Assets)**

![](fp0081230-3_9.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** May 3, 2004<br>

---

| | | |
|:---|:---|:---|
| **Ten Largest Holdings**  | **(% of Total Net Assets)** | **(% of Total Net Assets)** |
| APA Corp. | APA Corp. | 2.6% |
| Targa Resources Corp. | Targa Resources Corp. | 2.5% |
| Diamondback Energy, Inc. | Diamondback Energy, Inc. | 2.5% |
| Mosaic Co. | Mosaic Co. | 2.5% |
| Steel Dynamics, Inc. | Steel Dynamics, Inc. | 2.5% |
| Coterra Energy, Inc. — Class A | Coterra Energy, Inc. — Class A | 2.4% |
| Nucor Corp. | Nucor Corp. | 2.3% |
| CF Industries Holdings, Inc. | CF Industries Holdings, Inc. | 2.1% |
| ConocoPhillips | ConocoPhillips | 2.1% |
| Pioneer Natural Resources Co. | Pioneer Natural Resources Co. | 2.1% |
| Top Ten Total | Top Ten Total | 23.6% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 9

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-3_10.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| S&P 500<sup>®</sup> Pure Growth Fund  | (28.35%)  | 6.82%  | 11.04%  |
| S&P 500 Pure Growth Index  | (27.35%)  | 8.63%  | 12.93%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Pure Growth Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

10 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **S&P 500<sup>®</sup>** **PURE GROWTH FUND**  |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.5%** | **COMMON STOCKS<sup>†</sup>** **- 99.5%** | **COMMON STOCKS<sup>†</sup>** **- 99.5%** |
| **Energy - 33.3%** | **Energy - 33.3%** | **Energy - 33.3%** |
| &nbsp;&nbsp;&nbsp;APA Corp. | 13291 | $620424 |
| &nbsp;&nbsp;&nbsp;Targa Resources Corp. | 8044 | 591234 |
| &nbsp;&nbsp;&nbsp;Diamondback Energy, Inc. | 4298 | 587880 |
| &nbsp;&nbsp;&nbsp;Coterra Energy, Inc. — Class A | 23013 | 565429 |
| &nbsp;&nbsp;&nbsp;ConocoPhillips | 4209 | 496662 |
| &nbsp;&nbsp;&nbsp;Pioneer Natural Resources Co. | 2168 | 495150 |
| &nbsp;&nbsp;&nbsp;Equities Corp. | 13973 | 472707 |
| &nbsp;&nbsp;&nbsp;Enphase Energy, Inc.\* | 1701 | 450697 |
| &nbsp;&nbsp;&nbsp;Marathon Oil Corp. | 15215 | 411870 |
| &nbsp;&nbsp;&nbsp;ONEOK, Inc. | 6093 | 400310 |
| &nbsp;&nbsp;&nbsp;EOG Resources, Inc. | 3088 | 399958 |
| &nbsp;&nbsp;&nbsp;Occidental Petroleum Corp. | 6221 | 391861 |
| &nbsp;&nbsp;&nbsp;Hess Corp. | 2660 | 377241 |
| &nbsp;&nbsp;&nbsp;Devon Energy Corp. | 5695 | 350299 |
| &nbsp;&nbsp;&nbsp;Exxon Mobil Corp. | 3141 | 346452 |
| &nbsp;&nbsp;&nbsp;Chevron Corp. | 1897 | 340493 |
| &nbsp;&nbsp;&nbsp;Williams Companies, Inc. | 7690 | 253001 |
| &nbsp;&nbsp;&nbsp;SolarEdge Technologies, Inc.\* | 826 | 233981 |
| **Total Energy** |  | 7785649 |
| **Consumer, Non-cyclical - 25.8%** | **Consumer, Non-cyclical - 25.8%** | **Consumer, Non-cyclical - 25.8%** |
| &nbsp;&nbsp;&nbsp;Vertex Pharmaceuticals, Inc.\* | 1709 | 493525 |
| &nbsp;&nbsp;&nbsp;Regeneron Pharmaceuticals, Inc.\* | 680 | 490613 |
| &nbsp;&nbsp;&nbsp;Molina Healthcare, Inc.\* | 1152 | 380413 |
| &nbsp;&nbsp;&nbsp;Pfizer, Inc. | 6448 | 330395 |
| &nbsp;&nbsp;&nbsp;Elevance Health, Inc. | 636 | 326249 |
| &nbsp;&nbsp;&nbsp;Moderna, Inc.\* | 1799 | 323136 |
| &nbsp;&nbsp;&nbsp;Incyte Corp.\* | 3715 | 298389 |
| &nbsp;&nbsp;&nbsp;AbbVie, Inc. | 1788 | 288959 |
| &nbsp;&nbsp;&nbsp;Danaher Corp. | 1064 | 282407 |
| &nbsp;&nbsp;&nbsp;Monster Beverage Corp.\* | 2682 | 272304 |
| &nbsp;&nbsp;&nbsp;Eli Lilly & Co. | 699 | 255722 |
| &nbsp;&nbsp;&nbsp;Bristol-Myers Squibb Co. | 3446 | 247940 |
| &nbsp;&nbsp;&nbsp;Quanta Services, Inc. | 1692 | 241110 |
| &nbsp;&nbsp;&nbsp;Hologic, Inc.\* | 3109 | 232584 |
| &nbsp;&nbsp;&nbsp;Merck & Company, Inc. | 2005 | 222455 |
| &nbsp;&nbsp;&nbsp;UnitedHealth Group, Inc. | 403 | 213663 |
| &nbsp;&nbsp;&nbsp;Rollins, Inc. | 5747 | 209995 |
| &nbsp;&nbsp;&nbsp;Hershey Co. | 887 | 205403 |
| &nbsp;&nbsp;&nbsp;Thermo Fisher Scientific, Inc. | 364 | 200451 |
| &nbsp;&nbsp;&nbsp;Amgen, Inc. | 676 | 177545 |
| &nbsp;&nbsp;&nbsp;Gilead Sciences, Inc. | 2051 | 176078 |
| &nbsp;&nbsp;&nbsp;Dexcom, Inc.\* | 1443 | 163405 |
| **Total Consumer, Non-cyclical** |  | 6032741 |
| **Basic Materials - 11.8%** | **Basic Materials - 11.8%** | **Basic Materials - 11.8%** |
| &nbsp;&nbsp;&nbsp;Mosaic Co. | 13316 | 584173 |
| &nbsp;&nbsp;&nbsp;Steel Dynamics, Inc. | 5953 | 581608 |
| &nbsp;&nbsp;&nbsp;Nucor Corp. | 4120 | 543058 |
| &nbsp;&nbsp;&nbsp;CF Industries Holdings, Inc. | 5908 | 503361 |
| &nbsp;&nbsp;&nbsp;Freeport-McMoRan, Inc. | 5761 | 218918 |
| &nbsp;&nbsp;&nbsp;FMC Corp. | 1607 | 200554 |
| &nbsp;&nbsp;&nbsp;Albemarle Corp. | 635 | 137706 |
| **Total Basic Materials** |  | 2769378 |
| **Technology - 9.0%** | **Technology - 9.0%** | **Technology - 9.0%** |
| &nbsp;&nbsp;&nbsp;KLA Corp. | 944 | 355916 |
| &nbsp;&nbsp;&nbsp;Fortinet, Inc.\* | 5276 | 257944 |
| &nbsp;&nbsp;&nbsp;Lam Research Corp. | 569 | 239151 |
| &nbsp;&nbsp;&nbsp;Apple, Inc. | 1791 | 232704 |
| &nbsp;&nbsp;&nbsp;PTC, Inc.\* | 1917 | 230117 |
| &nbsp;&nbsp;&nbsp;Monolithic Power Systems, Inc. | 604 | 213581 |
| &nbsp;&nbsp;&nbsp;Jack Henry & Associates, Inc. | 1158 | 203298 |
| &nbsp;&nbsp;&nbsp;ON Semiconductor Corp.\* | 3171 | 197775 |
| &nbsp;&nbsp;&nbsp;QUALCOMM, Inc. | 1617 | 177773 |
| **Total Technology** |  | 2108259 |
| **Consumer, Cyclical - 8.4%** | **Consumer, Cyclical - 8.4%** | **Consumer, Cyclical - 8.4%** |
| &nbsp;&nbsp;&nbsp;AutoZone, Inc.\* | 158 | 389656 |
| &nbsp;&nbsp;&nbsp;O'Reilly Automotive, Inc.\* | 453 | 382346 |
| &nbsp;&nbsp;&nbsp;Tractor Supply Co. | 1218 | 274014 |
| &nbsp;&nbsp;&nbsp;Dollar General Corp. | 1044 | 257085 |
| &nbsp;&nbsp;&nbsp;WW Grainger, Inc. | 440 | 244750 |
| &nbsp;&nbsp;&nbsp;Dollar Tree, Inc.\* | 1532 | 216686 |
| &nbsp;&nbsp;&nbsp;Ulta Beauty, Inc.\* | 430 | 201700 |
| **Total Consumer, Cyclical** |  | 1966237 |
| **Financial - 5.0%** | **Financial - 5.0%** | **Financial - 5.0%** |
| &nbsp;&nbsp;&nbsp;Arch Capital Group Ltd.\* | 4550 | 285649 |
| &nbsp;&nbsp;&nbsp;W R Berkley Corp. | 3553 | 257841 |
| &nbsp;&nbsp;&nbsp;Raymond James Financial, Inc. | 2312 | 247037 |
| &nbsp;&nbsp;&nbsp;Progressive Corp. | 1600 | 207536 |
| &nbsp;&nbsp;&nbsp;Ameriprise Financial, Inc. | 542 | 168763 |
| **Total Financial** |  | 1166826 |
| **Industrial - 3.4%** | **Industrial - 3.4%** | **Industrial - 3.4%** |
| &nbsp;&nbsp;&nbsp;Expeditors International of Washington, Inc. | 3426 | 356030 |
| &nbsp;&nbsp;&nbsp;Deere & Co. | 543 | 232817 |
| &nbsp;&nbsp;&nbsp;J.B. Hunt Transport Services, Inc. | 1204 | 209929 |
| **Total Industrial** |  | 798776 |
| **Utilities - 1.9%** | **Utilities - 1.9%** | **Utilities - 1.9%** |
| &nbsp;&nbsp;&nbsp;PG&E Corp.\* | 27897 | 453605 |
| **Communications - 0.9%** | **Communications - 0.9%** | **Communications - 0.9%** |
| &nbsp;&nbsp;&nbsp;Arista Networks, Inc.\* | 1798 | 218187 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $21,394,647) |  | 23299658 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 11

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **S&P 500<sup>®</sup>** **PURE GROWTH FUND**  |  |

---

---

| | | |
|:---|:---|:---|
|  | **Face<br> Amount** | **Value** |
| **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 1.7%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 1.7%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 1.7%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26%<br> due 01/03/23 | $225180 | $225180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BofA Securities, Inc.<br> issued 12/30/22 at 4.25%<br> due 01/03/23 | 86608 | 86608 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Barclays Capital, Inc.<br> issued 12/30/22 at 4.21%<br> due 01/03/23 | 86340 | 86340 |
| **Total Repurchase Agreements** |  |  |
| (Cost $398,128) |  | 398128 |
| **Total Investments - 101.2%** |  |  |
| (Cost $21,792,775) |  | 23697786 |
| **Other Assets & Liabilities, net - (1.2)%** |  | (290587) |
| **Total Net Assets - 100.0%** |  | 23407199 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $23299658 | $— | $— | $23299658 |
| Repurchase Agreements |  | 398128 |  | 398128 |
| Total Assets | 23299658 | 398128 |  | 23697786 |

---

12 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**S&P 500<sup>®</sup>** **PURE GROWTH FUND** <br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value (cost $21,394,647) | $23299658 |
| Repurchase agreements, at value (cost $398,128) | 398128 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 14032 |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 500 |
| &nbsp;&nbsp;&nbsp;Interest | 94 |
| **Total assets** | 23712412 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Securities purchased | 190624 |
| &nbsp;&nbsp;&nbsp;Professional fees | 42140 |
| &nbsp;&nbsp;&nbsp;Management fees | 17417 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 7678 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 6966 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 5806 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 3599 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 396 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 30587 |
| **Total liabilities** | 305213 |
| **Net assets** | $23407199 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $22325877 |
| Total distributable earnings (loss) | 1081322 |
| Net assets | $23407199 |
| Capital shares outstanding | 562668 |
| Net asset value per share | $41.60 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends | $334835 |
| Interest | 3497 |
| &nbsp;&nbsp;&nbsp;Total investment income | 338332 |
| **Expenses:** | **Expenses:** |
| Management fees | 223109 |
| Investor service fees | 74370 |
| Transfer agent fees | 86134 |
| Professional fees | 58088 |
| Portfolio accounting and administration fees | 37020 |
| Trustees' fees\* | 5818 |
| Custodian fees | 4565 |
| Line of credit fees | 18 |
| Miscellaneous | 7654 |
| &nbsp;&nbsp;&nbsp;Total expenses | 496776 |
| Net investment loss | (158444) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | 42455 |
| Net realized gain | 42455 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (12614960) |
| Net change in unrealized appreciation (depreciation) | (12614960) |
| Net realized and unrealized loss | (12572505) |
| **Net decrease in net assets resulting from operations** | $(12730949) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 13

**S&P 500<sup>®</sup>** **PURE GROWTH FUND** <br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment loss | $(158444) | $(558245) |
| Net realized gain on investments | 42455 | 5136512 |
| Net change in unrealized appreciation (depreciation) on investments | (12614960) | 5134807 |
| Net increase (decrease) in net assets resulting from operations | (12730949) | 9713074 |
| Distributions to shareholders | (4366989) | (180112) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 26915792 | 58850539 |
| Distributions reinvested | 4366989 | 180112 |
| Cost of shares redeemed | (43394495) | (51238818) |
| Net increase (decrease) from capital share transactions | (12111714) | 7791833 |
| Net increase (decrease) in net assets | (29209652) | 17324795 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 52616851 | 35292056 |
| &nbsp;&nbsp;&nbsp;End of year | $23407199 | $52616851 |
| **Capital share activity:** |  |  |
| Shares sold | 550024 | 908860 |
| Shares issued from reinvestment of distributions | 100023 | 2866 |
| Shares redeemed | (838068) | (800679) |
| Net increase (decrease) in shares | (188021) | 111047 |

---

14 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**S&P 500<sup>®</sup>** **PURE GROWTH FUND** <br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December <br> 31, <br> 2022** | **Year Ended <br> December <br> 31, <br> 2021** | **Year Ended <br> December <br> 31, <br> 2020** | **Year Ended <br> December <br> 31, <br> 2019** | **Year Ended <br> December <br> 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $70.09 | $55.17 | $54.49 | $43.97 | $50.27 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | (.27) | (.84) | (.48) | (.22) | (.44) |
| Net gain (loss) on investments (realized and unrealized) | (19.18) | 16.03 | 13.22 | 11.87 | (1.68) |
| Total from investment operations | (19.45) | 15.19 | 12.74 | 11.65 | (2.12) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net realized gains | (9.04) | (.27) | (12.06) | (1.13) | (4.18) |
| Total distributions | (9.04) | (.27) | (12.06) | (1.13) | (4.18) |
| Net asset value, end of period | $41.60 | $70.09 | $55.17 | $54.49 | $43.97 |
| **Total Return<sup>b</sup>** | **(28.35** **%)** | **27.59%** | **27.32%** | **26.60%** | **(5.63** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $23407 | $52617 | $35292 | $42057 | $41825 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | (0.53%) | (1.34%) | (0.94%) | (0.42%) | (0.85%) |
| Total expenses | 1.67% | 1.60% | 1.73% | 1.72% | 1.62% |
| Portfolio turnover rate | 139% | 155% | 159% | 190% | 203% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 15

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**S&P 500<sup>®</sup>** **PURE VALUE FUND** 

**OBJECTIVE:** Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for large-cap value securities on a daily basis. The Fund's current benchmark is the S&P 500<sup>®</sup> Pure Value Index (the "underlying index").

For the Reporting Period, S&P 500<sup>®</sup> Pure Value Fund returned -2.55%, compared with a return of -0.80% for the underlying index. The Fund maintained a daily correlation of over 99% to its benchmark for the period.

The Energy sector was the leading contributor to performance of the underlying index for the Reporting Period, followed by the Health Care and Utilities sectors. Consumer Discretionary, Communication Services, and Information Technology were sectors detracting most from the return of the underlying index.

The strongest contributors to performance of the underlying index for the Reporting Period included Marathon Petroleum Corp., Cigna Corp., and Valero Energy Corp. The stocks detracting the most from performance of the underlying index were Lincoln National Corp., DISH Network Corp. - Class A, and Lumen Technologies, Inc.

**Performance displayed represents past performance, which is no guarantee of future results.** 

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-3_16.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** May 3, 2004<br>

---

| | | |
|:---|:---|:---|
| **Ten Largest Holdings**  | **(% of Total Net Assets)** | **(% of Total Net Assets)** |
| Lumen Technologies, Inc. | Lumen Technologies, Inc. | 3.3% |
| Paramount Global — Class B | Paramount Global — Class B | 2.8% |
| DISH Network Corp. — Class A | DISH Network Corp. — Class A | 2.7% |
| Westrock Co. | Westrock Co. | 2.3% |
| General Motors Co. | General Motors Co. | 2.2% |
| Mohawk Industries, Inc. | Mohawk Industries, Inc. | 2.1% |
| Walgreens Boots Alliance, Inc. | Walgreens Boots Alliance, Inc. | 2.1% |
| Phillips 66 | Phillips 66 | 2.1% |
| Viatris, Inc. | Viatris, Inc. | 2.0% |
| Citigroup, Inc. | Citigroup, Inc. | 1.9% |
| Top Ten Total | Top Ten Total | 23.5% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

16 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-3_17.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| S&P 500<sup>®</sup> Pure Value Fund  | (2.55%)  | 4.27%  | 9.37%  |
| S&P 500 Pure Value Index  | (0.80%)  | 6.11%  | 11.25%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Pure Value Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 17

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **S&P 500<sup>®</sup>** **PURE VALUE FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.3%** | **COMMON STOCKS<sup>†</sup>** **- 99.3%** | **COMMON STOCKS<sup>†</sup>** **- 99.3%** |
| **Financial - 23.5%** | **Financial - 23.5%** | **Financial - 23.5%** |
| &nbsp;&nbsp;&nbsp;Citigroup, Inc. | 14198 | $642176 |
| &nbsp;&nbsp;&nbsp;Berkshire Hathaway, Inc. — Class B\* | 1557 | 480957 |
| &nbsp;&nbsp;&nbsp;Capital One Financial Corp. | 5136 | 477442 |
| &nbsp;&nbsp;&nbsp;Invesco Ltd. | 26298 | 473101 |
| &nbsp;&nbsp;&nbsp;American International Group, Inc. | 6943 | 439075 |
| &nbsp;&nbsp;&nbsp;Loews Corp. | 7438 | 433859 |
| &nbsp;&nbsp;&nbsp;Assurant, Inc. | 2561 | 320279 |
| &nbsp;&nbsp;&nbsp;Citizens Financial Group, Inc. | 8052 | 317007 |
| &nbsp;&nbsp;&nbsp;Vornado Realty Trust REIT | 15011 | 312379 |
| &nbsp;&nbsp;&nbsp;SVB Financial Group\* | 1321 | 304015 |
| &nbsp;&nbsp;&nbsp;Lincoln National Corp. | 9521 | 292485 |
| &nbsp;&nbsp;&nbsp;Franklin Resources, Inc. | 11012 | 290497 |
| &nbsp;&nbsp;&nbsp;Bank of New York Mellon Corp. | 6320 | 287686 |
| &nbsp;&nbsp;&nbsp;Signature Bank | 2291 | 263969 |
| &nbsp;&nbsp;&nbsp;Truist Financial Corp. | 5787 | 249015 |
| &nbsp;&nbsp;&nbsp;Wells Fargo & Co. | 5775 | 238450 |
| &nbsp;&nbsp;&nbsp;State Street Corp. | 2953 | 229064 |
| &nbsp;&nbsp;&nbsp;Prudential Financial, Inc. | 2288 | 227565 |
| &nbsp;&nbsp;&nbsp;Allstate Corp. | 1641 | 222520 |
| &nbsp;&nbsp;&nbsp;Synchrony Financial | 6379 | 209614 |
| &nbsp;&nbsp;&nbsp;Hartford Financial Services Group, Inc. | 2605 | 197537 |
| &nbsp;&nbsp;&nbsp;Goldman Sachs Group, Inc. | 565 | 194010 |
| &nbsp;&nbsp;&nbsp;Bank of America Corp. | 5671 | 187823 |
| &nbsp;&nbsp;&nbsp;CBRE Group, Inc. — Class A\* | 2426 | 186705 |
| &nbsp;&nbsp;&nbsp;MetLife, Inc. | 2447 | 177089 |
| &nbsp;&nbsp;&nbsp;M&T Bank Corp. | 1067 | 154779 |
| **Total Financial** |  | 7809098 |
| **Consumer, Cyclical - 20.5%** | **Consumer, Cyclical - 20.5%** | **Consumer, Cyclical - 20.5%** |
| &nbsp;&nbsp;&nbsp;General Motors Co. | 22025 | 740921 |
| &nbsp;&nbsp;&nbsp;Walgreens Boots Alliance, Inc. | 18706 | 698856 |
| &nbsp;&nbsp;&nbsp;Ford Motor Co. | 52520 | 610807 |
| &nbsp;&nbsp;&nbsp;CarMax, Inc.\* | 9829 | 598488 |
| &nbsp;&nbsp;&nbsp;Whirlpool Corp. | 3445 | 487330 |
| &nbsp;&nbsp;&nbsp;PulteGroup, Inc. | 10576 | 481525 |
| &nbsp;&nbsp;&nbsp;Lennar Corp. — Class A | 5280 | 477840 |
| &nbsp;&nbsp;&nbsp;Best Buy Company, Inc. | 5756 | 461689 |
| &nbsp;&nbsp;&nbsp;Newell Brands, Inc. | 35248 | 461044 |
| &nbsp;&nbsp;&nbsp;United Airlines Holdings, Inc.\* | 10208 | 384842 |
| &nbsp;&nbsp;&nbsp;BorgWarner, Inc. | 9464 | 380926 |
| &nbsp;&nbsp;&nbsp;Alaska Air Group, Inc.\* | 7600 | 326344 |
| &nbsp;&nbsp;&nbsp;American Airlines Group, Inc.\* | 23329 | 296745 |
| &nbsp;&nbsp;&nbsp;Delta Air Lines, Inc.\* | 7812 | 256702 |
| &nbsp;&nbsp;&nbsp;Southwest Airlines Co. | 4466 | 150370 |
| **Total Consumer, Cyclical** |  | 6814429 |
| **Consumer, Non-cyclical - 15.1%** | **Consumer, Non-cyclical - 15.1%** | **Consumer, Non-cyclical - 15.1%** |
| &nbsp;&nbsp;&nbsp;Viatris, Inc. | 58974 | 656381 |
| &nbsp;&nbsp;&nbsp;Tyson Foods, Inc. — Class A | 9918 | 617395 |
| &nbsp;&nbsp;&nbsp;Centene Corp.\* | 6475 | 531015 |
| &nbsp;&nbsp;&nbsp;Kroger Co. | 11411 | 508702 |
| &nbsp;&nbsp;&nbsp;CVS Health Corp. | 4847 | 451692 |
| &nbsp;&nbsp;&nbsp;Molson Coors Beverage Co. — Class B | 8190 | 421949 |
| &nbsp;&nbsp;&nbsp;AmerisourceBergen Corp. — Class A | 2540 | 420903 |
| &nbsp;&nbsp;&nbsp;Universal Health Services, Inc. — Class B | 2593 | 365328 |
| &nbsp;&nbsp;&nbsp;Cardinal Health, Inc. | 4745 | 364748 |
| &nbsp;&nbsp;&nbsp;Kraft Heinz Co. | 7612 | 309885 |
| &nbsp;&nbsp;&nbsp;DaVita, Inc.\* | 2418 | 180552 |
| &nbsp;&nbsp;&nbsp;Global Payments, Inc. | 1710 | 169837 |
| **Total Consumer, Non-cyclical** |  | 4998387 |
| **Communications - 13.7%** | **Communications - 13.7%** | **Communications - 13.7%** |
| &nbsp;&nbsp;&nbsp;Lumen Technologies, Inc.\* | 206984 | 1080457 |
| &nbsp;&nbsp;&nbsp;Paramount Global — Class B | 55350 | 934308 |
| &nbsp;&nbsp;&nbsp;DISH Network Corp. — Class A\* | 63777 | 895429 |
| &nbsp;&nbsp;&nbsp;Warner Bros Discovery, Inc.\* | 54196 | 513778 |
| &nbsp;&nbsp;&nbsp;AT&T, Inc. | 22083 | 406548 |
| &nbsp;&nbsp;&nbsp;News Corp. — Class A | 12133 | 220820 |
| &nbsp;&nbsp;&nbsp;Verizon Communications, Inc. | 5428 | 213863 |
| &nbsp;&nbsp;&nbsp;Fox Corp. — Class A | 5226 | 158714 |
| &nbsp;&nbsp;&nbsp;News Corp. — Class B | 3756 | 69261 |
| &nbsp;&nbsp;&nbsp;Fox Corp. — Class B | 2408 | 68507 |
| **Total Communications** |  | 4561685 |
| **Technology - 7.9%** | **Technology - 7.9%** | **Technology - 7.9%** |
| &nbsp;&nbsp;&nbsp;DXC Technology Co.\* | 21178 | 561217 |
| &nbsp;&nbsp;&nbsp;Hewlett Packard Enterprise Co. | 32406 | 517200 |
| &nbsp;&nbsp;&nbsp;Western Digital Corp.\* | 15607 | 492401 |
| &nbsp;&nbsp;&nbsp;Fidelity National Information Services, Inc. | 5144 | 349020 |
| &nbsp;&nbsp;&nbsp;Intel Corp. | 9014 | 238240 |
| &nbsp;&nbsp;&nbsp;HP, Inc. | 8755 | 235247 |
| &nbsp;&nbsp;&nbsp;Micron Technology, Inc. | 4355 | 217663 |
| **Total Technology** |  | 2610988 |
| **Industrial - 6.9%** | **Industrial - 6.9%** | **Industrial - 6.9%** |
| &nbsp;&nbsp;&nbsp;Westrock Co. | 21685 | 762445 |
| &nbsp;&nbsp;&nbsp;Mohawk Industries, Inc.\* | 6863 | 701536 |
| &nbsp;&nbsp;&nbsp;FedEx Corp. | 2581 | 447029 |
| &nbsp;&nbsp;&nbsp;Stanley Black & Decker, Inc. | 4905 | 368463 |
| **Total Industrial** |  | 2279473 |
| **Basic Materials - 5.4%** | **Basic Materials - 5.4%** | **Basic Materials - 5.4%** |
| &nbsp;&nbsp;&nbsp;International Paper Co. | 12562 | 435022 |
| &nbsp;&nbsp;&nbsp;LyondellBasell Industries N.V. — Class A | 4985 | 413905 |
| &nbsp;&nbsp;&nbsp;Dow, Inc. | 7161 | 360843 |
| &nbsp;&nbsp;&nbsp;Eastman Chemical Co. | 2733 | 222576 |
| &nbsp;&nbsp;&nbsp;Celanese Corp. — Class A | 1752 | 179124 |
| &nbsp;&nbsp;&nbsp;DuPont de Nemours, Inc. | 2434 | 167045 |
| **Total Basic Materials** |  | 1778515 |
| **Energy - 4.5%** | **Energy - 4.5%** | **Energy - 4.5%** |
| &nbsp;&nbsp;&nbsp;Phillips 66 | 6641 | 691195 |
| &nbsp;&nbsp;&nbsp;Valero Energy Corp. | 5021 | 636964 |
| &nbsp;&nbsp;&nbsp;Kinder Morgan, Inc. | 9857 | 178215 |
| **Total Energy** |  | 1506374 |

---

18 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **S&P 500<sup>®</sup>** **PURE VALUE FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **Utilities - 1.8%** | **Utilities - 1.8%** | **Utilities - 1.8%** |
| &nbsp;&nbsp;&nbsp;Exelon Corp. | 5730 | $247708 |
| &nbsp;&nbsp;&nbsp;Pinnacle West Capital Corp. | 2455 | 186678 |
| &nbsp;&nbsp;&nbsp;Evergy, Inc. | 2652 | 166890 |
| **Total Utilities** |  | 601276 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $29,595,998) |  | 32960225 |

---

---

| | | |
|:---|:---|:---|
|  | **Face<br> Amount** | **Value** |
| **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.5%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.5%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.5%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26%<br> due 01/03/23 | $94035 | 94035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BofA Securities, Inc.<br> issued 12/30/22 at 4.25%<br> due 01/03/23 | 36168 | 36168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Barclays Capital, Inc.<br> issued 12/30/22 at 4.21%<br> due 01/03/23 | 36055 | 36055 |
| **Total Repurchase Agreements** |  |  |
| (Cost $166,258) |  | 166258 |
| **Total Investments - 99.8%** |  |  |
| (Cost $29,762,256) |  | 33126483 |
| **Other Assets & Liabilities, net - 0.2%** |  | 72059 |
| **Total Net Assets - 100.0%** |  | 33198542 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;REIT — Real Estate Investment Trust |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 19

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **S&P 500<sup>®</sup>** **PURE VALUE FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $32960225 | $— | $— | $32960225 |
| Repurchase Agreements |  | 166258 |  | 166258 |
| Total Assets | 32960225 | 166258 |  | 33126483 |

---

20 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**S&P 500<sup>®</sup>** **PURE VALUE FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value (cost $29,595,998) | $32960225 |
| Repurchase agreements, at value (cost $166,258) | 166258 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Securities sold | 205348 |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 59533 |
| &nbsp;&nbsp;&nbsp;Dividends | 38929 |
| &nbsp;&nbsp;&nbsp;Interest | 39 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 31 |
| **Total assets** | 33430363 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 104185 |
| &nbsp;&nbsp;&nbsp;Professional fees | 49638 |
| &nbsp;&nbsp;&nbsp;Management fees | 20823 |
| &nbsp;&nbsp;&nbsp;Printing fees | 13235 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 9249 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 6941 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 4304 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 468 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 22978 |
| **Total liabilities** | 231821 |
| **Net assets** | $33198542 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $33016252 |
| Total distributable earnings (loss) | 182290 |
| Net assets | $33198542 |
| Capital shares outstanding | 628741 |
| Net asset value per share | $52.80 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends | $882772 |
| Interest | 3461 |
| Income from securities lending, net | 121 |
| &nbsp;&nbsp;&nbsp;Total investment income | 886354 |
| **Expenses:** | **Expenses:** |
| Management fees | 262801 |
| Investor service fees | 87600 |
| Transfer agent fees | 94469 |
| Professional fees | 51609 |
| Portfolio accounting and administration fees | 43669 |
| Custodian fees | 5149 |
| Trustees' fees\* | 4585 |
| Miscellaneous | 36033 |
| &nbsp;&nbsp;&nbsp;Total expenses | 585915 |
| Net investment income | 300439 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | 891922 |
| Net realized gain | 891922 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (4314470) |
| Net change in unrealized appreciation (depreciation) | (4314470) |
| Net realized and unrealized loss | (3422548) |
| **Net decrease in net assets resulting from operations** | $(3122109) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 21

**S&P 500<sup>®</sup>** **PURE VALUE FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income | $300439 | $283623 |
| Net realized gain on investments | 891922 | 4599621 |
| Net change in unrealized appreciation (depreciation) on investments | (4314470) | 3046795 |
| Net increase (decrease) in net assets resulting from operations | (3122109) | 7930039 |
| Distributions to shareholders | (3237052) | (312593) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 100597592 | 58771957 |
| Distributions reinvested | 3237052 | 312593 |
| Cost of shares redeemed | (94580396) | (62397670) |
| Net increase (decrease) from capital share transactions | 9254248 | (3313120) |
| Net increase in net assets | 2895087 | 4304326 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 30303455 | 25999129 |
| &nbsp;&nbsp;&nbsp;End of year | $33198542 | $30303455 |
| **Capital share activity:** |  |  |
| Shares sold | 1671246 | 1038082 |
| Shares issued from reinvestment of distributions | 62916 | 5511 |
| Shares redeemed | (1600125) | (1104920) |
| Net increase (decrease) in shares | 134037 | (61327) |

---

22 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**S&P 500<sup>®</sup>** **PURE VALUE FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December <br> 31, <br> 2022** | **Year Ended <br> December <br> 31, <br> 2021** | **Year Ended <br> December <br> 31, <br> 2020** | **Year Ended <br> December <br> 31, <br> 2019** | **Year Ended <br> December <br> 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $61.26 | $46.76 | $58.01 | $48.02 | $61.83 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .50 | .50 | .46 | .59 | .53 |
| Net gain (loss) on investments (realized and unrealized) | (2.25) | 14.56 | (7.59) | 10.53 | (7.82) |
| Total from investment operations | (1.75) | 15.06 | (7.13) | 11.12 | (7.29) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (.57) | (.36) | (.85) | (.45) | (.53) |
| Net realized gains | (6.14) | (.20) | (3.27) | (.68) | (5.99) |
| Total distributions | (6.71) | (.56) | (4.12) | (1.13) | (6.52) |
| Net asset value, end of period | $52.80 | $61.26 | $46.76 | $58.01 | $48.02 |
| **Total Return<sup>b</sup>** | **(2.55** **%)** | **32.32%** | **(10.56** **%)** | **23.27%** | **(13.32** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $33199 | $30303 | $25999 | $32731 | $33111 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.86% | 0.87% | 1.08% | 1.10% | 0.91% |
| Total expenses | 1.67% | 1.59% | 1.73% | 1.72% | 1.63% |
| Portfolio turnover rate | 280% | 184% | 157% | 144% | 197% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 23

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**S&P MIDCAP 400<sup>®</sup>** **PURE GROWTH FUND** 

**OBJECTIVE:** Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for mid-cap growth securities on a daily basis. The Fund's current benchmark is the S&P MidCap 400<sup>®</sup> Pure Growth Index (the "underlying index").

For the Reporting Period, S&P MidCap 400<sup>®</sup> Pure Growth Fund returned -22.62%, compared with a return of -21.48% for the underlying index. The Fund maintained a daily correlation of over 99% to its benchmark for the period.

The Energy sector contributed the most to the return of the underlying index for the Reporting Period, followed by the Utilities sector. Consumer Discretionary, Health Care, and Financials were sectors detracting the most from the return of the underlying index.

Steel Dynamics, Inc., Shockwave Medical, Inc., and Murphy Oil Corp. added the most to return of the underlying index for the Reporting Period. Tandem Diabetes Care, Inc., Cleveland-Cliffs, Inc., and Trex Company, Inc. detracted the most from performance of the underlying index.

**Performance displayed represents past performance, which is no guarantee of future results.** 

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-3_24.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** May 3, 2004<br>

---

| | | |
|:---|:---|:---|
| **Ten Largest Holdings**  | **(% of Total Net Assets)** | **(% of Total Net Assets)** |
| PBF Energy, Inc. — Class A | PBF Energy, Inc. — Class A | 3.0% |
| Annaly Capital Management, Inc. | Annaly Capital Management, Inc. | 2.7% |
| Antero Resources Corp. | Antero Resources Corp. | 2.4% |
| PDC Energy, Inc. | PDC Energy, Inc. | 2.4% |
| Matador Resources Co. | Matador Resources Co. | 2.3% |
| Halozyme Therapeutics, Inc. | Halozyme Therapeutics, Inc. | 2.2% |
| Murphy USA, Inc. | Murphy USA, Inc. | 2.2% |
| Range Resources Corp. | Range Resources Corp. | 2.1% |
| Kinsale Capital Group, Inc. | Kinsale Capital Group, Inc. | 2.0% |
| Celsius Holdings, Inc. | Celsius Holdings, Inc. | 2.0% |
| Top Ten Total | Top Ten Total | 23.3% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

24 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,**†</sup>

![](fp0081230-3_25.jpg)

**Average Annual Returns\***<sup>**,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| S&P MidCap 400<sup>®</sup> Pure Growth Fund  | (22.62%)  | 2.17%  | 6.15%  |
| S&P MidCap 400 Pure Growth Index  | (21.48%)  | 3.85%  | 7.88%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Pure Growth Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 25

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **S&P MIDCAP 400<sup>®</sup>** **PURE GROWTH FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.3%** | **COMMON STOCKS<sup>†</sup>** **- 99.3%** | **COMMON STOCKS<sup>†</sup>** **- 99.3%** |
| **Consumer, Non-cyclical - 25.0%** | **Consumer, Non-cyclical - 25.0%** | **Consumer, Non-cyclical - 25.0%** |
| &nbsp;&nbsp;&nbsp;Halozyme Therapeutics, Inc.\* | 4567 | $259862 |
| &nbsp;&nbsp;&nbsp;Celsius Holdings, Inc.\* | 2259 | 235026 |
| &nbsp;&nbsp;&nbsp;Shockwave Medical, Inc.\* | 1127 | 231723 |
| &nbsp;&nbsp;&nbsp;Neurocrine Biosciences, Inc.\* | 1939 | 231594 |
| &nbsp;&nbsp;&nbsp;Grand Canyon Education, Inc.\* | 1694 | 178988 |
| &nbsp;&nbsp;&nbsp;Darling Ingredients, Inc.\* | 2525 | 158040 |
| &nbsp;&nbsp;&nbsp;Inari Medical, Inc.\* | 2413 | 153370 |
| &nbsp;&nbsp;&nbsp;Avis Budget Group, Inc.\* | 867 | 142127 |
| &nbsp;&nbsp;&nbsp;Medpace Holdings, Inc.\* | 668 | 141890 |
| &nbsp;&nbsp;&nbsp;Jazz Pharmaceuticals plc\* | 859 | 136847 |
| &nbsp;&nbsp;&nbsp;Option Care Health, Inc.\* | 3971 | 119488 |
| &nbsp;&nbsp;&nbsp;H&R Block, Inc. | 2868 | 104711 |
| &nbsp;&nbsp;&nbsp;Lantheus Holdings, Inc.\* | 1966 | 100187 |
| &nbsp;&nbsp;&nbsp;FTI Consulting, Inc.\* | 620 | 98456 |
| &nbsp;&nbsp;&nbsp;Repligen Corp.\* | 557 | 94306 |
| &nbsp;&nbsp;&nbsp;Lancaster Colony Corp. | 475 | 93717 |
| &nbsp;&nbsp;&nbsp;Service Corporation International | 1350 | 93339 |
| &nbsp;&nbsp;&nbsp;United Therapeutics Corp.\* | 335 | 93160 |
| &nbsp;&nbsp;&nbsp;WEX, Inc.\* | 529 | 86571 |
| &nbsp;&nbsp;&nbsp;Exelixis, Inc.\* | 5096 | 81740 |
| &nbsp;&nbsp;&nbsp;Paylocity Holding Corp.\* | 408 | 79258 |
| &nbsp;&nbsp;&nbsp;HealthEquity, Inc.\* | 1139 | 70208 |
| **Total Consumer, Non-cyclical** |  | 2984608 |
| **Energy - 20.3%** | **Energy - 20.3%** | **Energy - 20.3%** |
| &nbsp;&nbsp;&nbsp;PBF Energy, Inc. — Class A | 8874 | 361882 |
| &nbsp;&nbsp;&nbsp;Antero Resources Corp.\* | 9452 | 292918 |
| &nbsp;&nbsp;&nbsp;PDC Energy, Inc. | 4448 | 282359 |
| &nbsp;&nbsp;&nbsp;Matador Resources Co. | 4779 | 273550 |
| &nbsp;&nbsp;&nbsp;Range Resources Corp. | 10041 | 251226 |
| &nbsp;&nbsp;&nbsp;Southwestern Energy Co.\* | 38352 | 224359 |
| &nbsp;&nbsp;&nbsp;CNX Resources Corp.\* | 12654 | 213093 |
| &nbsp;&nbsp;&nbsp;Murphy Oil Corp. | 4715 | 202792 |
| &nbsp;&nbsp;&nbsp;DT Midstream, Inc. | 3581 | 197886 |
| &nbsp;&nbsp;&nbsp;NOV, Inc. | 6354 | 132735 |
| **Total Energy** |  | 2432800 |
| **Industrial - 14.6%** | **Industrial - 14.6%** | **Industrial - 14.6%** |
| &nbsp;&nbsp;&nbsp;Builders FirstSource, Inc.\* | 3320 | 215401 |
| &nbsp;&nbsp;&nbsp;Louisiana-Pacific Corp. | 3304 | 195597 |
| &nbsp;&nbsp;&nbsp;Axon Enterprise, Inc.\* | 1079 | 179039 |
| &nbsp;&nbsp;&nbsp;Landstar System, Inc. | 1024 | 166810 |
| &nbsp;&nbsp;&nbsp;Valmont Industries, Inc. | 466 | 154092 |
| &nbsp;&nbsp;&nbsp;Silgan Holdings, Inc. | 2489 | 129030 |
| &nbsp;&nbsp;&nbsp;Clean Harbors, Inc.\* | 1033 | 117886 |
| &nbsp;&nbsp;&nbsp;Simpson Manufacturing Company, Inc. | 1245 | 110382 |
| &nbsp;&nbsp;&nbsp;EMCOR Group, Inc. | 711 | 105306 |
| &nbsp;&nbsp;&nbsp;Belden, Inc. | 1444 | 103824 |
| &nbsp;&nbsp;&nbsp;Carlisle Companies, Inc. | 425 | 100151 |
| &nbsp;&nbsp;&nbsp;Eagle Materials, Inc. | 658 | 87415 |
| &nbsp;&nbsp;&nbsp;Toro Co. | 752 | 85126 |
| **Total Industrial** |  | 1750059 |
| **Financial - 10.3%** | **Financial - 10.3%** | **Financial - 10.3%** |
| &nbsp;&nbsp;&nbsp;Annaly Capital Management, Inc. REIT | 15568 | 328173 |
| &nbsp;&nbsp;&nbsp;Kinsale Capital Group, Inc. | 903 | 236153 |
| &nbsp;&nbsp;&nbsp;RLI Corp. | 1651 | 216727 |
| &nbsp;&nbsp;&nbsp;Jefferies Financial Group, Inc. | 5567 | 190837 |
| &nbsp;&nbsp;&nbsp;SLM Corp. | 10769 | 178765 |
| &nbsp;&nbsp;&nbsp;Selective Insurance Group, Inc. | 915 | 81078 |
| **Total Financial** |  | 1231733 |
| **Consumer, Cyclical - 9.7%** | **Consumer, Cyclical - 9.7%** | **Consumer, Cyclical - 9.7%** |
| &nbsp;&nbsp;&nbsp;Murphy USA, Inc. | 928 | 259413 |
| &nbsp;&nbsp;&nbsp;Casey's General Stores, Inc. | 750 | 168263 |
| &nbsp;&nbsp;&nbsp;Tempur Sealy International, Inc. | 4071 | 139757 |
| &nbsp;&nbsp;&nbsp;Texas Roadhouse, Inc. — Class A | 1247 | 113415 |
| &nbsp;&nbsp;&nbsp;Deckers Outdoor Corp.\* | 267 | 106576 |
| &nbsp;&nbsp;&nbsp;Crocs, Inc.\* | 980 | 106261 |
| &nbsp;&nbsp;&nbsp;Wingstop, Inc. | 700 | 96334 |
| &nbsp;&nbsp;&nbsp;FirstCash Holdings, Inc. | 1053 | 91516 |
| &nbsp;&nbsp;&nbsp;Visteon Corp.\* | 560 | 73265 |
| **Total Consumer, Cyclical** |  | 1154800 |
| **Technology - 6.2%** | **Technology - 6.2%** | **Technology - 6.2%** |
| &nbsp;&nbsp;&nbsp;Amkor Technology, Inc. | 7266 | 174239 |
| &nbsp;&nbsp;&nbsp;Cirrus Logic, Inc.\* | 1701 | 126690 |
| &nbsp;&nbsp;&nbsp;Concentrix Corp. | 942 | 125437 |
| &nbsp;&nbsp;&nbsp;ExlService Holdings, Inc.\* | 724 | 122667 |
| &nbsp;&nbsp;&nbsp;Fair Isaac Corp.\* | 173 | 103554 |
| &nbsp;&nbsp;&nbsp;KBR, Inc. | 1738 | 91767 |
| **Total Technology** |  | 744354 |
| **Basic Materials - 6.2%** | **Basic Materials - 6.2%** | **Basic Materials - 6.2%** |
| &nbsp;&nbsp;&nbsp;Westlake Corp. | 2041 | 209284 |
| &nbsp;&nbsp;&nbsp;Reliance Steel & Aluminum Co. | 969 | 196164 |
| &nbsp;&nbsp;&nbsp;Olin Corp. | 2238 | 118480 |
| &nbsp;&nbsp;&nbsp;MP Materials Corp.\* | 4453 | 108119 |
| &nbsp;&nbsp;&nbsp;Cabot Corp. | 1581 | 105674 |
| **Total Basic Materials** |  | 737721 |
| **Communications - 3.7%** | **Communications - 3.7%** | **Communications - 3.7%** |
| &nbsp;&nbsp;&nbsp;Nexstar Media Group, Inc. — Class A | 1303 | 228064 |
| &nbsp;&nbsp;&nbsp;World Wrestling Entertainment, Inc. — Class A | 1807 | 123816 |
| &nbsp;&nbsp;&nbsp;Calix, Inc.\* | 1384 | 94707 |
| **Total Communications** |  | 446587 |
| **Utilities - 3.3%** | **Utilities - 3.3%** | **Utilities - 3.3%** |
| &nbsp;&nbsp;&nbsp;Essential Utilities, Inc. | 3370 | 160850 |
| &nbsp;&nbsp;&nbsp;OGE Energy Corp. | 3055 | 120825 |
| &nbsp;&nbsp;&nbsp;ONE Gas, Inc. | 1561 | 118199 |
| **Total Utilities** |  | 399874 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $11,169,052) |  | 11882536 |

---

26 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **S&P MIDCAP 400<sup>®</sup>** **PURE GROWTH FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Face<br> Amount** | **Value** |
| **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.9%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.9%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.9%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26%<br> due 01/03/23 | $58650 | $58650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BofA Securities, Inc.<br> issued 12/30/22 at 4.25%<br> due 01/03/23 | 22558 | 22558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Barclays Capital, Inc.<br> issued 12/30/22 at 4.21%<br> due 01/03/23 | 22488 | 22488 |
| **Total Repurchase Agreements** |  |  |
| (Cost $103,696) |  | 103696 |
| **Total Investments - 100.2%** |  |  |
| (Cost $11,272,748) |  | 11986232 |
| **Other Assets & Liabilities, net - (0.2)%** |  | (24516) |
| **Total Net Assets - 100.0%** |  | 11961716 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;REIT — Real Estate Investment Trust |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $11882536 | $— | $— | $11882536 |
| Repurchase Agreements |  | 103696 |  | 103696 |
| Total Assets | 11882536 | 103696 |  | 11986232 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 27

**S&P MIDCAP 400<sup>®</sup>** **PURE GROWTH FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value (cost $11,169,052) | $11882536 |
| Repurchase agreements, at value (cost $103,696) | 103696 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 16438 |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 7736 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 133 |
| &nbsp;&nbsp;&nbsp;Interest | 25 |
| **Total assets** | 12010564 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Professional fees | 15400 |
| &nbsp;&nbsp;&nbsp;Management fees | 7912 |
| &nbsp;&nbsp;&nbsp;Printing fees | 4106 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 3327 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 2637 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 1635 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 246 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 180 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 13405 |
| **Total liabilities** | 48848 |
| **Net assets** | $11961716 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $12117325 |
| Total distributable earnings (loss) | (155609) |
| Net assets | $11961716 |
| Capital shares outstanding | 416976 |
| Net asset value per share | $28.69 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends | $116471 |
| Interest | 1267 |
| Income from securities lending, net | 4420 |
| &nbsp;&nbsp;&nbsp;Total investment income | 122158 |
| **Expenses:** | **Expenses:** |
| Management fees | 81533 |
| Investor service fees | 27178 |
| Transfer agent fees | 30368 |
| Professional fees | 14560 |
| Portfolio accounting and administration fees | 13921 |
| Trustees' fees\* | 2011 |
| Custodian fees | 1774 |
| Miscellaneous | 10457 |
| &nbsp;&nbsp;&nbsp;Total expenses | 181802 |
| Net investment loss | (59644) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | (498943) |
| Net realized loss | (498943) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (2568310) |
| Net change in unrealized appreciation (depreciation) | (2568310) |
| Net realized and unrealized loss | (3067253) |
| **Net decrease in net assets resulting from operations** | $(3126897) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

28 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**S&P MIDCAP 400<sup>®</sup>** **PURE GROWTH FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment loss | $(59644) | $(245145) |
| Net realized gain (loss) on investments | (498943) | 3317991 |
| Net change in unrealized appreciation (depreciation) on investments | (2568310) | (915982) |
| Net increase (decrease) in net assets resulting from operations | (3126897) | 2156864 |
| Distributions to shareholders | (1815529) | (1506779) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 17135147 | 20285321 |
| Distributions reinvested | 1815529 | 1506779 |
| Cost of shares redeemed | (20679917) | (24678460) |
| Net decrease from capital share transactions | (1729241) | (2886360) |
| Net decrease in net assets | (6671667) | (2236275) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 18633383 | 20869658 |
| &nbsp;&nbsp;&nbsp;End of year | $11961716 | $18633383 |
| **Capital share activity:** |  |  |
| Shares sold | 551564 | 419578 |
| Shares issued from reinvestment of distributions | 63748 | 32935 |
| Shares redeemed | (596185) | (515218) |
| Net increase (decrease) in shares | 19127 | (62705) |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 29

**S&P MIDCAP 400<sup>®</sup>** **PURE GROWTH FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December <br> 31, <br> 2022** | **Year Ended <br> December <br> 31, <br> 2021** | **Year Ended <br> December <br> 31, <br> 2020** | **Year Ended <br> December <br> 31, <br> 2019** | **Year Ended <br> December <br> 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $46.84 | $45.31 | $36.17 | $31.34 | $39.31 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | (.19) | (.59) | (.41) | (.27) | (.28) |
| Net gain (loss) on investments (realized and unrealized) | (10.46) | 6.04 | 11.04 | 5.10 | (4.97) |
| Total from investment operations | (10.65) | 5.45 | 10.63 | 4.83 | (5.25) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net realized gains | (7.50) | (3.92) | (1.49) |  | (2.72) |
| Total distributions | (7.50) | (3.92) | (1.49) |  | (2.72) |
| Net asset value, end of period | $28.69 | $46.84 | $45.31 | $36.17 | $31.34 |
| **Total Return<sup>b</sup>** | **(22.62** **%)** | **12.21%** | **30.47%** | **15.41%** | **(14.83** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $11962 | $18633 | $20870 | $12738 | $14210 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | (0.55%) | (1.23%) | (1.13%) | (0.77%) | (0.72%) |
| Total expenses | 1.67% | 1.60% | 1.72% | 1.73% | 1.62% |
| Portfolio turnover rate | 227% | 159% | 204% | 176% | 183% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

30 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**S&P MIDCAP 400<sup>®</sup>** **PURE VALUE FUND** 

**OBJECTIVE:** Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for mid-cap value securities on a daily basis. The Fund's current benchmark is the S&P MidCap 400<sup>®</sup> Pure Value Index (the "underlying index").

For the Reporting Period, S&P MidCap 400<sup>®</sup> Pure Value Fund returned -5.22%, compared with a return of -3.56% for the underlying index. The Fund maintained a daily correlation of over 99% to its benchmark for the period.

The Energy sector contributed the most to the return of the underlying index for the Reporting Period, followed by the Financials and the Materials sectors. Consumer Discretionary, Health Care, and Real Estate were sectors detracting the most from the return of the underlying index.

Unum Group, HF Sinclair Corp., and Reinsurance Group of America, Inc. - Class A added the most to return of the underlying index for the Reporting Period. Kohl's Corp., Goodyear Tire & Rubber Co., and Xerox Holdings Corp. detracted the most from performance of the underlying index.

**Performance displayed represents past performance, which is no guarantee of future results.** 

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-3_31.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** May 3, 2004<br>

---

| | | |
|:---|:---|:---|
| **Ten Largest Holdings**  | **(% of Total Net Assets)** | **(% of Total Net Assets)** |
| Goodyear Tire & Rubber Co. | Goodyear Tire & Rubber Co. | 3.1% |
| United States Steel Corp. | United States Steel Corp. | 3.0% |
| Brighthouse Financial, Inc. | Brighthouse Financial, Inc. | 2.7% |
| Taylor Morrison Home Corp. — Class A | Taylor Morrison Home Corp. — Class A | 2.7% |
| KB Home | KB Home | 2.6% |
| Cleveland-Cliffs, Inc. | Cleveland-Cliffs, Inc. | 2.4% |
| Kohl's Corp. | Kohl's Corp. | 2.4% |
| Avnet, Inc. | Avnet, Inc. | 2.3% |
| PVH Corp. | PVH Corp. | 2.2% |
| Arrow Electronics, Inc. | Arrow Electronics, Inc. | 2.1% |
| Top Ten Total | Top Ten Total | 25.5% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 31

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-3_32.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| S&P MidCap 400<sup>®</sup> Pure Value Fund  | (5.22%)  | 5.80%  | 9.46%  |
| S&P MidCap 400 Pure Value Index  | (3.56%)  | 7.69%  | 11.45%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Pure Value Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

32 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **S&P MIDCAP 400<sup>®</sup>** **PURE VALUE FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.9%** | **COMMON STOCKS<sup>†</sup>** **- 99.9%** | **COMMON STOCKS<sup>†</sup>** **- 99.9%** |
| **Consumer, Cyclical - 34.9%** | **Consumer, Cyclical - 34.9%** | **Consumer, Cyclical - 34.9%** |
| &nbsp;&nbsp;&nbsp;Goodyear Tire & Rubber Co.\* | 36485 | $370323 |
| &nbsp;&nbsp;&nbsp;Taylor Morrison Home Corp. — Class A\* | 10583 | 321194 |
| &nbsp;&nbsp;&nbsp;KB Home | 9797 | 312034 |
| &nbsp;&nbsp;&nbsp;Kohl's Corp. | 11423 | 288431 |
| &nbsp;&nbsp;&nbsp;PVH Corp. | 3736 | 263724 |
| &nbsp;&nbsp;&nbsp;Thor Industries, Inc. | 3277 | 247381 |
| &nbsp;&nbsp;&nbsp;JetBlue Airways Corp.\* | 37676 | 244141 |
| &nbsp;&nbsp;&nbsp;Lithia Motors, Inc. — Class A | 1180 | 241593 |
| &nbsp;&nbsp;&nbsp;Foot Locker, Inc. | 6237 | 235696 |
| &nbsp;&nbsp;&nbsp;Macy's, Inc. | 9815 | 202680 |
| &nbsp;&nbsp;&nbsp;Toll Brothers, Inc. | 4051 | 202226 |
| &nbsp;&nbsp;&nbsp;Adient plc\* | 5495 | 190621 |
| &nbsp;&nbsp;&nbsp;Dana, Inc. | 12491 | 188989 |
| &nbsp;&nbsp;&nbsp;Univar Solutions, Inc.\* | 4849 | 154198 |
| &nbsp;&nbsp;&nbsp;Gap, Inc. | 13279 | 149787 |
| &nbsp;&nbsp;&nbsp;Hanesbrands, Inc. | 23528 | 149638 |
| &nbsp;&nbsp;&nbsp;Nordstrom, Inc. | 8614 | 139030 |
| &nbsp;&nbsp;&nbsp;Lear Corp. | 1013 | 125632 |
| &nbsp;&nbsp;&nbsp;Topgolf Callaway Brands Corp.\* | 5195 | 102601 |
| &nbsp;&nbsp;&nbsp;Skechers USA, Inc. — Class A\* | 1530 | 64184 |
| **Total Consumer, Cyclical** |  | 4194103 |
| **Financial - 23.0%** | **Financial - 23.0%** | **Financial - 23.0%** |
| &nbsp;&nbsp;&nbsp;Brighthouse Financial, Inc.\* | 6275 | 321719 |
| &nbsp;&nbsp;&nbsp;Park Hotels & Resorts, Inc. REIT | 15638 | 184372 |
| &nbsp;&nbsp;&nbsp;Navient Corp. | 10803 | 177709 |
| &nbsp;&nbsp;&nbsp;Unum Group | 4242 | 174049 |
| &nbsp;&nbsp;&nbsp;New York Community Bancorp, Inc. | 16752 | 144067 |
| &nbsp;&nbsp;&nbsp;Jones Lang LaSalle, Inc.\* | 891 | 141999 |
| &nbsp;&nbsp;&nbsp;SL Green Realty Corp. REIT | 3832 | 129215 |
| &nbsp;&nbsp;&nbsp;First American Financial Corp. | 2372 | 124150 |
| &nbsp;&nbsp;&nbsp;Pebblebrook Hotel Trust REIT | 9257 | 123951 |
| &nbsp;&nbsp;&nbsp;Old Republic International Corp. | 4271 | 103145 |
| &nbsp;&nbsp;&nbsp;PacWest Bancorp | 4264 | 97859 |
| &nbsp;&nbsp;&nbsp;Cousins Properties, Inc. REIT | 3747 | 94762 |
| &nbsp;&nbsp;&nbsp;MGIC Investment Corp. | 7224 | 93912 |
| &nbsp;&nbsp;&nbsp;Janus Henderson Group plc | 3920 | 92199 |
| &nbsp;&nbsp;&nbsp;Medical Properties Trust, Inc. REIT | 8161 | 90914 |
| &nbsp;&nbsp;&nbsp;JBG SMITH Properties REIT | 4292 | 81462 |
| &nbsp;&nbsp;&nbsp;Kemper Corp. | 1603 | 78868 |
| &nbsp;&nbsp;&nbsp;CNO Financial Group, Inc. | 3377 | 77164 |
| &nbsp;&nbsp;&nbsp;Essent Group Ltd. | 1976 | 76827 |
| &nbsp;&nbsp;&nbsp;FNB Corp. | 5775 | 75363 |
| &nbsp;&nbsp;&nbsp;Associated Banc-Corp. | 3232 | 74627 |
| &nbsp;&nbsp;&nbsp;Reinsurance Group of America, Inc. — Class A | 508 | 72182 |
| &nbsp;&nbsp;&nbsp;Kilroy Realty Corp. REIT | 1849 | 71501 |
| &nbsp;&nbsp;&nbsp;Sabra Health Care REIT, Inc. | 4826 | 59987 |
| **Total Financial** |  | 2762003 |
| **Industrial - 16.5%** | **Industrial - 16.5%** | **Industrial - 16.5%** |
| &nbsp;&nbsp;&nbsp;Avnet, Inc. | 6801 | 282786 |
| &nbsp;&nbsp;&nbsp;Arrow Electronics, Inc.\* | 2448 | 255987 |
| &nbsp;&nbsp;&nbsp;TD SYNNEX Corp. | 2567 | 243120 |
| &nbsp;&nbsp;&nbsp;Ryder System, Inc. | 2260 | 188868 |
| &nbsp;&nbsp;&nbsp;XPO, Inc.\* | 5523 | 183861 |
| &nbsp;&nbsp;&nbsp;Enovis Corp.\* | 3073 | 164467 |
| &nbsp;&nbsp;&nbsp;Jabil, Inc. | 2375 | 161975 |
| &nbsp;&nbsp;&nbsp;RXO, Inc.\* | 7977 | 137204 |
| &nbsp;&nbsp;&nbsp;Fluor Corp.\* | 3401 | 117879 |
| &nbsp;&nbsp;&nbsp;Greif, Inc. — Class A | 1584 | 106223 |
| &nbsp;&nbsp;&nbsp;Coherent Corp.\* | 2391 | 83924 |
| &nbsp;&nbsp;&nbsp;Vishay Intertechnology, Inc. | 2826 | 60957 |
| **Total Industrial** |  | 1987251 |
| **Consumer, Non-cyclical - 11.1%** | **Consumer, Non-cyclical - 11.1%** | **Consumer, Non-cyclical - 11.1%** |
| &nbsp;&nbsp;&nbsp;ManpowerGroup, Inc. | 2470 | 205529 |
| &nbsp;&nbsp;&nbsp;Graham Holdings Co. — Class B | 309 | 186701 |
| &nbsp;&nbsp;&nbsp;Tenet Healthcare Corp.\* | 3825 | 186622 |
| &nbsp;&nbsp;&nbsp;Syneos Health, Inc.\* | 4896 | 179585 |
| &nbsp;&nbsp;&nbsp;Pilgrim's Pride Corp.\* | 7353 | 174487 |
| &nbsp;&nbsp;&nbsp;Perrigo Company plc | 3542 | 120747 |
| &nbsp;&nbsp;&nbsp;Patterson Companies, Inc. | 3998 | 112064 |
| &nbsp;&nbsp;&nbsp;GXO Logistics, Inc.\* | 2170 | 92637 |
| &nbsp;&nbsp;&nbsp;Post Holdings, Inc.\* | 794 | 71666 |
| **Total Consumer, Non-cyclical** |  | 1330038 |
| **Basic Materials - 6.9%** | **Basic Materials - 6.9%** | **Basic Materials - 6.9%** |
| &nbsp;&nbsp;&nbsp;United States Steel Corp. | 14580 | 365229 |
| &nbsp;&nbsp;&nbsp;Cleveland-Cliffs, Inc.\* | 18062 | 290979 |
| &nbsp;&nbsp;&nbsp;Avient Corp. | 2897 | 97803 |
| &nbsp;&nbsp;&nbsp;Alcoa Corp. | 1763 | 80163 |
| **Total Basic Materials** |  | 834174 |
| **Technology - 4.6%** | **Technology - 4.6%** | **Technology - 4.6%** |
| &nbsp;&nbsp;&nbsp;Xerox Holdings Corp. | 13693 | 199918 |
| &nbsp;&nbsp;&nbsp;NCR Corp.\* | 6817 | 159586 |
| &nbsp;&nbsp;&nbsp;Kyndryl Holdings, Inc.\* | 10934 | 121586 |
| &nbsp;&nbsp;&nbsp;MKS Instruments, Inc. | 934 | 79138 |
| **Total Technology** |  | 560228 |
| **Communications - 1.5%** | **Communications - 1.5%** | **Communications - 1.5%** |
| &nbsp;&nbsp;&nbsp;Viasat, Inc.\* | 3484 | 110269 |
| &nbsp;&nbsp;&nbsp;Frontier Communications Parent, Inc.\* | 2828 | 72057 |
| **Total Communications** |  | 182326 |
| **Utilities - 1.4%** | **Utilities - 1.4%** | **Utilities - 1.4%** |
| &nbsp;&nbsp;&nbsp;UGI Corp. | 2663 | 98717 |
| &nbsp;&nbsp;&nbsp;Southwest Gas Holdings, Inc. | 1110 | 68687 |
| **Total Utilities** |  | 167404 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $10,892,789) |  | 12017527 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 33

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **S&P MIDCAP 400<sup>®</sup>** **PURE VALUE FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Face<br> Amount** | **Value** |
| **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.8%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.8%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.8%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26%<br> due 01/03/23 | $52983 | $52983 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BofA Securities, Inc.<br> issued 12/30/22 at 4.25%<br> due 01/03/23 | 20378 | 20378 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Barclays Capital, Inc.<br> issued 12/30/22 at 4.21%<br> due 01/03/23 | 20315 | 20315 |
| **Total Repurchase Agreements** |  |  |
| (Cost $93,676) |  | 93676 |
| **Total Investments - 100.7%** |  |  |
| (Cost $10,986,465) |  | 12111203 |
| **Other Assets & Liabilities, net - (0.7)%** |  | (84270) |
| **Total Net Assets - 100.0%** |  | 12026933 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;REIT — Real Estate Investment Trust |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $12017527 | $— | $— | $12017527 |
| Repurchase Agreements |  | 93676 |  | 93676 |
| Total Assets | 12017527 | 93676 |  | 12111203 |

---

34 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**S&P MIDCAP 400<sup>®</sup>** **PURE VALUE FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value (cost $10,892,789) | $12017527 |
| Repurchase agreements, at value (cost $93,676) | 93676 |
| Cash | 158 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 33175 |
| &nbsp;&nbsp;&nbsp;Dividends | 20348 |
| &nbsp;&nbsp;&nbsp;Interest | 22 |
| **Total assets** | 12164907 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 88244 |
| &nbsp;&nbsp;&nbsp;Professional fees | 16332 |
| &nbsp;&nbsp;&nbsp;Management fees | 8102 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 3302 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 2701 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 1674 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 184 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 17434 |
| **Total liabilities** | 137973 |
| **Net assets** | $12026933 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $12129112 |
| Total distributable earnings (loss) | (102179) |
| Net assets | $12026933 |
| Capital shares outstanding | 302028 |
| Net asset value per share | $39.82 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends | $263909 |
| Interest | 1274 |
| Income from securities lending, net | 32 |
| &nbsp;&nbsp;&nbsp;Total investment income | 265215 |
| **Expenses:** | **Expenses:** |
| Management fees | 86468 |
| Investor service fees | 28823 |
| Transfer agent fees | 31542 |
| Portfolio accounting and administration fees | 14524 |
| Professional fees | 11990 |
| Custodian fees | 1839 |
| Trustees' fees\* | 1778 |
| Line of credit fees | 39 |
| Miscellaneous | 15810 |
| &nbsp;&nbsp;&nbsp;Total expenses | 192813 |
| Net investment income | 72402 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | 765784 |
| Net realized gain | 765784 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (1830286) |
| Net change in unrealized appreciation (depreciation) | (1830286) |
| Net realized and unrealized loss | (1064502) |
| **Net decrease in net assets resulting from operations** | $(992100) |

---

Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 35

**S&P MIDCAP 400<sup>®</sup>** **PURE VALUE FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income | $72402 | $93902 |
| Net realized gain on investments | 765784 | 3513107 |
| Net change in unrealized appreciation (depreciation) on investments | (1830286) | 586919 |
| Net increase (decrease) in net assets resulting from operations | (992100) | 4193928 |
| Distributions to shareholders | (2170124) | (658976) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 26473593 | 39150976 |
| Distributions reinvested | 2170124 | 658976 |
| Cost of shares redeemed | (27277080) | (45890561) |
| Net increase (decrease) from capital share transactions | 1366637 | (6080609) |
| Net decrease in net assets | (1795587) | (2545657) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 13822520 | 16368177 |
| &nbsp;&nbsp;&nbsp;End of year | $12026933 | $13822520 |
| **Capital share activity:** |  |  |
| Shares sold | 582545 | 749306 |
| Shares issued from reinvestment of distributions | 57335 | 12876 |
| Shares redeemed | (590394) | (888216) |
| Net increase (decrease) in shares | 49486 | (126034) |

---

36 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**S&P MIDCAP 400<sup>®</sup>** **PURE VALUE FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December <br> 31, <br> 2022** | **Year Ended <br> December <br> 31, <br> 2021** | **Year Ended <br> December <br> 31, <br> 2020** | **Year Ended <br> December <br> 31, <br> 2019** | **Year Ended <br> December <br> 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $54.73 | $43.24 | $42.15 | $34.42 | $49.79 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .29 | .26 | .09 | .14 | (.01) |
| Net gain (loss) on investments (realized and unrealized) | (3.74) | 13.11 | 2.49 | 7.59 | (7.95) |
| Total from investment operations | (3.45) | 13.37 | 2.58 | 7.73 | (7.96) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income | (.55) | (.04) | (.15) |  |  |
| Net realized gains | (10.91) | (1.84) | (1.34) |  | (7.41) |
| Total distributions | (11.46) | (1.88) | (1.49) |  | (7.41) |
| Net asset value, end of period | $39.82 | $54.73 | $43.24 | $42.15 | $34.42 |
| **Total Return<sup>b</sup>** | **(5.22** **%)** | **31.25%** | **7.42%** | **22.46%** | **(18.98** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $12027 | $13823 | $16368 | $9418 | $8985 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.63% | 0.49% | 0.27% | 0.35% | (0.03%) |
| Total expenses | 1.67% | 1.59% | 1.72% | 1.73% | 1.62% |
| Portfolio turnover rate | 257% | 216% | 320% | 188% | 145% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 37

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**S&P SMALLCAP 600<sup>®</sup>** **PURE GROWTH FUND** 

**OBJECTIVE:** Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for small-cap growth securities on a daily basis. The Fund's current benchmark is the S&P SmallCap 600<sup>®</sup> Pure Growth Index (the "underlying index").

For the Reporting Period, S&P SmallCap 600<sup>®</sup> Pure Growth Fund return was -29.90%, compared with a return of -28.77% for the underlying index. The Fund maintained a daily correlation of over 99% to its benchmark for the period.

The Energy, Consumer Staples, and Utilities sectors contributed the most to the return of the underlying index for the Reporting Period. Financials, Health Care, and Consumer Discretionary were sectors detracting most from the return of the underlying index.

The best-performing stocks of the underlying index for the Reporting Period were Dorian LPG, Ltd., Celsius Holdings, Inc., and Matador Resources Co. The weakest performers of the underlying index were Fulgent Genetics, Inc., Customers Bancorp, Inc., and B. Riley Financial, Inc.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-3_38.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** May 3, 2004<br>

---

| | | |
|:---|:---|:---|
| **Ten Largest Holdings**  | **(% of Total Net Assets)** | **(% of Total Net Assets)** |
| iTeos Therapeutics, Inc. | iTeos Therapeutics, Inc. | 2.0% |
| Vir Biotechnology, Inc. | Vir Biotechnology, Inc. | 1.9% |
| Catalyst Pharmaceuticals, Inc. | Catalyst Pharmaceuticals, Inc. | 1.7% |
| SM Energy Co. | SM Energy Co. | 1.6% |
| ARMOUR Residential REIT, Inc. | ARMOUR Residential REIT, Inc. | 1.6% |
| REX American Resources Corp. | REX American Resources Corp. | 1.6% |
| Axcelis Technologies, Inc. | Axcelis Technologies, Inc. | 1.6% |
| Civitas Resources, Inc. | Civitas Resources, Inc. | 1.5% |
| Cytokinetics, Inc. | Cytokinetics, Inc. | 1.4% |
| Cross Country Healthcare, Inc. | Cross Country Healthcare, Inc. | 1.4% |
| Top Ten Total | Top Ten Total | 16.3% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

38 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-3_39.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| S&P SmallCap 600<sup>®</sup> Pure Growth Fund  | (29.90%)  | (0.20%)  | 6.74%  |
| S&P SmallCap 600 Pure Growth Index  | (28.77%)  | 1.63%  | 8.65%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P SmallCap 600 Pure Growth Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 39

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **S&P SMALLCAP 600<sup>®</sup>** **PURE GROWTH FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.6%** | **COMMON STOCKS<sup>†</sup>** **- 99.6%** | **COMMON STOCKS<sup>†</sup>** **- 99.6%** |
| **Consumer, Non-cyclical - 28.2%** | **Consumer, Non-cyclical - 28.2%** | **Consumer, Non-cyclical - 28.2%** |
| &nbsp;&nbsp;&nbsp;iTeos Therapeutics, Inc.\* | 6057 | $118293 |
| &nbsp;&nbsp;&nbsp;Vir Biotechnology, Inc.\* | 4349 | 110073 |
| &nbsp;&nbsp;&nbsp;Catalyst Pharmaceuticals, Inc.\* | 5278 | 98171 |
| &nbsp;&nbsp;&nbsp;Cytokinetics, Inc.\* | 1837 | 84171 |
| &nbsp;&nbsp;&nbsp;Cross Country Healthcare, Inc.\* | 3145 | 83563 |
| &nbsp;&nbsp;&nbsp;Zynex, Inc. | 5193 | 72234 |
| &nbsp;&nbsp;&nbsp;AMN Healthcare Services, Inc.\* | 658 | 67655 |
| &nbsp;&nbsp;&nbsp;Dynavax Technologies Corp.\* | 6324 | 67288 |
| &nbsp;&nbsp;&nbsp;Cal-Maine Foods, Inc. | 1151 | 62672 |
| &nbsp;&nbsp;&nbsp;Meridian Bioscience, Inc.\* | 1866 | 61970 |
| &nbsp;&nbsp;&nbsp;Ensign Group, Inc. | 609 | 57618 |
| &nbsp;&nbsp;&nbsp;Adtalem Global Education, Inc.\* | 1588 | 56374 |
| &nbsp;&nbsp;&nbsp;elf Beauty, Inc.\* | 982 | 54305 |
| &nbsp;&nbsp;&nbsp;Simply Good Foods Co.\* | 1388 | 52786 |
| &nbsp;&nbsp;&nbsp;MGP Ingredients, Inc. | 490 | 52126 |
| &nbsp;&nbsp;&nbsp;Innoviva, Inc.\* | 3849 | 50999 |
| &nbsp;&nbsp;&nbsp;REGENXBIO, Inc.\* | 2242 | 50849 |
| &nbsp;&nbsp;&nbsp;uniQure N.V.\* | 1991 | 45136 |
| &nbsp;&nbsp;&nbsp;Amphastar Pharmaceuticals, Inc.\* | 1598 | 44776 |
| &nbsp;&nbsp;&nbsp;AdaptHealth Corp.\* | 2104 | 40439 |
| &nbsp;&nbsp;&nbsp;Supernus Pharmaceuticals, Inc.\* | 1133 | 40414 |
| &nbsp;&nbsp;&nbsp;Corcept Therapeutics, Inc.\* | 1973 | 40072 |
| &nbsp;&nbsp;&nbsp;Tootsie Roll Industries, Inc. | 891 | 37930 |
| &nbsp;&nbsp;&nbsp;Stride, Inc.\* | 1106 | 34596 |
| &nbsp;&nbsp;&nbsp;Medifast, Inc. | 286 | 32990 |
| &nbsp;&nbsp;&nbsp;Arcus Biosciences, Inc.\* | 1346 | 27835 |
| &nbsp;&nbsp;&nbsp;Collegium Pharmaceutical, Inc.\* | 1138 | 26401 |
| &nbsp;&nbsp;&nbsp;Hostess Brands, Inc.\* | 1137 | 25514 |
| &nbsp;&nbsp;&nbsp;Xencor, Inc.\* | 909 | 23670 |
| &nbsp;&nbsp;&nbsp;Addus HomeCare Corp.\* | 237 | 23579 |
| &nbsp;&nbsp;&nbsp;Pacira BioSciences, Inc.\* | 509 | 19652 |
| &nbsp;&nbsp;&nbsp;Ligand Pharmaceuticals Inc\*<sup>,††</sup> | 169 |  |
| &nbsp;&nbsp;&nbsp;Ligand Pharmaceuticals Inc\*<sup>,††</sup> | 169 |  |
| **Total Consumer, Non-cyclical** |  | 1664151 |
| **Industrial - 20.0%** | **Industrial - 20.0%** | **Industrial - 20.0%** |
| &nbsp;&nbsp;&nbsp;Encore Wire Corp. | 584 | 80335 |
| &nbsp;&nbsp;&nbsp;Matson, Inc. | 1242 | 77638 |
| &nbsp;&nbsp;&nbsp;Boise Cascade Co. | 1054 | 72378 |
| &nbsp;&nbsp;&nbsp;Dorian LPG Ltd. | 3716 | 70418 |
| &nbsp;&nbsp;&nbsp;Advanced Energy Industries, Inc. | 797 | 68366 |
| &nbsp;&nbsp;&nbsp;UFP Industries, Inc. | 805 | 63796 |
| &nbsp;&nbsp;&nbsp;Mueller Industries, Inc. | 974 | 57466 |
| &nbsp;&nbsp;&nbsp;Comfort Systems USA, Inc. | 494 | 56849 |
| &nbsp;&nbsp;&nbsp;Lindsay Corp. | 342 | 55695 |
| &nbsp;&nbsp;&nbsp;PGT Innovations, Inc.\* | 2736 | 49139 |
| &nbsp;&nbsp;&nbsp;Myers Industries, Inc. | 2206 | 49039 |
| &nbsp;&nbsp;&nbsp;Forward Air Corp. | 461 | 48354 |
| &nbsp;&nbsp;&nbsp;Marten Transport Ltd. | 2393 | 47334 |
| &nbsp;&nbsp;&nbsp;Fabrinet\* | 352 | 45134 |
| &nbsp;&nbsp;&nbsp;AAON, Inc. | 594 | 44740 |
| &nbsp;&nbsp;&nbsp;NV5 Global, Inc.\* | 271 | 35859 |
| &nbsp;&nbsp;&nbsp;Plexus Corp.\* | 345 | 35511 |
| &nbsp;&nbsp;&nbsp;EnPro Industries, Inc. | 306 | 33259 |
| &nbsp;&nbsp;&nbsp;Applied Industrial Technologies, Inc. | 249 | 31381 |
| &nbsp;&nbsp;&nbsp;CTS Corp. | 714 | 28146 |
| &nbsp;&nbsp;&nbsp;Badger Meter, Inc. | 257 | 28021 |
| &nbsp;&nbsp;&nbsp;Aerojet Rocketdyne Holdings, Inc.\* | 469 | 26231 |
| &nbsp;&nbsp;&nbsp;Hillenbrand, Inc. | 603 | 25730 |
| &nbsp;&nbsp;&nbsp;Franklin Electric Company, Inc. | 321 | 25600 |
| &nbsp;&nbsp;&nbsp;AeroVironment, Inc.\* | 286 | 24499 |
| **Total Industrial** |  | 1180918 |
| **Financial - 16.4%** | **Financial - 16.4%** | **Financial - 16.4%** |
| &nbsp;&nbsp;&nbsp;ARMOUR Residential REIT, Inc. | 16625 | 93599 |
| &nbsp;&nbsp;&nbsp;StoneX Group, Inc.\* | 845 | 80528 |
| &nbsp;&nbsp;&nbsp;Mr Cooper Group, Inc.\* | 1947 | 78133 |
| &nbsp;&nbsp;&nbsp;OFG Bancorp | 2301 | 63416 |
| &nbsp;&nbsp;&nbsp;St. Joe Co. | 1281 | 49511 |
| &nbsp;&nbsp;&nbsp;Piper Sandler Cos. | 379 | 49342 |
| &nbsp;&nbsp;&nbsp;Hanmi Financial Corp. | 1968 | 48708 |
| &nbsp;&nbsp;&nbsp;Blucora, Inc.\* | 1803 | 46031 |
| &nbsp;&nbsp;&nbsp;First BanCorp | 3566 | 45360 |
| &nbsp;&nbsp;&nbsp;Marcus & Millichap, Inc. | 1160 | 39962 |
| &nbsp;&nbsp;&nbsp;Palomar Holdings, Inc.\* | 852 | 38476 |
| &nbsp;&nbsp;&nbsp;Dime Community Bancshares, Inc. | 1186 | 37750 |
| &nbsp;&nbsp;&nbsp;Preferred Bank/Los Angeles CA | 502 | 37459 |
| &nbsp;&nbsp;&nbsp;Stellar Bancorp, Inc. | 1251 | 36854 |
| &nbsp;&nbsp;&nbsp;BancFirst Corp. | 397 | 35008 |
| &nbsp;&nbsp;&nbsp;NBT Bancorp, Inc. | 771 | 33477 |
| &nbsp;&nbsp;&nbsp;City Holding Co. | 320 | 29789 |
| &nbsp;&nbsp;&nbsp;ServisFirst Bancshares, Inc. | 396 | 27288 |
| &nbsp;&nbsp;&nbsp;Heritage Financial Corp. | 870 | 26657 |
| &nbsp;&nbsp;&nbsp;Bancorp, Inc.\* | 919 | 26081 |
| &nbsp;&nbsp;&nbsp;Banner Corp. | 351 | 22183 |
| &nbsp;&nbsp;&nbsp;CVB Financial Corp. | 856 | 22042 |
| **Total Financial** |  | 967654 |
| **Technology - 10.8%** | **Technology - 10.8%** | **Technology - 10.8%** |
| &nbsp;&nbsp;&nbsp;Axcelis Technologies, Inc.\* | 1154 | 91581 |
| &nbsp;&nbsp;&nbsp;Rambus, Inc.\* | 1939 | 69455 |
| &nbsp;&nbsp;&nbsp;Kulicke & Soffa Industries, Inc. | 1286 | 56918 |
| &nbsp;&nbsp;&nbsp;Photronics, Inc.\* | 3307 | 55657 |
| &nbsp;&nbsp;&nbsp;Alpha & Omega Semiconductor Ltd.\* | 1590 | 45426 |
| &nbsp;&nbsp;&nbsp;Agilysys, Inc.\* | 455 | 36009 |
| &nbsp;&nbsp;&nbsp;Progress Software Corp. | 674 | 34003 |
| &nbsp;&nbsp;&nbsp;Digi International, Inc.\* | 849 | 31031 |
| &nbsp;&nbsp;&nbsp;Diodes, Inc.\* | 405 | 30837 |
| &nbsp;&nbsp;&nbsp;Veradigm, Inc.\* | 1730 | 30517 |
| &nbsp;&nbsp;&nbsp;Onto Innovation, Inc.\* | 433 | 29483 |
| &nbsp;&nbsp;&nbsp;NextGen Healthcare, Inc.\* | 1392 | 26142 |
| &nbsp;&nbsp;&nbsp;MaxLinear, Inc. — Class A\* | 769 | 26108 |
| &nbsp;&nbsp;&nbsp;Veeco Instruments, Inc.\* | 1405 | 26105 |
| &nbsp;&nbsp;&nbsp;NetScout Systems, Inc.\* | 685 | 22270 |
| &nbsp;&nbsp;&nbsp;SPS Commerce, Inc.\* | 173 | 22218 |
| **Total Technology** |  | 633760 |
| **Energy - 8.0%** | **Energy - 8.0%** | **Energy - 8.0%** |
| &nbsp;&nbsp;&nbsp;SM Energy Co. | 2695 | 93867 |
| &nbsp;&nbsp;&nbsp;REX American Resources Corp.\* | 2937 | 93573 |
| &nbsp;&nbsp;&nbsp;Civitas Resources, Inc. | 1538 | 89096 |

---

40 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **S&P SMALLCAP 600<sup>®</sup>** **PURE GROWTH FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;Laredo Petroleum, Inc.\* | 1543 | $| 79341 |
| &nbsp;&nbsp;&nbsp;Ranger Oil Corp. — Class A | 1348 |  | 54500 |
| &nbsp;&nbsp;&nbsp;CONSOL Energy, Inc. | 476 |  | 30940 |
| &nbsp;&nbsp;&nbsp;RPC, Inc. | 3197 |  | 28421 |
| **Total Energy** |  |  | 469738 |
| **Consumer, Cyclical - 6.9%** | **Consumer, Cyclical - 6.9%** | **Consumer, Cyclical - 6.9%** | **Consumer, Cyclical - 6.9%** |
| &nbsp;&nbsp;&nbsp;Green Brick Partners, Inc.\* | 2852 |  | 69104 |
| &nbsp;&nbsp;&nbsp;Monarch Casino & Resort, Inc.\* | 839 |  | 64511 |
| &nbsp;&nbsp;&nbsp;Titan International, Inc.\* | 3906 |  | 59840 |
| &nbsp;&nbsp;&nbsp;XPEL, Inc.\* | 824 |  | 49489 |
| &nbsp;&nbsp;&nbsp;Jack in the Box, Inc. | 694 |  | 47352 |
| &nbsp;&nbsp;&nbsp;Cavco Industries, Inc.\* | 202 |  | 45702 |
| &nbsp;&nbsp;&nbsp;Ethan Allen Interiors, Inc. | 1360 |  | 35931 |
| &nbsp;&nbsp;&nbsp;Sun Country Airlines Holdings, Inc.\* | 2243 |  | 35574 |
| **Total Consumer, Cyclical** |  |  | 407503 |
| **Communications - 4.5%** | **Communications - 4.5%** | **Communications - 4.5%** | **Communications - 4.5%** |
| &nbsp;&nbsp;&nbsp;Clearfield, Inc.\* | 853 |  | 80301 |
| &nbsp;&nbsp;&nbsp;ATN International, Inc. | 1173 |  | 53149 |
| &nbsp;&nbsp;&nbsp;Cars.com, Inc.\* | 3030 |  | 41723 |
| &nbsp;&nbsp;&nbsp;Harmonic, Inc.\* | 3167 |  | 41488 |
| &nbsp;&nbsp;&nbsp;A10 Networks, Inc. | 1413 |  | 23498 |
| &nbsp;&nbsp;&nbsp;Extreme Networks, Inc.\* | 1229 |  | 22503 |
| **Total Communications** |  |  | 262662 |
| **Basic Materials - 3.4%** | **Basic Materials - 3.4%** | **Basic Materials - 3.4%** | **Basic Materials - 3.4%** |
| &nbsp;&nbsp;&nbsp;Hawkins, Inc. | 1512 |  | 58363 |
| &nbsp;&nbsp;&nbsp;Kaiser Aluminum Corp. | 664 |  | 50437 |
| &nbsp;&nbsp;&nbsp;American Vanguard Corp. | 1685 |  | 36582 |
| &nbsp;&nbsp;&nbsp;Innospec, Inc. | 312 |  | 32092 |
| &nbsp;&nbsp;&nbsp;Livent Corp.\* | 1130 |  | 22453 |
| **Total Basic Materials** |  |  | 199927 |
| **Utilities - 1.4%** | **Utilities - 1.4%** | **Utilities - 1.4%** | **Utilities - 1.4%** |
| &nbsp;&nbsp;&nbsp;SJW Group | 364 |  | 29553 |
| &nbsp;&nbsp;&nbsp;South Jersey Industries, Inc. | 785 |  | 27891 |
| &nbsp;&nbsp;&nbsp;Unitil Corp. | 529 |  | 27170 |
| **Total Utilities** |  |  | 84614 |
| **Total Common Stocks** | **Total Common Stocks** |  |  |
| &nbsp;&nbsp;&nbsp;(Cost $5,459,612) |  |  | 5870927 |

---

---

| | | |
|:---|:---|:---|
|  | **Face<br> Amount** | **Value** |
| **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.7%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.7%** | **REPURCHASE AGREEMENTS<sup>††,1</sup>** **- 0.7%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26%<br> due 01/03/23 | $24127 | 24127 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BofA Securities, Inc.<br> issued 12/30/22 at 4.25%<br> due 01/03/23 | 9279 | 9279 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Barclays Capital, Inc.<br> issued 12/30/22 at 4.21%<br> due 01/03/23 | 9251 | 9251 |
| **Total Repurchase Agreements** |  |  |
| (Cost $42,657) |  | 42657 |
| **Total Investments - 100.3%** |  |  |
| (Cost $5,502,269) |  | 5913584 |
| **Other Assets & Liabilities, net - (0.3)%** |  | (16793) |
| **Total Net Assets - 100.0%** |  | 5896791 |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;REIT — Real Estate Investment Trust |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 41

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **S&P SMALLCAP 600<sup>®</sup>** **PURE GROWTH FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $5870927 | $— | $— | $5870927 |
| Repurchase Agreements |  | 42657 |  | 42657 |
| Total Assets | 5870927 | 42657 |  | 5913584 |

---

42 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**S&P SMALLCAP 600<sup>®</sup>** **PURE GROWTH FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value (cost $5,459,612) | $5870927 |
| Repurchase agreements, at value (cost $42,657) | 42657 |
| Cash | 96 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Dividends | 4786 |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 3847 |
| &nbsp;&nbsp;&nbsp;Interest | 10 |
| **Total assets** | 5922323 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Professional fees | 12748 |
| &nbsp;&nbsp;&nbsp;Management fees | 3944 |
| &nbsp;&nbsp;&nbsp;Printing fees | 3399 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 2284 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 1315 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 856 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 815 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 88 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 83 |
| **Total liabilities** | 25532 |
| **Net assets** | $5896791 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $7214917 |
| Total distributable earnings (loss) | (1318126) |
| Net assets | $5896791 |
| Capital shares outstanding | 141653 |
| Net asset value per share | $41.63 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $447) | $155249 |
| Interest | 913 |
| Income from securities lending, net | 207 |
| &nbsp;&nbsp;&nbsp;Total investment income | 156369 |
| **Expenses:** | **Expenses:** |
| Management fees | 67493 |
| Investor service fees | 22498 |
| Transfer agent fees | 25445 |
| Portfolio accounting and administration fees | 11293 |
| Professional fees | 9070 |
| Trustees' fees\* | 1568 |
| Custodian fees | 1490 |
| Miscellaneous | 11710 |
| &nbsp;&nbsp;&nbsp;Total expenses | 150567 |
| Net investment income | 5802 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | (1474709) |
| Net realized loss | (1474709) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (2117944) |
| Net change in unrealized appreciation (depreciation) | (2117944) |
| Net realized and unrealized loss | (3592653) |
| **Net decrease in net assets resulting from operations** | $(3586851) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 43

**S&P SMALLCAP 600<sup>®</sup>** **PURE GROWTH FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income (loss) | $5802 | $(183809) |
| Net realized gain (loss) on investments | (1474709) | 2889420 |
| Net change in unrealized appreciation (depreciation) on investments | (2117944) | (135557) |
| Net increase (decrease) in net assets resulting from operations | (3586851) | 2570054 |
| Distributions to shareholders | (1578002) | (65305) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 12105143 | 32594661 |
| Distributions reinvested | 1578002 | 65305 |
| Cost of shares redeemed | (15578031) | (38222322) |
| Net decrease from capital share transactions | (1894886) | (5562356) |
| Net decrease in net assets | (7059739) | (3057607) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 12956530 | 16014137 |
| &nbsp;&nbsp;&nbsp;End of year | $5896791 | $12956530 |
| **Capital share activity:** |  |  |
| Shares sold | 255654 | 461796 |
| Shares issued from reinvestment of distributions | 34973 | 935 |
| Shares redeemed | (328599) | (546516) |
| Net decrease in shares | (37972) | (83785) |

---

44 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**S&P SMALLCAP 600<sup>®</sup>** **PURE GROWTH FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December <br> 31, <br> 2022** | **Year Ended <br> December <br> 31, <br> 2021** | **Year Ended <br> December <br> 31, <br> 2020** | **Year Ended <br> December <br> 31, <br> 2019** | **Year Ended <br> December <br> 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $72.13 | $60.80 | $55.24 | $49.07 | $54.95 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .03 | (.76) | (.45) | (.36) | (.60) |
| Net gain (loss) on investments (realized and unrealized) | (20.84) | 12.40 | 8.42 | 6.53 | (4.12) |
| Total from investment operations | (20.81) | 11.64 | 7.97 | 6.17 | (4.72) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net realized gains | (9.69) | (.31) | (2.41) |  | (1.16) |
| Total distributions | (9.69) | (.31) | (2.41) |  | (1.16) |
| Net asset value, end of period | $41.63 | $72.13 | $60.80 | $55.24 | $49.07 |
| **Total Return<sup>b</sup>** | **(29.90** **%)** | **19.16%** | **15.76%** | **12.57%** | **(9.03** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $5897 | $12957 | $16014 | $12323 | $17006 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.06% | (1.08%) | (0.93%) | (0.69%) | (1.01%) |
| Total expenses | 1.67% | 1.60% | 1.72% | 1.73% | 1.63% |
| Portfolio turnover rate | 174% | 219% | 258% | 190% | 313% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 45

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**S&P SMALLCAP 600<sup>®</sup>** **PURE VALUE FUND** 

**OBJECTIVE:** Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for small-cap value securities on a daily basis. The Fund's current benchmark is the S&P SmallCap 600<sup>®</sup> Pure Value Index (the "underlying index").

For the Reporting Period, S&P SmallCap 600<sup>®</sup> Pure Value Fund returned -8.24%, compared with a return of -6.37% for the underlying index. The Fund maintained a daily correlation of over 99% to its benchmark for the period.

The sectors contributing the most to the return of the underlying index for the Reporting Period were the Energy, Materials, and Consumer Staples sectors. Consumer Discretionary, Real Estate, and Communication Services were sectors detracting most from the return of the underlying index.

The stocks contributing the most to return of the underlying index for the Reporting Period were PBF Energy, Inc. - Class A, Helix Energy Solutions Group, Inc., and CONSOL Energy, Inc. Those detracting the most from return of the underlying index were Conn's, Inc., Anywhere Real Estate, Inc., and Big Lots, Inc.

**Performance displayed represents past performance, which is no guarantee of future results.**

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-3_46.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments.

**Inception Date:** May 3, 2004<br>

---

| | | |
|:---|:---|:---|
| **Ten Largest Holdings**  | **(% of Total Net Assets)** | **(% of Total Net Assets)** |
| Genworth Financial, Inc. — Class A | Genworth Financial, Inc. — Class A | 1.6% |
| M/I Homes, Inc. | M/I Homes, Inc. | 1.5% |
| Kelly Services, Inc. — Class A | Kelly Services, Inc. — Class A | 1.5% |
| Rayonier Advanced Materials, Inc. | Rayonier Advanced Materials, Inc. | 1.5% |
| G-III Apparel Group Ltd. | G-III Apparel Group Ltd. | 1.4% |
| Telephone & Data Systems, Inc. | Telephone & Data Systems, Inc. | 1.4% |
| Aaron's Company, Inc. | Aaron's Company, Inc. | 1.4% |
| SkyWest, Inc. | SkyWest, Inc. | 1.4% |
| Olympic Steel, Inc. | Olympic Steel, Inc. | 1.3% |
| Anywhere Real Estate, Inc. | Anywhere Real Estate, Inc. | 1.3% |
| Top Ten Total | Top Ten Total | 14.3% |
| "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. | "Ten Largest Holdings" excludes any temporary cash investments. |

---

46 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-3_47.jpg)

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| S&P SmallCap 600<sup>®</sup> Pure Value Fund  | (8.24%)  | 3.47%  | 6.90%  |
| S&P SmallCap 600 Pure Value Index  | (6.37%)  | 5.48%  | 8.85%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P SmallCap 600 Pure Value Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 47

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **S&P SMALLCAP 600<sup>®</sup>** **PURE VALUE FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 99.5%** | **COMMON STOCKS<sup>†</sup>** **- 99.5%** | **COMMON STOCKS<sup>†</sup>** **- 99.5%** |
| **Consumer, Cyclical - 34.7%** | **Consumer, Cyclical - 34.7%** | **Consumer, Cyclical - 34.7%** |
| &nbsp;&nbsp;&nbsp;M/I Homes, Inc.\* | 2570 | $118682 |
| &nbsp;&nbsp;&nbsp;G-III Apparel Group Ltd.\* | 8099 | 111037 |
| &nbsp;&nbsp;&nbsp;SkyWest, Inc.\* | 6342 | 104706 |
| &nbsp;&nbsp;&nbsp;Century Communities, Inc. | 1983 | 99170 |
| &nbsp;&nbsp;&nbsp;World Fuel Services Corp. | 3182 | 86964 |
| &nbsp;&nbsp;&nbsp;Tri Pointe Homes, Inc.\* | 4636 | 86183 |
| &nbsp;&nbsp;&nbsp;Big Lots, Inc. | 5834 | 85760 |
| &nbsp;&nbsp;&nbsp;MDC Holdings, Inc. | 2712 | 85699 |
| &nbsp;&nbsp;&nbsp;America's Car-Mart, Inc.\* | 1169 | 84472 |
| &nbsp;&nbsp;&nbsp;MarineMax, Inc.\* | 2692 | 84044 |
| &nbsp;&nbsp;&nbsp;ScanSource, Inc.\* | 2843 | 83072 |
| &nbsp;&nbsp;&nbsp;Motorcar Parts of America, Inc.\* | 6561 | 77814 |
| &nbsp;&nbsp;&nbsp;Resideo Technologies, Inc.\* | 4707 | 77430 |
| &nbsp;&nbsp;&nbsp;Patrick Industries, Inc. | 1263 | 76538 |
| &nbsp;&nbsp;&nbsp;Genesco, Inc.\* | 1625 | 74783 |
| &nbsp;&nbsp;&nbsp;Wolverine World Wide, Inc. | 6375 | 69679 |
| &nbsp;&nbsp;&nbsp;Meritage Homes Corp.\* | 748 | 68966 |
| &nbsp;&nbsp;&nbsp;Group 1 Automotive, Inc. | 380 | 68541 |
| &nbsp;&nbsp;&nbsp;ODP Corp.\* | 1337 | 60887 |
| &nbsp;&nbsp;&nbsp;Sonic Automotive, Inc. — Class A | 1214 | 59814 |
| &nbsp;&nbsp;&nbsp;Abercrombie & Fitch Co. — Class A\* | 2580 | 59108 |
| &nbsp;&nbsp;&nbsp;MillerKnoll, Inc. | 2700 | 56727 |
| &nbsp;&nbsp;&nbsp;Children's Place, Inc.\* | 1458 | 53100 |
| &nbsp;&nbsp;&nbsp;Caleres, Inc. | 2178 | 48526 |
| &nbsp;&nbsp;&nbsp;Zumiez, Inc.\* | 2126 | 46219 |
| &nbsp;&nbsp;&nbsp;Veritiv Corp. | 367 | 44668 |
| &nbsp;&nbsp;&nbsp;Universal Electronics, Inc.\* | 2022 | 42078 |
| &nbsp;&nbsp;&nbsp;La-Z-Boy, Inc. | 1824 | 41624 |
| &nbsp;&nbsp;&nbsp;Designer Brands, Inc. — Class A | 4189 | 40968 |
| &nbsp;&nbsp;&nbsp;Sally Beauty Holdings, Inc.\* | 3225 | 40377 |
| &nbsp;&nbsp;&nbsp;GMS, Inc.\* | 794 | 39541 |
| &nbsp;&nbsp;&nbsp;Signet Jewelers Ltd. | 554 | 37672 |
| &nbsp;&nbsp;&nbsp;American Axle & Manufacturing Holdings, Inc.\* | 4707 | 36809 |
| &nbsp;&nbsp;&nbsp;Shoe Carnival, Inc. | 1508 | 36056 |
| &nbsp;&nbsp;&nbsp;KAR Auction Services, Inc.\* | 2290 | 29885 |
| &nbsp;&nbsp;&nbsp;American Eagle Outfitters, Inc.\* | 2138 | 29846 |
| &nbsp;&nbsp;&nbsp;PC Connection, Inc. | 627 | 29406 |
| &nbsp;&nbsp;&nbsp;Urban Outfitters, Inc.\* | 1188 | 28334 |
| &nbsp;&nbsp;&nbsp;Chico's FAS, Inc.\* | 5673 | 27911 |
| &nbsp;&nbsp;&nbsp;Guess?, Inc.<sup>1</sup> | 1342 | 27766 |
| &nbsp;&nbsp;&nbsp;Interface, Inc. — Class A | 2734 | 26985 |
| &nbsp;&nbsp;&nbsp;Standard Motor Products, Inc. | 743 | 25856 |
| &nbsp;&nbsp;&nbsp;HNI Corp. | 886 | 25189 |
| &nbsp;&nbsp;&nbsp;Sleep Number Corp.\* | 969 | 25174 |
| &nbsp;&nbsp;&nbsp;Allegiant Travel Co. — Class A\* | 347 | 23593 |
| &nbsp;&nbsp;&nbsp;Marcus Corp. | 1552 | 22333 |
| &nbsp;&nbsp;&nbsp;LGI Homes, Inc.\* | 210 | 19446 |
| &nbsp;&nbsp;&nbsp;El Pollo Loco Holdings, Inc. | 1832 | 18247 |
| &nbsp;&nbsp;&nbsp;Hawaiian Holdings, Inc.\* | 1727 | 17719 |
| **Total Consumer, Cyclical** |  | 2665404 |
| **Consumer, Non-cyclical - 18.0%** | **Consumer, Non-cyclical - 18.0%** | **Consumer, Non-cyclical - 18.0%** |
| &nbsp;&nbsp;&nbsp;Kelly Services, Inc. — Class A | 6976 | 117894 |
| &nbsp;&nbsp;&nbsp;Aaron's Company, Inc. | 9063 | 108303 |
| &nbsp;&nbsp;&nbsp;Fresh Del Monte Produce, Inc. | 3762 | 98527 |
| &nbsp;&nbsp;&nbsp;Enhabit, Inc.\* | 6853 | 90186 |
| &nbsp;&nbsp;&nbsp;Emergent BioSolutions, Inc.\* | 7547 | 89130 |
| &nbsp;&nbsp;&nbsp;Zimvie, Inc.\* | 9171 | 85657 |
| &nbsp;&nbsp;&nbsp;Seneca Foods Corp. — Class A\* | 1250 | 76188 |
| &nbsp;&nbsp;&nbsp;TrueBlue, Inc.\* | 3310 | 64810 |
| &nbsp;&nbsp;&nbsp;United Natural Foods, Inc.\* | 1611 | 62362 |
| &nbsp;&nbsp;&nbsp;SpartanNash Co. | 1929 | 58333 |
| &nbsp;&nbsp;&nbsp;Owens & Minor, Inc.\* | 2920 | 57027 |
| &nbsp;&nbsp;&nbsp;Deluxe Corp. | 3263 | 55406 |
| &nbsp;&nbsp;&nbsp;GEO Group, Inc.\* | 4041 | 44249 |
| &nbsp;&nbsp;&nbsp;Rent-A-Center, Inc. | 1946 | 43882 |
| &nbsp;&nbsp;&nbsp;PROG Holdings, Inc.\* | 2498 | 42191 |
| &nbsp;&nbsp;&nbsp;B&G Foods, Inc.<sup>1</sup> | 3749 | 41801 |
| &nbsp;&nbsp;&nbsp;Universal Corp. | 749 | 39554 |
| &nbsp;&nbsp;&nbsp;ABM Industries, Inc. | 863 | 38334 |
| &nbsp;&nbsp;&nbsp;Heidrick & Struggles International, Inc. | 1313 | 36725 |
| &nbsp;&nbsp;&nbsp;CoreCivic, Inc.\* | 2808 | 32461 |
| &nbsp;&nbsp;&nbsp;Organogenesis Holdings, Inc.\* | 9912 | 26663 |
| &nbsp;&nbsp;&nbsp;Phibro Animal Health Corp. — Class A | 1953 | 26190 |
| &nbsp;&nbsp;&nbsp;Orthofix Medical, Inc.\* | 1050 | 21557 |
| &nbsp;&nbsp;&nbsp;Green Dot Corp. — Class A\* | 1340 | 21199 |
| **Total Consumer, Non-cyclical** |  | 1378629 |
| **Financial - 17.5%** | **Financial - 17.5%** | **Financial - 17.5%** |
| &nbsp;&nbsp;&nbsp;Genworth Financial, Inc. — Class A\* | 22777 | 120490 |
| &nbsp;&nbsp;&nbsp;Anywhere Real Estate, Inc.\* | 15932 | 101805 |
| &nbsp;&nbsp;&nbsp;Stewart Information Services Corp. | 2198 | 93921 |
| &nbsp;&nbsp;&nbsp;Douglas Elliman, Inc. | 18761 | 76357 |
| &nbsp;&nbsp;&nbsp;Cushman & Wakefield plc\* | 5382 | 67060 |
| &nbsp;&nbsp;&nbsp;Hersha Hospitality Trust — Class A REIT | 6742 | 57442 |
| &nbsp;&nbsp;&nbsp;EZCORP, Inc. — Class A\* | 6660 | 54279 |
| &nbsp;&nbsp;&nbsp;Bread Financial Holdings, Inc. | 1332 | 50163 |
| &nbsp;&nbsp;&nbsp;Franklin Street Properties Corp. REIT | 16674 | 45520 |
| &nbsp;&nbsp;&nbsp;Office Properties Income Trust REIT | 3292 | 43948 |
| &nbsp;&nbsp;&nbsp;Universal Insurance Holdings, Inc. | 4125 | 43684 |
| &nbsp;&nbsp;&nbsp;Hudson Pacific Properties, Inc. REIT | 4160 | 40477 |
| &nbsp;&nbsp;&nbsp;RE/MAX Holdings, Inc. — Class A | 2167 | 40393 |
| &nbsp;&nbsp;&nbsp;Ambac Financial Group, Inc.\* | 2316 | 40391 |
| &nbsp;&nbsp;&nbsp;SiriusPoint Ltd.\* | 6281 | 37058 |
| &nbsp;&nbsp;&nbsp;Encore Capital Group, Inc.\* | 726 | 34804 |
| &nbsp;&nbsp;&nbsp;World Acceptance Corp.\* | 501 | 33036 |
| &nbsp;&nbsp;&nbsp;Brandywine Realty Trust REIT | 5163 | 31752 |
| &nbsp;&nbsp;&nbsp;LendingTree, Inc.\* | 1466 | 31270 |
| &nbsp;&nbsp;&nbsp;Apollo Commercial Real Estate Finance, Inc. REIT | 2781 | 29924 |
| &nbsp;&nbsp;&nbsp;United Fire Group, Inc. | 1026 | 28071 |
| &nbsp;&nbsp;&nbsp;HomeStreet, Inc. | 911 | 25126 |
| &nbsp;&nbsp;&nbsp;Hope Bancorp, Inc. | 1949 | 24967 |
| &nbsp;&nbsp;&nbsp;Industrial Logistics Properties Trust REIT | 7454 | 24375 |
| &nbsp;&nbsp;&nbsp;Service Properties Trust REIT | 3214 | 23430 |
| &nbsp;&nbsp;&nbsp;ProAssurance Corp. | 1297 | 22659 |
| &nbsp;&nbsp;&nbsp;Hilltop Holdings, Inc. | 732 | 21967 |
| &nbsp;&nbsp;&nbsp;Ready Capital Corp. REIT | 1889 | 21043 |

---

48 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **S&P SMALLCAP 600<sup>®</sup>** **PURE VALUE FUND** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;iStar, Inc. REIT | 2690 | $| 20525 |
| &nbsp;&nbsp;&nbsp;Enova International, Inc.\* | 530 |  | 20336 |
| &nbsp;&nbsp;&nbsp;Orion Office REIT, Inc. | 2160 |  | 18446 |
| &nbsp;&nbsp;&nbsp;Granite Point Mortgage Trust, Inc. REIT | 3223 |  | 17275 |
| **Total Financial** |  |  | 1341994 |
| **Industrial - 9.9%** | **Industrial - 9.9%** | **Industrial - 9.9%** | **Industrial - 9.9%** |
| &nbsp;&nbsp;&nbsp;Olympic Steel, Inc. | 3044 |  | 102218 |
| &nbsp;&nbsp;&nbsp;Benchmark Electronics, Inc. | 2487 |  | 66378 |
| &nbsp;&nbsp;&nbsp;DXP Enterprises, Inc.\* | 2317 |  | 63834 |
| &nbsp;&nbsp;&nbsp;Greenbrier Companies, Inc. | 1760 |  | 59013 |
| &nbsp;&nbsp;&nbsp;Harsco Corp.\* | 9167 |  | 57660 |
| &nbsp;&nbsp;&nbsp;Tredegar Corp. | 5075 |  | 51866 |
| &nbsp;&nbsp;&nbsp;Kaman Corp. | 2193 |  | 48904 |
| &nbsp;&nbsp;&nbsp;Comtech Telecommunications Corp. | 4006 |  | 48633 |
| &nbsp;&nbsp;&nbsp;American Woodmark Corp.\* | 955 |  | 46661 |
| &nbsp;&nbsp;&nbsp;ArcBest Corp. | 605 |  | 42374 |
| &nbsp;&nbsp;&nbsp;TTM Technologies, Inc.\* | 2399 |  | 36177 |
| &nbsp;&nbsp;&nbsp;Powell Industries, Inc. | 983 |  | 34582 |
| &nbsp;&nbsp;&nbsp;Proto Labs, Inc.\* | 1209 |  | 30866 |
| &nbsp;&nbsp;&nbsp;AZZ, Inc. | 616 |  | 24763 |
| &nbsp;&nbsp;&nbsp;Ichor Holdings Ltd.\* | 849 |  | 22770 |
| &nbsp;&nbsp;&nbsp;Granite Construction, Inc. | 631 |  | 22129 |
| **Total Industrial** |  |  | 758828 |
| **Basic Materials - 7.2%** | **Basic Materials - 7.2%** | **Basic Materials - 7.2%** | **Basic Materials - 7.2%** |
| &nbsp;&nbsp;&nbsp;Rayonier Advanced Materials, Inc.\* | 11876 |  | 114010 |
| &nbsp;&nbsp;&nbsp;Mativ Holdings, Inc. | 3570 |  | 74613 |
| &nbsp;&nbsp;&nbsp;Clearwater Paper Corp.\* | 1904 |  | 71990 |
| &nbsp;&nbsp;&nbsp;Century Aluminum Co.\* | 8159 |  | 66740 |
| &nbsp;&nbsp;&nbsp;Arconic Corp.\* | 2943 |  | 62274 |
| &nbsp;&nbsp;&nbsp;Trinseo plc | 2654 |  | 60272 |
| &nbsp;&nbsp;&nbsp;Koppers Holdings, Inc. | 2023 |  | 57049 |
| &nbsp;&nbsp;&nbsp;AdvanSix, Inc. | 773 |  | 29389 |
| &nbsp;&nbsp;&nbsp;Minerals Technologies, Inc. | 337 |  | 20463 |
| **Total Basic Materials** |  |  | 556800 |
| **Communications - 5.7%** | **Communications - 5.7%** | **Communications - 5.7%** | **Communications - 5.7%** |
| &nbsp;&nbsp;&nbsp;Telephone & Data Systems, Inc. | 10518 |  | 110334 |
| &nbsp;&nbsp;&nbsp;AMC Networks, Inc. — Class A\* | 5162 |  | 80889 |
| &nbsp;&nbsp;&nbsp;EW Scripps Co. — Class A\* | 5486 |  | 72360 |
| &nbsp;&nbsp;&nbsp;Consolidated Communications Holdings, Inc.\* | 13771 |  | 49300 |
| &nbsp;&nbsp;&nbsp;Gannett Company, Inc.\* | 19363 |  | 39307 |
| &nbsp;&nbsp;&nbsp;NETGEAR, Inc.\* | 1808 |  | 32743 |
| &nbsp;&nbsp;&nbsp;Thryv Holdings, Inc.\* | 1723 |  | 32737 |
| &nbsp;&nbsp;&nbsp;Scholastic Corp. | 527 |  | 20795 |
| **Total Communications** |  |  | 438465 |
| **Energy - 4.1%** | **Energy - 4.1%** | **Energy - 4.1%** | **Energy - 4.1%** |
| &nbsp;&nbsp;&nbsp;Oil States International, Inc.\* | 9520 |  | 71019 |
| &nbsp;&nbsp;&nbsp;SunCoke Energy, Inc. | 7711 |  | 66546 |
| &nbsp;&nbsp;&nbsp;Par Pacific Holdings, Inc.\* | 2400 |  | 55800 |
| &nbsp;&nbsp;&nbsp;Bristow Group, Inc.\* | 1796 |  | 48726 |
| &nbsp;&nbsp;&nbsp;Helix Energy Solutions Group, Inc.\* | 5296 |  | 39084 |
| &nbsp;&nbsp;&nbsp;DMC Global, Inc.\* | 1787 |  | 34739 |
| **Total Energy** |  |  | 315914 |
| **Technology - 2.4%** | **Technology - 2.4%** | **Technology - 2.4%** | **Technology - 2.4%** |
| &nbsp;&nbsp;&nbsp;Ebix, Inc. | 2968 |  | 59242 |
| &nbsp;&nbsp;&nbsp;Insight Enterprises, Inc.\* | 468 |  | 46926 |
| &nbsp;&nbsp;&nbsp;Pitney Bowes, Inc. | 7539 |  | 28648 |
| &nbsp;&nbsp;&nbsp;Cerence, Inc.\* | 1425 |  | 26405 |
| &nbsp;&nbsp;&nbsp;SMART Global Holdings, Inc.\* | 1712 |  | 25475 |
| **Total Technology** |  |  | 186696 |
| **Total Common Stocks** | **Total Common Stocks** |  |  |
| &nbsp;&nbsp;&nbsp;(Cost $6,817,128) |  |  | 7642730 |
|  | **Face<br> Amount** |  |  |
| **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.5%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.5%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.5%** | **REPURCHASE AGREEMENTS<sup>††,2</sup>** **- 0.5%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26%<br> due 01/03/23 | 21732 |  | 21732 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BofA Securities, Inc.<br> issued 12/30/22 at 4.25%<br> due 01/03/23 | 8358 |  | 8358 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Barclays Capital, Inc.<br> issued 12/30/22 at 4.21%<br> due 01/03/23 | 8333 |  | 8333 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |  |
| &nbsp;&nbsp;&nbsp;(Cost $38,423) |  |  | 38423 |
|  | **Shares** |  |  |
| **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.7%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.7%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.7%** | **SECURITIES LENDING COLLATERAL<sup>†,3</sup>** **- 0.7%** |
| **Money Market Fund** |  |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund - Class X, 4.10%<sup>4</sup> | 53033 |  | 53033 |
| **Total Securities Lending Collateral** | **Total Securities Lending Collateral** |  |  |
| &nbsp;&nbsp;&nbsp;(Cost $53,033) |  |  | 53033 |
| **Total Investments - 100.7%** | **Total Investments - 100.7%** |  |  |
| &nbsp;&nbsp;&nbsp;(Cost $6,908,584) | &nbsp;&nbsp;&nbsp;(Cost $6,908,584) |  | 7734186 |
| **Other Assets & Liabilities, net - (0.7)%** | **Other Assets & Liabilities, net - (0.7)%** |  | (55501) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** |  | 7678685 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 49

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **S&P SMALLCAP 600<sup>®</sup>** **PURE VALUE FUND** |  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;REIT — Real Estate Investment Trust |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $7642730 | $— | $— | $7642730 |
| Repurchase Agreements |  | 38423 |  | 38423 |
| Securities Lending Collateral | 53033 |  |  | 53033 |
| Total Assets | 7695763 | 38423 |  | 7734186 |

---

50 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**S&P SMALLCAP 600<sup>®</sup>** **PURE VALUE FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value - including $51,184 of securities loaned (cost $6,870,161) | $7695763 |
| Repurchase agreements, at value (cost $38,423) | 38423 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 169391 |
| &nbsp;&nbsp;&nbsp;Dividends | 13165 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 28 |
| &nbsp;&nbsp;&nbsp;Interest | 9 |
| **Total assets** | 7916779 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Securities purchased | 136976 |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 53033 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 14725 |
| &nbsp;&nbsp;&nbsp;Management fees | 5353 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 2800 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 1784 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 1107 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 120 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 22196 |
| **Total liabilities** | 238094 |
| **Net assets** | $7678685 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $8279705 |
| Total distributable earnings (loss) | (601020) |
| Net assets | $7678685 |
| Capital shares outstanding | 113738 |
| Net asset value per share | $67.51 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends (net of foreign withholding tax of $11) | $192567 |
| Interest | 1186 |
| Income from securities lending, net | 408 |
| &nbsp;&nbsp;&nbsp;Total investment income | 194161 |
| **Expenses:** | **Expenses:** |
| Management fees | 87129 |
| Investor service fees | 29043 |
| Transfer agent fees | 33124 |
| Professional fees | 12662 |
| Portfolio accounting and administration fees | 14378 |
| Trustees' fees\* | 2012 |
| Custodian fees | 1871 |
| Line of credit fees | 69 |
| Miscellaneous | 14093 |
| &nbsp;&nbsp;&nbsp;Total expenses | 194381 |
| Net investment loss | (220) |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments | 177391 |
| Net realized gain | 177391 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments | (1658200) |
| Net change in unrealized appreciation (depreciation) | (1658200) |
| Net realized and unrealized loss | (1480809) |
| **Net decrease in net assets resulting from operations** | $(1481029) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 51

**S&P SMALLCAP 600<sup>®</sup>** **PURE VALUE FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment loss | $(220) | $(71895) |
| Net realized gain on investments | 177391 | 4619236 |
| Net change in unrealized appreciation (depreciation) on investments | (1658200) | 1404194 |
| Net increase (decrease) in net assets resulting from operations | (1481029) | 5951535 |
| Distributions to shareholders | (1494113) |  |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 27122715 | 75059564 |
| Distributions reinvested | 1494113 |  |
| Cost of shares redeemed | (34124104) | (72980448) |
| Net increase (decrease) from capital share transactions | (5507276) | 2079116 |
| Net increase (decrease) in net assets | (8482418) | 8030651 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 16161103 | 8130452 |
| &nbsp;&nbsp;&nbsp;End of year | $7678685 | $16161103 |
| **Capital share activity:** |  |  |
| Shares sold | 355894 | 978480 |
| Shares issued from reinvestment of distributions | 22464 |  |
| Shares redeemed | (453341) | (925913) |
| Net increase (decrease) in shares | (74983) | 52567 |

---

52 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**S&P SMALLCAP 600<sup>®</sup>** **PURE VALUE FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December <br> 31, <br> 2022** | **Year Ended <br> December <br> 31, <br> 2021** | **Year Ended <br> December <br> 31, <br> 2020** | **Year Ended <br> December <br> 31, <br> 2019** | **Year Ended <br> December <br> 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $85.63 | $59.72 | $63.51 | $52.81 | $66.48 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> |  | (.28) | (.31) | (.17) | .08 |
| Net gain (loss) on investments (realized and unrealized) | (7.22) | 26.19 | (3.48) | 11.06 | (13.75) |
| Total from investment operations | (7.22) | 25.91 | (3.79) | 10.89 | (13.67) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  |  | (.19) |  |
| Net realized gains | (10.90) |  |  |  |  |
| Total distributions | (10.90) |  |  | (.19) |  |
| Net asset value, end of period | $67.51 | $85.63 | $59.72 | $63.51 | $52.81 |
| **Total Return<sup>b</sup>** | **(8.24** **%)** | **43.39%** | **(5.97** **%)** | **20.68%** | **(20.58** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $7679 | $16161 | $8130 | $9077 | $8414 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.00% | (0.34%) | (0.64%) | (0.28%) | 0.12% |
| Total expenses | 1.67% | 1.59% | 1.72% | 1.73% | 1.62% |
| Portfolio turnover rate | 252% | 383% | 305% | 248% | 194% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 53

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**EUROPE 1.25x STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark. The Fund's current benchmark is 125% of the fair value of the STOXX 50<sup>®</sup> Index (the "underlying index").

For the Reporting Period, Europe 1.25x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 125% of the daily price movement of the underlying index. Europe 1.25x Strategy Fund returned -13.09% while the underlying index returned -7.87% over the same period.

The sectors contributing the most to the return of the underlying index for the Reporting Period were the Energy and Communication Services sectors. The Information Technology, Consumer Discretionary, and Industrials sectors detracted the most from performance.

Stocks contributing the most to performance of the underlying index were TotalEnergies ADR, Nordea Bank Abp, and Munich Reinsurance Co. Those detracting the most from return of the underlying index were ASML Holding N.V. - Class G, Adyen N.V., and adidas AG.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes. The results of derivatives use during the period were within our expectations.

Due to the compounding of daily returns, leveraged and inverse funds' 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 funds' holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short-Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.** 

54 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-3_55.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-3_55a.jpg)

**Inception Date:** October 1, 2001<br>

---

| | | |
|:---|:---|:---|
| **Ten Largest Holdings**  | **(% of Total Net Assets)** | **(% of Total Net Assets)** |
| Guggenheim Ultra Short Duration Fund — Institutional Class | Guggenheim Ultra Short Duration Fund — Institutional Class | 8.2% |
| Guggenheim Strategy Fund II | Guggenheim Strategy Fund II | 8.1% |
| Nestle S.A. ADR | Nestle S.A. ADR | 0.9% |
| ASML Holding N.V. — Class G | ASML Holding N.V. — Class G | 0.6% |
| Novo Nordisk A/S ADR | Novo Nordisk A/S ADR | 0.6% |
| Roche Holding AG ADR | Roche Holding AG ADR | 0.6% |
| AstraZeneca plc ADR | AstraZeneca plc ADR | 0.6% |
| Novartis AG ADR | Novartis AG ADR | 0.6% |
| Shell plc ADR | Shell plc ADR | 0.6% |
| LVMH Moet Hennessy Louis Vuitton SE ADR | LVMH Moet Hennessy Louis Vuitton SE ADR | 0.5% |
| Top Ten Total | Top Ten Total | 21.3% |
| "Ten Largest Holdings" excludes any temporary cash or derivative investments. | "Ten Largest Holdings" excludes any temporary cash or derivative investments. | "Ten Largest Holdings" excludes any temporary cash or derivative investments. |

---

**Country Diversification** 

---

| | |
|:---|:---|
| **Country**  | **% of Long-Term <br> Investments** |
| United Kingdom | 23.5% |
| Switzerland | 22.6% |
| France | 20.2% |
| Germany | 11.2% |
| Netherlands | 9.5% |
| Denmark | 4.5% |
| Spain | 2.4% |
| Other | 6.1% |
| Total Long–Term Investments | 100.0% |

---

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Europe 1.25x Strategy Fund  | (13.09%)  | 1.48%  | 2.78%  |
| STOXX Europe 50 Index  | (7.87%)  | 3.36%  | 4.55%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The STOXX Europe 50 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 55

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **EUROPE 1.25x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **COMMON STOCKS<sup>†</sup>** **- 13.5%** | **COMMON STOCKS<sup>†</sup>** **- 13.5%** | **COMMON STOCKS<sup>†</sup>** **- 13.5%** |
| **Consumer, Non-cyclical - 5.7%** | **Consumer, Non-cyclical - 5.7%** | **Consumer, Non-cyclical - 5.7%** |
| &nbsp;&nbsp;&nbsp;Nestle S.A. ADR | 208 | $23991 |
| &nbsp;&nbsp;&nbsp;Novo Nordisk A/S ADR | 124 | 16782 |
| &nbsp;&nbsp;&nbsp;Roche Holding AG ADR | 426 | 16678 |
| &nbsp;&nbsp;&nbsp;AstraZeneca plc ADR | 235 | 15933 |
| &nbsp;&nbsp;&nbsp;Novartis AG ADR | 169 | 15332 |
| &nbsp;&nbsp;&nbsp;Unilever plc ADR | 199 | 10019 |
| &nbsp;&nbsp;&nbsp;Sanofi ADR | 174 | 8427 |
| &nbsp;&nbsp;&nbsp;Diageo plc ADR | 43 | 7662 |
| &nbsp;&nbsp;&nbsp;L'Oreal S.A. ADR | 93 | 6626 |
| &nbsp;&nbsp;&nbsp;British American Tobacco plc ADR | 154 | 6157 |
| &nbsp;&nbsp;&nbsp;GSK plc ADR | 151 | 5306 |
| &nbsp;&nbsp;&nbsp;EssilorLuxottica S.A. ADR | 46 | 4167 |
| &nbsp;&nbsp;&nbsp;RELX plc ADR | 148 | 4102 |
| &nbsp;&nbsp;&nbsp;Anheuser-Busch InBev S.A. ADR | 68 | 4083 |
| &nbsp;&nbsp;&nbsp;Reckitt Benckiser Group plc ADR | 277 | 3903 |
| &nbsp;&nbsp;&nbsp;Bayer AG ADR | 296 | 3806 |
| &nbsp;&nbsp;&nbsp;Adyen N.V. ADR\* | 217 | 2995 |
| **Total Consumer, Non-cyclical** |  | 155969 |
| **Financial - 1.4%** | **Financial - 1.4%** | **Financial - 1.4%** |
| &nbsp;&nbsp;&nbsp;HSBC Holdings plc ADR | 307 | 9566 |
| &nbsp;&nbsp;&nbsp;Allianz SE ADR | 306 | 6564 |
| &nbsp;&nbsp;&nbsp;Zurich Insurance Group AG ADR | 114 | 5454 |
| &nbsp;&nbsp;&nbsp;BNP Paribas S.A. ADR | 172 | 4897 |
| &nbsp;&nbsp;&nbsp;UBS Group AG | 238 | 4444 |
| &nbsp;&nbsp;&nbsp;AXA S.A. ADR | 151 | 4208 |
| &nbsp;&nbsp;&nbsp;Banco Santander S.A. ADR | 1280 | 3776 |
| **Total Financial** |  | 38909 |
| **Energy - 1.3%** | **Energy - 1.3%** | **Energy - 1.3%** |
| &nbsp;&nbsp;&nbsp;Shell plc ADR | 268 | 15263 |
| &nbsp;&nbsp;&nbsp;TotalEnergies SE ADR | 198 | 12292 |
| &nbsp;&nbsp;&nbsp;BP plc ADR | 229 | 7999 |
| **Total Energy** |  | 35554 |
| **Basic Materials - 1.2%** | **Basic Materials - 1.2%** | **Basic Materials - 1.2%** |
| &nbsp;&nbsp;&nbsp;Linde plc | 37 | 12069 |
| &nbsp;&nbsp;&nbsp;Rio Tinto plc ADR | 80 | 5696 |
| &nbsp;&nbsp;&nbsp;Air Liquide S.A. ADR | 199 | 5628 |
| &nbsp;&nbsp;&nbsp;Glencore plc ADR<sup>1</sup> | 404 | 5381 |
| &nbsp;&nbsp;&nbsp;BASF SE ADR | 278 | 3423 |
| **Total Basic Materials** |  | 32197 |
| **Consumer, Cyclical - 1.1%** | **Consumer, Cyclical - 1.1%** | **Consumer, Cyclical - 1.1%** |
| &nbsp;&nbsp;&nbsp;LVMH Moet Hennessy Louis Vuitton SE ADR | 99 | 14342 |
| &nbsp;&nbsp;&nbsp;Cie Financiere Richemont S.A. ADR | 395 | 5092 |
| &nbsp;&nbsp;&nbsp;Hermes International ADR | 27 | 4180 |
| &nbsp;&nbsp;&nbsp;Mercedes-Benz Group AG ADR | 238 | 3891 |
| &nbsp;&nbsp;&nbsp;Kering S.A. ADR | 55 | 2786 |
| **Total Consumer, Cyclical** |  | 30291 |
| **Industrial - 1.1%** | **Industrial - 1.1%** | **Industrial - 1.1%** |
| &nbsp;&nbsp;&nbsp;Siemens AG ADR | 112 | 7704 |
| &nbsp;&nbsp;&nbsp;Schneider Electric SE ADR | 217 | 6068 |
| &nbsp;&nbsp;&nbsp;Airbus SE ADR | 176 | 5220 |
| &nbsp;&nbsp;&nbsp;Vinci S.A. ADR | 171 | 4263 |
| &nbsp;&nbsp;&nbsp;ABB Ltd. ADR | 120 | 3655 |
| &nbsp;&nbsp;&nbsp;Deutsche Post AG ADR | 74 | 2775 |
| **Total Industrial** |  | 29685 |
| **Technology - 0.9%** | **Technology - 0.9%** | **Technology - 0.9%** |
| &nbsp;&nbsp;&nbsp;ASML Holding N.V. — Class G | 31 | 16938 |
| &nbsp;&nbsp;&nbsp;SAP SE ADR | 78 | 8049 |
| **Total Technology** |  | 24987 |
| **Utilities - 0.4%** | **Utilities - 0.4%** | **Utilities - 0.4%** |
| &nbsp;&nbsp;&nbsp;Iberdrola S.A. ADR | 110 | 5144 |
| &nbsp;&nbsp;&nbsp;National Grid plc ADR | 55 | 3318 |
| &nbsp;&nbsp;&nbsp;Enel SpA ADR | 590 | 3150 |
| **Total Utilities** |  | 11612 |
| **Communications - 0.4%** | **Communications - 0.4%** | **Communications - 0.4%** |
| &nbsp;&nbsp;&nbsp;Deutsche Telekom AG ADR | 262 | 5235 |
| &nbsp;&nbsp;&nbsp;Prosus N.V. ADR | 321 | 4407 |
| **Total Communications** |  | 9642 |
| **Total Common Stocks** | **Total Common Stocks** |  |
| &nbsp;&nbsp;&nbsp;(Cost $289,701) |  | 368846 |
| **MUTUAL FUNDS<sup>†</sup>** **- 16.3%** | **MUTUAL FUNDS<sup>†</sup>** **- 16.3%** | **MUTUAL FUNDS<sup>†</sup>** **- 16.3%** |
| &nbsp;&nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class<sup>2</sup> | 23237 | 224002 |
| &nbsp;&nbsp;&nbsp;Guggenheim Strategy Fund II<sup>2</sup> | 9255 | 222494 |
| **Total Mutual Funds** | **Total Mutual Funds** |  |
| &nbsp;&nbsp;&nbsp;(Cost $458,891) |  | 446496 |
|  | **Face<br> Amount** |  |
| **U.S. TREASURY BILLS<sup>††</sup>** **- 15.7%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 15.7%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 15.7%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.80% due 01/17/23<sup>3,4</sup> | $432000 | 431382 |
| **Total U.S. Treasury Bills** | **Total U.S. Treasury Bills** |  |
| &nbsp;&nbsp;&nbsp;(Cost $431,254) |  | 431382 |
| **REPURCHASE AGREEMENTS<sup>††,5</sup>** **- 48.4%** | **REPURCHASE AGREEMENTS<sup>††,5</sup>** **- 48.4%** | **REPURCHASE AGREEMENTS<sup>††,5</sup>** **- 48.4%** |
| &nbsp;&nbsp;&nbsp;J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26%<br> due 01/03/23 | 748403 | 748403 |
| &nbsp;&nbsp;&nbsp;BofA Securities, Inc.<br> issued 12/30/22 at 4.25%<br> due 01/03/23 | 287847 | 287847 |
| &nbsp;&nbsp;&nbsp;Barclays Capital, Inc.<br> issued 12/30/22 at 4.21%<br> due 01/03/23 | 286956 | 286956 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,323,206) |  | 1323206 |

---

56 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (continued) | December 31, 2022 |
| **EUROPE 1.25x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value** |
| **SECURITIES LENDING COLLATERAL<sup>†,6</sup>** **- 0.2%** | **SECURITIES LENDING COLLATERAL<sup>†,6</sup>** **- 0.2%** | **SECURITIES LENDING COLLATERAL<sup>†,6</sup>** **- 0.2%** |
| **Money Market Fund** |  |  |
| &nbsp;&nbsp;&nbsp;First American Government Obligations Fund, 4.10%<sup>7</sup> | 4192 | $4192 |
| **Total Securities Lending Collateral** | **Total Securities Lending Collateral** |  |
| &nbsp;&nbsp;&nbsp;(Cost $4,192) |  | 4192 |
| **Total Investments - 94.1%** | **Total Investments - 94.1%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $2,507,244) | &nbsp;&nbsp;&nbsp;(Cost $2,507,244) | 2574122 |
| **Other Assets & Liabilities, net - 5.9%** | **Other Assets & Liabilities, net - 5.9%** | 160701 |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | 2734823 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)\*\*** |
| **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** |
| Euro FX Futures Contracts | 23 | Mar 2023 | $3093356 | $25698 |
| **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** |
| STOXX Europe 50 Index Futures Contracts | 78 | Mar 2023 | 3044983 | (85887) |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;Non-income producing security. |
| \*\* | &nbsp;&nbsp;&nbsp;Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is on loan at December 31, 2022 — See Note 7. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Affiliated issuer. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as futures collateral at December 31, 2022. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>5</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>6</sup> | &nbsp;&nbsp;&nbsp;Securities lending collateral — See Note 7. |
| <sup>7</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the 7-day yield as of December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;ADR — American Depositary Receipt |
|  | &nbsp;&nbsp;&nbsp;plc — Public Limited Company |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 57

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **EUROPE 1.25x STRATEGY FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Common Stocks | $368846 | $— | $— | $368846 |
| Mutual Funds | 446496 |  |  | 446496 |
| U.S. Treasury Bills |  | 431382 |  | 431382 |
| Repurchase Agreements |  | 1323206 |  | 1323206 |
| Securities Lending Collateral | 4192 |  |  | 4192 |
| Currency Futures Contracts\*\* | 25698 |  |  | 25698 |
| Total Assets | 845232 | 1754588 |  | 2599820 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Investments in Securities (Liabilities)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Total** |
| Equity Futures Contracts\*\* | $85887 | $– $– $| 85887 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gugg84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $465394 | $— | $(230001) | $(5419) | $(7480) | $222494 | 9255 | $7730 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 465216 |  | (230000) | (5181) | (6033) | 224002 | 23237 | 6090 |
|  | 930610 |  | (460001) | (10600) | (13513) | 446496 |  | 13820 |

---

58 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**EUROPE 1.25x STRATEGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments in unaffiliated issuers, at value - including $4,036 of securities loaned (cost $725,147) | $804420 |
| Investments in affiliated issuers, at value (cost $458,891) | 446496 |
| Repurchase agreements, at value (cost $1,323,206) | 1323206 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 195665 |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 10093 |
| &nbsp;&nbsp;&nbsp;Foreign tax reclaims | 7328 |
| &nbsp;&nbsp;&nbsp;Dividends | 2058 |
| &nbsp;&nbsp;&nbsp;Interest | 312 |
| &nbsp;&nbsp;&nbsp;Securities lending income | 2 |
| **Total assets** | 2789580 |
| **Liabilities:** | **Liabilities:** |
| Overdraft due to custodian bank | 37999 |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Return of securities lending collateral | 4192 |
| &nbsp;&nbsp;&nbsp;Management fees | 2137 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 607 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 567 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 255 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 42 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 17 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 8941 |
| **Total liabilities** | 54757 |
| **Net assets** | $2734823 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $3746739 |
| Total distributable earnings (loss) | (1011916) |
| Net assets | $2734823 |
| Capital shares outstanding | 25110 |
| Net asset value per share | $108.91 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $921) | $7814 |
| Dividends from securities of affiliated issuers | 13820 |
| Interest from securities of unaffiliated issuers | 15952 |
| Income from securities lending, net | 407 |
| &nbsp;&nbsp;&nbsp;Total investment income | 37993 |
| **Expenses:** | **Expenses:** |
| Management fees | 14786 |
| Investor service fees | 4107 |
| Transfer agent fees | 4326 |
| Portfolio accounting and administration fees | 2100 |
| Professional fees | 1222 |
| Custodian fees | 418 |
| Trustees' fees\* | 232 |
| Miscellaneous | 3694 |
| &nbsp;&nbsp;&nbsp;Total expenses | 30885 |
| Less: | Less: |
| Expenses reimbursed by Adviser | (821) |
| Expenses waived by Adviser | (788) |
| &nbsp;&nbsp;&nbsp;Total waived/reimbursed expenses | (1609) |
| Net expenses | 29276 |
| Net investment income | 8717 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (34897) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (10600) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (58314) |
| &nbsp;&nbsp;&nbsp;Foreign currency transactions | 2700 |
| Net realized loss | (101111) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | 14281 |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (13513) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (126279) |
| &nbsp;&nbsp;&nbsp;Foreign currency translations | (128) |
| Net change in unrealized appreciation (depreciation) | (125639) |
| Net realized and unrealized loss | (226750) |
| **Net decrease in net assets resulting from operations** | $(218033) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 59

**EUROPE 1.25x STRATEGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income (loss) | $8717 | $(23187) |
| Net realized gain (loss) on investments | (101111) | 95166 |
| Net change in unrealized appreciation (depreciation) on investments | (125639) | 48714 |
| Net increase (decrease) in net assets resulting from operations | (218033) | 120693 |
| Distributions to shareholders |  | (7486) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 8482222 | 9842911 |
| Distributions reinvested |  | 7486 |
| Cost of shares redeemed | (7503489) | (10512348) |
| Net increase (decrease) from capital share transactions | 978733 | (661951) |
| Net increase (decrease) in net assets | 760700 | (548744) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 1974123 | 2522867 |
| &nbsp;&nbsp;&nbsp;End of year | $2734823 | $1974123 |
| **Capital share activity:** |  |  |
| Shares sold | 80125 | 82612 |
| Shares issued from reinvestment of distributions |  | 63 |
| Shares redeemed | (70769) | (90766) |
| Net increase (decrease) in shares | 9356 | (8091) |

---

60 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**EUROPE 1.25x STRATEGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December <br> 31, <br> 2022** | **Year Ended <br> December <br> 31, <br> 2021** | **Year Ended <br> December <br> 31, <br> 2020** | **Year Ended <br> December <br> 31, <br> 2019** | **Year Ended <br> December <br> 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $125.31 | $105.80 | $107.35 | $84.49 | $104.66 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .57 | (.92) | (.63) | .76 | 1.66 |
| Net gain (loss) on investments (realized and unrealized) | (16.97) | 20.70 | .73 <sup>e</sup> | 23.18 | (21.46) |
| Total from investment operations | (16.40) | 19.78 | .10 | 23.94 | (19.80) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  | (.27) | (1.65) | (1.08) | (.37) |
| Total distributions |  | (.27) | (1.65) | (1.08) | (.37) |
| Net asset value, end of period | $108.91 | $125.31 | $105.80 | $107.35 | $84.49 |
| **Total Return<sup>b</sup>** | **(13.07** **%)** | **18.71%** | **0.24%** | **28.43%** | **(18.97** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $2735 | $1974 | $2523 | $3990 | $2687 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.53% | (0.78%) | (0.67 %) | 0.77% | 1.67% |
| Total expenses<sup>c</sup> | 1.88% | 1.80% | 1.91% | 1.88% | 1.78% |
| Net expenses<sup>d</sup> | 1.78% | 1.71% | 1.86% | 1.80% | 1.77% |
| Portfolio turnover rate | 70% | 374% | 212% | 391% | 187% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

<sup>e</sup> The amount shown for a share outstanding throughout the period does not agree with the aggregate net loss on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 61

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**JAPAN 2x STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark. The Fund's current benchmark is 200% of the fair value of the Nikkei-225 Stock Average Index (the "underlying index").

For the Reporting Period, Japan 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the fair value of the underlying index. Japan 2x Strategy Fund returned -43.00%, while the underlying index returned -20.32% over the same time period.

The sectors contributing the most to the return of the underlying index for the Reporting Period were Financials and Utilities. The Information Technology, Industrials, and Health Care sectors detracted the most from the performance of the underlying index.

Stocks contributing most to return of the underlying index were Fast Retailing Co., Daiichi Sankyo Company, Ltd., and Eisai Company, Ltd. Those detracting most from performance of the underlying index were Tokyo Electron Ltd., Recruit Holdings Company, Ltd., and Daikin Industries, Ltd.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes. The results of derivatives use during the period were within our expectations.

Due to the compounding of daily returns, leveraged and inverse funds' 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 funds' holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short-Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.** 

62 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-3_63.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-3_63a.jpg)

**Inception Date:** October 1, 2001<br>

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Japan 2x Strategy Fund  | (43.00%)  | (5.92%)  | 5.95%  |
| Nikkei-225 Stock Average Index  | (20.32%)  | (0.30%)  | 5.13%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Nikkei-225 Stock Average Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 63

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **JAPAN 2x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Face<br> Amount** | **Value** |
| **U.S. TREASURY BILLS<sup>††</sup>** **- 20.3%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 20.3%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 20.3%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.79% due 01/17/23<sup>1.2</sup> | $189000 | $188730 |
| **Total U.S. Treasury Bills** | **Total U.S. Treasury Bills** |  |
| &nbsp;&nbsp;&nbsp;(Cost $188,674) |  | 188730 |
| **FEDERAL AGENCY NOTES<sup>††</sup>** **- 16.2%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 16.2%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 16.2%** |
| Fannie Mae | Fannie Mae | Fannie Mae |
| &nbsp;&nbsp;&nbsp;2.38% due 01/19/23 | 150000 | 149853 |
| **Total Federal Agency Notes** | **Total Federal Agency Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $149,860) |  | 149853 |
| **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 10.7%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 10.7%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 10.7%** |
| Federal Farm Credit Bank | Federal Farm Credit Bank | Federal Farm Credit Bank |
| &nbsp;&nbsp;&nbsp;4.14% due 02/02/23<sup>2</sup> | 100000 | 99632 |
| **Total Federal Agency Discount Notes** | **Total Federal Agency Discount Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $99,632) |  | 99632 |
| **REPURCHASE AGREEMENTS<sup>††,3</sup>** **- 54.6%** | **REPURCHASE AGREEMENTS<sup>††,3</sup>** **- 54.6%** | **REPURCHASE AGREEMENTS<sup>††,3</sup>** **- 54.6%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23 | 287140 | 287140 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23 | 110439 | 110439 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23 | 110096 | 110096 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $507,675) |  | 507675 |
| **Total Investments - 101.8%** | **Total Investments - 101.8%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $945,841) | &nbsp;&nbsp;&nbsp;(Cost $945,841) | 945890 |
| **Other Assets & Liabilities, net - (1.8)%** | **Other Assets & Liabilities, net - (1.8)%** | (16503) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | 929387 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation <br> (Depreciation)\*\*** |
| **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** |
| Japanese Yen Futures Contracts | 19 | Mar 2023 | $1826138 | $76134 |
| **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** | **Equity Futures Contracts Purchased<sup>†</sup>** |
| Nikkei 225 (CME) Index Equity Futures Contracts | 14 | Mar 2023 | 1803900 | (121498) |

---

---

| | |
|:---|:---|
| \*\* | &nbsp;&nbsp;&nbsp;Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as futures collateral at December 31, 2022. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
|  | &nbsp;&nbsp;&nbsp;CME — Chicago Mercantile Exchange |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

64 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **JAPAN 2x STRATEGY FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| U.S. Treasury Bills | $— | $188730 | $— | $188730 |
| Federal Agency Notes |  | 149853 |  | 149853 |
| Federal Agency Discount Notes |  | 99632 |  | 99632 |
| Repurchase Agreements |  | 507675 |  | 507675 |
| Currency Futures Contracts\*\* | 76134 |  |  | 76134 |
| Total Assets | 76134 | 945890 |  | 1022024 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Investments in Securities (Liabilities)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Total** |
| Equity Futures Contracts\*\* | $121498 | $– $– $| 121498 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $468690 | $— | $(458009) | $(6569) | $(4112) | $— |  | $3346 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 464673 |  | (454678) | (8509) | (1486) |  |  | 2337 |
|  | 933363 |  | (912687) | (15078) | (5598) |  |  | 5683 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 65

**JAPAN 2x STRATEGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value (cost $438,166) | $438215 |
| Repurchase agreements, at value (cost $507,675) | 507675 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Interest | 1723 |
| &nbsp;&nbsp;&nbsp;Fund shares sold | 7 |
| **Total assets** | 947620 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 14000 |
| &nbsp;&nbsp;&nbsp;Management fees | 688 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 315 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 229 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 142 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 26 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 16 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 2817 |
| **Total liabilities** | 18233 |
| **Net assets** | $929387 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $3153482 |
| Total distributable earnings (loss) | (2224095) |
| Net assets | $929387 |
| Capital shares outstanding | 16007 |
| Net asset value per share | $58.06 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of affiliated issuers | $5683 |
| Interest from securities of unaffiliated issuers | 16311 |
| &nbsp;&nbsp;&nbsp;Total investment income | 21994 |
| **Expenses:** | **Expenses:** |
| Management fees | 9527 |
| Investor service fees | 3176 |
| Transfer agent fees | 3664 |
| Portfolio accounting and administration fees | 1574 |
| Professional fees | 1296 |
| Trustees' fees\* | 240 |
| Custodian fees | 186 |
| Miscellaneous | 1504 |
| &nbsp;&nbsp;&nbsp;Total expenses | 21167 |
| Less: | Less: |
| Expenses waived by Adviser | (490) |
| Net expenses | 20677 |
| Net investment income | 1317 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | 354 |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (15078) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (831253) |
| Net realized loss | (845977) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | 47 |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (5598) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (24060) |
| Net change in unrealized appreciation (depreciation) | (29611) |
| Net realized and unrealized loss | (875588) |
| **Net decrease in net assets resulting from operations** | $(874271) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

66 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**JAPAN 2x STRATEGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income (loss) | $1317 | $(25520) |
| Net realized loss on investments | (845977) | (78355) |
| Net change in unrealized appreciation (depreciation) on investments | (29611) | (265009) |
| Net decrease in net assets resulting from operations | (874271) | (368884) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 9370759 | 9720179 |
| Cost of shares redeemed | (9349938) | (10561781) |
| Net increase (decrease) from capital share transactions | 20821 | (841602) |
| Net decrease in net assets | (853450) | (1210486) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 1782837 | 2993323 |
| &nbsp;&nbsp;&nbsp;End of year | $929387 | $1782837 |
| **Capital share activity:** |  |  |
| Shares sold | 136206 | 88252 |
| Shares redeemed | (137701) | (95992) |
| Net decrease in shares | (1495) | (7740) |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 67

**JAPAN 2x STRATEGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December <br> 31, <br> 2022** | **Year Ended <br> December <br> 31, <br> 2021** | **Year Ended <br> December <br> 31, <br> 2020** | **Year Ended <br> December <br> 31, <br> 2019** | **Year Ended <br> December <br> 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $101.86 | $118.59 | $85.35 | $62.30 | $100.82 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .07 | (1.11) | (.65) | .66 | .70 |
| Net gain (loss) on investments (realized and unrealized) | (43.87) | (15.62) | 34.73 | 23.49 | (19.56) |
| Total from investment operations | (43.80) | (16.73) | 34.08 | 24.15 | (18.86) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  | (.84) | (1.10) |  |
| Net realized gains |  |  |  |  | (19.66) |
| Total distributions |  |  | (.84) | (1.10) | (19.66) |
| Net asset value, end of period | $58.06 | $101.86 | $118.59 | $85.35 | $62.30 |
| **Total Return<sup>b</sup>** | **(43.00** **%)** | **(14.11** **%)** | **40.46%** | **39.03%** | **(22.95** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $929 | $1783 | $2993 | $2037 | $2013 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.10% | (0.97%) | (0.82%) | 0.89% | 0.76% |
| Total expenses<sup>c</sup> | 1.67% | 1.59% | 1.72% | 1.72% | 1.58% |
| Net expenses<sup>d</sup> | 1.63% | 1.53% | 1.67% | 1.64% | 1.58% |
| Portfolio turnover rate |  | 41% | 199% | 153% | 180% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

68 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**STRENGTHENING DOLLAR 2x STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. The Fund's current benchmark is 200% of the performance of the U.S. Dollar Index<sup>®</sup> (the "underlying index"). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the Reporting Period, Strengthening Dollar 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the underlying index. Strengthening Dollar 2x Strategy Fund returned 15.65%, compared with a return of 8.21% for its benchmark, the underlying index.

The euro, Japanese yen, and British pound were the components which contributed the most to the DXY during 2022. There were no components that detracted from the DXY during 2022.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes. The results of derivatives use during the period were within our expectations and were a factor in the Fund's positive performance.

Due to the compounding of daily returns, leveraged and inverse funds' 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 funds' holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short-Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.** 

THE RYDEX FUNDS ANNUAL REPORT \| 69

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-3_70.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-3_70a.jpg)

**Inception Date:** September 30, 2005<br>

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Strengthening Dollar 2x Strategy Fund  | 15.65%  | 5.26%  | 4.41%  |
| U.S. Dollar Index  | 8.21%  | 2.36%  | 2.64%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes.The U.S. Dollar Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

70 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **STRENGTHENING DOLLAR 2x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Face<br> Amount** | **Value** |
| **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 41.9%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 41.9%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 41.9%** |
| Federal Home Loan Bank | Federal Home Loan Bank | Federal Home Loan Bank |
| &nbsp;&nbsp;&nbsp;4.00% due 01/11/23<sup>1</sup> | $500000 | $499565 |
| &nbsp;&nbsp;&nbsp;4.05% due 01/27/23<sup>1</sup> | 500000 | 498626 |
| Federal Farm Credit Bank | Federal Farm Credit Bank | Federal Farm Credit Bank |
| &nbsp;&nbsp;&nbsp;4.10% due 01/26/23<sup>1</sup> | 500000 | 498576 |
| **Total Federal Agency Discount Notes** | **Total Federal Agency Discount Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,496,559) |  | 1496767 |
| **FEDERAL AGENCY NOTES<sup>††</sup>** **- 7.0%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 7.0%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 7.0%** |
| Fannie Mae | Fannie Mae | Fannie Mae |
| &nbsp;&nbsp;&nbsp;2.38% due 01/19/23 | 250000 | 249755 |
| **Total Federal Agency Notes** | **Total Federal Agency Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $249,767) |  | 249755 |
| **U.S. TREASURY BILLS<sup>††</sup>** **- 3.5%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 3.5%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 3.5%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.79% due 01/17/23<sup>1,2</sup> | 124000 | 123823 |
| **Total U.S. Treasury Bills** | **Total U.S. Treasury Bills** |  |
| &nbsp;&nbsp;&nbsp;(Cost $123,786) |  | 123823 |
| **REPURCHASE AGREEMENTS<sup>††,3</sup>** **- 48.6%** | **REPURCHASE AGREEMENTS<sup>††,3</sup>** **- 48.6%** | **REPURCHASE AGREEMENTS<sup>††,3</sup>** **- 48.6%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23<sup>4</sup> | 982604 | 982604 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23<sup>4</sup> | 377925 | 377925 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23<sup>4</sup> | 376754 | 376754 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,737,283) |  | 1737283 |
| **Total Investments - 101.0%** | **Total Investments - 101.0%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $3,607,395) | &nbsp;&nbsp;&nbsp;(Cost $3,607,395) | 3607628 |
| **Other Assets & Liabilities, net - (1.0)%** | **Other Assets & Liabilities, net - (1.0)%** | (34593) |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | 3573035 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Depreciation\*\*** |
| **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** | **Currency Futures Contracts Purchased<sup>†</sup>** |
| U.S. Dollar Index Futures Contracts | 55 | Mar 2023 | $5679850 | $(4234) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** |
| **Counterparty** | **Index** | **Type** | **Financing <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Units** | **Notional <br> Amount** | **Value and <br> Unrealized <br> Depreciation** |
| **OTC Currency Index Swap Agreements<sup>††</sup>** | **OTC Currency Index Swap Agreements<sup>††</sup>** | **OTC Currency Index Swap Agreements<sup>††</sup>** | **OTC Currency Index Swap Agreements<sup>††</sup>** | **OTC Currency Index Swap Agreements<sup>††</sup>** | **OTC Currency Index Swap Agreements<sup>††</sup>** | **OTC Currency Index Swap Agreements<sup>††</sup>** | **OTC Currency Index Swap Agreements<sup>††</sup>** | **OTC Currency Index Swap Agreements<sup>††</sup>** |
| Goldman Sachs International | U.S. Dollar Index | Receive | N/A | At Maturity | 03/17/23 | 14221 | $1467372 | $(13421) |

---

---

| | |
|:---|:---|
| \*\* | &nbsp;&nbsp;&nbsp;Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as futures collateral at December 31, 2022. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as currency index swap collateral at December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 71

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **STRENGTHENING DOLLAR 2x STRATEGY FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Federal Agency Discount Notes | $— | $1496767 | $— | $1496767 |
| Federal Agency Notes |  | 249755 |  | 249755 |
| U.S. Treasury Bills |  | 123823 |  | 123823 |
| Repurchase Agreements |  | 1737283 |  | 1737283 |
| Total Assets |  | 3607628 |  | 3607628 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Liabilities)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Currency Futures Contracts\*\* | $4234 | $— | $— | $4234 |
| Currency Index Swap Agreements\*\* |  | 13421 |  | 13421 |
| Total Liabilities | 4234 | 13421 |  | 17655 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $1056098 | $— | $(1030030) | $(25556) | $(512) | $— |  | $8595 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 1045048 |  | (1020528) | (26538) | 2018 |  |  | 6026 |
|  | 2101146 |  | (2050558) | (52094) | 1506 |  |  | 14621 |

---

72 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**STRENGTHENING DOLLAR 2x STRATEGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value (cost $1,870,112) | $1870345 |
| Repurchase agreements, at value (cost $1,737,283) | 1737283 |
| Segregated cash with broker | 14329 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Interest | 3082 |
| **Total assets** | 3625039 |
| **Liabilities:** | **Liabilities:** |
| Unrealized depreciation on OTC swap agreements | 13421 |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 17380 |
| &nbsp;&nbsp;&nbsp;Licensing fees | 3702 |
| &nbsp;&nbsp;&nbsp;Management fees | 2843 |
| &nbsp;&nbsp;&nbsp;Swap settlement | 2051 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 1653 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 790 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 332 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 235 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 52 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 9545 |
| **Total liabilities** | 52004 |
| **Net assets** | $3573035 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $4436896 |
| Total distributable earnings (loss) | (863861) |
| Net assets | $3573035 |
| Capital shares outstanding | 79111 |
| Net asset value per share | $45.16 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of affiliated issuers | $14621 |
| Interest | 86640 |
| &nbsp;&nbsp;&nbsp;Total investment income | 101261 |
| **Expenses:** | **Expenses:** |
| Management fees | 45229 |
| Investor service fees | 12564 |
| Transfer agent fees | 12856 |
| Licensing fees | 6868 |
| Portfolio accounting and administration fees | 6683 |
| Professional fees | 10549 |
| Custodian fees | 712 |
| Trustees' fees\* | 642 |
| Interest expense | 246 |
| Line of credit fees | 132 |
| Miscellaneous | 2048 |
| &nbsp;&nbsp;&nbsp;Total expenses | 98529 |
| Less: | Less: |
| Expenses reimbursed by Adviser | (2513) |
| Expenses waived by Adviser | (1230) |
| &nbsp;&nbsp;&nbsp;Total waived expenses | (3743) |
| Net expenses | 94786 |
| Net investment income | 6475 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (52094) |
| &nbsp;&nbsp;&nbsp;Swap agreements | 87725 |
| &nbsp;&nbsp;&nbsp;Futures contracts | 181662 |
| Net realized gain | 217293 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | 232 |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | 1506 |
| &nbsp;&nbsp;&nbsp;Swap agreements | (8351) |
| &nbsp;&nbsp;&nbsp;Futures contracts | 32595 |
| Net change in unrealized appreciation (depreciation) | 25982 |
| Net realized and unrealized gain | 243275 |
| **Net increase in net assets resulting from operations** | $249750 |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 73

**STRENGTHENING DOLLAR 2x STRATEGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income (loss) | $6475 | $(30052) |
| Net realized gain on investments | 217293 | 217495 |
| Net change in unrealized appreciation (depreciation) on investments | 25982 | (11187) |
| Net increase in net assets resulting from operations | 249750 | 176256 |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 29854882 | 16343231 |
| Cost of shares redeemed | (30535150) | (14071900) |
| Net increase (decrease) from capital share transactions | (680268) | 2271331 |
| Net increase (decrease) in net assets | (430518) | 2447587 |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 4003553 | 1555966 |
| &nbsp;&nbsp;&nbsp;End of year | $3573035 | $4003553 |
| **Capital share activity:** |  |  |
| Shares sold | 633705 | 437524 |
| Shares redeemed | (657108) | (379276) |
| Net increase (decrease) in shares | (23403) | 58248 |

---

74 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**STRENGTHENING DOLLAR 2x STRATEGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December <br> 31, <br> 2022** | **Year Ended <br> December <br> 31, <br> 2021** | **Year Ended <br> December <br> 31, <br> 2020** | **Year Ended <br> December <br> 31, <br> 2019** | **Year Ended <br> December <br> 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $39.05 | $35.15 | $41.21 | $39.73 | $35.53 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .06 | (.49) | (.43) | .21 | .27 |
| Net gain (loss) on investments (realized and unrealized) | 6.05 | 4.39 | (5.32) | 1.63 | 3.93 |
| Total from investment operations | 6.11 | 3.90 | (5.75) | 1.84 | 4.20 |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  | (.31) | (.36) |  |
| Total distributions |  |  | (.31) | (.36) |  |
| Net asset value, end of period | $45.16 | $39.05 | $35.15 | $41.21 | $39.73 |
| **Total Return<sup>b</sup>** | **15.65%** | **11.10%** | **(14.03** **%)** | **4.61%** | **11.82%** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $3573 | $4004 | $1556 | $1412 | $3420 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.13% | (1.32%) | (1.05%) | 0.50% | 0.73% |
| Total expenses<sup>c</sup> | 1.96% | 1.99% | 2.02% | 2.09% | 1.83% |
| Net expenses<sup>d</sup> | 1.89% | 1.90% | 1.96% | 2.02% | 1.82% |
| Portfolio turnover rate |  | 131% | 103% | 102% | 241% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 75

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited) | December 31, 2022 |

---

**WEAKENING DOLLAR 2x STRATEGY FUND** 

**OBJECTIVE:** Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund's current benchmark is 200% of the inverse (opposite) of the performance of the U.S. Dollar Index (the "underlying index").

The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the Reporting Period, Weakening Dollar 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of -200% of the daily price movement of the underlying index. Weakening Dollar 2x Strategy Fund returned -18.47%, compared with a return of 8.21% for its benchmark, the underlying index.

The euro, Japanese yen, and British pound were the components which contributed the most to the DXY during 2022. There were no components that detracted from the DXY during 2022.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes. The results of derivatives use during the period were within our expectations.

Due to the compounding of daily returns, leveraged and inverse funds' 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 funds' holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short-Term Investment Vehicles"), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee, but the Fund's adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. For the Reporting Period, investment in the Short Term Investment Vehicles detracted from Fund performance.

**Performance displayed represents past performance, which is no guarantee of future results.** 

76 \| THE RYDEX FUNDS ANNUAL REPORT

---

| | |
|:---|:---|
| **PERFORMANCE REPORT AND FUND PROFILE** (Unaudited)(concluded) | December 31, 2022 |

---

**Holdings Diversification (Market Exposure as % of Net Assets)**![](fp0081230-3_77.jpg)

"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. Investments in those Funds do not provide "market exposure" to meet the Fund's investment objective, but will significantly increase the portfolio's exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as "junk bonds"); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

**Cumulative Fund Performance\*<sup>,†</sup>**

![](fp0081230-3_77a.jpg)

**Inception Date:** September 30, 2005<br>

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

**Average Annual Returns\*<sup>,†</sup>**

Periods Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year**  | **5 Year**  | **10 Year**  |
| Weakening Dollar 2x Strategy Fund  | (18.47%)  | (8.34%)  | (7.78%)  |
| U.S. Dollar Index  | 8.21%  | 2.36%  | 2.64%  |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The U.S. Dollar Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Performance figures do not reflect fees and expenses associated with an investment in variable insurance products. If returns had taken into account these fees and expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products. |

---

THE RYDEX FUNDS ANNUAL REPORT \| 77

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS**  | December 31, 2022 |
| **WEAKENING DOLLAR 2x STRATEGY FUND** |  |

---

---

| | | |
|:---|:---|:---|
|  | **Face<br> Amount** | **Value** |
| **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 17.7%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 17.7%** | **FEDERAL AGENCY DISCOUNT NOTES<sup>††</sup>** **- 17.7%** |
| Federal Home Loan Bank | Federal Home Loan Bank | Federal Home Loan Bank |
| &nbsp;&nbsp;&nbsp;3.90% due 01/03/23<sup>1</sup> | $150000 | $149968 |
| Federal Farm Credit Bank | Federal Farm Credit Bank | Federal Farm Credit Bank |
| &nbsp;&nbsp;&nbsp;4.14% due 02/02/23<sup>1</sup> | 100000 | 99632 |
| **Total Federal Agency Discount Notes** | **Total Federal Agency Discount Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $249,600) |  | 249600 |
| **FEDERAL AGENCY NOTES<sup>††</sup>** **- 10.6%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 10.6%** | **FEDERAL AGENCY NOTES<sup>††</sup>** **- 10.6%** |
| Fannie Mae | Fannie Mae | Fannie Mae |
| &nbsp;&nbsp;&nbsp;2.38% due 01/19/23 | 150000 | 149853 |
| **Total Federal Agency Notes** | **Total Federal Agency Notes** |  |
| &nbsp;&nbsp;&nbsp;(Cost $149,860) |  | 149853 |
| **U.S. TREASURY BILLS<sup>††</sup>** **- 1.3%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 1.3%** | **U.S. TREASURY BILLS<sup>††</sup>** **- 1.3%** |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;3.79% due 01/17/23<sup>1,2</sup> | 18000 | 17974 |
| **Total U.S. Treasury Bills** | **Total U.S. Treasury Bills** |  |
| &nbsp;&nbsp;&nbsp;(Cost $17,968) |  | 17974 |
| **REPURCHASE AGREEMENTS<sup>††,3</sup>** **- 66.8%** | **REPURCHASE AGREEMENTS<sup>††,3</sup>** **- 66.8%** | **REPURCHASE AGREEMENTS<sup>††,3</sup>** **- 66.8%** |
| J.P. Morgan Securities LLC<br> issued 12/30/22 at 4.26% <br> due 01/03/23<sup>4</sup> | 531145 | 531145 |
| BofA Securities, Inc.<br> issued 12/30/22 at 4.25% <br> due 01/03/23<sup>4</sup> | 204287 | 204287 |
| Barclays Capital, Inc.<br> issued 12/30/22 at 4.21% <br> due 01/03/23<sup>4</sup> | 203654 | 203654 |
| **Total Repurchase Agreements** | **Total Repurchase Agreements** |  |
| &nbsp;&nbsp;&nbsp;(Cost $939,086) |  | 939086 |
| **Total Investments - 96.4%** | **Total Investments - 96.4%** |  |
| &nbsp;&nbsp;&nbsp;(Cost $1,356,514) | &nbsp;&nbsp;&nbsp;(Cost $1,356,514) | 1356513 |
| **Other Assets & Liabilities, net - 3.6%** | **Other Assets & Liabilities, net - 3.6%** | 49969 |
| **Total Net Assets - 100.0%** | **Total Net Assets - 100.0%** | 1406482 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** | **Futures Contracts** |
| **Description** | **Number of <br> Contracts** | **Expiration <br> Date** | **Notional <br> Amount** | **Value and <br> Unrealized<br> Appreciation\*\*** |
| **Currency Futures Contracts Sold Short<sup>†</sup>** | **Currency Futures Contracts Sold Short<sup>†</sup>** | **Currency Futures Contracts Sold Short<sup>†</sup>** | **Currency Futures Contracts Sold Short<sup>†</sup>** | **Currency Futures Contracts Sold Short<sup>†</sup>** |
| U.S. Dollar Index Futures Contracts | 24 | Mar 2023 | $2478480 | $1790 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** | **Total Return Swap Agreements** |
| **Counterparty** | **Index** | **Type** | **Financing <br> Rate** | **Payment <br> Frequency** | **Maturity <br> Date** | **Units** | **Notional <br> Amount** | **Value and <br> Unrealized <br> Appreciation** |
| **OTC Currency Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Currency Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Currency Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Currency Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Currency Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Currency Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Currency Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Currency Index Swap Agreements Sold Short<sup>††</sup>** | **OTC Currency Index Swap Agreements Sold Short<sup>††</sup>** |
| Goldman Sachs International | U.S. Dollar Index | Pay | N/A | At Maturity | 03/17/23 | 3303 | $340840 | $2631 |

---

---

| | |
|:---|:---|
| \*\* | &nbsp;&nbsp;&nbsp;Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities. |
| <sup>†</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 1 inputs — See Note 4. |
| <sup>††</sup> | &nbsp;&nbsp;&nbsp;Value determined based on Level 2 inputs — See Note 4. |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;Rate indicated is the effective yield at the time of purchase. |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as futures collateral at December 31, 2022. |
| <sup>3</sup> | &nbsp;&nbsp;&nbsp;Repurchase Agreements — See Note 6. |
| <sup>4</sup> | &nbsp;&nbsp;&nbsp;All or a portion of this security is pledged as currency index swap collateral at December 31, 2022. |
|  | &nbsp;&nbsp;&nbsp;See Sector Classification in Other Information section. |

---

78 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

---

| | |
|:---|:---|
| **SCHEDULE OF INVESTMENTS** (concluded) | December 31, 2022 |
| **WEAKENING DOLLAR 2x STRATEGY FUND** |  |

---

The following table summarizes the inputs used to value the Fund's investments at December 31, 2022 (See Note 4 in the Notes to Financial Statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities (Assets)** | **Level 1 <br> Quoted <br> Prices** | **Level 2 <br> Significant <br> Observable <br> Inputs** | **Level 3 <br> Significant <br> Unobservable <br> Inputs** | **Total** |
| Federal Agency Discount Notes | $— | $249600 | $— | $249600 |
| Federal Agency Notes |  | 149853 |  | 149853 |
| U.S. Treasury Bills |  | 17974 |  | 17974 |
| Repurchase Agreements |  | 939086 |  | 939086 |
| Currency Futures Contracts\*\* | 1790 |  |  | 1790 |
| Currency Index Swap Agreements\*\* |  | 2631 |  | 2631 |
| Total Assets | 1790 | 1359144 |  | 1360934 |

---

\*\* This derivative is reported as unrealized appreciation/depreciation at period end.

**Affiliated Transactions** 

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments ("GI"), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III, (collectively, the "Short Term Investment Vehicles"), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles' annual report on Form N-CSR dated September 30, 2022, is available publicly or upon request. This information is available from the EDGAR database on the SEC's website at https://www.sec.gov/Archives/edgar/data/1601445/000182126822000340/gug84768.htm. The Fund may invest in certain of the underlying series of Guggenheim Funds Trust, which are open-end management investment companies managed by GI, are available to the public and whose most recent annual report on Form N-CSR is available publicly or upon request.

Transactions during the year ended December 31, 2022, in which the company is an affiliated issuer, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Name** | **Value <br> 12/31/21** | **Additions** | **Reductions** | **Realized <br> Gain (Loss)** | **Change in <br> Unrealized <br> Appreciation (Depreciation)** | **Value <br> 12/31/22** | **Shares <br> 12/31/22** | **Investment Income** |
| **Mutual Funds** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Guggenheim Strategy Fund II | $180496 | $— | $(177376) | $(2401) | $(719) | $— |  | $1026 |
| &nbsp;&nbsp;Guggenheim Ultra Short Duration Fund — Institutional Class | 180052 |  | (177010) | (3003) | (39) |  |  | 741 |
|  | 360548 |  | (354386) | (5404) | (758) |  |  | 1767 |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 79

**WEAKENING DOLLAR 2x STRATEGY FUND**<br>

---

| |
|:---|
| **STATEMENT OF ASSETS AND LIABILITIES** |
| December 31, 2022 |

---

---

| | |
|:---|:---|
| **Assets:** | **Assets:** |
| Investments, at value (cost $417,428) | $417427 |
| Repurchase agreements, at value (cost $939,086) | 939086 |
| Segregated cash with broker | 42120 |
| Unrealized appreciation on OTC swap agreements | 2631 |
| Receivables: | Receivables: |
| &nbsp;&nbsp;&nbsp;Variation margin on futures contracts | 7584 |
| &nbsp;&nbsp;&nbsp;Interest | 1825 |
| **Total assets** | 1410673 |
| **Liabilities:** | **Liabilities:** |
| Payable for: | Payable for: |
| &nbsp;&nbsp;&nbsp;Professional fees  | 1291 |
| &nbsp;&nbsp;&nbsp;Management fees | 709 |
| &nbsp;&nbsp;&nbsp;Licensing fees | 409 |
| &nbsp;&nbsp;&nbsp;Printing fees | 312 |
| &nbsp;&nbsp;&nbsp;Investor service fees | 197 |
| &nbsp;&nbsp;&nbsp;Swap settlement | 188 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 182 |
| &nbsp;&nbsp;&nbsp;Portfolio accounting and administration fees | 83 |
| &nbsp;&nbsp;&nbsp;Fund shares redeemed | 81 |
| &nbsp;&nbsp;&nbsp;Trustees' fees\* | 13 |
| &nbsp;&nbsp;&nbsp;Miscellaneous | 726 |
| **Total liabilities** | 4191 |
| **Net assets** | $1406482 |
| **Net assets consist of:** | **Net assets consist of:** |
| Paid in capital | $3041495 |
| Total distributable earnings (loss) | (1635013) |
| Net assets | $1406482 |
| Capital shares outstanding | 32686 |
| Net asset value per share | $43.03 |

---

---

| |
|:---|
| **STATEMENT OF OPERATIONS** |
| Year Ended December 31, 2022 |

---

---

| | |
|:---|:---|
| **Investment Income:** | **Investment Income:** |
| Dividends from securities of affiliated issuers | $1767 |
| Interest | 8486 |
| &nbsp;&nbsp;&nbsp;Total investment income | 10253 |
| **Expenses:** | **Expenses:** |
| Management fees | 4702 |
| Investor service fees | 1306 |
| Transfer agent fees | 1391 |
| Professional fees | 1007 |
| Licensing fees | 730 |
| Portfolio accounting and administration fees | 670 |
| Trustees' fees\* | 82 |
| Custodian fees | 75 |
| Miscellaneous | 107 |
| &nbsp;&nbsp;&nbsp;Total expenses | 10070 |
| Less: | Less: |
| Expenses reimbursed by Adviser | (261) |
| Expenses waived by Adviser | (158) |
| &nbsp;&nbsp;&nbsp;Total waived/reimbursed expenses | (419) |
| Net expenses | 9651 |
| Net investment income | 602 |
| **Net Realized and Unrealized Gain (Loss):** | **Net Realized and Unrealized Gain (Loss):** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (3) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (5404) |
| &nbsp;&nbsp;&nbsp;Swap agreements | (29605) |
| &nbsp;&nbsp;&nbsp;Futures contracts | (103988) |
| Net realized loss | (139000) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated issuers | (1) |
| &nbsp;&nbsp;&nbsp;Investments in affiliated issuers | (758) |
| &nbsp;&nbsp;&nbsp;Swap agreements | 1251 |
| &nbsp;&nbsp;&nbsp;Futures contracts | (3026) |
| Net change in unrealized appreciation (depreciation) | (2534) |
| Net realized and unrealized loss | (141534) |
| **Net decrease in net assets resulting from operations** | $(140932) |

---

\* Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.

80 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

**WEAKENING DOLLAR 2x STRATEGY FUND**<br>

**STATEMENTS OF CHANGES IN NET ASSETS**<br>

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31, <br> 2022** | **Year Ended<br> December 31, <br> 2021** |
| **Increase (Decrease) in Net Assets from Operations:** |  |  |
| Net investment income (loss) | $602 | $(21984) |
| Net realized loss on investments | (139000) | (202015) |
| Net change in unrealized appreciation (depreciation) on investments | (2534) | (49163) |
| Net decrease in net assets resulting from operations | (140932) | (273162) |
| **Capital share transactions:** |  |  |
| Proceeds from sale of shares | 6585478 | 4396884 |
| Cost of shares redeemed | (5730844) | (5762566) |
| Net increase (decrease) from capital share transactions | 854634 | (1365682) |
| Net increase (decrease) in net assets | 713702 | (1638844) |
| **Net assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of year | 692780 | 2331624 |
| &nbsp;&nbsp;&nbsp;End of year | $1406482 | $692780 |
| **Capital share activity:** |  |  |
| Shares sold | 158776 | 76350 |
| Shares redeemed | (139215) | (101223) |
| Net increase (decrease) in shares | 19561 | (24873) |

---

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT \| 81

**WEAKENING DOLLAR 2x STRATEGY FUND**<br>

**FINANCIAL HIGHLIGHTS**<br>

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December <br> 31, <br> 2022** | **Year Ended <br> December <br> 31, <br> 2021** | **Year Ended <br> December <br> 31, <br> 2020** | **Year Ended <br> December <br> 31, <br> 2019** | **Year Ended <br> December <br> 31, <br> 2018** |
| **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** | **Per Share Data** |
| Net asset value, beginning of period | $52.78 | $61.36 | $56.17 | $59.56 | $67.40 |
| Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: | Income (loss) from investment operations: |
| Net investment income (loss)<sup>a</sup> | .05 | (.83) | (.76) | .28 | .40 |
| Net gain (loss) on investments (realized and unrealized) | (9.80) | (7.75) | 6.19 | (3.17) | (8.24) |
| Total from investment operations | (9.75) | (8.58) | 5.43 | (2.89) | (7.84) |
| Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: | Less distributions from: |
| Net investment income |  |  | (.24) | (.50) |  |
| Total distributions |  |  | (.24) | (.50) |  |
| Net asset value, end of period | $43.03 | $52.78 | $61.36 | $56.17 | $59.56 |
| **Total Return<sup>b</sup>** | **(18.47** **%)** | **(13.98** **%)** | **9.69%** | **(4.85** **%)** | **(11.63** **%)** |
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Net assets, end of period (in thousands) | $1406 | $693 | $2332 | $587 | $582 |
| Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: | Ratios to average net assets: |
| Net investment income (loss) | 0.12% | (1.43%) | (1.35%) | 0.50% | 0.61% |
| Total expenses<sup>c</sup> | 1.93% | 2.00% | 2.00% | 2.08% | 1.82% |
| Net expenses<sup>d</sup> | 1.85% | 1.93% | 1.96% | 2.00% | 1.81% |
| Portfolio turnover rate |  | 93% | 129% | 187% | 213% |

---

<sup>a</sup> Net investment income (loss) per share was computed using average shares outstanding throughout the period.

<sup>b</sup> Total return does not take into account any of the expenses associated with an investment in variable insurance products. If total return had taken into account these expenses, performance would have been lower. Shares of a series of Rydex Variable Trust are available only through the purchase of such products.

<sup>c</sup> Does not include expenses of the underlying funds in which the Fund invests.

<sup>d</sup> Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

82 \| THE RYDEX FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS

**NOTES TO FINANCIAL STATEMENTS** <br>

**Note 1 – Organization and Significant Accounting Policies** 

**Organization** 

The Rydex Variable Trust (the "Trust"), a Delaware statutory trust, is registered with the U.S. Securities and Exchange Commission (the "SEC") under the Investment Company Act of 1940 ("1940 Act"), as an open-ended investment company of the series type. Each series, in effect, is representing a separate fund (each, a "Fund"). The Trust may issue an unlimited number of authorized shares. The Trust accounts for the assets of each Fund separately. At December 31, 2022, the Trust consisted of forty-nine Funds. The Trust offers shares of the Funds to insurance companies for their variable annuity and variable life insurance contracts.

This report covers the following funds (collectively, the "Funds"):

---

| | |
|:---|:---|
| **Fund Name** | **Investment <br> Company Type** |
| S&P 500<sup>®</sup> Pure Growth Fund | Non-diversified |
| S&P 500<sup>®</sup> Pure Value Fund | Non-diversified |
| S&P MidCap 400<sup>®</sup> Pure Growth Fund | Non-diversified |
| S&P MidCap 400<sup>®</sup> Pure Value Fund | Non-diversified |
| S&P SmallCap 600<sup>®</sup> Pure Growth Fund | Non-diversified |
| S&P SmallCap 600<sup>®</sup> Pure Value Fund | Non-diversified |
| Europe 1.25x Strategy Fund | Non-diversified |
| Japan 2x Strategy Fund | Non-diversified |
| Strengthening Dollar 2x Strategy Fund | Non-diversified |
| Weakening Dollar 2x Strategy Fund | Non-diversified |

---

The Funds are designed and operated to accommodate frequent trading by shareholders and, unlike most mutual funds, offer unlimited exchange privileges with no minimum holding periods or transactions fees, which may cause the Funds to experience high portfolio turnover.

Security Investors, LLC (the "Adviser"), which operates under the name Guggenheim Investments ("GI"), provides advisory services. Guggenheim Funds Distributors, LLC ("GFD") acts as principal underwriter for the Trust. GI and GFD are affiliated entities.

**Significant Accounting Policies** 

The Funds operate as investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All time references are based on Eastern Time.

The net asset value per share ("NAV") of each Fund is calculated by dividing the market value of the Fund's securities and other assets, less all liabilities, by the number of outstanding shares of that Fund.

**(a) Valuation of Investments** 

The Board of Trustees of the Funds (the "Board") has adopted policies and procedures for the valuation of the Funds' investments (the "Valuation Procedures"). The SEC adopted Rule 2a-5 under the 1940 Act ("Rule 2a-5") which establishes requirements for determining fair value in good faith and became effective September 8, 2022. Rule 2a-5 also defines "readily available market quotations" for purposes of the 1940 Act and establishes requirements for determining whether a fund must fair value a security in good faith.

Pursuant to Rule 2a-5, the Board has designated the Adviser as the valuation designee to perform fair valuation determinations for the Funds with respect to all Fund investments and/or other assets. As the Funds' valuation designee pursuant to Rule 2a-5, the Adviser has adopted separate procedures (the "Valuation Designee Procedures") reasonably designed to prevent violations of the requirements of Rule 2a-5 and Rule 31a-4. The Adviser, in its role as valuation designee, utilizes the assistance of a valuation committee, consisting of representatives from Guggenheim's investment management, fund administration, legal and compliance departments (the "Valuation Committee"), in determining the fair value of the Funds' securities and other assets.

Valuations of the Funds' securities and other assets are supplied primarily by pricing services appointed pursuant to the processes set forth in the Valuation Procedures. The Adviser, with the assistance of the Valuation Committee, convenes monthly, or more frequently as needed, to review the valuation of all assets which have been fair valued for reasonableness. The Adviser, consistent with the monitoring and review responsibilities set forth in the Valuation Designee Procedures, regularly reviews the appropriateness of the inputs, methods, models and assumptions employed by the pricing services. If the pricing service cannot or does not provide a valuation for a particular investment or such valuation is deemed unreliable, the investment is fair valued by the Adviser.

Equity securities listed or traded on a recognized U.S. securities exchange or the National Association of Securities Dealers Automated Quotations ("NASDAQ") National Market System shall generally be valued on the basis of the last sale price on the

THE RYDEX FUNDS ANNUAL REPORT \| 83

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

primary U.S. exchange or market on which the security is listed or traded; provided, however, that securities listed on NASDAQ will be valued at the NASDAQ official closing price, which may not necessarily represent the last sale price.

Open-end investment companies are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds and closed-end investment companies are generally valued at the last quoted sale price.

U.S. Government securities are valued by independent pricing services, the last traded fill price, or at the reported bid price at the close of business.

Repurchase agreements are generally valued at amortized cost, provided such amounts approximate market value.

Commercial paper and discount notes with a maturity of greater than 60 days at acquisition are valued at prices that reflect broker-dealer supplied valuations or are obtained from independent pricing services, which may consider the trade activity, treasury spreads, yields or price of bonds of comparable quality, coupon, maturity, and type, as well as prices quoted by dealers who make markets in such securities. Commercial paper and discount notes with a maturity of 60 days or less at acquisition are valued at amortized cost, unless the Adviser concludes that amortized cost does not represent the fair value of the applicable asset in which case it will be valued using an independent pricing service.

The value of futures contracts are valued on the basis of the last sale price at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the official settlement price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The value of currency index swap agreements entered into by a fund is accounted for using the unrealized appreciation or depreciation on the agreements that is determined by marking the agreements to the broker quote.

Investments for which market quotations are not readily available are fair valued as determined in good faith by the Adviser. Valuations in accordance with these methods are intended to reflect each security's (or asset's or liability's) "fair value". Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over U.S. Treasury securities, and other information analysis.

In connection with futures contracts and other derivative investments, such factors may include obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

**(b) U.S. Government and Agency Obligations** 

Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the effective rates paid at the time of purchase by the Funds. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

**(c) Futures Contracts** 

Upon entering into a futures contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

**(d) Swap Agreements** 

Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized appreciation or depreciation. Payments received or made as a result of an agreement or termination of an agreement are recognized as realized gains or losses.

**(e) Currency Translations** 

The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at prevailing exchange rates. Purchases and sales of investment securities, dividend and interest income, and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Funds. Foreign investments may also subject the

84 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

Funds to foreign government exchange restrictions, expropriation, taxation, or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments.

The Funds do not isolate that portion of the results of operations resulting from changes in the foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized gain or loss and unrealized appreciation or depreciation on investments.

Reported net realized foreign exchange gains and losses arise from sales of foreign currencies and currency gains or losses realized between the trade and settlement dates on investment transactions. Net unrealized appreciation and depreciation arise from changes in the fair values of assets and liabilities other than investments in securities at the fiscal period end, resulting from changes in exchange rates.

**(f) Foreign Taxes** 

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and reflected in the Funds' Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income and foreign taxes on capital gains from sales of investments are included with the net realized gain (loss) on investments. Foreign taxes payable or deferred as of December 31, 2022, if any, are disclosed in the Funds' Statements of Assets and Liabilities.

**(g) Security Transactions** 

Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as a reduction to cost if the securities are still held and as realized gains if no longer held in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries, if any. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from Real Estate Investment Trusts ("REITs") is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to realized gains. The actual amounts of income, return of capital, and realized gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

**(h) Distributions** 

Distributions of net investment income and net realized gains, if any, are declared and paid at least annually. Normally, all distributions of a Fund will automatically be reinvested without charge in additional shares of the same Fund. Distributions are recorded on the ex-dividend date and are determined in accordance with U.S. federal income tax regulations which may differ from U.S. GAAP.

**(i) Cash** 

The Funds may leave cash overnight in their cash account with the custodian. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate, which was 4.33% at December 31, 2022.

**(j) Indemnifications** 

Under the Funds' organizational documents, the Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

**Note 2 – Derivatives** 

As part of their investment strategy, the Funds may utilize a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of amounts recognized on the Funds' Statements of Assets and Liabilities. Valuation and accounting treatment of these instruments can be found under Significant Accounting Policies in Note 1 of these Notes to Financial Statements.

Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to increase investment flexibility (including to maintain cash reserves while maintaining exposure to certain other assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Derivative instruments may also be used to mitigate certain investment risks, such as foreign

THE RYDEX FUNDS ANNUAL REPORT \| 85

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund's financial position and results of operations.

The Funds may utilize derivatives for the following purposes:

**Index Exposure:** the use of an instrument to obtain exposure to a listed or other type of index.

**Leverage:** gaining total exposure to equities or other assets on the long and short sides at greater than 100% of invested capital.

**Liquidity:** the ability to buy or sell exposure with little price/market impact.

For any Fund whose investment strategy consistently involves applying leverage, the value of the Fund's shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index or other asset. In addition, because an investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, an opportunity for increased net income is created; but, at the same time, leverage risk will increase. The Fund's use of leverage, through borrowings or instruments such as derivatives, may cause the Fund to be more volatile and riskier than if they had not been leveraged.

**Futures Contracts** 

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund's use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to a Fund because futures are exchange-traded and the exchange's clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as segregated cash with broker on the Funds' Statements of Assets and Liabilities; securities held as collateral are noted on the Schedules of Investments.

The following table represents the Funds' use and volume of futures on a monthly basis:

---

| | | | |
|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Average Notional Amount** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Average Notional Amount** |
| <br>**Fund** | <br>**Use** | **Long** | **Short** |
| Europe 1.25x Strategy Fund | Index exposure, Leverage, Liquidity | $3534254 | $— |
| Japan 2x Strategy Fund | Index exposure, Leverage, Liquidity | 4895334 |  |
| Strengthening Dollar 2x Strategy Fund | Index exposure, Leverage, Liquidity | 8248191 |  |
| Weakening Dollar 2x Strategy Fund | Index exposure, Leverage, Liquidity |  | 859497 |

---

**Swap Agreements** 

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. When utilizing over-the-counter ("OTC") swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing and are executed on a multi-lateral or other trade facility platform, such as a registered exchange. There is limited counterparty credit risk with respect to centrally-cleared swaps as the transaction is facilitated through a central clearinghouse, much like exchange-traded futures contracts. For a fund utilizing centrally-cleared swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. There is no guarantee that a fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

Currency swaps enable the Funds to gain exposure to currencies in a market without actually possessing a given currency, or to hedge a position. Currency swaps involve the exchange of the principal and interest in one currency for the principal and interest in another currency. As in other types of OTC swaps, the Funds may be at risk due to the counterparty's inability to perform.

86 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

The following table represents the Funds' use and volume of currency swaps on a monthly basis:

---

| | | | |
|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Average Notional Amount** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Average Notional Amount** |
| <br>**Fund** | <br>**Use** | **Long** | **Short** |
| Strengthening Dollar 2x Strategy Fund | Index exposure, Leverage, Liquidity | $2206130 | $— |
| Weakening Dollar 2x Strategy Fund | Index exposure, Leverage, Liquidity |  | 201685 |

---

**Derivative Investment Holdings Categorized by Risk Exposure** 

The following is a summary of the location of derivative investments on the Funds' Statements of Assets and Liabilities as of December 31, 2022:

---

| | | |
|:---|:---|:---|
| **Derivative Investment Type** | **Asset Derivatives** | **Liability Derivatives** |
| Currency/Equity futures contracts  | Variation margin on futures contracts  | Variation margin on futures contracts  |
| Currency swap contracts  | Unrealized appreciation on OTC swap agreements | Unrealized depreciation on OTC swap agreements |

---

The following tables set forth the fair value of the Funds' derivative investments categorized by primary risk exposure December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Asset Derivative Investments Value** | **Asset Derivative Investments Value** | **Asset Derivative Investments Value** | **Asset Derivative Investments Value** | **Asset Derivative Investments Value** |
| **Fund** | **Futures <br> Equity <br> Risk\*** | **Futures <br> Foreign <br> Currency <br> Exchange <br> Risk\*** | **Swaps <br> Currency <br> Risk** | **Total Value at <br> December 31, <br> 2022** |
| Europe 1.25x Strategy Fund | $— | $25698 | $— | $25698 |
| Japan 2x Strategy Fund |  | 76134 |  | 76134 |
| Weakening Dollar 2x Strategy Fund |  | 1790 | 2631 | 4421 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Liability Derivative Investments Value** | **Liability Derivative Investments Value** | **Liability Derivative Investments Value** | **Liability Derivative Investments Value** | **Liability Derivative Investments Value** |
| **Fund** | **Futures <br> Equity <br> Risk\*** | **Futures <br> Foreign <br> Currency <br> Exchange <br> Risk\*** | **Swaps <br> Currency <br> Risk** | **Total Value at <br> December 31, <br> 2022** |
| Europe 1.25x Strategy Fund | $85887 | $— | $— | $85887 |
| Japan 2x Strategy Fund | 121498 |  |  | 121498 |
| Strengthening Dollar 2x Strategy Fund | 4234 |  | 13421 | 17655 |

---

\* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Funds' Schedules of Investments. For exchange-traded and centrally-cleared derivatives, variation margin is reported within the Funds' Statements of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Funds' Statements of Operations for the year ended December 31, 2022:

---

| | |
|:---|:---|
| **Derivative Investment Type** | **Location of Gain (Loss) on Derivatives** |
| Currency/Equity futures contracts | Net realized gain (loss) on futures contracts |
| | Net change in unrealized appreciation (depreciation) on futures contracts  |
| Currency swap contracts | Net realized gain (loss) on swap agreements |
| | Net change in unrealized appreciation (depreciation) on swap agreements  |

---

THE RYDEX FUNDS ANNUAL REPORT \| 87

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

The following is a summary of the Funds' realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statements of Operations categorized by primary risk exposure for the year ended December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations** | **Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations** | **Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations** | **Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations** | **Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations** |
| **Fund** | **Futures <br> Equity <br> Risk**  | **Swaps <br> Currency <br> Risk**  | **Futures <br> Foreign <br> Currency <br> Exchange <br> Risk**  | **Total** |
| Europe 1.25x Strategy Fund | $53462 | $— | $(111776) | $(58314) |
| Japan 2x Strategy Fund | (325080) |  | (506173) | (831253) |
| Strengthening Dollar 2x Strategy Fund |  | 87725 | 181662 | 269387 |
| Weakening Dollar 2x Strategy Fund |  | (29605) | (103988) | (133593) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations** | **Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations** | **Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations** | **Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations** | **Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations** |
| **Fund** | **Futures <br> Equity <br> Risk**  | **Swaps <br> Currency <br> Risk**  | **Futures <br> Foreign <br> Currency <br> Exchange <br> Risk**  | **Total** |
| Europe 1.25x Strategy Fund | $(142388) | $— | $16109 | $(126279) |
| Japan 2x Strategy Fund | (129437) |  | 105377 | (24060) |
| Strengthening Dollar 2x Strategy Fund |  | (8351) | 32595 | 24244 |
| Weakening Dollar 2x Strategy Fund |  | 1251 | (3026) | (1775) |

---

In conjunction with the use of derivative instruments, the Funds are required to maintain collateral in various forms. Depending on the financial instrument utilized and the broker involved, the Funds use margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or repurchase agreements allocated to the Funds as collateral.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions rated/identified as investment grade or better. The Trust monitors the counterparty credit risk.

**Note 3 – Offsetting** 

In the normal course of business, the Funds enter into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Funds to counteract the exposure to a specific counterparty with collateral received from or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, are reported separately on the Funds' Statements of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Cash and/or securities pledged or received as collateral by the Funds in connection with an OTC derivative subject to an ISDA Master Agreement generally may not be invested, sold or rehypothecated by the counterparty or the Funds, as applicable, absent an event of default under such agreement, in which case such collateral generally may be applied towards obligations due to and payable by such counterparty or the Funds, as applicable. Generally, the amount of collateral due from

88 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Funds' Statements of Assets and Liabilities.

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **Gross Amounts Not Offset <br> in the Statements of <br> Assets and Liabilities** | **Gross Amounts Not Offset <br> in the Statements of <br> Assets and Liabilities** | |
| <br>**Fund** | <br>**Instrument** | <br>**Gross <br> Amounts of <br> Recognized <br> Assets<sup>1</sup>** | <br>**Gross <br> Amounts <br> Offset in the <br> Statements <br> of Assets <br> and <br> Liabilities** | <br>**Net Amount <br> of Assets <br> Presented <br> on the <br> Statements <br> of Assets and <br> Liabilities** | **Financial <br> Instruments** | **Cash <br> Collateral <br> Received** | <br>**Net <br> Amount** |
| Weakening Dollar 2x Strategy Fund | Swap currency contracts | $2631 | $— | $2631 | $— | $— | $2631 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **Gross Amounts Not Offset <br> in the Statements of <br> Assets and Liabilities** | **Gross Amounts Not Offset <br> in the Statements of <br> Assets and Liabilities** | |
| <br>**Fund** | <br>**Instrument** | <br>**Gross <br> Amounts of <br> Recognized <br> Liabilities<sup>1</sup>** | <br>**Gross <br> Amounts <br> Offset in the <br> Statements <br> of Assets <br> and <br> Liabilities** | <br>**Net Amount <br> of Liabilities <br> Presented <br> on the <br> Statements <br> of Assets and <br> Liabilities** | **Financial <br> Instruments** | **Cash <br> Collateral <br> Pledged** | <br>**Net <br> Amount** |
| Strengthening Dollar 2x Strategy Fund | Swap currency contracts | $13421 | $— | $13421 | $(13421) | $— | $— |

---

<sup>1</sup> Exchange-traded or centrally-cleared derivatives are excluded from these reported amounts.

The Funds have the right to offset deposits against any related derivative liabilities outstanding with each counterparty with the exception of exchange-traded or centrally-cleared derivatives. The following table presents deposits held by others in connection with derivative investments as of December 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund** | **Counterparty** | **Asset Type** | **Cash Pledged** | **Cash Received** |
| Strengthening Dollar 2x Strategy Fund  | Goldman Sachs International | Futures contracts | $14329 | $— |
| Weakening Dollar 2x Strategy Fund | Goldman Sachs International | Futures contracts | 42120 |  |

---

**Note 4 – Fair Value Measurement** 

In accordance with U.S. GAAP, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a three-tier fair value hierarchy based on the types of inputs used to value assets and liabilities and requires corresponding disclosure. The hierarchy and the corresponding inputs are summarized below:

Level 1 — unadjusted quoted prices in active markets for identical assets or liabilities.

THE RYDEX FUNDS ANNUAL REPORT \| 89

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

Level 2 — significant other observable inputs (for example quoted prices for securities that are similar based on characteristics such as interest rates, prepayment speeds, credit risk, etc.).

Level 3 — significant unobservable inputs based on the best information available under the circumstances, to the extent observable inputs are not available, which may include assumptions.

Rule 2a-5 sets forth a definition of "readily available market quotations," which is consistent with the definition of a Level 1 input under U.S. GAAP. Rule 2a-5 provides that "a market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable."

Securities for which market quotations are not readily available must be valued at fair value as determined in good faith. Accordingly, any security priced using inputs other than Level 1 inputs will be subject to fair value requirements. The types of inputs available depend on a variety of factors, such as the type of security and the characteristics of the markets in which it trades, if any. Fair valuation determinations that rely on fewer or no observable inputs require greater judgment. Accordingly, fair value determinations for Level 3 securities require the greatest amount of judgment.

The inputs or methodologies selected and applied for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The suitability, appropriateness and accuracy of the techniques, methodologies and sources employed to determine fair valuation are periodically reviewed and subject to change.

**Note 5 – Investment Advisory Agreement and Other Agreements** 

Under the terms of an investment advisory contract, the Funds pay GI investment advisory fees calculated at the annualized rates below, based on the average daily net assets of the Funds:

---

| | |
|:---|:---|
| **Fund** | **Management Fees<br> (as a % of Net Assets)** |
| S&P 500<sup>®</sup> Pure Growth Fund | 0.75% |
| S&P 500<sup>®</sup> Pure Value Fund | 0.75% |
| S&P MidCap 400<sup>®</sup> Pure Growth Fund | 0.75% |
| S&P MidCap 400<sup>®</sup> Pure Value Fund | 0.75% |
| S&P SmallCap 600<sup>®</sup> Pure Growth Fund | 0.75% |
| S&P SmallCap 600<sup>®</sup> Pure Value Fund | 0.75% |
| Europe 1.25x Strategy Fund | 0.90% |
| Japan 2x Strategy Fund | 0.75% |
| Strengthening Dollar 2x Strategy Fund | 0.90% |
| Weakening Dollar 2x Strategy Fund | 0.90% |

---

GI pays operating expenses on behalf of the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, among others, on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

The Board has adopted an Investor Services Plan under which GFD and other firms that provide investor services ("Service Providers") may receive compensation. The Funds will pay investor service fees to GFD at an annual rate not to exceed 0.25% of average daily net assets. GFD, in turn, will compensate Service Providers for providing such services, while retaining a portion of such payments to compensate itself for investor services it performs.

90 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

If a Fund invests in a fund that is advised by the same adviser or an affiliated adviser, the investing Fund's adviser has agreed to waive fees at the investing Fund level to the extent necessary to offset the proportionate share of any management fee paid by each Fund with respect to its investment in such affiliated fund. Fee waivers will be calculated at the investing Fund level without regard to any expense cap in effect for the investing Fund. Fees waived under this arrangement are not subject to reimbursement to GI. For the year ended December 31, 2022, the following Funds waived fees related to investments in affiliated funds:

---

| | |
|:---|:---|
| **Fund** | **Amount Waived** |
| Europe 1.25x Strategy Fund | $788 |
| Japan 2x Strategy Fund | 490 |
| Strengthening Dollar 2x Strategy Fund | 1230 |
| Weakening Dollar 2x Strategy Fund | 158 |

---

GI has contractually agreed to waive and/or reimburse expenses for the Europe 1.25x Strategy Fund, Strengthening Dollar 2x Strategy Fund and Weakening Dollar 2x Strategy Fund, in an amount equal to an annual percentage rate of 0.05% of each Fund's average daily net assets. This agreement shall automatically renew for one-year terms, unless GI provides written notice to the Fund of the termination at least thirty days prior to the end of the then-current term. This agreement may be terminated at any time by the Fund's Board upon sixty days' written notice.

Certain trustees and officers of the Trust are also officers of GI and/or GFD. The Trust does not compensate its officers or trustees who are officers, directors and/or employees of GI or GFD.

MUFG Investor Services (US), LLC ("MUIS") acts as the Funds' administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS maintains the books and records of the Funds' securities and cash. U.S. Bank, N.A. ("U.S. Bank") acts as the Funds' custodian. As custodian, U.S. Bank is responsible for the custody of the Funds' assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of each Fund's average daily net assets and out of pocket expenses.

**Note 6 – Repurchase Agreements** 

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The joint account includes other Funds in the Guggenheim complex not covered in this report. The collateral is in the possession of the Funds' custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

THE RYDEX FUNDS ANNUAL REPORT \| 91

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

At December 31, 2022, the repurchase agreements in the joint account were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Counterparty and <br> Terms of Agreement** | **Face Value** | **Repurchase Price** | **Collateral** | **Par Value** | **Fair Value** |
| J.P. Morgan Securities LLC |  |  | U.S. Treasury Note |  |  |
| &nbsp;&nbsp;4.26% |  |  | &nbsp;&nbsp;2.25% |  |  |
| &nbsp;&nbsp;Due 01/03/23 | $60091722 | $60113055 | &nbsp;&nbsp;Due 11/15/24 | $63635200 | $61293613 |
| &nbsp;&nbsp;BofA Securities, Inc. |  |  | U.S. Treasury Note |  |  |
| &nbsp;&nbsp;4.25% |  |  | &nbsp;&nbsp;0.75% |  |  |
| &nbsp;&nbsp;Due 01/03/23 | 23112201 | 23120387 | &nbsp;&nbsp;Due 04/30/26 | 26301500 | 23574458 |
| Barclays Capital, Inc. |  |  | U.S. Treasury Inflation Indexed Bond |  |  |
| &nbsp;&nbsp;4.21% |  |  | &nbsp;&nbsp;0.13% |  |  |
| &nbsp;&nbsp;Due 01/03/23 | 23040622 | 23048705 | &nbsp;&nbsp;Due 01/15/31 | 26575915 | 23501502 |

---

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

**Note 7 – Portfolio Securities Loaned** 

The Funds may lend their securities to approved brokers to earn additional income. Securities lending income shown on the Funds' Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds' securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund — Class X. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

At December 31, 2022, the following Funds participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Gross Amounts Not Offset in the <br> Statements of Assets and Liabilities** | **Gross Amounts Not Offset in the <br> Statements of Assets and Liabilities** | **Gross Amounts Not Offset in the <br> Statements of Assets and Liabilities** | **Securities Lending Collateral** | **Securities Lending Collateral** | **Securities Lending Collateral** |
| <br>**Fund** | **Value of <br> Securities<br> Loaned** | **Collateral<br> Received<sup>(a)</sup>** | **Net<br> Amount** | **Cash<br> Collateral<br> Invested** | **Cash<br> Collateral<br> Uninvested** | **Total<br> Collateral** |
| S&P SmallCap 600<sup>®</sup> Pure Value Fund | $51184 | $(51184) | $— | $53033 | $— | $53033 |
| Europe 1.25x Strategy Fund | 4036 | (4036) |  | 4192 |  | 4192 |

---

<sup>(a)</sup> Actual collateral received by the Fund is generally greater than the amount shown due to overcollateralization.

92 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers to evaluate potential risks.

**Note 8 – Federal Income Tax Information** 

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"), applicable to regulated investment companies and will distribute substantially all taxable net investment income and capital gains sufficient to relieve the Funds from all, or substantially all, federal income, excise and state income taxes. Therefore, no provision for federal or state income tax or federal excise tax is required.

Tax positions taken or expected to be taken in the course of preparing the Funds' tax returns are evaluated to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds' tax positions taken, or to be taken, on U.S. federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Funds' financial statements. The Funds' U.S. federal income tax returns are subject to examination by the Internal Revenue Service ("IRS") for a period of three years after they are filed.

The tax character of distributions paid during the year ended December 31, 2022 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Fund** | **Ordinary <br> Income** | **Long-Term <br> Capital Gain** | **Total <br> Distributions** |
| S&P 500<sup>®</sup> Pure Growth Fund | $576892 | $3790097 | $4366989 |
| S&P 500<sup>®</sup> Pure Value Fund | 2171077 | 1065975 | 3237052 |
| S&P MidCap 400<sup>®</sup> Pure Growth Fund |  | 1815529 | 1815529 |
| S&P MidCap 400<sup>®</sup> Pure Value Fund | 1701006 | 469118 | 2170124 |
| S&P SmallCap 600<sup>®</sup> Pure Growth Fund | 840197 | 737805 | 1578002 |
| S&P SmallCap 600<sup>®</sup> Pure Value Fund | 1494113 |  | 1494113 |

---

The tax character of distributions paid during the year ended December 31, 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Fund** | **Ordinary <br> Income** | **Long-Term <br> Capital Gain** | **Total <br> Distributions** |
| S&P 500<sup>®</sup> Pure Growth Fund | $180112 | $— | $180112 |
| S&P 500<sup>®</sup> Pure Value Fund | 221197 | 91396 | 312593 |
| S&P MidCap 400<sup>®</sup> Pure Growth Fund | 1304465 | 202314 | 1506779 |
| S&P MidCap 400<sup>®</sup> Pure Value Fund | 658976 |  | 658976 |
| S&P SmallCap 600<sup>®</sup> Pure Growth Fund | 65305 |  | 65305 |
| Europe 1.25x Strategy Fund | 7486 |  | 7486 |

---

Note: For U.S. federal income tax purposes, short-term capital gain distributions are treated as ordinary income distributions.

THE RYDEX FUNDS ANNUAL REPORT \| 93

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

The tax components of distributable earnings/(loss) as of December 31, 2022 were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Fund**  | **Undistributed <br> Ordinary <br> Income**  | **Undistributed <br> Long-Term <br> Capital Gain**  | **Net <br> Unrealized <br> Appreciation <br> (Depreciation)** | **Accumulated <br> Capital and <br> Other Losses** | **Other <br> Temporary <br> Differences** | **Total** |
| S&P 500<sup>®</sup> Pure Growth Fund | $— | $– $| 1340847 | $(259525) | $— | $1081322 |
| S&P 500<sup>®</sup> Pure Value Fund | 296988 | – | (114698) |  |  | 182290 |
| S&P MidCap 400<sup>®</sup> Pure Growth Fund |  | – | 334467 | (490076) |  | (155609) |
| S&P MidCap 400<sup>®</sup> Pure Value Fund |  | – | (102179) |  |  | (102179) |
| S&P SmallCap 600<sup>®</sup> Pure Growth Fund | 6114 | – | 119760 | (1444000) |  | (1318126) |
| S&P SmallCap 600<sup>®</sup> Pure Value Fund |  | – | (600176) |  | (844) | (601020) |
| Europe 1.25x Strategy Fund | 11417 | – | 38390 | (1061723) |  | (1011916) |
| Japan 2x Strategy Fund | 1317 | – | 51 | (2225463) |  | (2224095) |
| Strengthening Dollar 2x Strategy Fund | 6475 | – | 234 | (870570) |  | (863861) |
| Weakening Dollar 2x Strategy Fund | 602 | – | (25) | (1635590) |  | (1635013) |

---

For U.S. federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward and applied against future capital gains. The Funds are permitted to carry forward capital losses for an unlimited period and such capital loss carryforwards retain their character as either short-term or long-term capital losses. As of December 31, 2022, capital loss carryforwards for the Funds were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Unlimited** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Unlimited** | |
| <br>**Fund** | **Short-Term** | **Long-Term** | <br>**Total<br> Capital Loss<br> Carryforward** |
| S&P 500<sup>®</sup> Pure Growth Fund | $(259525) | $— | $(259525) |
| S&P MidCap 400<sup>®</sup> Pure Growth Fund | (484563) | (5513) | (490076) |
| S&P SmallCap 600<sup>®</sup> Pure Growth Fund | (855768) | (588232) | (1444000) |
| Europe 1.25x Strategy Fund | (840747) | (220976) | (1061723) |
| Japan 2x Strategy Fund | (880671) | (1344792) | (2225463) |
| Strengthening Dollar 2x Strategy Fund | (370546) | (500024) | (870570) |
| Weakening Dollar 2x Strategy Fund | (672378) | (963212) | (1635590) |

---

For the year ended December 31, 2022, the following capital loss carryforward amounts were utilized:

---

| | |
|:---|:---|
| **Fund** | **Utilized** |
| Strengthening Dollar 2x Strategy Fund | $239433 |

---

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to investments in real estate investment trusts, foreign currency gains and losses, losses deferred due to wash sales, distributions in connection with redemption of fund shares, return of capital distributions received, and the "mark-to-market" of certain derivatives. Additional differences may result from the tax treatment of net operating losses. To the extent these differences are permanent and would require a reclassification between Paid in Capital and Total Distributable Earnings (Loss), such reclassifications are made in the period that the differences arise. These reclassifications have no effect on net assets or NAV per share.

94 \| THE RYDEX FUNDS ANNUAL REPORT

**NOTES TO FINANCIAL STATEMENTS** (continued)<br>

The following adjustments were made on the Statements of Assets and Liabilities as of December 31, 2022 for permanent book/tax differences:

---

| | | |
|:---|:---|:---|
| **Fund**  | **Paid In<br> Capital** | **Total <br> Distributable <br> Earnings/(Loss)** |
| S&P 500<sup>®</sup> Pure Growth Fund | $(158444) | $158444 |
| S&P 500<sup>®</sup> Pure Value Fund | 2211276 | (2211276) |
| S&P MidCap 400<sup>®</sup> Pure Growth Fund | 74735 | (74735) |
| S&P MidCap 400<sup>®</sup> Pure Value Fund | 1142427 | (1142427) |
| S&P SmallCap 600<sup>®</sup> Pure Growth Fund | (308) | 308 |
| S&P SmallCap 600<sup>®</sup> Pure Value Fund | 355448 | (355448) |
| Weakening Dollar 2x Strategy Fund | 1 | (1) |

---

At December 31, 2022, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund**  | **Tax <br> Cost** | **Tax <br> Unrealized <br> Appreciation** | **Tax <br> Unrealized <br> Depreciation** | **Net Tax <br> Unrealized <br> Appreciation/ <br> (Depreciation)** |
| S&P 500<sup>®</sup> Pure Growth Fund | $22356939 | $1728741 | $(387894) | $1340847 |
| S&P 500<sup>®</sup> Pure Value Fund | 33241181 | 966139 | (1080837) | (114698) |
| S&P MidCap 400<sup>®</sup> Pure Growth Fund | 11651765 | 605252 | (270785) | 334467 |
| S&P MidCap 400<sup>®</sup> Pure Value Fund | 12213382 | 129960 | (232139) | (102179) |
| S&P SmallCap 600<sup>®</sup> Pure Growth Fund | 5793824 | 263515 | (143755) | 119760 |
| S&P SmallCap 600<sup>®</sup> Pure Value Fund | 8334362 |  | (600176) | (600176) |
| Europe 1.25x Strategy Fund | 2535756 | 94458 | (56092) | 38366 |
| Japan 2x Strategy Fund | 945839 | 93667 | (93616) | 51 |
| Strengthening Dollar 2x Strategy Fund | 3607394 | 245 | (11) | 234 |
| Weakening Dollar 2x Strategy Fund | 1356538 |  | (25) | (25) |

---

**Note 9 – Securities Transactions** 

For the year ended December 31, 2022, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

---

| | | |
|:---|:---|:---|
| **Fund** | **Purchases** | **Sales** |
| S&P 500<sup>®</sup> Pure Growth Fund | $42555700 | $59007566 |
| S&P 500<sup>®</sup> Pure Value Fund | 105510224 | 99240826 |
| S&P MidCap 400<sup>®</sup> Pure Growth Fund | 25045283 | 28520916 |
| S&P MidCap 400<sup>®</sup> Pure Value Fund | 30856963 | 31482243 |
| S&P SmallCap 600<sup>®</sup> Pure Growth Fund | 15980249 | 19403445 |
| S&P SmallCap 600<sup>®</sup> Pure Value Fund | 28896434 | 34815629 |
| Europe 1.25x Strategy Fund | 643927 | 1172009 |
| Japan 2x Strategy Fund |  | 912687 |
| Strengthening Dollar 2x Strategy Fund |  | 2050558 |
| Weakening Dollar 2x Strategy Fund |  | 354386 |

---

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common

THE RYDEX FUNDS ANNUAL REPORT \| 95

**NOTES TO FINANCIAL STATEMENTS** (concluded)<br>

trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the year ended December 31, 2022, the Funds engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Fund** | **Purchases** | **Sales** | **Realized<br> Gain (Loss)** |
| S&P 500<sup>®</sup> Pure Growth Fund | $9368451 | $6537733 | $(445251) |
| S&P 500<sup>®</sup> Pure Value Fund | 17893971 | 9917917 | 758432 |
| S&P MidCap 400<sup>®</sup> Pure Growth Fund | 1765658 | 2010498 | (3703) |
| S&P MidCap 400<sup>®</sup> Pure Value Fund | 3332146 | 3312901 | 225624 |
| S&P SmallCap 600<sup>®</sup> Pure Growth Fund | 978355 | 1430314 | 18603 |
| S&P SmallCap 600<sup>®</sup> Pure Value Fund | 1946721 | 2234102 | 171182 |
| Europe 1.25x Strategy Fund | 217569 | 492552 | (27836) |

---

**Note 10 – Line of Credit** 

The Trust, along with other affiliated trusts, secured an uncommitted $150,000,000 line of credit from U.S. Bank, N.A., which was increased to $200,000,000 on February 10, 2021. On June 6, 2022, the line of credit agreement was renewed and expires on June 5, 2023. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 2.82% for the year ended December 31, 2022. The Funds did not have any borrowings outstanding under this agreement at December 31, 2022.

The average daily balances borrowed for the year ended December 31, 2022, were as follows:

---

| | |
|:---|:---|
| **Fund** | **Average Daily <br> Balance** |
| S&P 500<sup>®</sup> Pure Growth Fund | $658 |
| S&P 500<sup>®</sup> Pure Value Fund | 208 |
| S&P MidCap 400<sup>®</sup> Pure Growth Fund | 216 |
| S&P MidCap 400<sup>®</sup> Pure Value Fund | 1340 |
| S&P SmallCap 600<sup>®</sup> Pure Growth Fund | 85 |
| S&P SmallCap 600<sup>®</sup> Pure Value Fund | 5408 |
| Strengthening Dollar 2x Strategy Fund | 3058 |

---

**Note 11 – Market Risks** 

The value of, or income generated by, the investments held by the Funds are subject to the possibility of rapid and unpredictable fluctuation, and loss that may result from various factors. These factors include, among others, developments affecting individual companies, or from broader influences, including real or perceived changes in prevailing interest rates (which have since risen and may continue to rise), changes in inflation rates or expectations about inflation rates (which are currently elevated relative to normal conditions), adverse investor confidence or sentiment, changing economic, political (including geopolitical), social or financial market conditions, increased instability or general uncertainty, environmental disasters, governmental actions, public health emergencies (such as the spread of infectious diseases, pandemics and epidemics), debt crises, actual or threatened wars or other armed conflicts (such as the current Russia-Ukraine conflict and its risk of expansion or collateral economic and other effects) or ratings downgrades, and other similar events, each of which may be temporary or last for extended periods. Moreover, changing economic, political, geopolitical, social, financial market or other conditions in one country or geographic region could adversely affect the value, yield and return of the investments held by the Funds in a different country or geographic region, economy, and market because of the increasingly interconnected global economies and financial markets. The duration and extent of the foregoing types of factors or conditions are highly uncertain and difficult to predict and have in the past, and may in the future, cause volatility and distress in economies and financial markets or other adverse circumstances, which may negatively affect the value of the Funds' investments and performance of the Funds.

**Note 12 – Subsequent Events** 

The Funds evaluated subsequent events through the date the financial statements were available for issue and determined there were no material events that would require adjustment to or disclosure in the Funds' financial statements.

96 \| THE RYDEX FUNDS ANNUAL REPORT

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** <br>

To the Shareholders of S&P 500<sup>®</sup> Pure Growth Fund, S&P 500<sup>®</sup> Pure Value Fund, S&P MidCap 400<sup>®</sup> Pure Growth Fund, S&P MidCap 400<sup>®</sup> Pure Value Fund, S&P SmallCap 600<sup>®</sup> Pure Growth Fund, S&P SmallCap 600<sup>®</sup> Pure Value Fund, Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund and Weakening Dollar 2x Strategy Fund and the Board of Trustees of Rydex Variable Trust

**Opinion on the Financial Statements** 

We have audited the accompanying statements of assets and liabilities of S&P 500<sup>®</sup> Pure Growth Fund, S&P 500<sup>®</sup> Pure Value Fund, S&P MidCap 400<sup>®</sup> Pure Growth Fund, S&P MidCap 400<sup>®</sup> Pure Value Fund, S&P SmallCap 600<sup>®</sup> Pure Growth Fund, S&P SmallCap 600<sup>®</sup> Pure Value Fund, Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund and Weakening Dollar 2x Strategy Fund (collectively referred to as the "Funds"), (ten of the funds constituting Rydex Variable Trust (the "Trust")), including the schedules of investments, as of December 31, 2022, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (ten of the funds constituting Rydex Variable Trust) at December 31, 2022, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion** 

These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on each of the Funds' financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](fp0081230-3_97.jpg)

We have served as the auditor of one or more Guggenheim investment companies since 1979.

Tysons, Virginia<br> February 24, 2023

THE RYDEX FUNDS ANNUAL REPORT \| 97

**OTHER INFORMATION** (Unaudited)<br>

**Federal Income Tax Information** 

This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.

In January 2023, shareholders will be advised on IRS Form 1099 DIV or substitute 1099 DIV as to the federal tax status of the distributions received by shareholders in the calendar year 2022.

The Funds' investment income (dividend income plus short-term capital gains, if any) qualifies as follows:

Of the taxable ordinary income distributions paid during the fiscal year ended December 31, 2022, the following Funds had the corresponding percentages qualify for the dividends received deduction for corporations.

---

| | |
|:---|:---|
| **Fund** | **Dividend<br> Received<br> Deduction** |
| S&P 500<sup>®</sup> Pure Growth Fund | 17.27% |
| S&P 500<sup>®</sup> Pure Value Fund | 34.29% |
| S&P MidCap 400<sup>®</sup> Pure Value Fund | 20.30% |
| S&P SmallCap 600<sup>®</sup> Pure Growth Fund | 8.93% |
| S&P SmallCap 600<sup>®</sup> Pure Value Fund | 16.06% |

---

With respect to the taxable year ended December 31, 2022, the Funds hereby designate as capital gain dividends the amounts listed below, or, if subsequently determined to be different, the net capital gain of such year:

---

| | | |
|:---|:---|:---|
| **Fund** | **From long-term <br> capital gain:**  | **From long-term <br> capital gain, <br> using proceeds <br> from shareholder <br> redemptions:** |
| S&P 500<sup>®</sup> Pure Growth Fund | $3790097 | $— |
| S&P 500<sup>®</sup> Pure Value Fund | 1065975 | 2206205 |
| S&P MidCap 400<sup>®</sup> Pure Growth Fund | 1815529 |  |
| S&P MidCap 400<sup>®</sup> Pure Value Fund | 469118 | 1062766 |
| S&P SmallCap 600<sup>®</sup> Pure Growth Fund | 737805 |  |
| S&P SmallCap 600<sup>®</sup> Pure Value Fund |  | 353377 |

---

**Delivery of Shareholder Reports** 

Paper copies of the Funds' annual and semi-annual shareholder reports are not sent by mail, unless you specifically request paper copies of the reports from a Fund or from your financial intermediary. Instead, the reports are made available on a website, and you are notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future shareholder reports in paper free of charge. If you hold shares of a Fund directly, you can inform the Fund that you wish to receive paper copies of reports by calling 800.820.0888. If you hold shares of a Fund through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive reports in paper may apply to all Guggenheim Funds in which you are invested and may apply to all Guggenheim Funds held with your financial intermediary.

**Proxy Voting Information** 

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds' portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC's website at https://www.sec.gov.

98 \| THE RYDEX FUNDS ANNUAL REPORT

**OTHER INFORMATION** (Unaudited)(concluded)<br>

Information regarding how the Funds' voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC's website at https://www.sec.gov.

**Sector Classification** 

Information in the Schedule of Investments is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. Each Fund's registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Funds usually classify sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

**Quarterly Portfolio Schedules Information** 

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds' Forms N-PORT and N-Q are available on the SEC's website at https://www.sec.gov. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

THE RYDEX FUNDS ANNUAL REPORT \| 99

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited) <br>

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Funds' Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by visiting guggenheiminvestments.com or by calling 800.820.0888.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** | **Number of <br> Portfolios <br> in Fund <br> Complex <br> Overseen**  | **Other <br> Directorships Held <br> by Trustees\*\*\*** |
| **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** |  |  |  |
| **Randall C. Barnes** <br>(1951) | &nbsp;&nbsp;&nbsp;Trustee and Chair of the Valuation Oversight Committee | Since 2019 (Trustee)<br>Since 2020 (Chair of the Valuation Oversight Committee) | &nbsp;&nbsp;&nbsp;Current: Private Investor (2001-present).<br>Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990). | 155 | &nbsp;&nbsp;&nbsp;Current: Advent Convertible and Income Fund (2005-present); Purpose Investments Funds (2013-present).<br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2004-2022); Guggenheim Enhanced Equity Income Fund (2005-2021); Guggenheim Credit Allocation Fund (2013-2021). |
| **Angela Brock-Kyle** <br>(1959) | &nbsp;&nbsp;&nbsp;Trustee | Since 2016 | &nbsp;&nbsp;&nbsp;Current: Founder and Chief Executive Officer, B.O.A.R.D.S. (2013-present); Director, Mutual Fund Directors Forum (2022-present).<br>Former: Senior Leader, TIAA (1987-2012). | 154 | &nbsp;&nbsp;&nbsp;Current: Bowhead Insurance GP, LLC (2020-present); Hunt Companies, Inc. (2019-present).<br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2019-2022); Guggenheim Enhanced Equity Income Fund (2019-2021); Guggenheim Credit Allocation Fund (2019-2021); Infinity Property & Casualty Corp. (2014-2018). |

---

100 \| THE RYDEX FUNDS ANNUAL REPORT

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(continued)<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** | **Number of <br> Portfolios <br> in Fund <br> Complex <br> Overseen**  | **Other <br> Directorships Held <br> by Trustees\*\*\*** |
| **INDEPENDENT TRUSTEES - continued** | **INDEPENDENT TRUSTEES - continued** | **INDEPENDENT TRUSTEES - continued** | **INDEPENDENT TRUSTEES - continued** |  |  |
| **Thomas F. Lydon, Jr.** <br>(1960) | &nbsp;&nbsp;&nbsp;Trustee and Chair of the Contracts Review Committee | Since 2005 (Trustee)<br>Since 2020 (Chair of the Contracts Review Committee) | &nbsp;&nbsp;&nbsp;Current: President, Global Trends Investments (1996-present); Chief Executive Officer, ETF Flows, LLC (2019-present); Chief Executive Officer, Lydon Media (2016-present); Director, GDX Index Partners, LLC (2021-present); Vice Chairman, VettaFi (2022-present). | 154 | &nbsp;&nbsp;&nbsp;Current: US Global Investors, Inc. (GROW) (1995-present).<br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2019-2022); Guggenheim Enhanced Equity Income Fund (2019-2021); Guggenheim Credit Allocation Fund (2019-2021); Harvest Volatility Edge Trust (3) (2017-2019). |
| **Ronald A. Nyberg** <br>(1953) | &nbsp;&nbsp;&nbsp;Trustee and Chair of the Nominating and Governance Committee | Since 2019 | &nbsp;&nbsp;&nbsp;Current: Of Counsel, Momkus LLP (2016-present).<br>Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999). | 155 | &nbsp;&nbsp;&nbsp;Current: Advent Convertible and Income Fund (2003-present); PPM Funds (2) (2018-present); NorthShore-Edward-Elmhurst Health (2012-present).<br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2004-2022); Guggenheim Enhanced Equity Income Fund (2005-2021); Guggenheim Credit Allocation Fund (2013-2021); Western Asset Inflation-Linked Opportunities & Income Fund (2004-2020); Western Asset Inflation-Linked Income Fund (2003-2020). |

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THE RYDEX FUNDS ANNUAL REPORT \| 101

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(continued)<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** | **Number of <br> Portfolios <br> in Fund <br> Complex <br> Overseen**  | **Other <br> Directorships Held <br> by Trustees\*\*\*** |
| **INDEPENDENT TRUSTEES - concluded** | **INDEPENDENT TRUSTEES - concluded** | **INDEPENDENT TRUSTEES - concluded** | **INDEPENDENT TRUSTEES - concluded** |  |  |
| **Sandra G. Sponem** <br>(1958) | &nbsp;&nbsp;&nbsp;Trustee and Chair of the Audit Committee | Since 2016 (Trustee)<br>Since 2019 (Chair of the Audit Committee) | &nbsp;&nbsp;&nbsp;Current: Retired.<br>Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson-Companies, Inc. (2007-2017). | 154 | &nbsp;&nbsp;&nbsp;Current: SPDR Series Trust (81) (2018-present); SPDR Index Shares Funds (30) (2018-present); SSGA Active Trust (14) (2018-present).<br>Former: Fiduciary/Claymore Energy Infrastructure Fund (2019-2022); Guggenheim Enhanced Equity Income Fund (2019-2021); Guggenheim Credit Allocation Fund (2019-2021); SSGA Master Trust (1) (2018-2020). |
| **Ronald E. Toupin, Jr.** <br>(1958) | &nbsp;&nbsp;&nbsp;Trustee, Chair of the Board and Chair of the Executive Committee | Since 2019 | &nbsp;&nbsp;&nbsp;Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present).<br>Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999). | 154 | &nbsp;&nbsp;&nbsp;Former: Fiduciary/Claymore Energy Infrastructure Fund (2004-2022); Guggenheim Enhanced Equity Income Fund (2005-2021); Guggenheim Credit Allocation Fund (2013-2021); Western Asset Inflation-Linked Opportunities & Income Fund (2004-2020); Western Asset Inflation-Linked Income Fund (2003-2020). |

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102 \| THE RYDEX FUNDS ANNUAL REPORT

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(continued)<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust**  | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** | **Number of <br> Portfolios <br> in Fund <br> Complex <br> Overseen**  | **Other <br> Directorships Held <br> by Trustees\*\*\*** |
| **INTERESTED TRUSTEE**  | **INTERESTED TRUSTEE**  |  |  |  |  |
| **Amy J. Lee\*\*\*\*** <br>(1961) | &nbsp;&nbsp;&nbsp;Trustee, Vice President and Chief Legal Officer | Since 2019 | &nbsp;&nbsp;&nbsp;Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present).<br>Former: President and Chief Executive Officer, certain other funds in the Fund Complex (2017-2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012). | 154 | &nbsp;&nbsp;&nbsp;Former: Fiduciary/Claymore Energy Infrastructure Fund (2008-2022); Guggenheim Enhanced Equity Income Fund (2018-2021); Guggenheim Credit Allocation Fund (2018-2021). |

---

---

| | |
|:---|:---|
| \* | &nbsp;&nbsp;&nbsp;The business address of each Trustee is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606. |
| \*\* | &nbsp;&nbsp;&nbsp;Each Trustee serves an indefinite term, until his or her successor is elected and qualified. |
| \*\*\* | &nbsp;&nbsp;&nbsp;Each Trustee also serves on the Boards of Trustees of Guggenheim Funds Trust, Guggenheim Variable Funds Trust, Guggenheim Strategy Funds Trust, Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust, Guggenheim Strategic Opportunities Fund, Guggenheim Energy & Income Fund, Guggenheim Active Allocation Fund, Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust and Transparent Value Trust. Messrs. Barnes and Nyberg also serve on the Board of Trustees of Advent Convertible & Income Fund. |
| \*\*\*\*  | &nbsp;&nbsp;&nbsp;This Trustee is deemed to be an "interested person" of the Funds under the 1940 Act by reason of her position with the Adviser and/or the parent of the Adviser. |

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THE RYDEX FUNDS ANNUAL REPORT \| 103

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(continued)<br>

---

| | | | |
|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust** | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** |
| **OFFICERS**  |  |  |  |
| **Brian E. Binder** <br>(1972) | &nbsp;&nbsp;&nbsp;President and Chief Executive Officer | Since 2019 | &nbsp;&nbsp;&nbsp;Current: President, Mutual Fund Boards, Guggenheim Investments (2022-present); President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President, Chief Executive Officer and Chairman of the Board of Managers, Guggenheim Funds Investment Advisors, LLC (2018-present); President and Chief Executive Officer, Security Investors, LLC (2018-present); Board Member, Guggenheim Partners Investment Funds plc (2022-present); Board Member, Guggenheim Global Investments plc (2022-present); Board Member, Guggenheim Partners Fund Management (Europe) Limited (2018-present). <br>Former: Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-2022); Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Chairman of North American Executive Committee and Head of Business Management and Consulting, Invesco Ltd. (2010-2012). |
| **James M. Howley** <br>(1972) | &nbsp;&nbsp;&nbsp;Chief Financial Officer, Chief Accounting Officer and Treasurer | Since 2022 | &nbsp;&nbsp;&nbsp;Current: Managing Director, Guggenheim Investments (2004-present); Chief Financial Officer, Chief Accounting Officer, and Treasurer, certain other funds in the Fund Complex (2022-present).<br>Former: Assistant Treasurer, certain other funds in the Fund Complex (2006-2022); Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004). |
| **Mark E. Mathiasen** <br>(1978) | &nbsp;&nbsp;&nbsp;Secretary | Since 2017 | &nbsp;&nbsp;&nbsp;Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present). |
| **Glenn McWhinnie** <br>(1969) | &nbsp;&nbsp;&nbsp;Assistant Treasurer | Since 2016 | &nbsp;&nbsp;&nbsp;Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present). |
| **Michael P. Megaris** <br>(1984) | &nbsp;&nbsp;&nbsp;Assistant Secretary | Since 2018 | &nbsp;&nbsp;&nbsp;Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Managing Director, Guggenheim Investments (2012-present). |
| **Elisabeth Miller** <br>(1968) | &nbsp;&nbsp;&nbsp;Chief Compliance Officer | Since 2012 | &nbsp;&nbsp;&nbsp;Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present); Vice President, Guggenheim Funds Distributors, LLC (2014-present). <br>Former: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim <br>Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014). |
| **Margaux Misantone** <br>(1978) | &nbsp;&nbsp;&nbsp;AML Officer  | Since 2017  | &nbsp;&nbsp;&nbsp;Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC <br> and certain other funds in the Fund Complex (2017-present); Managing Director, Guggenheim Investments (2015-present). <br>Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018). |

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104 \| THE RYDEX FUNDS ANNUAL REPORT

**INFORMATION ON BOARD OF TRUSTEES AND OFFICERS** (Unaudited)(concluded)<br>

---

| | | | |
|:---|:---|:---|:---|
| **Name, Address\* <br> and Year of Birth** | **Position(s) <br> Held with <br> Trust** | **Term of Office <br> and Length of <br> Time Served\*\*** | **Principal Occupation(s) <br> During Past Five Years** |
| **OFFICERS - concluded** | **OFFICERS - concluded** | **OFFICERS - concluded** |  |
| **Kimberly J. Scott** <br>(1974) | &nbsp;&nbsp;&nbsp;Assistant Treasurer | Since 2016 | &nbsp;&nbsp;&nbsp;Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present).<br>Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009). |
| **Bryan Stone** <br>(1979) | &nbsp;&nbsp;&nbsp;Vice President | Since 2019 | &nbsp;&nbsp;&nbsp;Current: Vice President, certain other funds in the Fund Complex (2014-present); Managing Director, Guggenheim Investments (2013-present).<br>Former: Senior Vice President, Neuberger Berman Group LLC (2009-2013); Vice President, Morgan Stanley (2002-2009). |
| **Jon Szafran** <br>(1989) | &nbsp;&nbsp;&nbsp;Assistant Treasurer | Since 2017 | &nbsp;&nbsp;&nbsp;Current: Director, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present).<br>Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. ("HGINA"), (2017); Senior Analyst of US Fund Administration, HGINA (2014–2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013). |

---

\* The business address of each officer is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606. <br> \*\* Each officer serves an indefinite term, until his or her successor is duly elected and qualified.

THE RYDEX FUNDS ANNUAL REPORT \| 105

**GUGGENHEIM INVESTMENTS PRIVACY NOTICE** (Unaudited)<br>

**Who We Are** 

This Privacy Notice describes the data protection practices of Guggenheim Investments. Guggenheim Investments as used herein refers to the affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Guggenheim Investment Advisors (Europe) Limited, Guggenheim Real Estate, LLC, GS Gamma Advisors, LLC, Guggenheim Partners India Management, LLC, Guggenheim Partners Europe Limited, as well as the funds in the Guggenheim Funds complex (the "Funds") ("Guggenheim Investments," "we," "us," or "our").

Guggenheim Partners Investment Management Holdings, LLC, located at 330 Madison Avenue, New York, New York 10017, is the data controller for your information. The affiliates who are also controllers of certain of your information are: Guggenheim Investment Advisors (Europe) Limited, Guggenheim Partners Europe Limited, Guggenheim Partners, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC and Security Investors, LLC, as well as the Funds.

**Our Commitment to You** 

Guggenheim Investments considers your privacy our utmost concern. When you become our client or investor, you entrust us with not only your hard-earned money but also with your personal and financial information. Because we have access to your private information, we hold ourselves to the highest standards in its safekeeping and use. We strictly limit how we share your information with others, whether you are a current or former Guggenheim Investments client or investor.

**The Information We Collect About You** 

We collect certain nonpublic personal information about you from information you provide on applications, other forms, our website, and/or from third parties including investment advisors. This information includes Social Security or other tax identification number, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, bank account information, marital status, family relationships, information that we collect on our website through the use of "cookies," and other personal information that you or others provide to us. We may also collect such information through your inquiries by mail, e-mail or telephone. We may also collect customer due diligence information, as required by applicable law and regulation, through third party service providers.

**How We Handle Your Personal Information** 

The legal basis for using your information as set out in this Privacy Notice is as follows: (a) use of your personal data is necessary to perform our obligations under any contract with you (such as a contract for us to provide financial services to you); or (b) where use of your personal data is not necessary for performance of a contract, use of your personal data is necessary for our legitimate interests or the legitimate interests of others (for example, to enforce the legal terms governing our services, operate and market our website and other services we offer, ensure safe environments for our personnel and others, make and receive payments, prevent fraud and to know the customer to whom we are providing the services). Some processing is done to comply with applicable law.

In addition to the specific uses described above, we also use your information in the following manner:

● We use your information in connection with servicing your accounts.

● We use information to respond to your requests or questions. For example, we might use your information to respond to your customer feedback.

● We use information to improve our products and services. We may use your information to make our website and products better. We may use your information to customize your experience with us.

● We use information for security purposes. We may use your information to protect our company and our customers.

● We use information to communicate with you. For example, we will communicate with you about your account or our relationship. We may contact you about your feedback. We might also contact you about this Privacy Notice. We may also enroll you in our email newsletter.

106 \| THE RYDEX FUNDS ANNUAL REPORT

**GUGGENHEIM INVESTMENTS PRIVACY NOTICE** (Unaudited)(continued)<br>

● We use information as otherwise permitted by law, as we may notify you.

● Aggregate/Anonymous Data. We may aggregate and/or anonymize any information collected through the website so that such information can no longer be linked to you or your device ("Aggregate/Anonymous Information"). We may use Aggregate/Anonymous Information for any purpose, including without limitation for research and marketing purposes, and may also share such data with any third parties, including advertisers, promotional partners, and sponsors.

We do not sell information about current or former clients or their accounts to third parties. Nor do we share this information, except when necessary to complete transactions at your request, to make you aware of investment products and services that we or our affiliates offer, or as permitted or required by law.

We provide information about you to companies and individuals not affiliated with Guggenheim Investments to complete certain transactions or account changes, or to perform services for us related to your account. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we must provide certain information about you to that company to complete the transaction. We provide the third party with only the information necessary to carry out its responsibilities and only for that purpose. And we require these third parties to treat your private information with the same high degree of confidentiality that we do. To alert you to other Guggenheim Investments products and services, we share your information within our family of affiliated companies. You may limit our sharing with affiliated companies as set out below. We may also share information with any successor to all or part of our business, or in connection with steps leading up to a merger or acquisition. For example, if part of our business was sold we may give customer information as part of that transaction. We may also share information about you with your consent.

We will release information about you if you direct us to do so, if we are compelled by law to do so, or in other circumstances as permitted by law (for example, to protect your account from fraud).

If you close your account(s) or become an inactive client or investor, we will continue to adhere to the privacy policies and practices described in this notice.

**Opt-Out Provisions and Your Data Choices** 

The law allows you to "opt out" of certain kinds of information sharing with third parties. We do not share personal information about you with any third parties that triggers this opt-out right. This means YOU ARE ALREADY OPTED OUT.

When you are no longer our client or investor, we continue to share your information as described in this notice, and you may contact us at any time to limit our sharing by sending an email to CorporateDataPrivacy@GuggenheimPartners.com.

European Union Data Subjects and certain others: In addition to the choices set forth above, residents of the European Union and certain other jurisdictions have certain rights to (1) request access to or rectification or deletion of information we collect about them, (2) request a restriction on the processing of their information, (3) object to the processing of their information, or (4) request the portability of certain information. To exercise these or other rights, please contact us using the contact information below. We will consider all requests and provide our response within the time period stated by applicable law. Please note, however, that certain information may be exempt from such requests in some circumstances, which may include if we need to keep processing your information for our legitimate interests or to comply with a legal obligation. We may request you provide us with information necessary to confirm your identity before responding to your request.

Residents of France and certain other jurisdictions may also provide us with instructions regarding the manner in which we may continue to store, erase and share your information after your death, and where applicable, the person you have designated to exercise these rights after your death.

**How We Protect Privacy Online** 

We take steps to protect your privacy when you use our web site – www.guggenheiminvestments.com – by using secure forms of online communication, including encryption technology, Secure Socket Layer (SSL) protocol, firewalls and user names and passwords. These safeguards vary based on the sensitivity of the information that we collect and store. However, we cannot and do not guarantee that these measures will prevent every unauthorized attempt to access, use, or disclose your information since despite our efforts, no Internet and/or other

THE RYDEX FUNDS ANNUAL REPORT \| 107

**GUGGENHEIM INVESTMENTS PRIVACY NOTICE** (Unaudited)(concluded)<br>

**How We Safeguard Your Personal Information and Data Retention** 

We restrict access to nonpublic personal information about you to our employees and in some cases to third parties (for example, the service providers described above) as permitted by law. We maintain strict physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

We keep your information for no longer than necessary for the purposes for which it is processed. The length of time for which we retain information depends on the purposes for which we collected and use it and/or as required to comply with applicable laws. Information may persist in copies made for backup and business continuity purposes for additional time.

**International Visitors** 

If you are not a resident of the United States, please be aware that your information may be transferred to, stored and processed in the United States where our servers are located and our databases are operated. The data protection and other laws of the United States and other countries might not be as comprehensive as those in your country.

In such cases, we ensure that a legal basis for such a transfer exists and that adequate protection is provided as required by applicable law, for example, by using standard contractual clauses or by transferring your data to a jurisdiction that has obtained an adequacy finding. Individuals whose data may be transferred on the basis of standard contractual clauses may contact us as described below.

**We'll Keep You Informed** 

If you have any questions or concerns about how we treat your personal data, we encourage you to consult with us first. You may also contact the relevant supervisory authority.

We reserve the right to modify this policy at any time and will inform you promptly of material changes. You may access our privacy policy from our web site at www.guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us by email at CorporateDataPrivacy@GuggenheimPartners.com.

108 \| THE RYDEX FUNDS ANNUAL REPORT

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**Item 2. Code of Ethics.**

The registrant's Board of Trustees has adopted a code of ethics that applies to the registrant's principal executive officer and principal financial officer. No substantive amendments were approved or waivers were granted to the Code during the period covered by this report. The Code is filed as an exhibit to this Form N-CSR.

**Item 3. Audit Committee Financial Expert.**

The registrant's Board of Trustees has determined that it has at least one audit committee financial expert serving on its audit committee (the "Audit Committee"), Sandra G. Sponem. Ms. Sponem is "independent," meaning that she is not an "interested person" of the Registrant (as that term is defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended) and she does not accept any consulting, advisory, or other compensatory fee from the Registrant (except in her capacity as a Board or committee member).

(Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as amended, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the Audit Committee and Board of Trustees in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations or liability of any other member of the Audit Committee or Board of Trustees.)

**Item 4. Principal Accountant Fees and Services.**

(a) <u>Audit Fees.</u> The aggregate Audit Fees billed by the registrant's principal accountant for professional services rendered for the audit of the annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for the fiscal years ended December 31, 2022 and December 31, 2021 were $944,917 and $917,395, respectively.

(b) <u>Audit Related Fees.</u> The aggregate Audit-Related Fees billed by the registrant's principal accountant for assurance and related services that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item for the fiscal years ended December 31, 2022 and December 31, 2021 were $0 and $0, respectively.

The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor to the registrant's investment adviser (not including any sub-investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant ("Service Affiliates") which required pre-approval by the Audit Committee which related to the review of the transfer agent function for the fiscal years ended December 31, 2021 and December 31, 2020 were $0 and $0, respectively.

(c) <u>Tax Fees.</u> The aggregate Tax Fees billed by the registrant's principal accountant for professional services rendered for tax compliance, tax advice, and tax planning, including preparation of tax returns and distribution assistance, for the fiscal years ended December 31, 2022 and December 31, 2021 were $278,180 and $279,987, respectively. These services consisted of [(i) preparation of U.S. federal, state and excise tax returns; (ii) U.S. federal and state tax planning, advice and assistance regarding statutory, regulatory or administrative developments, (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired and (iv) review of U.S. federal excise distribution calculations].

(d) <u>All Other Fees.</u> The aggregate All Other Fees billed by the registrant's principal accountant for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item, for the fiscal years ended December 31, 2022 and December 31, 2021 were $0 and $0, respectively.

(e) <u>Audit Committee Pre-Approval Policies and Procedures.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Audit Committee pre-approval policies and procedures:</u>

To fulfill its responsibilities and duties the Audit Committee (the "Committee") shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. *Pre-Approval Policy (Trusts).* Pre-approve any engagement of the independent auditors to provide
any services, other than "prohibited non-audit services," to the Trust, including the fees and other compensation to be paid
to the independent auditors (unless an exception is available under Rule 2-01 of Regulation S-X).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The categories of services to be reviewed and considered for pre-approval include those services set forth
under Section II.A.1. of the Background and Definitions for Audit Committee Charter, attached hereto as Appendix B (collectively, "Identified Services").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Committee has pre-approved Identified Services for which the estimated fees are less than $25,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For Identified Services with estimated fees of $25,000 or more, but less than $50,000, the Chair or any
member of the Committee designated by the Chair is hereby authorized to pre-approve such Identified Services on behalf of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For Identified Services with estimated fees of $50,000 or more, such Identified Services require pre-approval
by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All requests for Identified Services to be provided by the independent auditor that were pre-approved
by the Committee shall be submitted to the Chief Accounting Officer ("CAO") of the Trust by the independent auditor
using the pre-approval request form attached as Appendix C hereto. The Trust's CAO will determine whether such services are included within the list of services
that have received the general pre-approval of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The independent auditors or the CAO of the Trust (or an officer of the Trust who reports to the CAO) shall
report to the Committee at each of its regular scheduled meetings all audit, audit-related and permissible non-audit services initiated
since the last such report (unless the services were contained in the initial audit plan, as previously presented to, and approved by,
the Committee). The report shall include a general description of the services and projected fees, and the means by which such services
were approved by the Committee (including the particular category of Identified Services as set forth in Appendix B under which pre-approval was obtained).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. *Pre-Approval Policy (Adviser or Any Control Affiliate)*. Pre-approve any engagement of the independent
auditors, including the fees and other compensation to be paid to the independent auditors, to provide any non-audit services to the Adviser
(or any "control affiliate" of the Adviser providing ongoing services to the Trust), if the engagement relates directly to
the operations or financial reporting of the Trust (unless an exception is available under Rule 2-01 of Regulation S-X).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Chair or any member of the Committee designated by the Chair may grant the pre-approval for non-audit
services to the Adviser (or any "control affiliate" of the Adviser providing ongoing services to the Trust) relating directly
to the operations or financial reporting of the Trust for which the estimated fees are less than $25,000. All such delegated pre-approvals
shall be presented to the Committee no later than the next regularly scheduled Committee meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For non-audit services to the Adviser (or any "control affiliate" of the Adviser providing
ongoing services to the Trust) relating directly to the operations or financial reporting of the Trust for which the estimated fees are
$25,000 or more, such services require pre-approval by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Pre-Approval Requirements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Categories of Services to be Reviewed and Considered for Pre-Approval

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Audit Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Annual financial statement audits

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Seed audits (related to new product filings, as required)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. SEC and regulatory filings and consents

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Audit-Related Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Accounting consultations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Fund merger/reorganization support services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Other accounting related matters

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Agreed upon procedures reports

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Attestation reports

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Other internal control reports

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Tax Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Recurring tax services:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Preparation of Federal and state income tax returns, including extensions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Preparation of calculations of taxable income, including fiscal year tax designations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Preparation of annual Federal excise tax returns (if applicable)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Preparation of calendar year excise distribution calculations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Calculation of tax equalization on an as-needed basis

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. Preparation of monthly/quarterly estimates of tax undistributed position for closed-end funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. Preparation of the estimated excise distribution calculations on an as-needed basis

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. Preparation of calendar year shareholder reporting designations on Form 1099

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ix. Preparation of quarterly Federal, state and local and franchise tax estimated tax payments on an as-needed
basis

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. Preparation of state apportionment calculations to properly allocate Fund taxable income among the states
for state tax filing purposes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xi. Assistance with management's identification of passive foreign investment companies (PFICs) for
tax purposes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Permissible non-recurring tax services upon request:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Assistance with determining ownership changes which impact a Fund's utilization of loss carryforwards

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Assistance with corporate actions and tax treatment of complex securities and structured products

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Assistance with IRS ruling requests and calculation of deficiency dividends

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Conduct training sessions for the Adviser's internal tax resources

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Assistance with Federal, state, local and international tax planning and advice regarding the tax consequences
of proposed or actual transactions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. Tax services related to amendments to Federal, state and local returns and sales and use tax compliance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. RIC qualification reviews

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. Tax distribution analysis and planning

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ix. Tax authority examination services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. Tax appeals support services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xi. Tax accounting methods studies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xii. Fund merger, reorganization and liquidation support services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xiii. Tax compliance, planning and advice services and related projects

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xiv. Assistance with out of state residency status

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xv. Provision of tax compliance services in India for Funds with direct investments in India

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Pre-Approval
 Not Required

Under Section 10A(h)(i)(1)(B) of the Exchange Act and Rule 2-01 under Regulation S-X (Section (c)(7)), pre-approval of non-audit services for the Trust pursuant to Section V.B.2 is not required, if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the aggregate amount of all non-audit services provided to the Trust is no more than 5% of the total fees paid by the Trust to the independent auditors during the fiscal year in which the non-audit services are provided;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the services were not recognized by Trust management at the time of the engagement as non-audit services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. such services are promptly brought to the attention of the Audit Committee by Trust management and the Committee approves them (which may be by delegation) prior to the completion of the audit.

Under Section 10A(h)(i)(1)(B) of the Exchange Act and Rule 2-01 under Regulation S-X (Section (c)(7)), pre-approval of non-audit services for the Adviser (or any affiliate of the Adviser providing ongoing services to the Trust) pursuant to Section V.B.3 is not required, if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the aggregate amount of all non-audit services provided is no more than 5% of the total fees paid to the Trust's independent auditors by the Trust, the Adviser and any "control affiliate" of the Adviser providing ongoing services to the Trust during the fiscal year in which the non-audit services are provided;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the services were not recognized by Trust management at the time of the engagement as non-audit services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. such services are promptly brought to the attention of the Audit Committee by Trust management and the Committee approves them (which may be by delegation) prior to the completion of the audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) None of the services described in each of Items 4(b) through (d) were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not applicable.

(g) <u>Non-Audit Fees.</u> The aggregate non-audit fees billed by the registrant's accountant for the most recent fiscal year and the preceding fiscal year for services rendered to the registrant, the investment advisor, and any entity controlling, controlled by, or under common control with the advisor that provides ongoing services to the registrant were $278,180 and $279,987, respectively. These aggregate fees were less than the aggregate fees billed for the same periods by the registrant's principal accountant for audit services rendered to the registrant, the investment advisor, and any entity controlling, controlled by, or under common control with the advisor that provides ongoing services to the registrant.

(h) <u>Auditor Independence.</u> The registrant's Audit Committee was provided with information relating to the provision of non-audit services by Ernst & Young, LLP to the registrant's investment adviser (not including any sub adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved by the Audit Committee so that a determination could be made whether the provision of such services is compatible with maintaining Ernst & Young, LLP's independence.

**Item 5. Audit Committee of Listed Registrants.**

Not applicable.

**Item 6. Investments.**

Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form.

**Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.**

Not applicable.

**Item 8. Portfolio Managers of Closed-End Management Investment Companies.**

Not applicable.

**Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.**

Not applicable.

**Item 10. Submission of Matters to a Vote of Security Holders.**

The registrant does not currently have in place procedures by which shareholders may recommend nominees to the registrant's board.

There have been no changes to the procedures by which shareholders may recommend nominees to the registrant's board.

**Item 11. Controls and Procedures.**

(a) The registrant's President (principal executive officer) and Treasurer (principal financial officer) have evaluated the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) as of a date within 90 days of this filing and have concluded that based on such evaluation as required by Rule 30a-3(b) under the Investment Company Act, that the registrant's disclosure controls and procedures were effective as of that date in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

(b) The registrant's principal executive officer and principal financial officer are aware of no change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

**Item 12. Disclosure of Securities Lending Activities for Closed End Fund Management Investment Companies.**

Not Applicable

**Item 13. Exhibits.**

[(a)(1) The registrant's code of ethics pursuant to Item 2 of Form N-CSR is attached.](fp0081230-5_ex99code.htm)

[(a)(2) Separate certifications by the President (principal executive officer) and Treasurer (principal financial officer) of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) are attached.](fp0081230-5_ex99cert.htm)

[(b) A certification by the registrant's President (principal executive officer) and Treasurer (principal financial officer) as required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)) is attached.](fp0081230-5_ex99906cert.htm)

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| (Registrant) | Rydex Variable Trust |
| By (Signature and Title)\* | /s/ Brian E. Binder |
|  | Brian E. Binder, President and Chief Executive Officer |
| Date | March 6, 2023 |

---

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| By (Signature and Title)\* | /s/ Brian E. Binder |
|  | Brian E. Binder, President and Chief Executive Officer |
| Date | March 6, 2023 |
| By (Signature and Title)\* | /s/ James M. Howley |
|  | James M. Howley, Chief Financial Officer, Chief Accounting Officer, and Treasurer |
| Date | March 6, 2023 |

---

<sup>\*</sup> Print the name and title of each signing officer under his or her signature.

## Ex-99.Code

**EXHIBIT (a)(1)**

**APPENDIX A**

**CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND**

**SENIOR FINANCIAL OFFICERS**

**I.** **Covered Officers/Purpose of the Code** 

This code of ethics (the "Code") is applicable to Guggenheim Funds (each a "Company" and together the "Companies," each set forth in Exhibit A) and applies to the Companies' President/CEO (Principal Executive Officer), and CFO/Treasurer (Principal Financial Officer) (the "Covered Officers") for the purpose of promoting:

● honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

● full, fair, accurate, timely and understandable disclosure in reports and documents that a registrant files with, or submits to, the Securities and Exchange Commission ("SEC") and in other public communications made by the Company;

● compliance with applicable laws and governmental rules and regulations;

● the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and

● accountability for adherence to the Code.

Covered Officers are expected to dedicate their best efforts to advancing the Trust's interests and to use objective and unbiased standards when making decisions that affect the Trust, while being sensitive to situations that may give rise to actual conflicts of interest, as well as apparent conflicts of interest.

**II.** **Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest** 

**Overview.** A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his or her service to, the Company. For example, a conflict of interest would arise if a Covered Officer, or a member of his or her family, receives improper personal benefits as a result of his or her position with the Company.

Certain conflicts of interest arise out of the relationships between Covered Officers and the Company and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Company because of their status as "affiliated persons" of the Company. The Company's and the investment adviser's compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or result from, the contractual relationship between the Company and the investment adviser of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Company or for the adviser, or for both), be involved in establishing policies and implementing decisions that will have different effects on the adviser and the Company. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Company and the adviser and is consistent with the performance by the Covered Officers of their duties as officers of the Company. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Funds' Boards of Trustees ("Boards") that the Covered Officers may also be officers or employees of one or more other investment companies covered by this code.

**EXHIBIT (a)(1)**

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. **The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Company.**

\* \* \*

Each Covered Officer must:

● not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Company whereby the Covered Officer would benefit personally to the detriment of the Company;

● not cause the Company to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit the Company;

● report at least annually his or her affiliations or other relationships which may give rise to conflicts of interest with the Funds (provided that annual completion of the Funds' Trustees and Officers Questionnaire shall satisfy the requirements of this bullet point).

There are some conflict of interest situations that should always be discussed with the Secretary of the Funds (the "Secretary"), or other senior legal officer, if material. Examples of these include:<u><sup>1</sup></u>

● service as a director on the board of any public company;

● the receipt of any non-de minimus gifts;

● the receipt of any entertainment from any company with which the Company has current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety;

● any ownership interest in, or any consulting or employment relationship with, any of the Company's service providers, other than its investment adviser, principal underwriter, administrator or any affiliated person thereof;

● a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Company for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership.

**III.** **Disclosure and Compliance** 

● Each Covered Officer should familiarize himself or herself with the disclosure requirements generally applicable to the Company;

● each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Company to others, whether within or outside the Company, including to the Company's directors and auditors, and to governmental regulators and self-regulatory organizations;

● each Covered Officer should, to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the Funds and the adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds; and

<u><sup>1</sup></u> Any activity or relationship that would present a conflict for a Covered Officer would likely also present a conflict for the Covered Officer if a member of the Covered Officer's family engages in such an activity or has such a relationship.

**EXHIBIT (a)(1)**

● it is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

**IV.** **Reporting and Accountability** 

Each Covered Officer must:

● upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he or she has received, read, and understands the Code;

● annually thereafter affirm to the Board that he or she has complied with the requirements of the Code;

● not retaliate against any other Covered Officer or any employee of the Funds or their affiliated persons for reports of potential violations that are made in good faith; and

● notify the Secretary promptly if he or she knows of any violation of this Code. Failure to do so is itself a violation of this Code.

The Secretary, or other designated senior legal officer of the Funds' investment adviser, is responsible for applying this **Code** to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation.<u><sup>2</sup></u> However, any approvals or waivers<u><sup>3</sup></u> sought by the President/ CEO will be considered by the Audit Committee of the Funds (the "Committee"). The Chairman of the Audit Committee of the Trust is authorized and encouraged to consult, as appropriate, with the Chairman of the Board of Trustees of the Trust, the Independent Trustees or the Board of Trustees of the Trust and/or with counsel to the Trust, the Investment Adviser(s) or the Independent Trustees.

The Independent Trustees are responsible for granting waivers of this Code of Ethics, as appropriate. Any changes to or waivers of this Code of Ethics will be disclosed on Form N-CSR<u><sup>3</sup></u> to the extent required by Securities and Exchange Commission rules.

The Funds will follow these procedures in investigating and enforcing this Code:

● the Secretary or other designated senior legal officer will take all appropriate action to investigate any potential violations reported to him or her;

● if, after such investigation, the Secretary believes that no violation has occurred, the Secretary is not required to take any further action;

● any matter that the Secretary believes is a violation will be reported to the Committee;

● if the Committee concurs that a violation has occurred, it will inform and make a recommendation to the Board, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered Officer as an officer of the Funds;

<u><sup>2</sup></u> The Secretary or other designated senior legal officer is authorized to consult, as appropriate, with counsel to the Company and counsel to the Independent Trustees, and is encouraged to do so.

<u><sup>3</sup></u> Item 2 of Form N-CSR defines "waiver" as "the approval by the registrant of a material departure from a provision of the code of ethics" and "implicit waiver," which must also be disclosed, as "the registrant's failure to take action within a reasonable period of time regarding a material departure from a provision of the code of ethics that has been made known to an executive officer" of the registrant.

**EXHIBIT (a)(1)**

● the Board will be responsible for granting waivers, as appropriate; and

● any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

**V.** **Other Policies and Procedures** 

This **Code** shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Funds, the Funds' adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Funds' and their investment adviser's and principal underwriter's codes of ethics under Rule 17j-1 under the Investment Company Act are separate requirements applying to the Covered Officers and others, and are not part of this Code.

**VI.** **Amendments** 

Any amendments to this Code must be approved or ratified by a majority vote of the Board, including a majority of independent directors/trustees.

**VII** **Confidentiality**

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Board and its counsel, the Funds' counsel, the Adviser and its counsel and any other advisers, consultants or counsel retained by the Board of Trustees.

**VIII.** **Internal Use** 

The Code is intended solely for the internal use by the Funds and does not constitute an admission, by or on behalf of any Company, as to any fact, circumstance, or legal conclusion.

**EXHIBIT (a)(1)**

**Exhibit A - Covered Entities**

**Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust ("GBAB")**

**Guggenheim Active Allocation Fund ("GUG")**

**Guggenheim Strategic Opportunities Fund ("GOF")**

**Guggenheim Energy & Income Fund ("XGEIX")**

**Guggenheim Funds Trust ("GFT" and its series, the "Open-End Funds")**

**Guggenheim Variable Funds Trust ("GVGT" and its series, the "Variable Insurance Funds")**

**Guggenheim Strategy Funds Trust ("GSFT")**

**Transparent Value Trust**

**Rydex Series Funds**

**Rydex Dynamic Funds**

**Rydex Variable Trust**

## Ex-99.Cert

EX.-13(a)(2)(i)

**CERTIFICATION**

I, Brian E. Binder, certify that:

1. I have reviewed this report on Form N-CSR of Rydex Variable Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures
 to be designed under our supervision, to ensure that material information relating to
 the registrant, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed
 such internal control over financial reporting, or caused such internal control over
 financial reporting to be designed under our supervision, to provide reasonable assurance
 regarding the reliability of financial reporting and the preparation of financial statements
 for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented
 in this report our conclusions about the effectiveness of the disclosure controls and
 procedures, as of a date within 90 days prior to the filing date of this report based
 on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed
 in this report any change in the registrant's internal control over financial reporting
 that occurred during the period covered by this report that has materially affected,
 or is reasonably likely to materially affect, the registrant's internal control
 over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;(a) All
 significant deficiencies and material weaknesses in the design or operation of internal
 control over financial reporting which are reasonably likely to adversely affect the
 registrant's ability to record, process, summarize, and report financial information;
 and

&nbsp;&nbsp;&nbsp;&nbsp;(b) Any
 fraud, whether or not material, that involves management or other employees who have
 a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | March 6, 2023 | /s/ Brian E. Binder |
|  |  | Brian E. Binder, |
|  |  | President and Chief Executive Officer |

---

EX.-13(a)(2)(ii)

**CERTIFICATION**

I, James M. Howley, certify that:

1. I have reviewed this report on Form N-CSR of Rydex Variable Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures
 to be designed under our supervision, to ensure that material information relating to
 the registrant, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed
 such internal control over financial reporting, or caused such internal control over
 financial reporting to be designed under our supervision, to provide reasonable assurance
 regarding the reliability of financial reporting and the preparation of financial statements
 for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented
 in this report our conclusions about the effectiveness of the disclosure controls and
 procedures, as of a date within 90 days prior to the filing date of this report based
 on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed
 in this report any change in the registrant's internal control over financial reporting
 that occurred during the period covered by this report that has materially affected,
 or is reasonably likely to materially affect, the registrant's internal control
 over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;(a) All
 significant deficiencies and material weaknesses in the design or operation of internal
 control over financial reporting which are reasonably likely to adversely affect the
 registrant's ability to record, process, summarize, and report financial information;
 and

&nbsp;&nbsp;&nbsp;&nbsp;(b) Any
 fraud, whether or not material, that involves management or other employees who have
 a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | March 6, 2023 | /s/ James M. Howley |
|  |  | James M. Howley, |
|  |  | Chief Financial Officer, Chief Accounting Officer, and Treasurer |

---

## Exhibit 99.906

EX.-13(b)

**CERTIFICATION**

I, Brian E. Binder, President and Chief Executive Officer, and I, James M. Howley, Chief Financial Officer, Chief Accounting Officer and Treasurer of Rydex Variable Trust (the "Registrant") each certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Form N-CSR of the Registrant (the "Report") fully complies with the requirements
 of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The
 information contained in the Report fairly presents, in all material respects, the financial
 condition and results of operations of the Registrant.

Date: March 6, 2023

---

| |
|:---|
| /s/ Brian E. Binder |
| Brian E. Binder |
| President and Chief Executive Officer |

---

Date: March 6, 2023

---

| |
|:---|
| /s/ James M. Howley |
| James M. Howley |
| Chief Financial Officer, Chief Accounting Officer and Treasurer |

---