RYDEX DYNAMIC FUNDS

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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES


Investment Company Act file number		811- 09525

Rydex Dynamic Funds

(Exact name of registrant as specified in charter)

9601 Blackwell Road, Suite 500
Rockville, Maryland 20850

(Address of principal executive offices) (Zip code)

Michael P. Byrum
Rydex Dynamic Funds
9601 Blackwell Road, Suite 500
Rockville, Maryland 20850

(Name and address of agent for service)


Registrant’s telephone number, including area code:		1-301-296-5121


Date of fiscal year end:		December 31, 2009


Date of reporting period:		June 30, 2009

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.

LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER:

Historic across-the-board stock losses have led investors to do a great deal of soul-searching in 2008. Investors experienced new stock market lows reminiscent of the 1970s, watched as unemployment soared to new highs and could only sit back in disbelief as the equity in their homes all but disappeared. On Wall Street, the news was just as grim. The S&P 500^® Index fell 37% for the year.

Investors Left Shell-Shocked
Fears of a prolonged bear market weighed heavily on the minds of investors throughout the fall, as the financial sector collapsed due to inadequate capital reserves. In less than a month, the shape of the entire financial system changed forever. The Wall Street model of large, aggressive, risk-taking investment banks was swept aside as financial titans such as Merrill Lynch & Company, Inc., Morgan Stanley, Goldman Sachs Group, Inc. and Lehman Brothers Holdings Inc., collapsed, merged with, or were reborn as commercial banks. In September, we saw a temporary ban on short-selling of financial stocks and historic government intervention as the U.S. Treasury stepped in to offer temporary money market mutual fund insurance after the Reserve Primary Fund “broke the buck”—causing a massive exodus from money market mutual funds. As the willingness to lend disappeared, so did Wall Street’s daily lifeline, culminating in what former Federal Reserve Chairman Alan Greenspan called “a once-in-a-century credit tsunami.”

Unprecedented Government Intervention
While the equity markets faltered and the credit market dried up, the government—led by the Federal Reserve, the U.S. Treasury and the Federal Deposit Insurance Corporation (FDIC)—unveiled a colossal amount of policy initiatives with the high hopes of injecting new life into the economy. Newly sworn-in government officials committed $12 trillion to a financial program designed to offset credit and subprime mortgage-related issues. This historic government intervention kicked into high gear during the fall when Congress authorized the Troubled Assets Relief Program (TARP), which mandated new rules for additional transparency and accountability of financial institutions. An objective of the plan, so-called “stress tests” of financial firms, was initiated with the goal of providing additional capital should the economy worsen.

As investors looked forward to putting 2008 far behind them, December saw the end of an era in Detroit, as the chief executives from General Motors Corp. (GM), Ford Motor Company and Chrysler Group LLC made the first of multiple trips to Capitol Hill in order to ask Congress for more than $39 billion in loans. Despite the interjection of more than $19.4 billion in federal help, GM filed for bankruptcy on June 2, 2009—and for the first time since 1925, was no longer part of the Dow Jones Industrial Average.

Investor Whiplash Continues in 2009
The quest for a market bottom continued as black and blue investors repeatedly bounced off false market bottoms. The Dow lost 298 points on March 2, 2009, marking the lowest recorded trading level seen since 1997. The stock market finally found its footing on March 17 as stock prices rose on word that housing starts came in well ahead of expectations—totaling 583,000 in February compared to the 466,000 starts the month before. Six days later, on March 23, the Dow surged 497 points—a new high for the markets for the post-March 9 recovery. To many, this stock market surge gave hope of an end to the bear market that ravaged investors’ portfolios.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

LETTER TO OUR SHAREHOLDERS (concluded)

Cautious Optimism for Q3 and Beyond
May 2009 saw unprecedented growth in the stock market fueled by a report from payroll processor ADP that fewer jobs were lost in April than economists predicted. At the final bell on May 6, the Dow had tacked on another 102 points. In May, the Treasury Department also released the results of the now infamous bank stress tests, allowing 10 major banks to pay back the $68 billion in TARP money they received earlier in the year.

Are we on the road to recovery? Clearly there are signs that point to an improving, or more specifically, a less negative economic environment. We are likely to see significant market rallies with periodic set backs as the economic situation moves from crisis to stabilization. While we are not out of the woods yet, improving market conditions should lead to better investment opportunities going forward. That being said, risk management and diversification are still essential.

Moving Forward
From my perspective, every bear market—from the recession of 1929 to the tech bubble of the early 90s—teaches investors the same valuable lesson: The need to diversify. Earlier this year, we integrated with Security Global Investors to become Rydex|SGI. This integration allows us to expand our current lineup of quantitatively managed, alternative and target beta funds to include actively managed global, growth, value and specialty fixed-income strategies. Simply put: We diversified our product offerings in order to position the company for future growth and to provide our clients with a wider array of investment strategies than ever before. While this integration marks the firm’s evolution to a leading multi-discipline asset management firm, more importantly, we believe investors will be well served by the broader array of investment choices now available from Rydex|SGI.

We appreciate the trust that you have placed in our firm’s quality and integrity by investing with us. It is our goal to continue to offer you a wide variety of investment offerings to help you meet your financial goals.

Sincerely,

Michael Byrum
President & Chief Investment Officer

Performance displayed represents past performance which is no guarantee of future results. Of course, fund performance is subject to daily market volatility and may be better or worse since the end of the last quarter. For up-to-date fund performance, call us at 800.820.0888 or visit www.rydex-sgi.com.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

The Rydex 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. 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.


	Index		Index			Fund					Fund
	Level		Performance			Expectation			Fund NAV		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 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.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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, or other distributions; redemption fees; 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 December 31, 2008 and ending June 30, 2009.

The following tables illustrate a Fund’s 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 fourth 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.

Certain retirement plans such as IRA, SEP, Roth IRA and 403(b) accounts are charged an annual $15 maintenance fee. Upon liquidating a retirement account, a $15 account closing fee will be taken from the proceeds of the redemption.

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.

Note that the expenses shown in the table are meant to highlight and help compare ongoing costs only and do not reflect any transactional costs which may be incurred by a Fund.

More information about a Fund’s expenses, including annual expense ratios for the past five years, 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 DYNAMIC FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (continued)


					Beginning		Ending		Expenses
	Expense				Account Value		Account Value		Paid During
	Ratio			†	December 31, 2008		June 30, 2009		Period		*

Table 1. Based on actual Fund return
S&P 500 2x Strategy Fund
A-Class		1.79	%		$	1,000.00	$	994.70	$	8.85
C-Class		2.54	%			1,000.00		990.10		12.53
H-Class		1.79	%			1,000.00		994.00		8.85
Inverse S&P 500 2x Strategy Fund
A-Class		1.78	%			1,000.00		783.76		7.87
C-Class		2.53	%			1,000.00		781.00		11.17
H-Class		1.79	%			1,000.00		783.89		7.92
NASDAQ-100^® 2x Strategy Fund
A-Class		1.81	%			1,000.00		1,410.46		10.82
C-Class		2.55	%			1,000.00		1,403.19		15.19
H-Class		1.81	%			1,000.00		1,410.46		10.82
Inverse NASDAQ-100^® 2x Strategy Fund
A-Class		1.82	%			1,000.00		563.40		7.06
C-Class		2.56	%			1,000.00		561.60		9.91
H-Class		1.81	%			1,000.00		563.70		7.02
Dow 2x Strategy Fund
A-Class		1.80	%			1,000.00		904.60		8.50
C-Class		2.55	%			1,000.00		901.80		12.02
H-Class		1.80	%			1,000.00		904.60		8.50
Inverse Dow 2x Strategy Fund
A-Class		1.81	%			1,000.00		903.11		8.54
C-Class		2.55	%			1,000.00		899.73		12.01
H-Class		1.80	%			1,000.00		903.34		8.49
Russell 2000^® 2x Strategy Fund
A-Class		1.80	%			1,000.00		968.10		8.78
C-Class		2.54	%			1,000.00		962.80		12.36
H-Class		1.80	%			1,000.00		969.30		8.79
Inverse Russell 2000^® 2x Strategy Fund
A-Class		1.81	%			1,000.00		694.55		7.60
C-Class		2.51	%			1,000.00		691.50		10.53
H-Class		1.80	%			1,000.00		694.37		7.56

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)


					Beginning		Ending		Expenses
	Expense				Account Value		Account Value		Paid During
	Ratio			†	December 31, 2008		June 30, 2009		Period		*

Table 2. Based on hypothetical 5% return (before expenses)
S&P 500 2x Strategy Fund
A-Class		1.79	%		$	1,000.00	$	1,015.92	$	8.95
C-Class		2.54	%			1,000.00		1,012.20		12.67
H-Class		1.79	%			1,000.00		1,015.92		8.95
Inverse S&P 500 2x Strategy Fund
A-Class		1.78	%			1,000.00		1,015.97		8.90
C-Class		2.53	%			1,000.00		1,012.25		12.62
H-Class		1.79	%			1,000.00		1,015.92		8.95
NASDAQ-100^{^®}2x Strategy Fund
A-Class		1.81	%			1,000.00		1,015.82		9.05
C-Class		2.55	%			1,000.00		1,012.15		12.72
H-Class		1.81	%			1,000.00		1,015.82		9.05
Inverse NASDAQ-100^{^®}2x Strategy Fund
A-Class		1.82	%			1,000.00		1,015.77		9.10
C-Class		2.56	%			1,000.00		1,012.10		12.77
H-Class		1.81	%			1,000.00		1,015.82		9.05
Dow 2x Strategy Fund
A-Class		1.80	%			1,000.00		1,015.87		9.00
C-Class		2.55	%			1,000.00		1,012.15		12.72
H-Class		1.80	%			1,000.00		1,015.87		9.00
Inverse Dow 2x Strategy Fund
A-Class		1.81	%			1,000.00		1,015.82		9.05
C-Class		2.55	%			1,000.00		1,012.15		12.72
H-Class		1.80	%			1,000.00		1,015.87		9.00
Russell 2000^{^®}2x Strategy Fund
A-Class		1.80	%			1,000.00		1,015.87		9.00
C-Class		2.54	%			1,000.00		1,012.20		12.67
H-Class		1.80	%			1,000.00		1,015.87		9.00
Inverse Russell 2000^{^®}2x Strategy Fund
A-Class		1.81	%			1,000.00		1,015.82		9.05
C-Class		2.51	%			1,000.00		1,012.35		12.52
H-Class		1.80	%			1,000.00		1,015.87		9.00



*		Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by the number of days in the current fiscal year.

†		Annualized

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

FUND PROFILES (Unaudited)

S&P 500 2x STRATEGY FUND

OBJECTIVE: To provide investment results that match 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 Index.

Holdings Diversification (Market Exposure as % of Net Assets)

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


Inception Dates:

A-Class		September 1, 2004
C-Class		November 27, 2000
H-Class		May 19, 2000


Ten Largest Holdings (% of Total Net Assets)

Exxon Mobil Corp.	3.1	%
Microsoft Corp.	1.6	%
Johnson & Johnson	1.4	%
Procter & Gamble Co.	1.3	%
AT&T, Inc.	1.3	%
International Business Machines Corp.	1.2	%
JPMorgan Chase & Co.	1.2	%
Chevron Corp.	1.2	%
Apple, Inc.	1.1	%
General Electric Co.	1.1	%

Top Ten Total	14.5	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

INVERSE S&P 500 2x STRATEGY FUND

OBJECTIVE: To provide investment results that will match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the inverse performance of the S&P 500 Index.

Holdings Diversification (Market Exposure as % of Net Assets)

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


Inception Dates:

A-Class		September 1, 2004
C-Class		March 7, 2001
H-Class		May 19, 2000

The Fund invests principally in derivative instruments such as equity index swap agreements, futures contracts, and options on index futures.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

FUND PROFILES (Unaudited) (continued)

NASDAQ-100^® 2x STRATEGY FUND

OBJECTIVE: To provide investment results that will match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the performance of the NASDAQ-100 Index^®.

Holdings Diversification (Market Exposure as % of Net Assets)

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


Inception Dates:

A-Class		September 1, 2004
C-Class		November 20, 2000
H-Class		May 24, 2000


Ten Largest Holdings (% of Total Net Assets)

Apple, Inc.	9.1	%
Qualcomm, Inc.	4.6	%
Microsoft Corp.	3.7	%
Google, Inc. — Class A	3.2	%
Oracle Corp.	2.3	%
Gilead Sciences, Inc.	2.1	%
Research In Motion Ltd.	2.1	%
Cisco Systems, Inc.	2.0	%
Teva Pharmaceutical Industries Ltd. —
SP ADR	1.8	%
Intel Corp.	1.7	%

Top Ten Total	32.6	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

INVERSE NASDAQ-100^® 2x STRATEGY FUND

Holdings Diversification (Market Exposure as % of Net Assets)

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


Inception Dates:

A-Class		September 1, 2004
C-Class		March 8, 2001
H-Class		May 23, 2000

The Fund invests principally in derivative instruments such as equity index swap agreements, futures contracts, and options on index futures.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

FUND PROFILES (Unaudited) (continued)

DOW 2x STRATEGY FUND

Holdings Diversification (Market Exposure as % of Net Assets)

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


Inception Dates:

A-Class		September 1, 2004
C-Class		February 20, 2004
H-Class		February 20, 2004


Ten Largest Holdings (% of Total Net Assets)

International Business Machines Corp.	6.9	%
Exxon Mobil Corp.	4.6	%
Chevron Corp.	4.4	%
3M Co.	4.0	%
McDonald’s Corp.	3.8	%
Johnson & Johnson	3.7	%
United Technologies Corp.	3.4	%
Procter & Gamble Co.	3.4	%
Wal-Mart Stores, Inc.	3.2	%
Coca-Cola Co.	3.2	%

Top Ten Total	40.6	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

INVERSE DOW 2x STRATEGY FUND

Holdings Diversification (Market Exposure as % of Net Assets)

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


Inception Dates:

A-Class		September 1, 2004
C-Class		February 20, 2004
H-Class		February 20, 2004

The Fund invests principally in derivative instruments such as equity index swap agreements, futures contracts, and options on index futures.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

FUND PROFILES (Unaudited) (concluded)

RUSSELL 2000^® 2x STRATEGY FUND

Holdings Diversification (Market Exposure as % of Net Assets)

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


Inception Dates:

A-Class		May 31, 2006
C-Class		May 31, 2006
H-Class		May 31, 2006


Ten Largest Holdings (% of Total Net Assets)

Palm, Inc.	0.2	%
3Com Corp.	0.2	%
Owens & Minor, Inc.	0.2	%
VistaPrint Ltd.	0.2	%
Piedmont Natural Gas Co.	0.2	%
Solera Holdings, Inc.	0.2	%
Jack Henry & Associates, Inc.	0.2	%
Tetra Tech, Inc.	0.2	%
Polycom, Inc.	0.2	%
Skyworks Solutions, Inc.	0.2	%

Top Ten Total	2.0	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

INVERSE RUSSELL 2000^® 2x STRATEGY FUND

Holdings Diversification (Market Exposure as % of Net Assets)

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


Inception Dates:

A-Class		May 31, 2006
C-Class		May 31, 2006
H-Class		May 31, 2006

The Fund invests principally in short sales of securities and in derivative instruments such as equity index swap agreements, futures contracts, and options on index futures.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

June 30, 2009

S&P 500 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


COMMON STOCKS 72.1%

INFORMATION TECHNOLOGY 13.3%
Microsoft Corp.		90,140	$	2,142,628
International Business Machines Corp.		15,557		1,624,462
Apple, Inc.*		10,512		1,497,224
Cisco Systems, Inc.*		67,925		1,266,122
Google, Inc. — Class A*		2,830		1,193,100
Intel Corp.		65,781		1,088,676
Hewlett-Packard Co.		28,102		1,086,142
Oracle Corp.		44,600		955,332
Qualcomm, Inc.		19,490		880,948
Texas Instruments, Inc.		15,000		319,500
EMC Corp*		23,712		310,627
Corning, Inc.		18,300		293,898
Dell, Inc.*		20,475		281,122
Yahoo!, Inc.*		16,430		257,294
eBay, Inc.*		12,726		217,996
Automatic Data Processing, Inc.		5,914		209,592
Motorola, Inc.		27,000		179,010
Adobe Systems, Inc.*		6,173		174,696
Applied Materials, Inc.		15,698		172,207
Symantec Corp.*		9,630		149,843
Juniper Networks, Inc.*		6,160		145,376
MasterCard, Inc.		848		141,879
Western Union Co.		8,260		135,464
Broadcom Corp. — Class A*		5,026		124,595
Intuit, Inc.*		3,795		106,867
Paychex, Inc.		3,780		95,256
Cognizant Technology Solutions Corp. — Class A*		3,440		91,848
Analog Devices, Inc.		3,430		84,995
Fiserv, Inc.*		1,830		83,631
Electronic Arts, Inc.*		3,798		82,493
Agilent Technologies, Inc.*		4,039		82,032
Sun Microsystems, Inc.*		8,790		81,044
CA, Inc.		4,638		80,840
Computer Sciences Corp.*		1,780		78,854
McAfee, Inc.*		1,830		77,208
NetApp, Inc.*		3,900		76,908
BMC Software, Inc.*		2,180		73,662
NVIDIA Corp.*		6,430		72,595
Western Digital Corp.*		2,620		69,430
Citrix Systems, Inc.*		2,130		67,926
Xilinx, Inc.		3,238		66,249
Xerox Corp.		10,180		65,966
Amphenol Corp.		2,024		64,039
Linear Technology Corp.		2,620		61,177
Altera Corp.		3,461		56,345
Affiliated Computer Services, Inc. — Class A*		1,153		51,216
Autodesk, Inc.*		2,694		51,132
KLA-Tencor Corp.		2,000		50,500


			MARKET
	SHARES		VALUE


Micron Technology, Inc.*		9,970	$	50,448
Microchip Technology, Inc.		2,146		48,392
Salesforce.com, Inc.*		1,249		47,674
Teradata Corp.*		2,030		47,563
MEMC Electronic Materials, Inc.*		2,630		46,840
Fidelity National Information Services, Inc.		2,247		44,850
Harris Corp.		1,560		44,242
VeriSign, Inc.*		2,270		41,950
Flir Systems, Inc.*		1,770		39,931
SanDisk Corp.*		2,670		39,222
Akamai Technologies, Inc.*		2,044		39,204
LSI Logic Corp.*		7,640		34,838
Total System Services, Inc.		2,320		31,065
National Semiconductor Corp.		2,298		28,840
Tellabs, Inc.*		4,660		26,702
Advanced Micro Devices, Inc.*		6,602		25,550
Molex, Inc.		1,630		25,347
Compuware Corp.*		2,850		19,551
Novellus Systems, Inc.*		1,150		19,205
Jabil Circuit, Inc.		2,520		18,698
Novell, Inc.*		4,070		18,437
QLogic Corp.*		1,400		17,752
JDS Uniphase Corp.*		2,597		14,855
Lexmark International, Inc.*		916		14,519
Teradyne, Inc.*		2,038		13,981
Convergys Corp.*		1,436		13,326
Ciena Corp.*		1,070		11,075

Total Information Technology				17,444,003


HEALTH CARE 10.1%
Johnson & Johnson		32,450		1,843,160
Pfizer, Inc.		79,470		1,192,050
Abbott Laboratories		18,200		856,128
Wyeth		15,710		713,077
Merck & Company, Inc.		24,830		694,247
Amgen, Inc.*		11,917		630,886
Gilead Sciences, Inc.*		10,671		499,830
Schering-Plough Corp.		19,180		481,802
Bristol-Myers Squibb Co.		23,327		473,771
Medtronic, Inc.		13,170		459,501
Eli Lilly & Co.		11,907		412,458
Baxter International, Inc.		7,131		377,658
UnitedHealth Group, Inc.		14,010		349,970
WellPoint, Inc.*		5,710		290,582
Celgene Corp.*		5,420		259,293
Medco Health Solutions, Inc.*		5,680		259,065
Express Scripts, Inc.*		3,190		219,312
Becton, Dickinson & Co.		2,820		201,094
Thermo Fisher Scientific, Inc.*		4,930		200,996
Boston Scientific Corp.*		17,742		179,904
Genzyme Corp.*		3,180		177,031
Allergan, Inc.		3,619		172,192
St. Jude Medical, Inc.*		4,080		167,688
Biogen Idec, Inc.*		3,400		153,510

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

S&P 500 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


McKesson Corp.		3,200	$	140,800
Aetna, Inc.		5,256		131,663
Cardinal Health, Inc.		4,240		129,532
Stryker Corp.		2,806		111,510
Zimmer Holdings, Inc.*		2,530		107,778
Quest Diagnostics, Inc.		1,770		99,881
Forest Laboratories, Inc.*		3,550		89,141
C.R. Bard, Inc.		1,173		87,330
Laboratory Corporation of America Holdings*		1,280		86,771
Life Technologies Corp.*		2,059		85,901
CIGNA Corp.		3,210		77,329
Intuitive Surgical, Inc.*		450		73,647
Hospira, Inc.*		1,886		72,649
Humana, Inc.*		2,000		64,520
AmerisourceBergen Corp.		3,560		63,154
DaVita, Inc.*		1,220		60,341
Waters Corp.*		1,140		58,676
DENTSPLY International, Inc.		1,750		53,410
Varian Medical Systems, Inc.*		1,480		52,007
Cephalon, Inc.*		870		49,286
Mylan Laboratories, Inc.*		3,587		46,810
Millipore Corp.*		647		45,426
Watson Pharmaceuticals, Inc.*		1,237		41,637
Coventry Health Care, Inc.*		1,750		32,743
King Pharmaceuticals, Inc.*		2,916		28,081
IMS Health, Inc.		2,140		27,178
PerkinElmer, Inc.		1,370		23,838
Patterson Companies, Inc.*		1,080		23,436
Tenet Healthcare Corp.*		4,920		13,874

Total Health Care				13,243,554


FINANCIALS 9.8%
JPMorgan Chase & Co.		45,936		1,566,877
Wells Fargo & Co.		54,830		1,330,176
Bank of America Corp.		95,253		1,257,340
Goldman Sachs Group, Inc.		5,930		874,319
Morgan Stanley		15,920		453,879
Bank of New York Mellon Corp.		14,082		412,743
U.S. Bancorp		22,350		400,512
American Express Co.		13,983		324,965
MetLife, Inc.		9,640		289,296
Travelers Companies, Inc.		6,890		282,766
State Street Corp.		5,810		274,232
CME Group, Inc.		784		243,910
PNC Financial Services Group, Inc.		5,420		210,350
Prudential Financial, Inc.		5,450		202,849
Charles Schwab Corp.		11,060		193,992
Citigroup, Inc.		64,925		192,827
AFLAC, Inc.		5,506		171,182
Simon Property Group, Inc.		3,269		168,127
BB&T Corp.		7,619		167,466
Chubb Corp.		4,150		165,502
Allstate Corp.		6,323		154,281


			MARKET
	SHARES		VALUE


Northern Trust Corp.		2,837	$	152,290
Franklin Resources, Inc.		1,766		127,170
T. Rowe Price Group, Inc.		3,010		125,427
Marsh & McLennan Companies, Inc.		6,150		123,799
Aon Corp.		3,257		123,343
Progressive Corp.*		8,020		121,182
Loews Corp.		4,250		116,450
Capital One Financial Corp.		5,320		116,402
IntercontinentalExchange, Inc.*		860		98,246
Public Storage		1,480		96,910
SunTrust Banks, Inc.		5,470		89,981
Invesco Ltd.		4,840		86,249
Vornado Realty Trust		1,872		84,277
NYSE Euronext		3,056		83,276
Hudson City Bancorp, Inc.		6,140		81,601
Boston Properties, Inc.		1,630		77,751
Ameriprise Financial, Inc.		3,000		72,810
Equity Residential		3,230		71,803
Principal Financial Group, Inc.		3,660		68,954
HCP, Inc.		3,210		68,020
Unum Group		3,900		61,854
People’s United Financial, Inc.		4,096		61,604
Fifth Third Bancorp		8,650		61,415
Lincoln National Corp.		3,490		60,063
Host Hotels & Resorts, Inc.		7,080		59,401
Moody’s Corp.		2,250		59,287
Discover Financial Services		5,670		58,231
Plum Creek Timber Company, Inc. (REIT)		1,920		57,178
SLM Corp.*		5,510		56,588
Regions Financial Corp.		13,600		54,944
Ventas, Inc.		1,840		54,942
AvalonBay Communities, Inc.		938		52,472
M&T Bank Corp.		960		48,893
XL Capital Ltd.		4,030		46,184
Hartford Financial Services Group, Inc.		3,830		45,462
Leucadia National Corp.*		2,127		44,858
Health Care REIT, Inc.		1,310		44,671
KeyCorp		8,340		43,702
Cincinnati Financial Corp.		1,908		42,644
ProLogis		5,210		41,993
Legg Mason, Inc.		1,686		41,105
KIMCO Realty Corp.		3,810		38,290
Comerica, Inc.		1,780		37,647
American International Group, Inc.*		31,694		36,765
Torchmark Corp.		970		35,929
Genworth Financial, Inc. — Class A		5,100		35,649
Nasdaq Stock Market, Inc.*		1,620		34,522
Assurant, Inc.		1,386		33,389
First Horizon National Corp.*		2,527		30,322

See Notes to Financial Statements.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

S&P 500 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


Huntington Bancshares, Inc.		6,400	$	26,752
CB Richard Ellis Group, Inc. — Class A*		2,790		26,114
Federated Investors, Inc. — Class B		1,050		25,295
Janus Capital Group, Inc.		1,900		21,660
Marshall & Ilsley Corp.		4,150		19,920
Zions Bancorporation		1,358		15,698
ETrade Financial Corp.		11,858		15,178
Apartment Investment & Management Co. — Class A		1,376		12,178
CIT Group, Inc.		4,580		9,847
MBIA, Inc.*		2,010		8,703

Total Financials				12,884,881


ENERGY 9.0%
Exxon Mobil Corp.		57,470		4,017,728
Chevron Corp.		23,606		1,563,897
Schlumberger Ltd.		14,090		762,410
ConocoPhillips		17,450		733,947
Occidental Petroleum Corp.		9,550		628,485
Devon Energy Corp.		5,230		285,035
Apache Corp.		3,945		284,632
Anadarko Petroleum Corp.		5,884		267,075
XTO Energy, Inc.		6,830		260,496
Marathon Oil Corp.		8,340		251,284
Halliburton Co.		10,571		218,820
EOG Resources, Inc.		2,950		200,364
Hess Corp.		3,350		180,062
National-Oilwell Varco, Inc.*		4,920		160,687
Southwestern Energy Co.*		4,050		157,342
Baker Hughes, Inc.		3,650		133,006
Chesapeake Energy Corp.		6,637		131,612
Spectra Energy Corp.		7,600		128,592
Murphy Oil Corp.		2,247		122,057
Noble Energy, Inc.		2,040		120,299
Valero Energy Corp.		6,550		110,630
Williams Companies, Inc.		6,830		106,616
Peabody Energy Corp.		3,150		95,004
El Paso Corp.		8,260		76,240
Range Resources Corp.		1,838		76,112
Cameron International Corp.*		2,560		72,448
Consol Energy, Inc.		2,130		72,335
Diamond Offshore Drilling, Inc.		816		67,769
Smith International, Inc.		2,580		66,435
ENSCO International, Inc.		1,670		58,233
FMC Technologies, Inc.*		1,460		54,867
Nabors Industries Ltd.*		3,330		51,881
BJ Services Co.		3,440		46,887
Denbury Resources, Inc.*		2,930		43,159
Cabot Oil & Gas Corp.		1,216		37,258
Pioneer Natural Resources Co.		1,340		34,170
Sunoco, Inc.		1,380		32,016
Rowan Companies, Inc.		1,330		25,696


			MARKET
	SHARES		VALUE


Tesoro Corp.		1,630	$	20,750
Massey Energy Co.		1,006		19,657

Total Energy				11,775,993


CONSUMER STAPLES 8.6%
Procter & Gamble Co.		34,330		1,754,263
Wal-Mart Stores, Inc.		26,280		1,273,003
Coca-Cola Co.		23,447		1,125,222
Philip Morris International, Inc.		23,100		1,007,622
PepsiCo, Inc.		18,330		1,007,417
CVS Caremark Corp.		17,154		546,698
Kraft Foods, Inc.		17,340		439,396
Colgate-Palmolive Co.		5,880		415,951
Altria Group, Inc.		24,350		399,096
Walgreen Co.		11,680		343,392
Kimberly-Clark Corp.		4,877		255,701
Costco Wholesale Corp.		5,110		233,527
General Mills, Inc.		3,870		216,797
Archer-Daniels-Midland Co.		7,560		202,381
Kroger Co.		7,680		169,344
Sysco Corp.		6,950		156,236
Kellogg Co.		2,966		138,127
Lorillard, Inc.		1,980		134,185
H.J. Heinz Co.		3,710		132,447
Avon Products, Inc.		5,026		129,570
Safeway, Inc.		5,020		102,257
ConAgra Foods, Inc.		5,270		100,446
Clorox Co.		1,640		91,561
Sara Lee Corp.		8,190		79,934
Reynolds American, Inc.		1,990		76,854
Molson Coors Brewing Co. — Class B		1,760		74,501
Hershey Co.		1,950		70,200
Campbell Soup Co.		2,350		69,137
J.M. Smucker Co.		1,390		67,637
Dr Pepper Snapple Group, Inc.*		2,986		63,273
Coca-Cola Enterprises, Inc.		3,730		62,105
Pepsi Bottling Group, Inc.		1,610		54,482
McCormick & Company, Inc.		1,530		49,771
Brown-Forman Corp. — Class B		1,150		49,427
Tyson Foods, Inc. — Class A		3,560		44,892
Estee Lauder Companies, Inc. — Class A		1,370		44,758
Dean Foods Co.*		2,080		39,915
SUPERVALU, Inc.		2,490		32,246
Whole Foods Market, Inc.		1,646		31,241
Constellation Brands, Inc. — Class A*		2,320		29,418
Hormel Foods Corp.		817		28,219

Total Consumer Staples				11,342,649


INDUSTRIALS 7.1%
General Electric Co.		124,724		1,461,765
United Parcel Service, Inc. — Class B		11,720		585,883

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

S&P 500 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


United Technologies Corp.		11,090	$	576,236
3M Co.		8,180		491,618
Boeing Co.		8,550		363,375
Lockheed Martin Corp.		3,850		310,503
Union Pacific Corp.		5,936		309,028
Emerson Electric Co.		8,850		286,740
Honeywell International, Inc.		8,760		275,064
General Dynamics Corp.		4,530		250,917
Burlington Northern Santa Fe Corp.		3,280		241,211
Caterpillar, Inc.		7,090		234,254
Raytheon Co.		4,640		206,155
FedEx Corp.		3,670		204,125
Deere & Co.		4,980		198,951
Danaher Corp.		3,000		185,220
Northrop Grumman Corp.		3,810		174,041
Illinois Tool Works, Inc.		4,530		169,150
Waste Management, Inc.		5,790		163,046
Norfolk Southern Corp.		4,320		162,734
CSX Corp.		4,610		159,644
Paccar, Inc.		4,280		139,143
Precision Castparts Corp.		1,649		120,427
Fluor Corp.		2,120		108,735
CH Robinson Worldwide, Inc.		2,000		104,300
ITT Corporation		2,140		95,230
L-3 Communications Holdings, Inc.		1,370		95,051
Republic Services, Inc.		3,790		92,514
Eaton Corp.		1,947		86,856
Cummins, Inc.		2,380		83,800
Expeditors International of Washington, Inc.		2,499		83,317
Parker Hannifin Corp.		1,890		81,194
Rockwell Collins, Inc.		1,870		78,035
Goodrich Corp.		1,460		72,956
Dover Corp.		2,190		72,467
Jacobs Engineering Group, Inc.*		1,450		61,031
Iron Mountain, Inc.*		2,120		60,950
Cooper Industries Ltd. — Class A		1,960		60,858
W.W. Grainger, Inc.		730		59,772
Southwest Airlines Co.		8,720		58,686
Rockwell Automation, Inc.		1,670		53,640
Pitney Bowes, Inc.		2,428		53,246
Quanta Services, Inc.*		2,300		53,199
Stericycle, Inc.*		1,000		51,530
Dun & Bradstreet Corp.		628		51,000
Fastenal Co.		1,520		50,418
Flowserve Corp.		660		46,075
Robert Half International, Inc.		1,800		42,516
Masco Corp.		4,230		40,523
Equifax, Inc.		1,490		38,889
Pall Corp.		1,390		36,918
Cintas Corp.		1,546		35,311
Avery Dennison Corp.		1,326		34,052


			MARKET
	SHARES		VALUE


Textron, Inc.		3,170	$	30,622
RR Donnelley & Sons Co.		2,420		28,120
Ryder System, Inc.		660		18,427
Monster Worldwide, Inc.*		1,480		17,479
Manitowoc Company, Inc.		1,537		8,085

Total Industrials				9,315,032


CONSUMER DISCRETIONARY 6.5%
McDonald’s Corp.		12,990		746,795
Walt Disney Co.		21,871		510,250
Comcast Corp. — Class A		33,957		492,037
Home Depot, Inc.		19,977		472,057
Time Warner, Inc.		14,090		354,927
Target Corp.		8,860		349,704
Lowe’s Companies, Inc.		17,390		337,540
Amazon.com, Inc.*		3,796		317,573
News Corp. — Class A		27,090		246,790
Nike, Inc. — Class B		4,560		236,117
Ford Motor Co.*		37,900		230,053
Yum! Brands, Inc.		5,440		181,370
Staples, Inc.		8,416		169,751
Viacom, Inc. — Class B*		7,140		162,078
Kohl’s Corp.*		3,600		153,900
TJX Companies, Inc.		4,870		153,210
DIRECTV Group, Inc.*		6,170		152,461
Johnson Controls, Inc.		7,000		152,040
Best Buy Company, Inc.		4,024		134,764
Carnival Corp.		5,160		132,973
Time Warner Cable, Inc.		4,150		131,430
Starbucks Corp.*		8,668		120,399
Omnicom Group, Inc.		3,660		115,583
McGraw-Hill Companies, Inc.		3,700		111,407
Coach, Inc.		3,740		100,531
Bed Bath & Beyond, Inc.*		3,061		94,126
Apollo Group, Inc. — Class A*		1,266		90,038
The Gap, Inc.		5,420		88,888
Marriott International, Inc. — Class A		3,499		77,213
J.C. Penney Company, Inc.		2,617		75,134
H&R Block, Inc.		4,000		68,920
Mattel, Inc.		4,220		67,731
AutoZone, Inc.*		429		64,826
Genuine Parts Co.		1,877		62,992
Sherwin-Williams Co.		1,160		62,350
Fortune Brands, Inc.		1,769		61,455
O’Reilly Automotive, Inc.*		1,600		60,928
Macy’s, Inc.		4,950		58,212
VF Corp.		1,040		57,564
International Game Technology, Inc.		3,490		55,491
CBS Corp.		8,000		55,360
Darden Restaurants, Inc.		1,606		52,966
Starwood Hotels & Resorts Worldwide, Inc.		2,200		48,840
Family Dollar Stores, Inc.		1,650		46,695

See Notes to Financial Statements.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

S&P 500 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


Harley-Davidson, Inc.		2,760	$	44,740
GameStop Corp. — Class A*		1,937		42,633
Sears Holdings Corp.*		640		42,573
Limited Brands, Inc.		3,180		38,065
Nordstrom, Inc.		1,887		37,532
Expedia, Inc.*		2,480		37,473
Tiffany & Co.		1,461		37,051
Whirlpool Corp.		870		37,027
DeVry, Inc.		730		36,529
Polo Ralph Lauren Corp.		670		35,872
Hasbro, Inc.		1,470		35,633
Newell Rubbermaid, Inc.		3,270		34,041
Goodyear Tire & Rubber Co.*		2,849		32,080
Stanley Works		930		31,471
D.R. Horton, Inc.		3,250		30,420
Scripps Networks Interactive, Inc.		1,068		29,722
Interpublic Group of Companies, Inc.*		5,630		28,431
Wynn Resorts Ltd.*		800		28,240
Leggett & Platt, Inc.		1,850		28,176
Abercrombie & Fitch Co. — Class A		1,033		26,228
Wyndham Worldwide Corp.		2,100		25,452
Washington Post Co. — Class B		69		24,300
Pulte Homes, Inc.		2,530		22,340
AutoNation, Inc.*		1,274		22,104
RadioShack Corp.		1,466		20,465
Big Lots, Inc.*		970		20,399
Black & Decker Corp.		705		20,205
Snap-On, Inc.		676		19,428
Lennar Corp. — Class A		1,660		16,085
Harman International Industries, Inc.		820		15,416
Office Depot, Inc.*		3,239		14,770
Centex Corp.		1,466		12,402
KB HOME		870		11,902
Meredith Corp.		420		10,731
Gannett Company, Inc.		2,738		9,775
Eastman Kodak Co.		3,160		9,354
New York Times Co. — Class A		1,370		7,549

Total Consumer Discretionary				8,492,083


UTILITIES 2.9%
Exelon Corp.		7,760		397,390
Southern Co.		9,210		286,984
FPL Group, Inc.		4,840		275,202
Dominion Resources, Inc.		6,950		232,269
Duke Energy Corp.		15,160		221,184
Public Service Enterprise Group, Inc.		5,960		194,475
Entergy Corp.		2,310		179,071
PG&E Corp.		4,338		166,753
American Electric Power Company, Inc.		5,605		161,928
PPL Corp.		4,430		146,013


			MARKET
	SHARES		VALUE


Sempra Energy		2,880	$	142,934
FirstEnergy Corp.		3,590		139,112
Progress Energy, Inc.		3,290		124,461
Consolidated Edison, Inc.		3,230		120,867
Edison International		3,840		120,806
Xcel Energy, Inc.		5,370		98,862
AES Corp.*		7,849		91,127
Questar Corp.		2,048		63,713
Ameren Corp.		2,524		62,822
Constellation Energy Group, Inc.		2,350		62,463
DTE Energy Co.		1,929		61,728
Wisconsin Energy Corp.		1,380		56,180
EQT Corp.		1,540		53,761
Allegheny Energy, Inc.		2,004		51,403
SCANA Corp.		1,426		46,302
Northeast Utilities		2,060		45,959
CenterPoint Energy, Inc.		4,108		45,517
NiSource, Inc.		3,230		37,662
Pinnacle West Capital Corp.		1,190		35,878
Pepco Holdings, Inc.		2,590		34,810
CMS Energy Corp.		2,669		32,241
TECO Energy, Inc.		2,510		29,944
Integrys Energy Group, Inc.		900		26,991
Nicor, Inc.		530		18,349
Dynegy Inc.*		5,970		13,552

Total Utilities				3,878,713


TELECOMMUNICATION SERVICES 2.5%
AT&T, Inc.		69,490		1,726,132
Verizon Communications, Inc.		33,450		1,027,919
Sprint Nextel Corp.*		33,820		162,674
American Tower Corp. — Class A*		4,678		147,497
Qwest Communications International, Inc.		17,420		72,293
Embarq Corp.		1,678		70,577
Windstream Corp.		5,140		42,970
MetroPCS Communications, Inc.*		2,980		39,664
CenturyTel, Inc.		1,190		36,533
Frontier Communications Corp.		3,680		26,275

Total Telecommunication Services				3,352,534


MATERIALS 2.3%
Monsanto Co.		6,430		478,006
E.I. du Pont de Nemours and Co.		10,642		272,648
Praxair, Inc.		3,620		257,273
Freeport-McMoRan Copper & Gold, Inc.		4,850		243,034
Newmont Mining Corp.		5,760		235,411
Dow Chemical Co.		12,665		204,413
Nucor Corp.		3,700		164,391
Air Products & Chemicals, Inc.		2,469		159,473
Alcoa, Inc.		11,469		118,475
PPG Industries, Inc.		1,938		85,078
Ecolab, Inc.		1,976		77,044
International Paper Co.		5,090		77,012
Weyerhaeuser Co.		2,487		75,679

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

June 30, 2009

S&P 500 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


Sigma-Aldrich Corp.		1,440	$	71,366
Vulcan Materials Co.		1,437		61,935
United States Steel Corp.		1,690		60,401
Owens-Illinois, Inc.*		1,980		55,460
Ball Corp.		1,110		50,128
CF Industries Holdings, Inc.		566		41,963
Allegheny Technologies, Inc.		1,152		40,239
Sealed Air Corp.		1,870		34,502
Pactiv Corp.*		1,547		33,616
MeadWestvaco Corp.		2,016		33,083
Eastman Chemical Co.		856		32,442
International Flavors & Fragrances, Inc.		930		30,430
Bemis Co.		1,180		29,736
AK Steel Holding Corp.		1,286		24,678
Titanium Metals Corp.		1,000		9,190

Total Materials				3,057,106

Total Common Stocks
(Cost $65,542,936)				94,786,548


		FACE
		AMOUNT
REPURCHASE AGREEMENTS† 27.0%
Credit Suisse Group issued 06/30/09 at 0.02% due 07/01/09††	$	29,706,472		29,706,472
UBS Financial Services, Inc. issued 06/30/09 at 0.01% due 07/01/09		5,690,510		5,690,510

Total Repurchase Agreements
(Cost $35,396,982)				35,396,982

Total Investments 99.1%
(Cost $100,939,918)			$	130,183,530

Other Assets in Excess of Liabilities – 0.9%			$	1,215,586

Net Assets – 100.0%			$	131,399,116



			Unrealized
		Contracts		Loss

FUTURES CONTRACTS PURCHASED
September 2009 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $21,073,750)		460	$	(86,500	)


			UNREALIZED
	UNITS		GAIN


EQUITY INDEX SWAP AGREEMENT
Goldman Sachs International July 2009 S&P 500 Index Swap, Terminating 07/08/09††† (Notional Market Value $148,277,816)		161,291	$	1,891,274



*		Non-Income Producing Security.

†		Repurchase Agreements — See Note 6.

††		All or a portion of this security is pledged as equity index swap collateral at June 30, 2009.

†††		Total Return based on S&P 500 Index +/- financing at a variable rate.

		REIT—Real Estate Investment Trust.

See Notes to Financial Statements.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

June 30, 2009

INVERSE S&P 500 2x STRATEGY FUND


	FACE		MARKET
	AMOUNT		VALUE


FEDERAL AGENCY DISCOUNT NOTES 41.0%
Fannie Mae* 0.18% due 08/24/09	$	25,000,000	$	24,995,875
Federal Home Loan Bank** 0.16% due 07/27/09		40,000,000		39,997,400
0.20% due 08/04/09		15,000,000		14,997,167

Total Federal Agency Discount Notes
(Cost $79,985,795)				79,990,442


		CONTRACTS
OPTIONS PURCHASED 0.0%
Call Options On:
September 2009 S&P 500 Index Mini Futures Expiring September 2009 with strike price of 1375		5,000		87,500

Total Options Purchased
(Cost $46,250)				87,500


		FACE
		AMOUNT
REPURCHASE AGREEMENTS† 42.3%
UBS Financial Services, Inc. issued 06/30/09 at 0.01% due 07/01/09	$	51,368,908		51,368,908
Credit Suisse Group issued 06/30/09 at 0.02% due 07/01/09††		31,148,625		31,148,625

Total Repurchase Agreements
(Cost $82,517,533)				82,517,533

Total Investments 83.3%
(Cost $162,549,578)			$	162,595,475

Other Assets in Excess of Liabilities – 16.7%			$	32,519,220

Net Assets – 100.0%			$	195,114,695


			UNREALIZED
	CONTRACTS		GAIN


FUTURES CONTRACTS SOLD SHORT
September 2009 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $153,059,563)		3,341	$	1,461,987


		UNITS
EQUITY INDEX SWAP AGREEMENT
SOLD SHORT
Goldman Sachs International July 2009 S&P 500 Index Swap, Terminating 07/08/09††† (Notional Market Value $236,030,626)		256,745	$	3,945,365



*		On September 7, 2008 the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.

**		The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.

†		Repurchase Agreements — See Note 6.

††		All or a portion of this security is pledged as equity index swap collateral at June 30, 2009.

†††		Total Return based on S&P 500 Index +/- financing at a variable rate.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited)

June 30, 2009

NASDAQ-100^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


COMMON STOCKS 68.2%

INFORMATION TECHNOLOGY 43.1%
Apple, Inc.*		123,837	$	17,638,104
Qualcomm, Inc.		198,647		8,978,844
Microsoft Corp.		304,830		7,245,809
Google, Inc. — Class A*		14,603		6,156,479
Oracle Corp.		206,800		4,429,656
Research In Motion Ltd.*		56,404		4,007,504
Cisco Systems, Inc.*		205,080		3,822,691
Intel Corp.		194,643		3,221,342
eBay, Inc.*		95,499		1,635,898
Adobe Systems, Inc.*		51,080		1,445,564
Activision Blizzard Inc.*		114,350		1,444,241
Symantec Corp.*		85,444		1,329,509
Automatic Data Processing, Inc.		35,280		1,250,323
Intuit, Inc.*		40,498		1,140,424
Yahoo!, Inc.*		66,772		1,045,650
Dell, Inc.*		71,426		980,679
Broadcom Corp. — Class A*		39,027		967,479
Fiserv, Inc.*		19,370		885,209
CA, Inc.		49,590		864,354
Paychex, Inc.		34,070		858,564
Juniper Networks, Inc.*		34,217		807,521
Baidu.com — SP ADR*		2,616		787,651
Cognizant Technology Solutions Corp. — Class A*		28,330		756,411
Applied Materials, Inc.		68,421		750,578
Xilinx, Inc.		36,190		740,447
Electronic Arts, Inc.*		32,398		703,685
Linear Technology Corp.		29,569		690,436
Marvell Technology Group Ltd.*		58,780		684,199
Citrix Systems, Inc.*		21,398		682,382
NetApp, Inc.*		34,420		678,762
Altera Corp.		41,066		668,554
NVIDIA Corp.*		53,385		602,717
KLA-Tencor Corp.		20,487		517,297
Seagate Technology		48,772		510,155
Check Point Software Technologies Ltd.*		20,649		484,632
Maxim Integrated Products, Inc.		29,855		468,425
Autodesk, Inc.*		23,662		449,105
Infosys Technologies Ltd. — SP ADR		11,184		411,348
Flextronics International Ltd.*		87,479		359,539
Flir Systems, Inc.*		15,648		353,019
Microchip Technology, Inc.		15,135		341,294
Lam Research Corp.*		12,993		337,818
VeriSign, Inc.*		18,100		334,488
Akamai Technologies, Inc.*		16,479		316,067
Sun Microsystems, Inc.*		32,389		298,627


			MARKET
	SHARES		VALUE


IAC/InterActiveCorp*		15,689	$	251,808
Logitech International SA*		17,355		242,970

Total Information Technology				83,578,258

HEALTH CARE 11.5%
Gilead Sciences, Inc.*		88,840		4,161,266
Teva Pharmaceutical Industries Ltd. — SP ADR		71,654		3,535,408
Amgen, Inc.*		46,960		2,486,062
Celgene Corp.*		45,422		2,172,988
Genzyme Corp.*		33,660		1,873,852
Express Scripts, Inc.*		24,050		1,653,438
Biogen Idec, Inc.*		31,220		1,409,583
Life Technologies Corp.*		17,592		733,938
Vertex Pharmaceuticals, Inc.*		18,019		642,197
Intuitive Surgical, Inc.*		3,760		615,362
Illumina, Inc.*		12,020		468,059
DENTSPLY International, Inc.		14,189		433,048
Henry Schein, Inc.*		8,953		429,296
Cephalon, Inc.*		7,158		405,501
Hologic, Inc.*		26,847		382,033
Warner Chilcott Ltd.*		24,924		327,751
Pharmaceutical Product Development, Inc.		11,410		264,940
Patterson Companies, Inc.*		11,641		252,610

Total Health Care				22,247,332

CONSUMER DISCRETIONARY 8.5%
Amazon.com, Inc.*		28,393		2,375,358
Comcast Corp. — Class A		143,820		2,083,952
DIRECTV Group, Inc.*		73,050		1,805,065
Starbucks Corp.*		101,830		1,414,419
News Corp. — Class A		141,245		1,286,742
Apollo Group, Inc. — Class A*		16,181		1,150,793
Bed Bath & Beyond, Inc.*		34,913		1,073,575
Staples, Inc.		47,816		964,449
Sears Holdings Corp.*		12,480		830,170
O’Reilly Automotive, Inc.*		13,456		512,404
Ross Stores, Inc.		12,760		492,536
Wynn Resorts Ltd.*		13,349		471,220
Garmin Ltd.		18,489		440,408
Expedia, Inc.*		28,222		426,434
DISH Network Corp. — Class A*		21,400		346,894
Urban Outfitters, Inc.*		16,555		345,503
Liberty Media Corp — Interactive*		54,383		272,459
Liberty Global, Inc. — Class A*		14,259		226,575

Total Consumer Discretionary				16,518,956

INDUSTRIALS 3.5%
Paccar, Inc.		40,511		1,317,013
First Solar, Inc.*		7,356		1,192,555
CH Robinson Worldwide, Inc.		16,670		869,340
Expeditors International of Washington, Inc.		20,746		691,672

See Notes to Financial Statements.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

June 30, 2009

NASDAQ-100^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


Fastenal Co.		14,127	$	468,593
Stericycle, Inc.*		8,870		457,071
Cintas Corp.		18,244		416,693
J.B. Hunt Transport Services, Inc.		12,540		382,846
Joy Global, Inc.		9,995		357,021
Ryanair Holdings PLC — SP ADR*		11,570		328,472
Foster Wheeler AG*		13,140		312,075

Total Industrials				6,793,351

CONSUMER STAPLES 0.7%
Costco Wholesale Corp.		22,750		1,039,675
Hansen Natural Corp.*		8,920		274,915

Total Consumer Staples				1,314,590

MATERIALS 0.5%
Sigma-Aldrich Corp.		11,668		578,266
Steel Dynamics, Inc.		21,960		323,471

Total Materials				901,737

TELECOMMUNICATION SERVICES 0.4%
Millicom International Cellular SA*		10,447		587,748
NII Holdings, Inc. — Class B*		16,030		305,692

Total Telecommunication Services				893,440

Total Common Stocks
(Cost $77,596,254)				132,247,664


		FACE
		AMOUNT
REPURCHASE AGREEMENTS† 23.9%
Credit Suisse Group issued 06/30/09 at 0.02% due 07/01/09††	$	29,496,686		29,496,686
UBS Financial Services, Inc. issued 06/30/09 at 0.01% due 07/01/09		16,908,616		16,908,616

Total Repurchase Agreements
(Cost $46,405,302)				46,405,302

Total Investments 92.1%
(Cost $124,001,556)			$	178,652,966

Other Assets in Excess of Liabilities – 7.9%			$	15,349,834

Net Assets – 100.0%			$	194,002,800


			UNREALIZED
	CONTRACTS		GAIN (Loss)


FUTURES CONTRACTS PURCHASED
September 2009 NASDAQ-100 Mini Futures Contracts (Aggregate Market Value of Contracts $99,068,360)		3,352	$	(535,486	)


		UNITS
EQUITY INDEX SWAP AGREEMENT
Goldman Sachs International July 2009 NASDAQ-100 Index Swap, Terminating 07/08/09††† (Notional Market Value $152,281,627)		103,085	$	438,660



*		Non-Income Producing Security.

†		Repurchase Agreements — See Note 6.

††		All or a portion of this security is pledged as equity index swap collateral at June 30, 2009.

†††		Total Return based on NASDAQ-100 Index +/- financing at a variable rate.

		ADR—American Depository Receipt.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited)

June 30, 2009

INVERSE NASDAQ-100^® 2x STRATEGY FUND


	FACE		MARKET
	AMOUNT		VALUE


FEDERAL AGENCY DISCOUNT NOTES 16.4%
Federal Home Loan Bank*
0.20% due 08/04/09	$	15,000,000	$	14,997,083

Total Federal Agency Discount Notes
(Cost $14,997,083)				14,997,083

		CONTRACTS
OPTIONS PURCHASED 0.1%
Call Options On:
September 2009 NASDAQ-100
Index Mini Futures Contracts
Expiring September 2009 with
strike price 2200		2,000		50,000

Total Options Purchased
(Cost $15,500)				50,000


		FACE
		AMOUNT
REPURCHASE AGREEMENTS† 128.3%
UBS Financial Services, Inc. issued 06/30/09 at 0.01% due 07/01/09	$	77,643,070		77,643,070
Credit Suisse Group issued 06/30/09 at 0.02% due 07/01/09††		39,940,700		39,940,700

Total Repurchase Agreements
(Cost $117,583,770)				117,583,770

Total Investments 144.8%
(Cost $132,596,353)			$	132,630,853

Liabilities in Excess of Other Assets – (44.8)%			$	(41,029,163	)

Net Assets – 100.0%			$	91,601,690


			UNREALIZED
	CONTRACTS		GAIN


FUTURES CONTRACTS SOLD SHORT
September 2009 NASDAQ-100 Index Mini Futures Contracts (Aggregate Market Value of Contracts $10,669,355)		361	$	19,095


		UNITS
EQUITY INDEX SWAP AGREEMENT
SOLD SHORT
Goldman Sachs International July 2009 NASDAQ-100 Index Swap, Terminating 07/08/09††† (Notional Market Value $177,718,745)		120,304	$	1,860,353



*		The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.

†		Repurchase Agreements — See Note 6.

††		All or a portion of this security is pledged as equity index swap collateral at June 30, 2009.

†††		Total Return based on NASDAQ-100 Index +/- financing at a variable rate.

See Notes to Financial Statements.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

June 30, 2009

DOW 2x STRATEGY FUND


			MARKET
	SHARES		VALUE



COMMON STOCKS 73.7%

INFORMATION TECHNOLOGY 13.3%
International Business Machines Corp.		17,214	$	1,797,486
Hewlett-Packard Co.		17,210		665,166
Microsoft Corp.		17,210		409,082
Cisco Systems, Inc.*		17,210		320,794
Intel Corp.		17,210		284,826

Total Information Technology				3,477,354

INDUSTRIALS 13.1%
3M Co.		17,210		1,034,321
United Technologies Corp.		17,216		894,543
Boeing Co.		17,210		731,425
Caterpillar, Inc.		17,210		568,619
General Electric Co.		17,210		201,701

Total Industrials				3,430,609

CONSUMER STAPLES 11.4%
Procter & Gamble Co.		17,210		879,431
Wal-Mart Stores, Inc.		17,217		833,992
Coca-Cola Co.		17,210		825,908
Kraft Foods, Inc.		17,210		436,101

Total Consumer Staples				2,975,432

ENERGY 9.0%
Exxon Mobil Corp.		17,210		1,203,151
Chevron Corp.		17,210		1,140,163

Total Energy				2,343,314

FINANCIALS 7.3%
Travelers Companies, Inc.		17,210		706,298
JPMorgan Chase & Co.		17,217		587,272
American Express Co.		17,208		399,914
Bank of America Corp.		17,210		227,172

Total Financials				1,920,656

CONSUMER DISCRETIONARY 6.9%
McDonald’s Corp.		17,210		989,403
Home Depot, Inc.		17,217		406,838
Walt Disney Co.		17,208		401,462

Total Consumer Discretionary				1,797,703

HEALTH CARE 6.6%
Johnson & Johnson		17,210		977,528
Merck & Company, Inc.		17,210		481,192
Pfizer, Inc.		17,210		258,150

Total Health Care				1,716,870

TELECOMMUNICATION SERVICES 3.7%
Verizon Communications, Inc.		17,215		529,017
AT&T, Inc.		17,213		427,571

Total Telecommunication Services				956,588


			MARKET
	SHARES		VALUE



MATERIALS 2.4%
E.I. du Pont de Nemours and Co.		17,210	$	440,920
Alcoa, Inc.		17,216		177,841

Total Materials				618,761

Total Common Stocks
(Cost $16,065,580)				19,237,287


		FACE
		AMOUNT
REPURCHASE AGREEMENTS† 35.1%
Credit Suisse Group issued 06/30/09 at 0.02% due 07/01/09††		$8,498,153		8,498,153
UBS Financial Services, Inc. issued 06/30/09 at 0.01% due 07/01/09		666,450		666,450

Total Repurchase Agreements
(Cost $9,164,603)				9,164,603

Total Investments 108.8%
(Cost $25,230,183)			$	28,401,890

Liabilities in Excess of Other Assets – (8.8)%			$	(2,294,114	)

Net Assets – 100.0%			$	26,107,776


			Unrealized
		Contracts		Gain (Loss)

FUTURES CONTRACTS PURCHASED
September 2009 Dow Jones Industrial Average Index Mini Futures Contracts (Aggregate Market Value of Contracts $1,764,840)		42	$	3,154


		UNITS
EQUITY INDEX SWAP AGREEMENT
Goldman Sachs International July 2009 Dow Jones Industrial Average Index Swap, Terminating 07/08/09††† (Notional Market Value $32,005,303)		3,789	$	(302,496	)




*		Non-Income Producing Security.

†		Repurchase Agreements — See Note 6.

††		All or a portion of this security is pledged as equity index swap collateral at June 30, 2009.

†††		Total Return based on Dow Jones Industrial Average Index +/- financing at a variable rate.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited)

June 30, 2009

INVERSE DOW 2x STRATEGY FUND


	FACE		MARKET
	AMOUNT		VALUE



REPURCHASE AGREEMENTS† 88.3%
UBS Financial Services, Inc. issued 06/30/09 at 0.01% due 07/01/09	$	41,785,023	$	41,785,023
Credit Suisse Group issued 06/30/09 at 0.02% due 07/01/09††		17,802,647		17,802,647

Total Repurchase Agreements
(Cost $59,587,670)				59,587,670

Total Investments 88.3%
(Cost $59,587,670)			$	59,587,670

Other Assets in Excess of Liabilities – 11.7%			$	7,903,589

Net Assets – 100.0%			$	67,491,259


			Unrealized
		Contracts		Gain

FUTURES CONTRACTS SOLD SHORT
September 2009 Dow Jones Industrial Average Index Mini Futures Contracts (Aggregate Market Value of Contracts $37,103,660)		883	$	38,451


		UNITS
EQUITY INDEX SWAP AGREEMENT SOLD SHORT
Goldman Sachs International July 2009 Dow Jones Industrial Average Index Swap, Terminating 07/08/09††† (Notional Market Value $98,296,364)		11,637	$	2,246,684




†		Repurchase Agreements — See Note 6.

††		All or a portion of this security is pledged as equity index swap collateral at June 30, 2009.

†††		Total Return based on Dow Jones Industrial Average Index +/- financing at a variable rate.

See Notes to Financial Statements.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE



COMMON STOCKS 76.0%

INFORMATION TECHNOLOGY 15.0%
Palm, Inc.*		5,364	$	88,881
3Com Corp.*		15,060		70,933
VistaPrint Ltd.*		1,640		69,946
Solera Holdings, Inc.*		2,697		68,504
Jack Henry & Associates, Inc.		3,262		67,686
Polycom, Inc.*		3,260		66,080
Skyworks Solutions, Inc.*		6,510		63,668
Data Domain, Inc.*		1,842		61,431
Arris Group, Inc.*		4,814		58,538
Informatica Corp.*		3,387		58,223
Digital River, Inc.*		1,485		53,935
Parametric Technology Corp.*		4,503		52,640
Synaptics, Inc.*		1,332		51,482
CACI International, Inc. — Class A*		1,165		49,757
Riverbed Technology, Inc.*		2,130		49,395
TIBCO Software, Inc.*		6,824		48,928
Perot Systems Corp. — Class A*		3,389		48,564
Concur Technologies, Inc.*		1,550		48,174
Tessera Technologies, Inc.*		1,887		47,722
ADTRAN, Inc.		2,150		46,160
Atheros Communications, Inc.*		2,374		45,676
Tekelec*		2,587		43,539
Anixter International, Inc.*		1,157		43,492
Microsemi Corp.*		3,150		43,470
TiVo, Inc.*		4,062		42,570
InterDigital, Inc.*		1,700		41,548
Cybersource Corp.*		2,679		40,989
j2 Global Communications, Inc.*		1,730		39,029
RF Micro Devices, Inc.*		10,328		38,833
Wright Express Corp.*		1,488		37,899
Semtech Corp.*		2,369		37,691
Starent Networks Corp.*		1,516		37,006
Mantech International Corp. — Class A*		853		36,713
Euronet Worldwide, Inc.*		1,893		36,705
Benchmark Electronics, Inc.*		2,540		36,576
Plantronics, Inc.		1,896		35,853
Rackspace Hosting*		2,582		35,787
Blackboard, Inc.*		1,234		35,613
ValueClick, Inc.*		3,385		35,610
Quest Software, Inc.*		2,554		35,603
Gartner, Inc. — Class A*		2,296		35,037
Comtech Telecommunications Corp.*		1,089		34,717
Cymer, Inc.*		1,146		34,071
Ariba, Inc.*		3,401		33,466
FEI Co.*		1,450		33,205
Formfactor, Inc.*		1,922		33,135
Omniture, Inc.*		2,635		33,096
Progress Software Corp.*		1,550		32,813


			MARKET
	SHARES		VALUE



Emulex Corp.*		3,225	$	31,540
Plexus Corp.*		1,535		31,406
Intermec, Inc.*		2,408		31,063
Websense, Inc.*		1,718		30,649
EarthLink, Inc.*		4,110		30,455
Triquint Semiconductor, Inc.*		5,727		30,410
Wind River Systems, Inc.*		2,648		30,346
ADC Telecommunications, Inc.*		3,750		29,850
Lawson Software, Inc.*		5,338		29,786
Infinera Corp.*		3,260		29,764
Monolithic Power Systems, Inc.*		1,321		29,604
Take-Two Interactive Software, Inc.		3,119		29,537
Fair Isaac Corp.		1,897		29,328
Hittite Microwave Corp.*		835		29,016
SRA International, Inc. — Class A*		1,625		28,535
MAXIMUS, Inc.		684		28,215
Mercadolibre, Inc.*		1,001		26,907
Commvault Systems, Inc.*		1,620		26,860
Blackbaud, Inc.		1,705		26,513
ViaSat, Inc.*		1,014		25,999
Cabot Microelectronics Corp.*		908		25,687
Netlogic Microsystems, Inc.*		698		25,449
MKS Instruments, Inc.*		1,922		25,351
Scansource, Inc.*		1,032		25,305
Blue Coat Systems, Inc.*		1,528		25,273
DealerTrack Holdings, Inc.*		1,460		24,820
Avocent Corp.*		1,725		24,081
SPSS, Inc.*		715		23,860
Cavium Networks, Inc.*		1,410		23,702
Checkpoint Systems, Inc.*		1,510		23,692
Sycamore Networks, Inc.*		7,485		23,428
Acxiom Corp.		2,636		23,276
Ultimate Software Group, Inc.*		953		23,101
Black Box Corp.		677		22,659
L-1 Identity Solutions, Inc.*		2,907		22,500
Rofin-Sinar Technologies, Inc.*		1,117		22,351
STEC, Inc.*		960		22,262
Power Integrations, Inc.		930		22,125
Taleo Corp.*		1,206		22,034
Harmonic, Inc.*		3,725		21,940
Zoran Corp.*		2,008		21,887
Cognex Corp.		1,542		21,788
Unisys Corp.*		14,390		21,729
United Online, Inc.		3,252		21,171
VeriFone Holdings, Inc.*		2,800		21,028
Applied Micro Circuits Corp.*		2,558		20,797
Sapient Corp.*		3,280		20,631
Electronics for Imaging, Inc.*		1,910		20,361
OmniVision Technologies, Inc.*		1,938		20,136
Net 1 UEPS Technologies, Inc.*		1,480		20,113
Amkor Technology, Inc.*		4,250		20,102
Aruba Networks, Inc.*		2,292		20,032

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE



Mentor Graphics Corp.*		3,656	$	19,998
AsiaInfo Holdings, Inc.*		1,130		19,447
Diodes, Inc.*		1,242		19,425
Advent Software, Inc.*		590		19,346
EPIQ Systems, Inc.*		1,260		19,341
Netgear, Inc.*		1,340		19,309
Teletech Holdings, Inc.*		1,260		19,089
ATMI, Inc.*		1,220		18,947
ACI Worldwide, Inc.*		1,357		18,944
Tyler Technologies, Inc.*		1,210		18,900
THQ, Inc.*		2,631		18,838
Art Technology Group, Inc.*		4,920		18,696
SYNNEX Corp.*		747		18,668
Constant Contact, Inc.*		930		18,451
TNS, Inc.*		979		18,356
DTS, Inc. — Class A*		677		18,326
CSG Systems International, Inc.*		1,365		18,073
Cogent, Inc.*		1,662		17,833
MicroStrategy, Inc. — Class A*		347		17,426
Standard Microsystems Corp.*		850		17,382
Coherent, Inc.*		840		17,371
Insight Enterprises, Inc.*		1,780		17,195
Park Electrochemical Corp.		797		17,159
Littelfuse, Inc.*		836		16,687
Sigma Designs, Inc.*		1,028		16,489
Manhattan Associates, Inc.*		896		16,325
SAVVIS, Inc.*		1,400		16,044
Syntel, Inc.		504		15,846
JDA Software Group, Inc.*		1,031		15,424
Acme Packet, Inc.*		1,509		15,271
Netezza Corp.*		1,833		15,251
Pegasystems, Inc.		577		15,221
Forrester Research, Inc.*		614		15,074
Harris Stratex Networks — Class A*		2,290		14,839
Avid Technology, Inc.*		1,100		14,751
Veeco Instruments, Inc.*		1,247		14,453
S1 Corp.*		2,047		14,124
Heartland Payment Systems, Inc.		1,462		13,991
GSI Commerce, Inc.*		974		13,879
ShoreTel, Inc.*		1,725		13,800
MTS Systems Corp.		650		13,422
TTM Technologies, Inc.*		1,682		13,389
SuccessFactors, Inc.*		1,445		13,265
NIC, Inc.		1,958		13,256
3PAR, Inc.*		1,068		13,243
DG FastChannel, Inc.*		714		13,066
Move, Inc.*		5,988		12,934
Micrel, Inc.		1,764		12,912
Sonus Networks, Inc.*		8,008		12,893
ArcSight, Inc.*		717		12,741
Vocus, Inc.*		640		12,646
Adaptec, Inc.*		4,735		12,548


			MARKET
	SHARES		VALUE



Global Cash Access
Holdings, Inc.*		1,570	$	12,497
OSI Systems, Inc.*		599		12,489
EMS Technologies, Inc.*		595		12,435
Bankrate, Inc.*		490		12,368
Rogers Corp.*		610		12,340
ModusLink Global
Solutions, Inc.*		1,785		12,245
Vignette Corp.*		930		12,229
Brightpoint, Inc.*		1,943		12,183
Terremark Worldwide, Inc.*		2,084		12,046
Maxwell Technologies, Inc.*		868		12,004
Entegris, Inc.*		4,408		11,990
Electro Scientific Industries, Inc.*		1,060		11,851
MSC.Software Corp.*		1,772		11,802
Volterra Semiconductor Corp.*		879		11,550
Advanced Energy
Industries, Inc.*		1,279		11,498
Cirrus Logic, Inc.*		2,545		11,452
SonicWALL, Inc.*		2,088		11,442
Ultratech, Inc.*		920		11,325
comScore, Inc.*		845		11,255
Brooks Automation, Inc.*		2,500		11,200
Universal Display Corp.*		1,142		11,169
Actel Corp.*		1,025		10,998
Loral Space &
Communications, Inc.*		420		10,815
Smith Micro Software, Inc.*		1,100		10,802
Supertex, Inc.*		428		10,747
Echelon Corp.*		1,265		10,727
Sourcefire, Inc.*		865		10,717
Novatel Wireless, Inc.*		1,180		10,644
TeleCommunication Systems, Inc. — Class A*		1,492		10,608
Cray, Inc.*		1,333		10,504
Cass Information Systems, Inc.		316		10,346
Methode Electronics, Inc. — Class A		1,470		10,319
Anadigics, Inc.*		2,450		10,265
Technitrol, Inc.		1,586		10,261
Kenexa Corp. — Class A*		882		10,205
Faro Technologies, Inc.*		652		10,126
Daktronics, Inc.		1,305		10,049
RightNow Technologies, Inc.*		850		10,030
Seachange International, Inc.*		1,239		9,949
Anaren, Inc.*		560		9,901
Compellent Technologies, Inc.*		649		9,897
Exar Corp.*		1,370		9,850
IPG Photonics Corp.*		897		9,840
Symmetricom, Inc.*		1,700		9,809
Epicor Software Corp.*		1,840		9,752
RealNetworks, Inc.*		3,220		9,628
Kopin Corp.*		2,620		9,615
Internet Capital Group, Inc.*		1,426		9,597

See Notes to Financial Statements.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE



China Security & Surveillance Technology, Inc.*		1,270	$	9,576
Digi International, Inc.*		960		9,360
IXYS Corp.		920		9,310
Switch & Data Facilities Co., Inc.*		790		9,267
Knot, Inc.*		1,174		9,251
Oplink Communications, Inc.*		800		9,120
Synchronoss Technologies, Inc.*		740		9,080
Netscout Systems, Inc.*		960		9,005
Infospace, Inc.*		1,358		9,004
Comverge, Inc.*		740		8,954
Radiant Systems, Inc.*		1,068		8,864
Bottomline Technologies, Inc.*		971		8,749
NVE Corp.*		180		8,748
Imation Corp.		1,147		8,729
Stratasys, Inc.*		790		8,682
CTS Corp.		1,306		8,554
Lattice Semiconductor Corp.*		4,483		8,428
Actuate Corp.*		1,744		8,336
Ebix, Inc.*		265		8,300
Ciber, Inc.*		2,674		8,289
Powerwave Technologies, Inc.*		5,134		8,266
Pericom Semiconductor Corp.*		978		8,235
Radisys Corp.*		913		8,226
Ixia*		1,220		8,223
Cohu, Inc.		911		8,181
Newport Corp.*		1,410		8,164
Kulicke & Soffa Industries, Inc.*		2,380		8,163
Mercury Computer Systems, Inc.*		878		8,122
Hughes Communications, Inc.*		355		8,105
Multi-Fineline Electronix, Inc.*		376		8,046
i2 Technologies, Inc.*		627		7,869
Perficient, Inc.*		1,110		7,759
SolarWinds, Inc.*		470		7,750
Symyx Technologies, Inc.*		1,316		7,699
NetSuite, Inc.*		650		7,677
Advanced Analogic Technologies*		1,671		7,670
infoGROUP, Inc.*		1,332		7,606
Vasco Data Security International*		1,040		7,602
NCI, Inc.*		248		7,544
Internet Brands, Inc. — Class A*		1,066		7,462
Intevac, Inc.*		846		7,369
Openwave Systems, Inc.*		3,240		7,258
Utstarcom, Inc.*		4,398		7,169
BigBand Networks, Inc.*		1,380		7,135
Rubicon Technology, Inc.*		490		6,997
Extreme Networks, Inc.*		3,455		6,910
DivX, Inc.*		1,257		6,901
Internap Network Services Corp.*		1,967		6,865
DemandTec, Inc.*		780		6,864
Super Micro Computer, Inc.*		890		6,817
Quantum Corp.*		8,172		6,783
Silicon Image, Inc.*		2,913		6,700
Rudolph Technologies, Inc.*		1,205		6,652


			MARKET
	SHARES		VALUE



Electro Rent Corp.		700	$	6,643
Ceva, Inc.*		760		6,597
Rosetta Stone, Inc.*		240		6,586
Photronics, Inc.*		1,626		6,585
ExlService Holdings, Inc.*		580		6,502
Sirf Technology Holdings, Inc.*		1,524		6,492
Bel Fuse, Inc. — Class B		400		6,416
LivePerson, Inc.*		1,600		6,400
FalconStor Software, Inc.*		1,340		6,365
Airvana, Inc.*		970		6,179
Online Resources Corp.*		990		6,178
LoopNet, Inc.*		780		6,045
PROS Holdings, Inc.*		742		6,025
Interactive Intelligence, Inc.*		490		6,007
Rimage Corp.*		360		5,980
DSP Group, Inc.*		880		5,949
Ness Technologies, Inc.*		1,498		5,857
Globecomm Systems, Inc.*		814		5,853
Cogo Group, Inc.*		980		5,851
SumTotal Systems, Inc.*		1,210		5,820
iGate Corp.		876		5,799
Web.com Group, Inc.*		1,030		5,799
Silicon Storage Technology, Inc.*		3,095		5,788
Double-Take Software, Inc.*		667		5,770
Liquidity Services, Inc.*		581		5,729
Monotype Imaging
Holdings, Inc.*		840		5,720
MoneyGram International, Inc.*		3,210		5,714
Limelight Networks, Inc.*		1,280		5,632
Integral Systems, Inc.*		668		5,558
Immersion Corp.*		1,095		5,409
MIPS Technology, Inc.*		1,754		5,262
Silicon Graphics
International Corp.*		1,157		5,253
Tier Technologies, Inc. — Class B*		680		5,222
Techwell, Inc.*		611		5,194
American Software, Inc. — Class A		860		4,954
PLX Technology, Inc.*		1,307		4,927
Network Equipment
Technologies, Inc.*		1,130		4,814
Microtune, Inc.*		2,020		4,727
Opnet Technologies, Inc.		510		4,672
Entropic Communications, Inc.*		2,054		4,622
ActivIdentity Corp.*		1,780		4,503
OpenTV Corp.*		3,290		4,343
Spectrum Control, Inc.*		490		4,312
Trident Microsystems, Inc.*		2,448		4,260
Chordiant Software, Inc.*		1,169		4,243
Isilon Systems, Inc.*		998		4,232
GSE Systems, Inc.*		620		4,185
White Electronics
Designs Corp.*		890		4,121
Lionbridge Technologies, Inc.*		2,230		4,103

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


Virtusa Corp.*		509	$	4,087
Semitool, Inc.*		882		4,075
Measurement Specialties, Inc.*		557		3,927
support.com, Inc.*		1,797		3,917
PC-Tel, Inc.*		727		3,889
Emcore Corp.*		2,935		3,698
Saba Software, Inc.*		960		3,696
Zix Corp.*		2,460		3,690
Startek, Inc.*		460		3,689
KVH Industries, Inc.*		540		3,688
Keynote Systems, Inc.*		480		3,667
Pervasive Software, Inc.*		600		3,654
Innodata Isogen, Inc.*		830		3,635
OpenTable, Inc.*		120		3,620
Computer Task Group, Inc.*		580		3,538
Intellon Corp.*		830		3,528
Hackett Group, Inc.*		1,500		3,495
Entrust, Inc.*		1,930		3,493
Parkervision, Inc.*		1,141		3,491
Dynamics Research Corp.*		340		3,403
Smart Modular Technologies WWH, Inc.*		1,430		3,246
Ipass, Inc.*		1,960		3,136
Phoenix Technologies, Ltd.*		1,126		3,051
China Information Security Technology, Inc.*		1,055		3,017
Unica Corp.*		549		3,009
SRS Labs, Inc.*		450		2,993
Callidus Software, Inc.*		1,000		2,850
Virage Logic Corp.*		630		2,835
Dice Holdings, Inc.*		609		2,832
GSI Technology, Inc.*		720		2,779
Information Services Group, Inc.*		920		2,769
Agilysys, Inc.		590		2,761
PC Mall, Inc.*		400		2,704
Zygo Corp., Inc.*		580		2,703
ICx Technologies, Inc.*		440		2,640
Marchex, Inc.		770		2,595
MEMSIC, Inc.*		600		2,544
DDi Corp.*		560		2,537
CPI International, Inc.*		280		2,433
Travelzoo, Inc.*		220		2,409
Communications Systems, Inc.		240		2,352
Opnext, Inc.*		1,083		2,318
Renaissance Learning, Inc.		250		2,303
RAE Systems, Inc.*		1,580		2,180
Deltek, Inc.*		490		2,127
Imergent, Inc.		300		2,100
PAR Technology Corp.*		320		2,045
ePlus, Inc.*		140		2,040
eLoyalty Corp.*		250		1,970
PC Connection, Inc.*		375		1,969
TechTarget, Inc.*		450		1,800
QAD, Inc.		494		1,606


			MARKET
	SHARES		VALUE


China TransInfo Technology Corp.*		340	$	1,591
X-Rite, Inc.*		1,010		1,515

Total Information Technology				5,747,749

FINANCIALS 14.8%
Knight Capital Group, Inc. — Class A*		3,611		61,568
Highwoods Properties, Inc.		2,751		61,540
MFA Mortgage Investments, Inc.		8,655		59,893
ProAssurance Corp.*		1,287		59,472
IPC Holdings Ltd.		2,167		59,246
Platinum Underwriters Holdings Ltd.		1,990		56,894
Westamerica Bancorporation		1,135		56,307
National Retail Properties, Inc.		3,110		53,958
FirstMerit Corp.		3,176		53,928
Prosperity Bancshares, Inc.		1,792		53,455
Stifel Financial Corp.*		1,059		50,927
Washington Real Estate Investment Trust		2,263		50,623
Omega Healthcare Investors, Inc.		3,201		49,680
NewAlliance Bancshares, Inc.		4,150		47,725
UMB Financial Corp.		1,253		47,627
Tanger Factory Outlet Centers, Inc.		1,427		46,278
American Campus Communities, Inc.		2,028		44,981
Montpelier Re Holdings Ltd.		3,348		44,495
Redwood Trust, Inc.		3,006		44,369
Home Properties, Inc.		1,278		43,580
Trustmark Corp.		2,232		43,122
First Financial Bankshares, Inc.		812		40,892
Mid-America Apartment Communities, Inc.		1,102		40,454
Hatteras Financial Corp.		1,408		40,255
Tower Group, Inc.		1,572		38,954
BioMed Realty Trust, Inc.		3,807		38,946
KBW, Inc.*		1,346		38,711
Healthcare Realty Trust, Inc.		2,297		38,659
PHH Corp.*		2,115		38,451
Potlatch Corp.		1,541		37,431
Signature Bank*		1,370		37,154
Glacier Bancorp, Inc.		2,391		35,315
SVB Financial Group*		1,283		34,923
Argo Group International Holdings Ltd.*		1,202		33,920
Apollo Investment Corp.		5,530		33,180
Piper Jaffray Companies, Inc.*		758		33,102
Max Capital Group Ltd.		1,790		33,043
RLI Corp.		728		32,614
Delphi Financial Group, Inc. — Class A		1,670		32,448
Eastgroup Properties, Inc.		976		32,228
Zenith National Insurance Corp.		1,452		31,566

See Notes to Financial Statements.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


Capstead Mortgage Corp.		2,473	$	31,432
Franklin Street Properties Corporation, Inc.		2,305		30,541
Ares Capital Corp.		3,785		30,507
Hancock Holding Co.		930		30,216
PrivateBancorp, Inc.		1,358		30,202
Equity Lifestyle Properties, Inc.		807		30,004
Assured Guaranty Ltd.		2,365		29,279
NBT Bancorp Inc.		1,335		28,983
United Bankshares, Inc.		1,483		28,978
Kilroy Realty Corp.		1,400		28,756
PS Business Parks, Inc.		590		28,580
Astoria Financial Corp.		3,320		28,486
Anworth Mortgage Asset Corp.		3,949		28,472
Extra Space Storage, Inc.		3,359		28,048
Entertainment Properties Trust		1,360		28,016
DCT Industrial Trust, Inc.		6,836		27,891
National Health Investors, Inc.		1,013		27,057
American Capital Ltd.		8,370		26,868
Cash America International, Inc.		1,148		26,852
DiamondRock Hospitality Co.		4,196		26,267
Selective Insurance Group, Inc.		2,051		26,191
Developers Diversified Realty Corp.		5,340		26,059
optionsXpress Holdings, Inc.		1,645		25,547
LaSalle Hotel Properties		2,070		25,544
Old National Bancorp		2,580		25,336
Park National Corp.		435		24,569
Employers Holdings, Inc.		1,810		24,525
IBERIABANK Corp.		618		24,355
Allied Capital Corp.		6,940		24,151
ETrade Financial Corp.		18,770		24,026
Portfolio Recovery Associates, Inc.*		604		23,393
Post Properties, Inc.		1,716		23,063
MF Global Ltd.*		3,760		22,297
Sovran Self Storage, Inc.		882		21,697
FNB Corp.		3,487		21,585
Alexander’s, Inc.		80		21,568
MGIC Investment Corp.		4,860		21,384
Texas Capital Bancshares, Inc.*		1,382		21,380
Navigators Group, Inc.*		480		21,326
Brookline Bancorp, Inc.		2,286		21,306
Provident Financial Services, Inc.		2,331		21,212
First Commonwealth Financial Corp.		3,311		20,992
Pico Holdings, Inc.*		729		20,922
International Bancshares Corp.		2,028		20,909
Financial Federal Corp.		1,004		20,632
Investors Real Estate Trust		2,302		20,465
Sterling Bancshares, Inc.		3,203		20,275
Acadia Realty Trust		1,537		20,058
Ocwen Financial Corp., Inc.*		1,503		19,494
Infinity Property & Casualty Corp.		530		19,324


			MARKET
	SHARES		VALUE


Inland Real Estate Corp.		2,726	$	19,082
Ezcorp, Inc. — Class A*		1,759		18,962
Medical Properties Trust, Inc.		3,110		18,878
Greenlight Capital Re Ltd. — Class A*		1,090		18,868
City Holding Co.		618		18,762
Community Bank System, Inc.		1,269		18,477
LTC Properties, Inc.		901		18,425
Hilltop Holdings, Inc.*		1,540		18,280
Cathay General Bancorp		1,918		18,240
Umpqua Holding Corp.		2,336		18,127
TrustCo Bank Corp.		2,963		17,511
Conseco, Inc.*		7,180		17,017
GFI Group, Inc.		2,518		16,971
eHealth, Inc.*		960		16,954
Equity One, Inc.		1,270		16,840
Investors Bancorp, Inc.*		1,830		16,763
Forestar Real Estate Group, Inc.*		1,393		16,549
Chemical Financial Corp.		830		16,525
Webster Financial Corp.		2,050		16,502
Susquehanna Bancshares, Inc.		3,347		16,367
East-West Bancorp, Inc.		2,486		16,134
Independent Bank Corp.		811		15,977
Safety Insurance Group, Inc.		520		15,891
Bank Mutual Corp.		1,820		15,870
Community Trust Bancorp, Inc.		591		15,809
Flagstone Reinsurance Holdings		1,521		15,666
First Cash Financial Services, Inc.*		891		15,610
Sunstone Hotel Investors, Inc.		2,917		15,606
CVB Financial Corp.		2,590		15,462
Prospect Capital Corp.		1,675		15,410
Tompkins Financial Corp.		320		15,344
Enstar Group*		259		15,242
Riskmetrics Group, Inc.*		861		15,205
Horace Mann Educators Corp.		1,520		15,154
National Penn Bancshares, Inc.		3,260		15,029
Wintrust Financial Corp.		934		15,019
CBL & Associates Properties, Inc.		2,770		14,930
United Fire & Casualty Co.		857		14,698
First Financial Corp.		465		14,685
Meadowbrook Insurance Group Co., Inc.		2,227		14,542
Simmons First National Corp.		544		14,536
Harleysville Group, Inc.		514		14,505
Colonial Properties Trust		1,898		14,045
MB Financial Corp.		1,368		13,940
First Midwest Bancorp, Inc.		1,886		13,787
GAMCO Investors, Inc. — Class A		280		13,580
Universal Health Realty Income Trust		430		13,554
SWS Group, Inc.		945		13,202
Banco Latinoamericano de Exportaciones SA		1,062		13,201
Dollar Financial Corp.*		940		12,963

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


WesBanco, Inc.		890	$	12,941
Cousins Properties, Inc.		1,511		12,841
Getty Realty Corp.		677		12,775
Maiden Holdings Ltd.		1,941		12,733
Northwest Bancorp, Inc.		672		12,674
PacWest Bancorp		950		12,502
Pinnacle Financial Partners, Inc.*		938		12,494
World Acceptance Corp.*		627		12,484
Renasant Corp.		824		12,376
First Bancorp Puerto Rico		3,125		12,344
Beneficial Mutual Bancorp, Inc.*		1,271		12,202
Western Alliance Bancorp*		1,779		12,168
Boston Private Financial Holdings, Inc.		2,631		11,787
MarketAxess Holdings, Inc.*		1,229		11,712
National Financial Partners Corp.		1,598		11,697
Southside Bancshares, Inc.		506		11,572
American Equity Investment Life Holding Co.		2,070		11,551
SCBT Financial Corp.		487		11,537
TowneBank		822		11,508
Hercules Technology Growth Capital, Inc.		1,368		11,436
StellarOne Corp.		882		11,422
Amerisafe, Inc.*		731		11,374
Duff & Phelps Corp. - Class A		633		11,255
Lexington Realty Trust		3,276		11,138
Urstadt Biddle Properties, Inc.		790		11,123
Berkshire Hills Bancorp, Inc.		534		11,097
National Western Life Insurance Co. — Class A		95		11,091
Tejon Ranch Co. De*		418		11,073
S&T Bancorp, Inc.		910		11,066
Bank of the Ozarks, Inc.		510		11,031
iStar Financial Inc.		3,870		10,991
American Physicians Capital, Inc.		280		10,965
Westfield Financial, Inc.		1,210		10,963
Provident New York Bancorp		1,350		10,962
First Financial Bancorp		1,455		10,942
Tradestation Group, Inc.*		1,292		10,930
Parkway Properties, Inc.		840		10,920
Calamos Asset Management, Inc. — Class A		760		10,724
SY Bancorp, Inc.		440		10,635
First Potomac Realty Trust		1,068		10,413
Camden National Corp.		305		10,379
Home Bancshares, Inc.		544		10,358
Univest Corp. of Pennsylvania		508		10,292
Ambac Financial Group, Inc.		11,166		10,273
Nelnet, Inc. — Class A*		751		10,206
Cohen & Steers, Inc.		671		10,031
Amtrust Financial Services, Inc.		879		10,021
1st Source Corp.		576		9,948
United Community Banks, Inc.*		1,659		9,937


			MARKET
	SHARES		VALUE


State Auto Financial Corp.		560	$	9,800
DuPont Fabros Technology, Inc.		1,029		9,693
Washington Trust Bancorp, Inc.		540		9,628
Suffolk Bancorp		374		9,589
Stewart Information Services Corp.		672		9,576
U-Store-It Trust		1,938		9,496
Arrow Financial Corp.		349		9,423
Sandy Spring Bancorp, Inc.		641		9,423
LaBranche & Co., Inc.*		2,147		9,232
Lakeland Financial Corp.		483		9,177
Walter Investment Management Corp.*		690		9,163
Oriental Financial Group		942		9,137
Dime Community Bancshares		1,000		9,110
Danvers Bancorp, Inc.		677		9,106
Westwood Holdings Group, Inc.		217		9,073
American Capital Agency Corp.		392		9,004
FPIC Insurance Group, Inc.*		290		8,880
First Bancorp		566		8,875
United Financial Bancorp, Inc.		640		8,845
CNA Surety Corp.*		655		8,836
Sun Communities, Inc.		641		8,833
Northfield Bancorp, Inc.		750		8,715
Capital Southwest Corp.		120		8,682
Radian Group, Inc.		3,180		8,650
Bancfirst Corp.		250		8,645
Cardinal Financial Corp.		1,101		8,621
SeaBright Insurance Holdings, Inc.*		840		8,509
Triko Bancshares		540		8,370
Kearny Financial Corp.		714		8,168
Republic Bancorp, Inc.		359		8,110
Great Southern Bancorp, Inc.		390		8,014
ESSA Bancorp, Inc.		586		8,011
Union Bankshares Corp.		530		7,934
Harleysville National Corp.		1,682		7,905
Advance America Cash Advance Centers, Inc.		1,780		7,885
Citizens, Inc.*		1,290		7,843
Oppenheimer Holdings, Inc. — Class A		370		7,833
Flushing Financial Corp.		837		7,826
Evercore Partners, Inc. — Class A		398		7,817
Fifth Street Finance Corp.		773		7,761
Broadpoint Gleacher Securities, Inc.*		1,389		7,751
First Mercury Financial Corp.		558		7,684
Capital City Bank Group, Inc.		456		7,684
Compass Diversified Trust		930		7,524
Consolidated-Tomoka Land Co.		214		7,507
Phoenix Companies, Inc.*		4,490		7,498
First Busey Corp.		1,013		7,446
Saul Centers, Inc.		250		7,392

See Notes to Financial Statements.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


BankFinancial Corp.		833	$	7,380
Smithtown Bancorp, Inc.		569		7,278
Columbia Banking Systems, Inc.		711		7,274
Heartland Financial USA, Inc.		508		7,254
Orrstown Financial Services, Inc.		193		7,187
Citizens & Northern Corp.		347		7,138
MVC Capital, Inc.		840		7,106
Lakeland Bancorp, Inc.		788		7,084
Pennsylvania Real Estate Investment Trust		1,394		6,970
Peoples Bancorp, Inc.		408		6,956
Donegal Group, Inc. — Class A		454		6,905
Encore Capital Group, Inc.*		520		6,890
United America Indemnity Ltd. — Class A*		1,430		6,850
Cedar Shopping Centers, Inc.		1,515		6,848
BGC Partners, Inc. - Class A		1,796		6,807
Penson Worldwide Company, Inc.*		760		6,802
Ashford Hospitality Trust, Inc.		2,410		6,772
Abington Bancorp, Inc.		850		6,766
First Industrial Realty Trust, Inc.		1,540		6,699
Home Federal Bancorp, Inc.		650		6,623
First Merchants Corp.		820		6,585
WSFS Financial Corp.		240		6,554
First Bancorp, Inc.		336		6,542
Bridge Bancorp, Inc.		240		6,533
NorthStar Realty Finance Corp.		2,302		6,515
National Bankshares, Inc.		270		6,480
Baldwind & Lyons, Inc. — Class B		320		6,304
Safeguard Scientifics, Inc.*		4,737		6,253
German American Bancorp		430		6,196
Farmers Capital Bank Corp.		246		6,192
Gladstone Capital Corp.		822		6,190
FelCor Lodging Trust, Inc.		2,514		6,184
Peapack Gladstone Financial Corp.		320		6,173
MCG Capital Corp.*		2,540		6,172
Presidential Life Corp.		810		6,132
Ames National Corp.		250		6,102
Ramco-Gershenson Properties Trust		609		6,096
Pacific Continental Corp.		502		6,089
Hampton Roads Bankshares, Inc.		720		5,940
ViewPoint Financial Group		390		5,940
Sterling Financial Corp.		2,041		5,939
Shore Bancshares, Inc.		330		5,920
UCBH Holdings, Inc.		4,682		5,899
Sterling Bancorp		700		5,845
Harris & Harris Group, Inc.*		999		5,824
PennantPark Investment Corp.		818		5,808
MainSource Financial Group, Inc.		781		5,795
China Housing & Land Development, Inc.*		1,000		5,760
PMA Capital Corp.*		1,253		5,701


			MARKET
	SHARES		VALUE


Financial Institutions, Inc.		417	$	5,696
American Physicians Service Group, Inc.		250		5,672
The PMI Group, Inc.		2,830		5,603
First Financial Northwest, Inc.		710		5,552
Southwest Bancorp, Inc.		568		5,544
Bank of Marin Bancorp		200		5,390
Oritani Financial Corp.*		390		5,347
Kite Realty Group Trust		1,797		5,247
Kayne Anderson Energy Development Co.		394		5,224
Agree Realty Corp.		280		5,132
CapLease, Inc.		1,857		5,125
Bryn Mawr Bank Corp.		267		5,038
United Security Bancshares, Inc.		230		5,037
Credit Acceptance Corp.*		230		5,025
NGP Capital Resources Co.		838		4,919
Thomas Weisel Partners Group, Inc.*		812		4,888
Colonial BancGroup, Inc.		7,877		4,884
First of Long Island Corp.		210		4,859
First Marblehead Corp.*		2,400		4,848
CNB Financial Corp.		340		4,818
Education Realty Trust, Inc.		1,112		4,770
CoBiz Financial, Inc.		744		4,769
First Community Bancshares, Inc.		371		4,764
Tower Bancorp, Inc.		135		4,745
ESB Financial Corp.		360		4,723
Mission West Properties		690		4,713
Citizens Holding Co.		150		4,680
US Global Investors, Inc. — Class A		502		4,649
Cogdell Spencer, Inc.		1,083		4,646
American National Bankshares, Inc.		240		4,627
Nara Bancorp, Inc.		886		4,589
TICC Capital Corp.		1,030		4,542
Monmouth Real Estate Investment Corp. — Class A		775		4,542
Alliance Financial Corp.		160		4,538
Kohlberg Capital Corp.		714		4,512
American Safety Insurance Holdings Ltd.*		330		4,491
Medallion Financial Corp.		582		4,452
Asset Acceptance Capital Corp.*		576		4,429
Ohio Valley Banc Corp.		150		4,401
Avatar Holdings, Inc.*		242		4,397
JMP Group, Inc.		570		4,383
Penns Woods Bancorp, Inc.		150		4,371
Wilshire Bancorp, Inc.		755		4,341
Yadkin Valley Financial Corp.		628		4,339
State Bancorp, Inc.		574		4,339
FCStone Group, Inc.*		1,092		4,313

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


Kansas City Life Insurance Co.		160	$	4,306
Gladstone Commercial Corp.		330		4,277
First Financial Holdings, Inc.		452		4,249
Oceanfirst Financial Corp.		353		4,225
Epoch Holding Corp.		489		4,225
Merchants Bancshares, Inc.		190		4,216
Central Pacific Financial Corp.		1,121		4,204
Home Bancorp, Inc.*		350		4,179
First Defiance Financial Corp.		320		4,160
Gladstone Investment Corp.		860		4,154
Sanders Morris Harris Group		755		4,153
Hersha Hospitality Trust		1,660		4,117
Life Partners Holdings, Inc.		290		4,112
FBL Financial Group, Inc. — Class A		496		4,097
Roma Financial Corp.		320		4,077
Winthrop Realty Trust		452		4,036
Enterprise Financial Services Corp.		437		3,972
Cape Bancorp, Inc.*		460		3,970
EMC Insurance Group, Inc.		190		3,954
South Financial Group, Inc.		3,313		3,942
Guaranty Bancorp*		2,037		3,891
Crawford & Co. — Class B*		810		3,888
Clifton Savings Bancorp, Inc.		360		3,874
Pacific Capital Bancorp		1,806		3,865
Glimcher Realty Trust		1,330		3,857
First South Bancorp, Inc.		321		3,724
NASB Financial, Inc.		130		3,718
Main Street Capital Corp.		270		3,696
Dynex Capital, Inc.		440		3,608
National Interstate Corp.		236		3,582
Diamond Hill Investment Group, Inc.*		89		3,576
Sierra Bancorp		280		3,536
Center Bancorp, Inc.		430		3,505
Rockville Financial, Inc.		320		3,504
Mercer Insurance Group, Inc.		220		3,498
Citizens Banking Corp.*		4,911		3,487
Washington Banking Co.		370		3,485
Northrim BanCorp, Inc.		250		3,480
Metro Bancorp, Inc.*		180		3,467
RAIT Investment Trust		2,518		3,450
Associated Estates Realty Corp.		578		3,445
Bar Harbor Bankshares		110		3,394
Virtus Investment Partners, Inc.*		231		3,393
Bank of Kentucky Financial Corp.		120		3,360
Ameris Bancorp		530		3,350
Eagle Bancorp, Inc.*		380		3,333
Chicopee Bancorp, Inc.*		250		3,243
Strategic Hotel Capital, Inc.		2,915		3,236
Legacy Bancorp, Inc.		290		3,219
Triangle Capital Corp.		290		3,167
FBR Capital Markets Corp.*		670		3,149


			MARKET
	SHARES		VALUE


BlackRock Kelso Capital Corp.		490	$	3,053
West Bancorporation, Inc.		610		3,050
Midsouth Bancorp, Inc.		180		3,024
Premierwest Bancorp		844		2,861
Peoples Financial Corp.		150		2,850
Rewards Network, Inc.*		750		2,835
Meridian Interstate Bancorp, Inc.*		380		2,831
Eastern Insurance Holdings, Inc.		300		2,823
First Financial Service Corp.		160		2,786
Bancorp Rhode Island, Inc.		140		2,759
International Assets Holding Corp.*		185		2,751
UMH Properties, Inc.		340		2,710
Gramercy Capital Corp.*		1,661		2,674
Hallmark Financial Services, Inc.*		370		2,646
NYMAGIC, Inc.		190		2,637
Sun Bancorp, Inc.*		500		2,590
Resource Capital Corp.		808		2,586
Centerstate Banks of Florida, Inc.		348		2,582
Century Bancorp, Inc.		140		2,582
Bancorp, Inc.*		430		2,580
Resource America, Inc. — Class A		479		2,577
Auburn National Bancorporation, Inc.		90		2,565
Universal Insurance Holdings, Inc.		510		2,560
Wilber Corp.		230		2,553
Heritage Financial Corp.		220		2,543
Care Investment Trust, Inc.		480		2,496
Old Second Bancorp, Inc.		420		2,478
Tree.com, Inc.*		250		2,400
Enterprise Bancorp, Inc.		200		2,360
Banner Corp.		598		2,284
Pzena Investment Management, Inc. — Class A		296		2,244
Norwood Financial Corp.		70		2,195
Republic First Bancorp, Inc.*		280		2,184
NewStar Financial, Inc.*		1,083		2,069
Fox Chase Bancorp, Inc.*		210		2,014
Ampal American Israel — Class A*		823		2,008
Cardtronics, Inc.*		520		1,981
Anthracite Capital, Inc.		3,065		1,900
Prudential Bancorp of Pennsylvania, Inc.		160		1,890
Northeast Community Bancorp, Inc.		230		1,865
Flagstar Bancorp, Inc.*		2,600		1,768
Primus Guaranty Ltd.*		720		1,699
Independence Holding Co.		248		1,577
Porter Bancorp, Inc.		100		1,515
Old Point Financial Corp.		80		1,480
K-Fed Bancorp		160		1,469
Kentucky First Federal Bancorp		120		1,458
CompuCredit Holdings Corp.*		630		1,449

See Notes to Financial Statements.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


First Acceptance Corp.*		648	$	1,380
First California Financial Group, Inc.*		220		1,357
Brooklyn Federal Bancorp, Inc.		120		1,350
Santander BanCorp*		170		1,183
American Realty Investors, Inc.*		100		1,020
Cheviot Financial Corp.		110		880
Waterstone Financial, Inc.*		277		823
California First National Bancorp.		70		798
Heritage Financial Group		80		686
QC Holdings, Inc.		130		668
Transcontinental Realty Investors, Inc.*		50		604
Doral Financial Corp.*		214		535

Total Financials				5,679,053


INDUSTRIALS 12.1%
Tetra Tech, Inc.*		2,341		67,070
Watson Wyatt & Co., Holdings		1,658		62,225
Clarcor, Inc.		1,979		57,767
Regal-Beloit Corp.		1,386		55,052
GrafTech International Ltd.*		4,673		52,852
Curtiss-Wright Corp.		1,757		52,236
EMCOR Group, Inc.*		2,560		51,507
Nordson Corp.		1,310		50,645
Brady Corp. — Class A		1,860		46,723
Woodward Governor Co.		2,338		46,292
ESCO Technologies, Inc.*		1,023		45,830
Teledyne Technologies, Inc.*		1,397		45,752
Watsco, Inc.		933		45,652
Acuity Brands, Inc.		1,590		44,599
Granite Construction, Inc.		1,332		44,329
American Superconductor Corp.*		1,686		44,257
Baldor Electric Co.		1,815		43,179
Clean Harbors, Inc.*		795		42,922
Moog, Inc. — Class A*		1,648		42,535
Kaydon Corp.		1,290		42,002
Huron Consulting Group, Inc.*		842		38,926
JetBlue Airways Corp.*		8,951		38,221
Geo Group, Inc.*		1,986		36,900
Knight Transportation, Inc.		2,218		36,708
Old Dominion Freight Line, Inc.*		1,085		36,423
Hexcel Corp.*		3,753		35,766
Genesee & Wyoming, Inc. — Class A*		1,268		33,615
Orbital Sciences Corp.*		2,190		33,222
Heico Corp.		896		32,489
ABM Industries, Inc.		1,790		32,345
Applied Industrial Technologies, Inc.		1,640		32,308
United Stationers, Inc.*		925		32,264
Herman Miller, Inc.		2,090		32,061
Simpson Manufacturing Company, Inc.		1,482		32,041
HNI Corp.		1,743		31,479


			MARKET
	SHARES		VALUE


Esterline Technologies Corp.*		1,151	$	31,158
CoStar Group, Inc.*		775		30,899
Belden CDT, Inc.		1,811		30,244
Otter Tail Power Co.		1,380		30,139
Healthcare Services Group		1,681		30,056
Mueller Industries, Inc.		1,445		30,056
Resources Connection, Inc.*		1,749		30,030
Werner Enterprises, Inc.		1,650		29,898
HUB Group, Inc. — Class A*		1,440		29,722
Rollins, Inc.		1,696		29,358
Heartland Express, Inc.		1,960		28,851
AirTran Holdings, Inc.*		4,660		28,845
EnerSys*		1,566		28,486
Middleby Corp.*		630		27,670
A.O. Smith Corp.		847		27,587
MPS Group, Inc.*		3,590		27,428
Corporate Executive Board Co.		1,320		27,403
EnergySolutions, Inc.		2,928		26,938
Actuant Corp. — Class A		2,206		26,913
Triumph Group, Inc.		654		26,160
Briggs & Stratton Corp.		1,940		25,880
Arkansas Best Corp.		982		25,876
Alaska Air Group, Inc.*		1,409		25,728
Insituform Technologies, Inc. — Class A*		1,506		25,557
Deluxe Corp.		1,994		25,543
Beacon Roofing Supply, Inc.*		1,754		25,363
Energy Conversion Devices, Inc.*		1,777		25,145
Navigant Consulting, Inc.*		1,942		25,091
Mine Safety Appliances Co.		1,040		25,064
Universal Forest Products, Inc.		753		24,917
Watts Industries, Inc. — Class A		1,138		24,512
Sykes Enterprises, Inc.*		1,353		24,476
Ameron International Corp.		364		24,403
American Science & Engineering, Inc.		350		24,192
Force Protection, Inc.*		2,721		24,054
AAR Corp.*		1,496		24,011
Allegiant Travel Co.*		604		23,943
Forward Air Corp.		1,119		23,857
Badger Meter, Inc.		580		23,780
Mastec, Inc.*		2,019		23,663
Franklin Electric Company, Inc.		903		23,406
Avis Budget Group, Inc.*		3,960		22,374
SkyWest, Inc.		2,160		22,032
Genco Shipping & Trading Ltd.		1,002		21,763
Cubic Corp.		608		21,760
II-Vi, Inc.*		972		21,549
Barnes Group, Inc.		1,810		21,521
Astec Industries, Inc.*		700		20,783
Mobile Mini, Inc.*		1,385		20,318
Chart Industries, Inc.*		1,098		19,962
Robbins & Myers, Inc.		1,030		19,827
Axsys Technologies, Inc.*		368		19,740
Administaff, Inc.		819		19,058

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


Korn/Ferry International, Inc.*		1,740	$	18,514
UAL Corp.*		5,590		17,832
Ceradyne, Inc.*		1,000		17,660
Mcgrath Rentcorp		924		17,611
Tutor Perini Corp.*		1,000		17,360
Interline Brands, Inc.*		1,257		17,196
RBC Bearings, Inc.*		838		17,137
GeoEye, Inc.*		720		16,963
Dycom Industries, Inc.*		1,520		16,826
Mueller Water Products, Inc. — Class A		4,493		16,804
Kaman Corp. — Class A		1,002		16,733
Quanex Building Products Corp.		1,465		16,437
Aerovironment, Inc.*		525		16,201
Steelcase, Inc. — Class A		2,780		16,180
AZZ, Inc.*		469		16,138
DynCorp International, Inc. — Class A*		958		16,085
Lindsay Manufacturing Co.		482		15,954
Raven Industries, Inc.		623		15,949
Orion Marine Group, Inc.*		839		15,941
Evergreen Solar, Inc.*		7,297		15,834
Circor International, Inc.		660		15,583
Atlas Air Worldwide Holdings Company., Inc.*		669		15,514
Layne Christensen Co.*		757		15,481
Advisory Board Co.*		600		15,420
Comfort Systems USA, Inc.		1,500		15,375
Tredegar Corp.		1,153		15,358
G & K Services, Inc. — Class A		725		15,334
Encore Wire Corp.		715		15,265
United Rentals, Inc.*		2,340		15,187
Stanley, Inc.*		453		14,895
School Specialty, Inc.*		731		14,773
Federal Signal Corp.		1,889		14,451
Rush Enterprises, Inc. — Class A*		1,240		14,446
TrueBlue, Inc.*		1,700		14,280
Griffon Corp.*		1,690		14,061
EnPro Industries, Inc.*		780		14,048
Knoll, Inc.		1,830		13,871
Viad Corp.		803		13,828
Broadwind Energy, Inc.*		1,220		13,810
MYR Group, Inc.*		670		13,547
John Bean Technologies Corp.		1,070		13,396
Aircastle Ltd.		1,817		13,355
Apogee Enterprises, Inc.		1,080		13,284
Tennant Co.		717		13,186
Michael Baker Corp.*		310		13,132
Exponent, Inc.*		533		13,064
Amerco, Inc.*		350		13,002
Blount International, Inc.*		1,493		12,855
American Ecology Corp.		714		12,795
RSC Holdings, Inc.*		1,901		12,775
Applied Signal Technology, Inc.		497		12,678


			MARKET
	SHARES		VALUE


Ennis Business Forms Inc.		1,010	$	12,585
Northwest Pipe Co.*		359		12,479
Marten Transport Ltd.*		600		12,456
US Airways Group, Inc.*		5,117		12,434
Hawaiian Holdings, Inc.*		2,009		12,094
CBIZ, Inc.*		1,696		12,076
Heidrick & Struggles International, Inc.		660		12,045
Albany International Corp. — Class A		1,050		11,949
CRA International, Inc.*		425		11,798
LB Foster Co. — Class A*		390		11,727
Interface, Inc. — Class A		1,890		11,718
American Reprographics Co.*		1,406		11,698
Dollar Thrifty Automotive Group, Inc.*		836		11,662
Team, Inc.*		727		11,392
Seaboard Corp.		10		11,220
Gorman-Rupp Co.		556		11,215
Kelly Services, Inc.		1,023		11,202
ATC Technology Corp.*		769		11,150
Powell Industries, Inc.*		298		11,047
Taser International, Inc.*		2,410		10,990
DigitalGlobe, Inc.*		570		10,944
Argon ST, Inc.*		525		10,799
FuelCell Energy, Inc.*		2,530		10,575
Titan International, Inc.		1,374		10,264
Ener1, Inc.*		1,863		10,172
H&E Equipment Services, Inc.*		1,065		9,958
EnerNOC, Inc.*		456		9,882
Polypore International, Inc.*		879		9,774
Acacia Research — Acacia Technologies.*		1,240		9,759
Dynamic Materials Corp.		498		9,601
Saia, Inc.*		532		9,581
American Woodmark Corp.		400		9,580
AAON, Inc.		480		9,562
ICF International, Inc.*		341		9,408
Columbus McKinnon Corp. — Class A*		741		9,374
Energy Recovery, Inc.*		1,300		9,204
Kforce, Inc.*		1,110		9,180
Republic Airways Holdings, Inc.*		1,340		8,750
Eagle Bulk Shipping, Inc.		1,833		8,597
M&F Worldwide Corp.*		420		8,400
Spherion Corp.*		2,006		8,265
Houston Wire & Cable Co.		686		8,170
Microvision, Inc.*		2,655		8,151
Trex Company, Inc.*		604		8,075
Ladish Company, Inc.*		616		7,990
K-Tron International, Inc.*		100		7,968
Cenveo, Inc.*		1,881		7,957
Ampco-Pittsburgh Corp.		335		7,856
Altra Holdings, Inc.*		1,045		7,827

See Notes to Financial Statements.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


Sun Hydraulics Corp.		482	$	7,794
Ducommun, Inc.		413		7,760
Freightcar America, Inc.		460		7,733
Sterling Construction Company, Inc.*		506		7,722
Kimball International, Inc. — Class B		1,237		7,719
Pike Electric Corp.*		640		7,712
Advanced Battery Technologies, Inc.*		1,876		7,542
Great Lakes Dredge & Dock Corp. Co.		1,553		7,423
Gibraltar Industries, Inc.		1,053		7,234
Celadon Group, Inc.*		860		7,215
Colfax Corp.*		917		7,079
Tecumseh Products Co. — Class A*		725		7,040
Cornell Companies, Inc.*		433		7,019
Bowne & Company, Inc.		1,065		6,933
Harbin Electric, Inc.*		440		6,882
Fuel Tech, Inc.*		690		6,693
China Fire & Security Group, Inc.*		544		6,620
Consolidated Graphics, Inc.*		380		6,620
GT Solar International, Inc.*		1,217		6,474
Aceto Corp.		962		6,417
TAL International Group, Inc.		588		6,409
First Advantage Corp. — Class A*		418		6,358
Titan Machinery, Inc.*		500		6,345
Furmanite Corp.*		1,416		6,315
Met-Pro Corp.		570		6,167
NACCO Industries, Inc. — Class A		210		6,031
ACCO Brands Corp.*		2,116		5,967
Courier Corp.		390		5,951
Herley Industries, Inc.*		535		5,869
Dynamex, Inc.*		378		5,817
Insteel Industries, Inc.		677		5,578
Standex International Corp.		479		5,556
International Shipholding Corp.		206		5,554
Cascade Corp.		350		5,505
Vicor Corp.		762		5,502
American Commercial Lines, Inc.*		354		5,480
On Assignment, Inc.*		1,398		5,466
Kadant, Inc.*		480		5,419
CDI Corp.		470		5,240
Graham Corp.		392		5,214
Perma-Fix Environmental Services*		2,100		5,082
APAC Teleservices, Inc.*		990		5,079
Fushi Copperweld, Inc.*		607		5,020
Air Transport Services Group, Inc.*		2,160		5,011
3D Systems Corp.*		695		5,011
Metalico, Inc.*		1,053		4,907


			MARKET
	SHARES		VALUE


Multi-Color Corp.		399	$	4,892
Standard Parking Corp.*		290		4,724
Ascent Solar Technologies, Inc.*		600		4,692
Greenbrier Companies, Inc.		650		4,673
Innerworkings, Inc.*		960		4,560
Horizon Lines, Inc. — Class A		1,174		4,532
LaBarge, Inc.*		486		4,505
PMFG, Inc.*		507		4,467
Power-One, Inc.*		2,995		4,463
Schawk, Inc.		580		4,356
VSE Corp.		165		4,316
China BAK Battery, Inc.*		1,463		4,316
Hill International, Inc.*		970		4,171
Textainer Group Holdings Ltd.		360		4,165
Argan, Inc.*		290		4,098
TBS International Ltd. — Class A*		522		4,077
USA Truck, Inc.*		300		4,059
LSI Industries, Inc.		734		4,000
YRC Worldwide, Inc.*		2,310		3,996
Preformed Line Products Co.		90		3,965
Hurco Companies, Inc.*		250		3,907
Diamond Management & Technology Consultants		930		3,906
Flanders Corp.*		638		3,898
Eastern Co.		230		3,795
Gencorp, Inc.*		1,960		3,744
Astronics Corp.*		360		3,740
Ultrapetrol Bahamas Ltd.*		840		3,721
Todd Shipyards Corp.		220		3,663
Patriot Transportation Holding, Inc.*		50		3,646
Satcon Technology Corp.*		2,000		3,600
Universal Truckload Services, Inc.		230		3,599
GP Strategies Corp.*		610		3,593
Waste Services, Inc.*		690		3,574
DXP Enterprises, Inc.*		305		3,498
Valence Technology, Inc.*		1,950		3,490
Miller Industries, Inc. — Class A*		390		3,432
Flow International Corp.*		1,458		3,426
COMSYS IT Partners, Inc.*		578		3,381
Ultralife Batteries, Inc.*		470		3,370
Odyssey Marine Exploration, Inc.*		2,071		3,314
LMI Aerospace, Inc.*		326		3,299
Barrett Business Services, Inc.		300		3,150
ICT Group, Inc.*		360		3,143
Franklin Covey Co.*		500		3,115
Pacer International, Inc.		1,365		3,044
American Railcar Industries, Inc.		365		3,015
North American Galvanizing & Coating, Inc.*		490		2,969
Volt Information Sciences, Inc.*		470		2,947
PowerSecure International, Inc.*		674		2,871
Chase Corp.		240		2,856
Sauer, Inc.		438		2,685

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


Builders FirstSource, Inc.*		626	$	2,604
Portec Rail Products, Inc.		260		2,561
Alamo Group, Inc.		253		2,555
Orion Energy Systems, Inc.*		677		2,539
Primoris Services Corp.		320		2,374
Willis Lease Finance Corp.*		180		2,362
Lawson Products, Inc.		160		2,274
Twin Disc, Inc.		328		2,234
Standard Register Co.		680		2,217
NCI Building Systems, Inc.*		770		2,033
Trimas Corp.*		601		2,025
CAI International, Inc.*		383		1,953
SmartHeat, Inc.*		260		1,781
Integrated Electrical Services, Inc.*		220		1,718
Omega Flex, Inc.		110		1,668
BlueLinx Holdings, Inc.*		450		1,350
United Capital Corp.*		70		1,282
Heritage-Crystal Clean, Inc.*		100		1,215
Amrep Corp. PLC*		50		551

Total Industrials				4,638,345


HEALTH CARE 11.5%
Owens & Minor, Inc.		1,617		70,857
NuVasive, Inc.*		1,421		63,377
Onyx Pharmaceuticals, Inc.*		2,206		62,342
Isis Pharmaceuticals, Inc.*		3,620		59,730
Steris Corp.		2,268		59,149
Thoratec Corp.*		2,195		58,782
Haemonetics Corp.*		1,000		57,000
AMERIGROUP Corp.*		2,059		55,284
Quality Systems, Inc.		921		52,460
Auxilium Pharmaceuticals, Inc.*		1,658		52,028
Psychiatric Solutions, Inc.*		2,188		49,755
Healthsouth Corp.*		3,433		49,573
athenahealth, Inc.*		1,304		48,261
Masimo Corp.*		1,968		47,448
American Medical Systems Holdings, Inc.*		2,873		45,393
Magellan Health Services, Inc.*		1,370		44,963
West Pharmaceutical Services, Inc.		1,274		44,399
Varian, Inc.*		1,120		44,162
Regeneron Pharmaceuticals, Inc.*		2,454		43,976
PSS World Medical, Inc.*		2,310		42,758
Dionex Corp.*		690		42,111
Medarex, Inc.*		4,999		41,742
Acorda Therapeutics, Inc.*		1,480		41,721
HMS Holdings Corp.*		1,013		41,249
Cubist Pharmaceuticals, Inc.*		2,238		41,023
Alkermes, Inc.*		3,675		39,763
Eclipsys Corp.*		2,178		38,725
Immucor, Inc.*		2,742		37,730
Medicis Pharmaceutical Corp. — Class A		2,289		37,356


			MARKET
	SHARES		VALUE


PDL BioPharma, Inc.		4,642	$	36,672
AMAG Pharmaceuticals, Inc.*		658		35,973
Meridian Bioscience, Inc.		1,575		35,563
Catalyst Health Solutions, Inc.*		1,423		35,490
Amedisys, Inc.*		1,065		35,166
Chemed Corp.		883		34,861
Centene Corp.*		1,671		33,387
Savient Pharmaceuticals, Inc.*		2,361		32,723
Parexel International Corp.*		2,240		32,211
Alnylam Pharmaceuticals, Inc.*		1,398		31,133
Cell Therapeutics, Inc.*		17,950		30,874
WellCare Health Plans, Inc.*		1,640		30,324
Theravance, Inc.*		2,069		30,290
MedAssets, Inc.*		1,535		29,856
Luminex Corp.*		1,609		29,831
ev3, Inc.*		2,755		29,534
Martek Biosciences Corp.		1,290		27,283
Seattle Genetics, Inc.*		2,778		27,002
Geron Corp.*		3,462		26,554
Volcano Corp.*		1,877		26,240
AmSurg Corp.*		1,190		25,514
Phase Forward, Inc.*		1,685		25,460
Medivation, Inc.*		1,121		25,122
Cougar Biotechnology, Inc.*		576		24,745
XenoPort, Inc.*		1,060		24,560
Celera Corp.*		3,179		24,256
Wright Medical Group, Inc.*		1,485		24,146
Align Technology, Inc.*		2,268		24,041
Nektar Therapeutics*		3,605		23,360
PharMerica Corp.*		1,185		23,262
InterMune, Inc.*		1,480		22,496
Landauer, Inc.		359		22,021
Cepheid, Inc.*		2,248		21,176
Genoptix, Inc.*		654		20,921
Healthspring, Inc.*		1,898		20,612
Par Pharmaceutical Companies, Inc.*		1,350		20,452
Greatbatch, Inc.*		903		20,417
ICU Medical, Inc.*		495		20,369
Exelixis, Inc.*		4,145		20,186
Allos Therapeutics, Inc.*		2,423		20,087
Conceptus, Inc.*		1,187		20,060
Invacare Corp.		1,120		19,768
Integra LifeSciences Holdings Corp.*		734		19,458
Kindred Healthcare, Inc.*		1,522		18,827
Gentiva Health Services, Inc.*		1,125		18,517
Salix Pharmaceuticals Ltd.*		1,875		18,506
Analogic Corp.		500		18,475
Viropharma, Inc.*		3,015		17,879
Merit Medical Systems, Inc.*		1,094		17,832
Healthways, Inc.*		1,310		17,619
inVentiv Health, Inc.*		1,302		17,616
Cyberonics, Inc.*		1,059		17,611

See Notes to Financial Statements.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


Bruker BioSciences Corp.*		1,900	$	17,594
Conmed Corp.*		1,133		17,584
Abaxis, Inc.*		848		17,418
Impax Laboratories, Inc.*		2,360		17,370
Rigel Pharmaceuticals, Inc.*		1,430		17,332
RehabCare Group, Inc.*		720		17,230
Medicines Co.*		2,048		17,183
ImmunoGen, Inc.*		1,986		17,099
MannKind Corp.*		2,053		17,060
Halozyme Therapeutics, Inc.*		2,440		17,007
IPC The Hospitalist Co., Inc.*		635		16,948
Optimer Pharmaceuticals, Inc.*		1,114		16,677
Momenta Pharmaceuticals, Inc.*		1,372		16,505
Vivus, Inc.*		2,709		16,471
Orthofix International NV*		658		16,457
Affymetrix, Inc.*		2,748		16,296
Zoll Medical Corp.*		819		15,839
Arena Pharmaceuticals, Inc.*		3,109		15,514
Human Genome Sciences, Inc.*		5,276		15,089
CardioNet, Inc.*		920		15,014
MWI Veterinary Supply, Inc.*		425		14,815
Neogen Corp.*		510		14,780
Quidel Corp.*		1,000		14,560
Computer Programs & Systems, Inc.		380		14,558
Bio-Reference Labs, Inc.*		458		14,477
Emergency Medical Services Corp. — Class A*		390		14,360
Sun Healthcare Group, Inc.*		1,692		14,280
Res-Care, Inc.*		978		13,985
Cypress Bioscience, Inc.*		1,483		13,970
Enzon Pharmaceuticals, Inc.*		1,765		13,891
Noven Pharmaceuticals, Inc.*		970		13,871
SurModics, Inc.*		597		13,510
SonoSite, Inc.*		670		13,440
Hanger Orthopedic Group, Inc.*		980		13,318
Omnicell, Inc.*		1,233		13,255
Orthovita, Inc.*		2,570		13,236
Sirona Dental Systems, Inc.*		660		13,193
LHC Group, Inc.*		593		13,171
Odyssey HealthCare, Inc.*		1,281		13,169
Symmetry Medical, Inc.*		1,387		12,927
Angiodynamics, Inc.*		952		12,633
Ligand Pharmaceuticals, Inc. — Class B*		4,398		12,578
Natus Medical, Inc.*		1,088		12,556
Triple-S Management Corp. — Class B*		800		12,472
Vanda Pharmaceuticals, Inc.*		1,040		12,241
Molina Healthcare, Inc.*		510		12,199
National Healthcare Corp.		310		11,761
Air Methods Corp.*		422		11,546
Questcor Pharmaceuticals, Inc.*		2,235		11,175
DexCom, Inc.*		1,776		10,993


			MARKET
	SHARES		VALUE


Hemispherx Biopharma, Inc.*		4,300	$	10,922
Abiomed, Inc.*		1,200		10,584
Palomar Medical Technologies, Inc.*		705		10,335
Accuray, Inc.*		1,545		10,305
eResearch Technology, Inc.*		1,650		10,247
Emeritus Corp.*		774		10,225
Affymax, Inc.*		540		9,952
Arqule, Inc.*		1,606		9,861
Spectrum Pharmaceuticals, Inc.*		1,270		9,716
BioScrip, Inc.*		1,630		9,650
Genomic Health, Inc.*		554		9,601
Cadence Pharmaceuticals, Inc.*		960		9,590
Synovis Life Technologies, Inc.*		450		9,347
Sequenom, Inc.*		2,384		9,321
Universal American Financial Corp.*		1,050		9,156
Incyte Corp.*		2,780		9,146
Pharmasset, Inc.*		810		9,113
Inspire Pharmaceuticals, Inc.*		1,638		9,107
RTI Biologics, Inc.*		2,109		9,048
Emergent Biosolutions, Inc.*		630		9,028
Facet Biotech Corp.*		946		8,788
Osiris Therapeutics, Inc.*		646		8,676
NPS Pharmaceuticals, Inc.*		1,851		8,626
Ardea Biosciences, Inc.*		546		8,594
SIGA Technologies, Inc.*		1,010		8,524
Kensey Nash Corp.*		320		8,387
Cross Country Healthcare, Inc.*		1,205		8,278
IRIS International, Inc.*		697		8,225
Micromet, Inc.*		1,650		8,217
AMN Healthcare Services, Inc.*		1,270		8,103
Atrion Corp.		60		8,045
Cantel Medical Corp.*		489		7,936
Sangamo Biosciences, Inc.*		1,602		7,914
Novavax, Inc.*		2,400		7,872
Insulet Corp.*		1,015		7,816
Pozen, Inc.*		1,016		7,803
Somanetics Corp.*		472		7,793
Albany Molecular Research, Inc.*		913		7,660
Durect Corp.*		3,195		7,604
Alliance Imaging, Inc.*		1,021		7,484
Almost Family, Inc.*		280		7,311
Pain Therapeutics, Inc.*		1,347		7,233
Kendle International, Inc.*		583		7,136
GTx, Inc.*		739		6,821
Medcath Corp.*		580		6,821
StemCells, Inc.*		4,010		6,817
Amicus Therapeutics, Inc.*		591		6,767
Zymogenetics, Inc.*		1,465		6,739
US Physical Therapy, Inc.*		450		6,638
Maxygen Inc.*		984		6,612
Corvel Corp.*		290		6,603
Repligen Corp.*		1,190		6,545

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


Chindex International, Inc.*		525	$	6,494
Depomed, Inc.*		1,991		6,471
Immunomedics, Inc.*		2,541		6,454
Vital Images, Inc.*		561		6,367
Medical Action Industries, Inc.*		549		6,286
Accelrys, Inc.*		1,059		6,259
Spectranetics Corp.*		1,254		6,182
Ensign Group, Inc.		433		6,162
Metabolix, Inc.*		749		6,157
CryoLife, Inc.*		1,103		6,111
Protalix BioTherapeutics, Inc.*		1,340		6,057
Ats Medical, Inc.*		1,840		6,054
BMP Sunstone Corp.*		1,261		5,977
I-Flow Corp.*		846		5,871
Array Biopharma, Inc.*		1,868		5,866
Bovie Medical Corp.*		660		5,749
Assisted Living Concepts, Inc. — Class A*		395		5,747
Endologix, Inc.*		1,710		5,711
Enzo Biochem, Inc.*		1,282		5,679
Santarus, Inc.*		2,010		5,668
Skilled Healthcare Group, Inc. — Class A*		751		5,633
Micrus Endovascular Corp.*		614		5,551
ISTA Pharmaceuticals, Inc.*		1,290		5,418
Ariad Pharmaceuticals, Inc.*		3,383		5,379
Electro-Optical Sciences, Inc.*		690		5,375
Poniard Pharmaceuticals, Inc.*		900		5,373
Progenics Pharmaceuticals, Inc.*		1,042		5,366
NxStage Medical, Inc.*		890		5,251
AVANIR Pharmaceuticals, Inc. — Class A*		2,360		5,239
Rochester Medical Corp.*		390		5,226
America Service Group, Inc.*		320		5,142
HeartWare International, Inc.*		180		5,024
TomoTherapy, Inc.*		1,795		4,936
Vascular Solutions, Inc.*		630		4,927
Neurocrine Biosciences, Inc.*		1,523		4,919
Idera Pharmaceuticals, Inc.*		838		4,911
BioMimetic Therapeutics, Inc.*		530		4,897
Obagi Medical Products, Inc.*		670		4,884
Dyax Corp.*		2,282		4,883
Clinical Data, Inc.*		442		4,871
Insmed, Inc.*		4,860		4,860
Hansen Medical, Inc.*		982		4,851
Nabi Biopharmaceuticals*		1,998		4,835
Cytokinetics, Inc.*		1,703		4,819
Discovery Laboratories, Inc.*		4,646		4,785
AVI BioPharma, Inc.*		2,990		4,724
Cambrex Corp.*		1,145		4,717
KV Pharmaceutical Co.*		1,448		4,648
SuperGen, Inc.*		2,300		4,623
MAKO Surgical Corp.*		510		4,600
Exactech, Inc.*		317		4,597


			MARKET
	SHARES		VALUE


ALLION Healthcare, Inc.*		770	$	4,582
Young Innovations, Inc.		210		4,576
American Dental Partners, Inc.*		500		4,535
Providence Service Corp.*		410		4,490
Cutera, Inc.*		520		4,482
Orasure Technologies, Inc.*		1,780		4,397
Merge Healthcare, Inc.*		1,010		4,343
Myriad Pharmaceuticals, Inc.*		933		4,336
Clarient, Inc.*		1,160		4,315
Rockwell Medical Technologies, Inc.*		550		4,153
Infinity Pharmaceuticals, Inc.*		700		4,088
Aspect Medical Systems, Inc.*		680		4,019
Capital Senior Living Corp.*		877		3,990
Orexigen Therapeutics, Inc.*		775		3,976
Idenix Pharmaceuticals, Inc.*		1,078		3,967
Curis, Inc.*		2,470		3,927
Stereotaxis, Inc.*		1,010		3,919
Chelsea Therapeutics International, Inc.*		920		3,873
Lexicon Genetics, Inc.*		3,108		3,854
Alphatec Holdings, Inc.*		1,157		3,841
AMICAS, Inc.*		1,370		3,809
Transcend Services, Inc.*		240		3,804
Cytori Therapeutics, Inc.*		1,053		3,801
Allied Healthcare International, Inc.*		1,750		3,798
Harvard Bioscience, Inc.*		950		3,753
MAP Pharmaceuticals, Inc.*		300		3,666
Health Grades, Inc.*		920		3,597
SciClone Pharmaceuticals*		1,390		3,558
OncoGenex Pharmaceutical, Inc.*		160		3,501
Vical, Inc.*		1,290		3,496
Molecular Insight Pharmaceuticals, Inc.*		660		3,412
ARYx Therapeutics, Inc.*		810		3,345
BioCryst Pharmaceuticals, Inc.*		830		3,345
Biospecifics Technologies Corp.*		140		3,336
Utah Medical Products, Inc.		120		3,205
Adolor Corp.*		1,802		3,172
TranS1, Inc.*		508		3,165
Metropolitan Health Networks, Inc.*		1,570		3,156
Delcath Systems, Inc.*		880		3,150
Celldex Therapeutics, Inc.*		400		3,128
Cardiac Science Corp.*		778		3,128
NovaMed, Inc.*		780		3,081
Biodel, Inc.*		589		3,039
Nighthawk Radiology Holdings, Inc.*		820		3,034
Cynosure, Inc.*		385		2,945
Sunrise Senior Living, Inc.*		1,761		2,906
Cardium Therapeutics, Inc.*		1,510		2,794
Home Diagnostics, Inc.*		450		2,763

See Notes to Financial Statements.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


Hi-Tech Pharmacal Co., Inc.*		310	$	2,759
Cornerstone Therapeutics, Inc.*		250		2,745
LCA-Vision, Inc.*		640		2,701
Cardiovascular Systems, Inc.*		350		2,699
Lannet Company, Inc.*		390		2,672
Repros Therapeutics, Inc.*		370		2,660
Continucare Corp.*		1,140		2,656
Akorn, Inc.*		2,191		2,629
Opko Health, Inc.*		1,480		2,620
Life Sciences Research, Inc.*		362		2,596
Sucampo Pharmaceuticals, Inc. — Class A*		419		2,585
RadNet, Inc.*		1,128		2,538
BioDelivery Sciences International, Inc.*		370		2,468
Javelin Pharmaceuticals, Inc.*		1,949		2,397
OXiGENE, Inc.*		1,060		2,311
NeurogesX, Inc.*		400		2,256
MedQuist, Inc.		360		2,189
Virtual Radiologic Corp.*		240		2,167
Matrixx Initiatives, Inc.*		370		2,068
EnteroMedics, Inc.*		590		1,965
Nanosphere, Inc.*		400		1,964
Acura Pharmaceuticals, Inc.*		320		1,914
MiddleBrook Pharmaceuticals, Inc.*		1,411		1,905
American Caresource Holdings, Inc.*		410		1,533
Synta Pharmaceuticals Corp.*		645		1,490
National Research Corp.		60		1,464
Caraco Pharm Labs, Inc.*		400		1,228

Total Health Care				4,403,019


CONSUMER DISCRETIONARY 9.9%
Bally Technologies, Inc.*		2,125		63,580
Tupperware Brands Corp.		2,428		63,177
Warnaco Group, Inc.*		1,779		57,640
Tractor Supply Co.*		1,386		57,270
Carter’s, Inc.*		2,200		54,142
J Crew Group, Inc.*		1,955		52,824
Corinthian Colleges, Inc.*		3,110		52,652
Jack in the Box, Inc.*		2,220		49,839
Rent-A-Center, Inc.*		2,574		45,894
Fossil, Inc.*		1,822		43,874
Wolverine World Wide, Inc.		1,914		42,223
Cheesecake Factory, Inc.*		2,326		40,240
Gymboree Corp.*		1,130		40,092
Men’s Wearhouse, Inc.		2,023		38,801
Polaris Industries, Inc.		1,190		38,223
Tempur-Pedic International, Inc.		2,915		38,099
Matthews International Corp. — Class A		1,185		36,877
Sotheby’s Holdings, Inc. — Class A		2,600		36,686
Collective Brands, Inc.*		2,488		36,250


			MARKET
	SHARES		VALUE


Iconix Brand Group, Inc.*		2,332	$	35,866
Deckers Outdoor Corp.*		509		35,767
Jones Apparel Group, Inc.		3,320		35,624
Bob Evans Farms, Inc.		1,187		34,114
Capella Education Co.*		568		34,052
Coinstar, Inc.*		1,175		31,372
Buckle, Inc.		986		31,325
Life Time Fitness, Inc.*		1,564		31,296
Pool Corp.		1,881		31,149
Eastman Kodak Co.		10,420		30,843
Vail Resorts, Inc.*		1,136		30,468
Regis Corp.		1,702		29,632
P.F. Chang’s China Bistro, Inc.*		920		29,495
Under Armour, Inc.*		1,293		28,937
American Public Education, Inc.*		715		28,321
Ryland Group, Inc.		1,669		28,039
CEC Entertainment, Inc.*		895		26,385
Orient-Express Hotels Ltd. — Class A		2,990		25,385
Dress Barn, Inc.*		1,738		24,853
99 Cents Only Stores*		1,822		24,743
Children’s Place Retail Stores, Inc.*		930		24,580
Jos. A. Bank Clothiers, Inc.*		711		24,501
Cracker Barrel Old Country Store, Inc.		877		24,468
Group 1 Automotive, Inc.		938		24,407
Sonic Corp.*		2,365		23,721
Sally Beauty Holdings, Inc.*		3,655		23,246
Meritage Homes Corp.*		1,218		22,971
Cooper Tire & Rubber Co.		2,290		22,717
Buffalo Wild Wings, Inc.*		696		22,634
National CineMedia, Inc.		1,642		22,594
Timberland Co. — Class A*		1,690		22,426
True Religion Apparel, Inc.*		982		21,899
Pinnacle Entertainment, Inc.*		2,333		21,674
Jo-Ann Stores, Inc.*		1,032		21,331
Texas Roadhouse Company, Inc.*		1,936		21,122
DineEquity, Inc.		677		21,116
Blue Nile, Inc.*		490		21,065
Papa John’s International, Inc.*		848		21,022
Lululemon Athletica, Inc.*		1,585		20,653
Saks, Inc.*		4,620		20,467
Unifirst Corp.		546		20,295
Hibbett Sports Inc.*		1,115		20,070
K12 Inc.*		921		19,848
Fred’s, Inc.		1,562		19,681
Tenneco Automotive, Inc.*		1,841		19,515
Helen of Troy Ltd.*		1,157		19,426
PEP Boys-Manny Moe & Jack		1,886		19,124
Cabela’s, Inc. — Class A*		1,552		19,090
Ameristar Casinos, Inc.		993		18,897
Cato Corp. — Class A		1,075		18,748

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


OfficeMax Inc.		2,960	$	18,589
Dillard’s, Inc. — Class A		1,990		18,308
AnnTaylor Stores Corp.*		2,280		18,194
American Greetings Corp. — Class A		1,530		17,870
Scholastic Corp.		880		17,415
Steiner Leisure Ltd.*		568		17,341
Nutri/System, Inc.		1,195		17,327
Gaylord Entertainment Co.*		1,340		17,031
Monro Muffler Brake, Inc.		654		16,814
Charming Shoppes, Inc.*		4,481		16,669
Stage Stores, Inc.		1,477		16,395
Arbitron, Inc.		1,030		16,367
HSN, Inc.*		1,540		16,278
CKE Restaurants, Inc.		1,900		16,112
CKX, Inc.*		2,263		16,045
Live Nation, Inc.*		3,255		15,819
Steven Madden, Ltd.*		610		15,524
Stewart Enterprises, Inc. — Class A		3,120		15,038
Dolan Media Co.*		1,165		14,900
Brunswick Corp.		3,427		14,805
Citi Trends, Inc.*		566		14,648
Ascent Media Corp. - Class A*		550		14,619
National Presto Industries, Inc.		190		14,459
Interval Leisure Group, Inc.*		1,540		14,353
Spartan Motors, Inc.		1,256		14,230
Cinemark Holdings, Inc.		1,253		14,184
Genesco, Inc.*		747		14,051
Jakks Pacific, Inc.*		1,093		14,023
Columbia Sportswear Co.		450		13,914
Shuffle Master, Inc.*		2,081		13,755
Ruby Tuesday, Inc.*		2,054		13,680
Harte-Hanks, Inc.		1,474		13,634
PetMed Express, Inc.*		906		13,617
Coldwater Creek, Inc.*		2,218		13,441
BJ’s Restaurants, Inc.*		757		12,771
Asbury Automotive Group, Inc.		1,247		12,769
Superior Industries International, Inc.		903		12,732
Callaway Golf Co.		2,500		12,675
Skechers U.S.A., Inc. — Class A*		1,291		12,613
ArvinMeritor, Inc.		2,870		12,599
HOT Topic, Inc.*		1,710		12,500
Pre-Paid Legal Services, Inc.*		286		12,467
Churchill Downs, Inc.		370		12,454
Finish Line, Inc. — Class A		1,637		12,147
Ulta Salon Cosmetics & Fragrance, Inc.*		1,066		11,854
Smith & Wesson Holding Corp.*		2,068		11,746
Brown Shoe Company, Inc.		1,618		11,714
The Wet Seal, Inc. — Class A*		3,770		11,574


			MARKET
	SHARES		VALUE


Universal Technical Institute, Inc.*		770	$	11,496
Valassis Communications, Inc.*		1,868		11,413
Shutterfly, Inc.*		814		11,355
Red Robin Gourmet Burgers, Inc.*		600		11,250
CROCS, Inc.*		3,265		11,101
Peet’s Coffee & Tea, Inc.*		440		11,088
Domino’s Pizza, Inc.*		1,430		10,711
World Wrestling Entertainment, Inc.		849		10,663
Universal Electronics, Inc.*		528		10,650
Liz Claiborne, Inc.		3,690		10,627
Charlotte Russe Holding, Inc.*		820		10,562
Grand Canyon Education, Inc.*		611		10,253
Ambassadors Group, Inc.		735		10,121
Knology, Inc.*		1,155		9,968
California Pizza Kitchen, Inc.*		750		9,967
Ethan Allen Interiors, Inc.		958		9,925
Core-Mark Holding Company, Inc.*		380		9,903
Fuel Systems Solutions, Inc.*		488		9,853
iRobot Corp.*		747		9,696
La-Z-Boy, Inc.		2,001		9,445
Ticketmaster Entertainment, Inc.*		1,460		9,373
Christopher & Banks Corp.		1,394		9,354
Sonic Automotive, Inc.		920		9,347
Big 5 Sporting Goods Corp.		845		9,346
Quiksilver, Inc.*		4,983		9,219
Sturm Ruger & Company, Inc.		740		9,206
Bridgepoint Education, Inc.*		540		9,180
Volcom, Inc.*		726		9,075
RC2 Corp.*		670		8,864
Lumber Liquidators, Inc.*		560		8,826
Stein Mart, Inc.*		995		8,816
K-Swiss, Inc. — Class A		1,019		8,661
Drew Industries, Inc.*		710		8,641
Pacific Sunwear of California, Inc.*		2,547		8,583
RCN Corp.*		1,420		8,477
Winnebago Industries, Inc.		1,132		8,411
Maidenform Brands, Inc.*		730		8,373
Steak n Shake Co.*		950		8,303
Marcus Corp.		780		8,206
ChinaCast Education Corp.*		1,140		8,117
Lincoln Educational Services Corp.*		385		8,058
Denny’s Corp.*		3,730		8,019
Isle of Capri Casinos, Inc.*		601		8,005
America’s Car Mart, Inc.*		390		7,995
Standard-Pacific Corp.*		3,916		7,949
Fuqi International, Inc.*		380		7,870
Mediacom Communications Corp.*		1,526		7,798
Blyth, Inc.		230		7,542
Exide Technologies*		1,950		7,273

See Notes to Financial Statements.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


Overstock.com, Inc.*		607	$	7,260
Jackson Hewitt Tax Service, Inc.		1,125		7,042
Pier 1 Imports, Inc.*		3,520		7,040
Speedway Motorsports, Inc.		510		7,018
Borders Group, Inc.*		1,900		6,992
M/I Homes, Inc.*		714		6,990
Krispy Kreme Doughnuts, Inc.*		2,268		6,804
Movado Group, Inc.		629		6,630
AFC Enterprises, Inc.*		977		6,595
FGX International Holdings Ltd.*		574		6,532
hhgregg, Inc.*		430		6,519
Cavco Industries, Inc.*		254		6,434
Tween Brands, Inc.*		958		6,399
Bebe Stores, Inc.		930		6,398
Zumiez, Inc.*		793		6,352
Haverty Furniture Companies., Inc.		690		6,313
Belo Corp. — Class A		3,470		6,211
Weyco Group, Inc.		269		6,211
O’Charleys, Inc.		670		6,197
drugstore.com, Inc.*		3,375		6,142
Modine Manufacturing Co.		1,268		6,086
Rentrak Corp.*		370		6,079
Dorman Products, Inc.*		437		6,044
Lithia Motors, Inc. — Class A		650		6,006
Mac-Gray Corp.*		450		5,958
Cherokee, Inc.		300		5,946
CSS Industries, Inc.		290		5,910
Skyline Corp.		270		5,873
G-III Apparel Group Ltd.*		510		5,860
Raser Technologies, Inc.*		2,089		5,849
American Axle & Manufacturing Holdings, Inc.		1,680		5,779
Wonder Auto Technology, Inc.*		570		5,774
Kirkland’s, Inc.*		480		5,765
Oxford Industries, Inc.		490		5,709
Midas, Inc.*		540		5,659
Multimedia Games, Inc.*		1,040		5,158
Talbots, Inc.		945		5,103
Amerigon, Inc.*		830		5,063
Standard Motor Products, Inc.		610		5,045
Dana Holding Corp.*		3,889		4,978
Furniture Brands International, Inc.		1,615		4,893
Conn’s, Inc.*		390		4,875
Hooker Furniture Corp.		418		4,799
Hovnanian Enterprises, Inc. — Class A*		2,024		4,777
Systemax, Inc.*		400		4,764
DSW, Inc.*		470		4,630
American Apparel, Inc.*		1,270		4,623
Global Sources Ltd.*		630		4,542
McCormick & Schmick’s Seafood Restaurants, Inc.*		580		4,414


			MARKET
	SHARES		VALUE


Universal Travel Group*		390	$	4,364
Stanley Furniture Co.		400		4,316
Shoe Carnival, Inc.*		350		4,176
Audiovox Corp. — Class A*		670		3,926
Tuesday Morning Corp.*		1,160		3,909
Youbet.com, Inc.*		1,160		3,828
Carmike Cinemas, Inc.		430		3,603
Stamps.com, Inc.*		420		3,562
Gaiam, Inc.*		630		3,446
Sealy Corp.*		1,755		3,440
Outdoor Channel Holdings, Inc.*		570		3,363
CPI Corp.		190		3,228
Benihana, Inc.*		510		3,223
Sinclair Broadcast Group, Inc. — Class A		1,660		3,220
Morgans Hotel Group Co.*		840		3,217
Learning Tree International, Inc.*		310		3,193
Luby’s, Inc.*		780		3,167
Zale Corp.*		920		3,165
Martha Stewart Omnimedia, Inc.*		1,026		3,140
Sport Supply Group, Inc.		360		3,092
West Marine, Inc.*		560		3,086
Princeton Review, Inc.*		568		3,073
Reading International, Inc. — Class A*		670		3,049
Leapfrog Enterprises, Inc.*		1,318		3,018
Destination Maternity Corp.*		180		3,002
New York & Company, Inc.*		968		2,991
Fisher Communications, Inc.		230		2,942
Carrols Restaurant Group, Inc.*		440		2,930
Hawk Corp.*		210		2,909
Build-A-Bear Workshop, Inc.*		647		2,892
Ruth’s Chris Steak House*		775		2,844
Stoneridge, Inc.*		591		2,843
Rex Stores Corp.*		280		2,817
Town Sports International Holdings, Inc.*		750		2,813
Beazer Homes USA, Inc.*		1,528		2,796
Steinway Musical Instruments*		257		2,752
Orbitz Worldwide, Inc.*		1,422		2,702
LodgeNet Interactive Corp.*		790		2,686
Frisch’s Restaurants, Inc.		90		2,659
Perry Ellis International, Inc.*		360		2,621
Dover Downs Gaming & Entertainment, Inc.		555		2,581
Monarch Casino & Resort, Inc.*		350		2,555
Red Lion Hotels Corp.*		520		2,496
Unifi, Inc.*		1,728		2,454
Landry’s Restaurants, Inc.*		280		2,408
EW Scripps Co. — Class A		1,110		2,320
Great Wolf Resorts, Inc.*		1,077		2,197
Lakes Entertainment, Inc.*		730		2,124
Retail Ventures, Inc.*		970		2,115

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


Kenneth Cole Productions, Inc. — Class A		300	$	2,109
Playboy Enterprises, Inc. — Class B*		828		2,078
Syms Corp.*		265		1,990
1-800-FLOWERS.com, Inc.*		1,024		1,966
Books-A-Million, Inc.		270		1,920
Nobel Learning Communities, Inc.*		160		1,835
Lin TV Corp. — Class A*		1,038		1,744
Caribou Coffee Company, Inc.*		270		1,733
Journal Communications, Inc. — Class A		1,600		1,680
Einstein Noah Restaurant Group, Inc.*		190		1,644
Value Line, Inc.		50		1,644
Lear Corp.*		3,014		1,507
Brookfield Homes Corp.*		370		1,480
US Auto Parts Network, Inc.*		380		1,433
Marine Products Corp.		380		1,425
Bluegreen Corp.*		563		1,419
Primedia, Inc.		650		1,307
Gander Mountain Co.*		200		1,200
NIVS IntelliMedia Technology Group, Inc.*		320		947
China Automotive Systems, Inc.*		170		935
Crown Media Holdings, Inc. — Class A*		420		701

Total Consumer Discretionary				3,768,345


ENERGY 3.4%
Nordic American Tanker Shipping		1,645		52,344
World Fuel Services Corp.		1,151		47,456
Arena Resources, Inc.*		1,483		47,234
Dril-Quip, Inc.*		1,130		43,053
Bill Barrett Corp.*		1,492		40,970
Bristow Group, Inc.*		1,130		33,482
Berry Petroleum Co. — Class A		1,658		30,822
Penn Virginia Corp.		1,761		28,828
Key Energy Services, Inc.*		4,800		27,648
Gran Tierra Energy, Inc.*		7,920		27,324
CARBO Ceramics, Inc.		750		25,650
Natco Group, Inc.*		773		25,447
Lufkin Industries, Inc.		585		24,599
GulfMark Offshore, Inc.*		882		24,343
Atlas America, Inc.		1,316		23,517
Goodrich Petroleum Corp.*		952		23,410
USEC, Inc.*		4,375		23,275
Tetra Technologies, Inc.*		2,920		23,243
Global Industries Ltd.*		3,880		21,961
Swift Energy Co.*		1,215		20,230
Contango Oil & Gas Co.*		470		19,970
Parker Drilling Co.*		4,507		19,560
Willbros Group, Inc.*		1,534		19,190
Hornbeck Offshore Services, Inc.*		893		19,101


			MARKET
	SHARES		VALUE


General Maritime Corp.		1,898	$	18,771
Ship Finance International Ltd.		1,686		18,597
Carrizo Oil & Gas, Inc.*		1,076		18,453
Rosetta Resources, Inc.*		2,034		17,798
James River Coal Co.*		1,075		16,265
Patriot Coal Corp.*		2,480		15,822
Cal Dive International, Inc.*		1,742		15,033
BPZ Resources, Inc.*		3,000		14,670
Complete Production Services, Inc.*		2,271		14,444
McMoRan Exploration Co.*		2,421		14,429
Hercules Offshore*		3,420		13,577
Delta Petroleum Corp.*		6,908		13,332
W&T Offshore, Inc.		1,320		12,857
Matrix Service Co.*		1,023		11,744
Brigham Exploration Co.*		3,220		11,238
Golar LNG Ltd.		1,260		10,773
GMX Resources, Inc.*		954		10,151
International Coal Group, Inc.*		3,530		10,096
Clean Energy Fuels Corp.*		1,167		10,048
DHT Maritime, Inc.		1,926		10,034
Stone Energy Corp.*		1,348		10,002
Newpark Resources, Inc.*		3,453		9,841
Vaalco Energy, Inc.*		2,265		9,581
Petroleum Development Corp.*		582		9,132
RPC, Inc.		1,090		9,102
Knightsbridge Tankers Ltd.		658		8,975
ION Geophysical Corp.*		3,477		8,936
Dawson Geophysical Co.*		296		8,836
PHI, Inc.*		510		8,741
Western Refining, Inc.*		1,217		8,592
Pioneer Drilling Co.*		1,670		7,999
ATP Oil & Gas Corp.*		1,113		7,747
Gulf Island Fabrication, Inc.		476		7,535
Oilsands Quest, Inc.*		7,543		7,241
Northern Oil And Gas, Inc.*		1,098		6,994
Gulfport Energy Corp.*		1,016		6,960
APCO Argentina, Inc.		350		6,731
CVR Energy, Inc.*		895		6,560
Crosstex Energy, Inc.		1,573		6,544
Cheniere Energy, Inc.*		2,195		6,453
FX Energy, Inc.*		1,653		6,265
Natural Gas Services Group, Inc.*		468		6,224
Petroquest Energy, Inc.*		1,668		6,155
Basic Energy Services, Inc.*		880		6,010
Endeavour International Corp.*		4,418		6,008
T-3 Energy Services, Inc. — Class A*		495		5,895
Rex Energy Corp.*		995		5,672
Harvest Natural Resources, Inc.*		1,278		5,636
Warren Resources, Inc.*		2,288		5,606
Panhandle Oil and Gas, Inc. — Class A		280		5,496
Syntroleum Corp.*		2,450		5,415

See Notes to Financial Statements.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


Venoco, Inc.*		700	$	5,369
Allis-Chalmers Energy, Inc.*		2,295		5,301
Toreador Resources Corp.		789		5,286
Uranium Energy Corp.*		1,800		5,220
Evergreen Energy, Inc.*		5,073		4,972
Zion Oil & Gas, Inc.*		460		4,885
Clayton Williams Energy, Inc.*		230		4,340
Isramco, Inc.*		40		4,261
Boots & Coots, Inc.*		3,040		4,226
Delek US Holdings, Inc.		490		4,155
OYO Geospace Corp.*		158		4,054
Bronco Drilling Company, Inc.*		920		3,938
Bolt Technology Corp.*		340		3,822
Teekay Tankers Ltd.		410		3,809
ENGlobal Corp.*		720		3,542
Alon USA Energy, Inc.		320		3,312
Uranerz Energy Corp.*		1,750		3,290
Approach Resources, Inc.*		466		3,215
Superior Well Services, Inc.*		540		3,213
Geokinetics, Inc.*		231		3,153
Parallel Petroleum Corp.*		1,616		3,135
Westmoreland Coal Co.*		385		3,119
CREDO Petroleum Corp.*		270		2,884
Georesources, Inc.*		282		2,876
Union Drilling, Inc.*		390		2,582
TGC Industries, Inc.*		510		2,484
Sulphco, Inc.*		2,638		2,427
Green Plains Renewable Energy, Inc.*		360		2,358
Vantage Drilling Co.*		1,160		2,030
Cubic Energy, Inc.*		1,050		1,134
PrimeEnergy Corp.*		20		716

Total Energy				1,306,781


MATERIALS 2.9%
Rock-Tenn Co. — Class A		1,486		56,706
Silgan Holdings, Inc.		1,040		50,991
Sensient Technologies Corp.		1,891		42,680
Olin Corp.		3,033		36,062
H.B. Fuller Co.		1,894		35,569
W.R. Grace & Co.*		2,805		34,698
OM Group, Inc.*		1,195		34,679
Coeur d’Alene Mines Corp.*		2,668		32,816
Worthington Industries, Inc.		2,340		29,929
Calgon Carbon Corp.*		2,135		29,655
Texas Industries, Inc.		921		28,883
Rockwood Holdings, Inc.*		1,911		27,977
Domtar Corp.*		1,610		26,694
Minerals Technologies, Inc.		731		26,331
NewMarket Corp.		390		26,259
Arch Chemicals, Inc.		969		23,828
Hecla Mining Co.*		8,473		22,708
Kaiser Aluminum Corp.		600		21,546
Solutia, Inc.*		3,665		21,110
Koppers Holdings, Inc.		795		20,964


			MARKET
	SHARES		VALUE


Amcol International Corp.		920	$	19,854
Balchem Corp.		711		17,434
RTI International Metals, Inc.*		905		15,991
Schweitzer-Mauduit International, Inc.		587		15,972
Glatfelter		1,773		15,780
Westlake Chemical Corp.		762		15,537
Deltic Timber Corp.		412		14,614
Allied Nevada Gold Corp.*		1,710		13,783
Louisiana-Pacific Corp.*		4,028		13,776
A. Schulman, Inc.		910		13,750
Brush Engineered Materials, Inc.*		781		13,082
Stepan Co.		290		12,806
Wausau Paper Corp.		1,690		11,357
Innophos Holdings, Inc.		667		11,266
Clearwater Paper Corp.*		445		11,254
Haynes International, Inc.*		466		11,044
Century Aluminum Co.*		1,770		11,027
Spartech Corp.		1,195		10,982
LSB Industries, Inc.*		670		10,834
Zoltek Companies, Inc.*		1,076		10,459
Horsehead Holding Corp.*		1,374		10,236
Zep, Inc.		841		10,134
Myers Industries, Inc.		1,216		10,117
Innospec, Inc.		921		9,901
PolyOne Corp.*		3,590		9,729
Stillwater Mining Co.*		1,588		9,068
American Vanguard Corp.		764		8,633
Olympic Steel, Inc.		347		8,491
US Gold Corp.*		3,100		8,184
Graphic Packaging Holding Co.*		4,340		7,942
A.M. Castle & Co.		654		7,900
Hawkins, Inc.		340		7,677
GenTek, Inc.*		340		7,592
Landec Corp.*		1,018		6,912
Buckeye Technologies, Inc.*		1,497		6,722
Quaker Chemical Corp.		430		5,715
AEP Industries, Inc.*		214		5,647
Omnova Solutions, Inc.*		1,700		5,542
Headwaters, Inc.*		1,646		5,531
General Moly, Inc.*		2,483		5,512
Bway Holding Co.*		287		5,031
Neenah Paper, Inc.		570		5,022
Ferro Corp.		1,750		4,813
Universal Stainless & Alloy*		256		4,165
ShengdaTech, Inc.*		1,090		4,109
KapStone Paper and Packaging Corp.*		802		3,761
Paramount Gold and Silver Corp.*		2,470		3,754
China Precision Steel, Inc.*		1,205		2,988
United States Lime & Minerals, Inc.*		70		2,969
ICO, Inc.*		1,068		2,905
China Green Agriculture, Inc.*		320		2,589

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


U.S. Concrete, Inc.*		1,290	$	2,554
General Steel Holdings, Inc.*		600		2,382
Boise, Inc.*		1,140		1,961
NL Industries, Inc.		256		1,889
Sutor Technology Group Ltd.*		290		948

Total Materials				1,109,712


UTILITIES 2.7%
Piedmont Natural Gas Co.		2,865		69,075
WGL Holdings, Inc.		1,947		62,343
Nicor, Inc.		1,757		60,827
New Jersey Resources Corp.		1,638		60,671
Portland General Electric Co.		2,917		56,823
Cleco Corp.		2,348		52,642
IDACORP, Inc.		1,826		47,732
Northwest Natural Gas Co.		1,026		45,472
South Jersey Industries, Inc.		1,161		40,507
Southwest Gas Corp.		1,739		38,623
Avista Corp.		2,117		37,704
Unisource Energy Corp.		1,379		36,599
PNM Resources, Inc.		3,366		36,050
Black Hills Corp.		1,515		34,830
NorthWestern Corp.		1,398		31,818
Mge Energy, Inc.		903		30,296
Allete, Inc.		1,030		29,612
Laclede Group, Inc.		865		28,657
CH Energy Group, Inc.		607		28,347
California Water Service Group		759		27,962
UIL Holding Corp.		1,140		25,593
American States Water Co.		720		24,941
El Paso Electric Co.*		1,754		24,486
Empire District Electric Co.		1,328		21,939
SJW Corp.		500		11,350
Consolidated Water Company, Inc.		560		8,876
Chesapeake Utilities Corp.		266		8,653
Unitil Corp.		410		8,454
Central Vermont Public Service Corp.		448		8,109
Middlesex Water Co.		524		7,572
Connecticut Water Service, Inc.		330		7,158
York Water Co.		440		6,745
Southwest Water Co.		959		5,294
Cadiz, Inc.*		490		4,719
Pennichuck Corp.		170		3,876
Artesian Resources Corp. — Class A		240		3,823
U.S. Geothermal, Inc.*		2,414		3,428
Florida Public Utilities Co.		240		3,367

Total Utilities				1,044,973


CONSUMER STAPLES 2.7%
Chattem, Inc.*		765		52,096
Casey’s General Stores, Inc.		1,985		50,995
United Natural Foods, Inc.*		1,671		43,864
Ruddick Corp.		1,668		39,081


			MARKET
	SHARES		VALUE


TreeHouse Foods, Inc.*		1,235	$	35,531
Sanderson Farms, Inc.		786		35,370
Lancaster Colony Corp.		750		33,052
Universal Corp.		975		32,282
Nu Skin Enterprises, Inc.		1,918		29,345
Winn-Dixie Stores, Inc.*		2,125		26,647
Fresh Del Monte Produce, Inc.*		1,588		25,821
Lance, Inc.		1,076		24,888
Hain Celestial Group, Inc.*		1,580		24,664
Central Garden and Pet Co. — Class A*		2,420		23,837
American Italian Pasta Co. — Class A*		810		23,603
Bare Escentuals, Inc.*		2,570		22,796
Tootsie Roll Industries, Inc.		945		21,442
Andersons, Inc.		711		21,287
Darling International, Inc.*		3,187		21,034
Vector Group Ltd.		1,443		20,620
J&J Snack Foods Corp.		550		19,745
WD-40 Co.		641		18,589
Diamond Foods, Inc.		641		17,884
Chiquita Brands International, Inc.*		1,735		17,801
Smart Balance, Inc.*		2,435		16,582
Weis Markets, Inc.		435		14,581
Pantry, Inc.*		868		14,409
Nash Finch Co.		496		13,422
Alliance One International, Inc.*		3,462		13,156
Cal-Maine Foods, Inc.		527		13,154
American Oriental Bioengineering, Inc.*		2,403		12,712
American Dairy, Inc.*		315		12,493
Heckmann Corp.*		3,110		11,662
Spartan Stores, Inc.		856		10,623
Pricesmart, Inc.		617		10,335
Boston Beer Company, Inc. — Class A*		340		10,061
Coca-Cola Bottling Company Consolidated		163		8,986
Seneca Foods Corp. — Class A*		250		8,355
Elizabeth Arden, Inc.*		942		8,224
Prestige Brands Holdings, Inc. — Class A*		1,318		8,106
Calavo Growers, Inc.		396		7,853
Zhongpin, Inc.*		757		7,843
Synutra International, Inc.*		696		7,656
Ingles Markets, Inc. — Class A		489		7,452
Village Super Market		240		7,140
USANA Health Sciences, Inc.*		240		7,135
AgFeed Industries, Inc.*		1,075		6,375
Arden Group, Inc.		49		6,130
B&G Foods, Inc.		710		5,971
Farmer Brothers Co.		256		5,857
Medifast, Inc.*		500		5,730
Imperial Sugar Company, Inc.		466		5,643

See Notes to Financial Statements.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

June 30, 2009

RUSSELL 2000^® 2x STRATEGY FUND


			MARKET
	SHARES		VALUE


Great Atlantic & Pacific Tea Co.*		1,310	$	5,567
China Sky One Medical, Inc.*		406		5,473
National Beverage Corp.*		424		4,516
Nutraceutical International Corp.*		420		4,364
Alico, Inc.		140		4,203
Revlon, Inc.*		760		4,134
Griffin Land & Nurseries, Inc.		130		4,066
Inter Parfums, Inc.		554		4,066
Orchids Paper Products Co.*		190		3,905
Susser Holdings Corp.*		297		3,323
Overhill Farms, Inc.*		610		3,215
HQ Sustainable Maritime Industries, Inc.*		345		3,157
China-Biotics, Inc.*		280		3,018
Female Health Co.*		620		2,976
Oil-Dri Corp. of America		200		2,970
Omega Protein Corp.*		727		2,952
Diedrich Coffee, Inc.*		120		2,854
Star Scientific, Inc.*		2,975		2,648
Lifeway Foods, Inc.*		190		2,451
Zapata Corp.*		350		2,384
Schiff Nutrition International, Inc.*		441		2,245
Mannatech, Inc.		615		2,030

Total Consumer Staples				1,026,437


TELECOMMUNICATION SERVICES 1.0%
Syniverse Holdings, Inc.*		2,664		42,704
Neutral Tandem, Inc.*		1,285		37,933
Centennial
Communications Corp.*		3,300		27,588
Premiere Global Services, Inc.*		2,365		25,636
Cincinnati Bell, Inc.*		8,350		23,714
NTELOS Holdings Corp.		1,166		21,478
AboveNet, Inc.*		240		19,435
Shenandoah
Telecommunications Co.		925		18,768
Iowa Telecommunications
Services, Inc.		1,272		15,913
Cogent Communications
Group, Inc.*		1,718		14,002
Atlantic Tele-Network, Inc.		350		13,751
Cbeyond, Inc.*		900		12,915
PAETEC Holding Corp.*		4,772		12,884
Alaska Communications
Systems Group, Inc.		1,725		12,627


			MARKET
	SHARES		VALUE


General Communication, Inc. — Class A*		1,630	$	11,296
USA Mobility, Inc.		883		11,267
Consolidated Communications Holdings, Inc.		908		10,633
Global Crossing*		1,133		10,401
iPCS, Inc. — Class A*		656		9,814
Virgin Mobile USA, Inc. — Class A*		1,477		5,937
SureWest Communications*		550		5,758
D&E Communications, Inc.		560		5,729
HickoryTech Corp.		510		3,917
inContact, Inc.*		1,050		2,877
Fibernet Telecom Group, Inc.*		230		2,857
Fairpoint Communications, Inc.		3,480		2,088
Ibasis, Inc.*		1,070		1,402

Total Telecommunication Services				383,324

Total Common Stocks
(Cost $25,717,040)				29,107,738


RIGHTS 0.0%
Sealy Corp.* Expires 07/02/09		1,175		2,491

Total Rights
(Cost $0)				2,491

		FACE
		AMOUNT
REPURCHASE AGREEMENTS† 63.3%
UBS Financial Services, Inc. issued 06/30/09 at 0.01% due 07/01/09	$	16,522,415		16,522,415
Credit Suisse Group issued 06/30/09 at 0.02% due 07/01/09††		7,724,523		7,724,523

Total Repurchase Agreements
(Cost $24,246,938)				24,246,938

Total Investments 139.3%
(Cost $49,963,978)			$	53,357,167

Liabilities in Excess of Other Assets – (39.3)%			$	(15,054,933	)

Net Assets – 100.0%			$	38,302,234

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited)

June 30, 2009

INVERSE RUSSELL 2000^® 2x STRATEGY FUND


	FACE		MARKET
	AMOUNT		VALUE


REPURCHASE AGREEMENTS† 89.9%
UBS Financial Services, Inc. issued 06/30/09 at 0.01% due 07/01/09	$	39,415,008	$	39,415,008
Credit Suisse Group issued 06/30/09 at 0.02% due 07/01/09††		8,493,542		8,493,542

Total Repurchase Agreements
(Cost $47,908,550)				47,908,550

Total Investments 89.9%
(Cost $47,908,550)			$	47,908,550

Other Assets in Excess of Liabilities – 10.1%			$	5,370,547

Net Assets – 100.0%			$	53,279,097


			Unrealized
		Contracts		Gain

FUTURES CONTRACTS SOLD SHORT
September 2009 Russell 2000 Index Mini Futures Contracts
(Aggregate Market Value of Contracts $46,708,520)		922	$	9,156

		UNITS
EQUITY INDEX SWAP AGREEMENTS SOLD SHORT
Goldman Sachs International July 2009 Russell 2000 Index Swap, Terminating 07/08/09†††
(Notional Market Value $30,187,980)		59,392	$	160,557
Credit Suisse Capital, LLC September 2009 Russell 2000 Index
Swap, Terminating 09/25/09†††
(Notional Market Value $29,800,242)		58,630		45,787

(Total Notional Market Value $59,988,222)			$	206,344



†		Repurchase Agreements — See Note 6.

††		All or a portion of this security is pledged as equity index swap collateral at June 30, 2009.

†††		Total Return based on Russell 2000 Index +/- financing at a variable rate.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)


				Inverse						Inverse
	S&P 500			S&P 500			NASDAQ-100^{^®}			NASDAQ-100^{^®}
	2x Strategy			2x Strategy			2x Strategy			2x Strategy
	Fund			Fund			Fund			Fund


Assets
Investment Securities	$	94,786,548		$	80,077,942		$	132,247,664		$	15,047,083
Repurchase Agreements		35,396,982			82,517,533			46,405,302			117,583,770

Total Investments		130,183,530			162,595,475			178,652,966			132,630,853
Segregated Cash with Broker		1,867,500			20,314,500			7,425,600			5,743,800
Unrealized Appreciation on Swap Agreements		1,891,274			3,945,365			438,660			1,860,353
Receivable for Swap Settlement		—			4,887,647			—			141,729
Variation Margin on Futures Contracts		—			1,168,522			—			239,661
Receivable for Securities Sold		78,427			—			—			—
Receivable for Fund Shares Sold		12,459,298			28,469,106			17,050,117			10,292,676
Investment Income Receivable		138,496			32			24,362			44

Total Assets		146,618,525			221,380,647			203,591,705			150,909,116


Liabilities
Unrealized Depreciation on Swap Agreements		—			—			—			—
Payable for Swap Settlement		10,549,748			—			5,712,810			—
Variation Margin on Futures Contracts		100,389			—			165,774			—
Payable for Securities Purchased		122,644			—			188,063			—
Payable for Fund Shares Redeemed		4,144,321			25,887,697			3,183,364			59,120,741
Investment Advisory Fees Payable		133,009			166,383			143,449			77,207
Transfer Agent and Administrative Fees Payable		36,947			46,218			39,847			21,446
Distribution and Service Fees Payable		51,575			57,608			50,695			25,748
Portfolio Accounting Fees Payable		22,168			27,731			23,908			12,868
Custody Fees Payable		5,167			6,160			5,905			2,831
Other Accrued Fees		53,441			74,155			75,090			46,585

Total Liabilities		15,219,409			26,265,952			9,588,905			59,307,426

Net Assets	$	131,399,116		$	195,114,695		$	194,002,800		$	91,601,690


Net Assets Consist Of
Paid-In Capital	$	284,868,525		$	499,943,984		$	404,730,860		$	416,994,108
Undistributed Net Investment Income (Loss)		99,213			(1,721,577	)		(822,136	)		(994,392	)
Accumulated Net Realized Loss on Investments		(184,617,008	)		(308,560,961	)		(264,460,508	)		(326,311,974	)
Net Unrealized Appreciation on Investments		31,048,386			5,453,249			54,554,584			1,913,948

Net Assets	$	131,399,116		$	195,114,695		$	194,002,800		$	91,601,690

A-Class	$	15,008,323		$	11,307,459		$	9,427,874		$	1,508,572
C-Class		19,232,400			19,125,080			16,671,265			6,489,076
H-Class		97,158,393			164,682,156			167,903,661			83,604,042
Shares Outstanding
A-Class		999,191			299,656			164,887			122,148
C-Class		1,374,423			542,266			320,862			560,591
H-Class		6,471,916			4,361,655			2,936,432			6,775,773
Net Asset Values
A-Class		$15.02			$37.73			$57.18			$12.35
A-Class Maximum Offering Price*		15.77			39.61			60.03			12.97
C-Class		13.99			35.27			51.96			11.58
H-Class		15.01			37.76			57.18			12.34

Cost of Investments	$	100,939,918		$	162,549,578		$	124,001,556		$	132,596,353



*		Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

June 30, 2009


			Inverse						Inverse
Dow			Dow			Russell 2000^{^®}			Russell 2000^{^®}
2x Strategy			2x Strategy			2x Strategy			2x Strategy
Fund			Fund			Fund			Fund



$	19,237,287		$	—		$	29,110,229		$	—
	9,164,603			59,587,670			24,246,938			47,908,550

	28,401,890			59,587,670			53,357,167			47,908,550
	832,000			4,820,400			1,560,000			5,860,000
	—			2,246,684			244,934			206,344
	—			—			—			—
	58,371			253,595			—			119,096
	3,003,337			—			9,645			—
	1,033,831			2,995,156			10,372,376			11,016,614
	31,266			22			20,338			15

	33,360,695			69,903,527			65,564,460			65,110,619



	302,496			—			5,587			—
	1,367,996			15,767			1,542,422			81,840
	—			—			105,298			—
	—			—			10,028,423			—
	5,518,958			2,298,385			15,517,191			11,666,724
	25,556			41,515			28,584			37,374
	7,099			11,532			7,940			10,382
	9,858			13,336			10,764			16,440
	4,259			6,919			4,764			6,229
	937			1,658			1,087			1,388
	15,760			23,156			10,166			11,145

	7,252,919			2,412,268			27,262,226			11,831,522

$	26,107,776		$	67,491,259		$	38,302,234		$	53,279,097



$	76,508,786		$	70,714,593		$	73,314,677		$	84,142,787
	85,454			(402,727	)		(125,027	)		(388,032	)
	(53,358,829	)		(5,105,742	)		(38,471,380	)		(30,691,158	)
	2,872,365			2,285,135			3,583,964			215,500

$	26,107,776		$	67,491,259		$	38,302,234		$	53,279,097

$	5,569,273		$	2,138,592		$	1,522,925		$	1,023,227
	4,339,243			2,892,054			3,010,126			9,813,502
	16,199,260			62,460,613			33,769,183			42,442,368

	485,406			50,425			19,553			41,356
	393,636			71,139			39,652			411,453
	1,412,013			1,471,958			433,496			1,721,824

	$11.47			$42.41			$77.89			$24.74
	12.04			44.52			81.77			25.97
	11.02			40.65			75.91			23.85
	11.47			42.43			77.90			24.65

$	25,230,183		$	59,587,670		$	49,963,978		$	47,908,550

See Notes to Financial Statements.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

STATEMENTS OF OPERATIONS (Unaudited)


				Inverse						Inverse
	S&P 500			S&P 500			NASDAQ-100^{^®}			NASDAQ-100^{^®}
	2x Strategy			2x Strategy			2x Strategy			2x Strategy
	Fund			Fund			Fund			Fund


Investment Income
Interest	$	40,284		$	265,827		$	292,678		$	95,947
Dividends, Net of Foreign Tax Withheld		1,426,014			—			436,425			—
Other Income		—			5,695			—			1,833

Total Income		1,466,298			271,522			729,103			97,780


Expenses
Investment Advisory Fees		707,202			1,033,879			737,020			525,110
Transfer Agent and Administrative Fees		196,445			287,188			204,727			145,864
Distribution & Service Fees:
A-Class		17,290			16,180			8,835			4,164
C-Class		130,417			106,765			77,035			41,032
H-Class		146,550			244,317			176,634			131,442
Portfolio Accounting Fees		117,868			172,314			122,837			87,519
Registration Fees		59,368			96,746			93,935			73,333
Trustees’ Fees*		9,854			14,379			10,839			8,025
Custody Fees		26,330			34,074			25,799			17,124
Miscellaneous		99,418			132,902			93,578			58,559

Total Expenses		1,510,742			2,138,744			1,551,239			1,092,172

Net Investment Income (Loss)		(44,444	)		(1,867,222	)		(822,136	)		(994,392	)


Realized and Unrealized Gain (Loss) on Investments
Net Realized Gain (Loss) on:
Investment Securities		(21,428,709	)		73,882,368			(201,290	)		(1,643,821	)
Equity Index Swaps		12,372,688			(56,641,437	)		14,616,250			(47,159,933	)
Futures Contracts		(2,254,291	)		(15,063,014	)		17,330,544			(5,918,741	)

Total Net Realized Gain (Loss)		(11,310,312	)		2,177,917			31,745,504			(54,722,495	)

Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities		17,454,436			(39,524	)		23,572,040			34,500
Equity Index Swaps		965,547			3,166,005			(341,028	)		1,056,984
Futures Contracts		(4,623,024	)		3,952,795			(1,671,943	)		259,514

Net Change in Unrealized Appreciation (Depreciation)		13,796,959			7,079,276			21,559,069			1,350,998

Net Gain (Loss) on Investments		2,486,647			9,257,193			53,304,573			(53,371,497	)

Net Increase (Decrease) in Net Assets from Operations	$	2,442,203		$	7,389,971		$	52,482,437		$	(54,365,889	)

Foreign Tax Withheld	$	—		$	—		$	—		$	—



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

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

STATEMENTS OF CHANGES IN NET ASSETS


	S&P 500						Inverse S&P 500
	2x Strategy Fund						2x Strategy Fund
	Period			Year			Period			Year
	Ended			Ended			Ended			Ended
	June 30,			December 31,			June 30,			December 31,
	2009		†	2008			2009		†	2008


From Operations
Net Investment Income (Loss)	$	(44,444	)	$	893,658		$	(1,867,222	)	$	593,261
Net Realized Gain (Loss) on Investments		(11,310,312	)		(133,747,918	)		2,177,917			238,662,802
Net Change in Unrealized Appreciation (Depreciation) on Investments		13,796,959			(71,638,955	)		7,079,276			(6,434,228	)

Net Increase (Decrease) in Net Assets from Operations		2,442,203			(204,493,215	)		7,389,971			232,821,835

Distributions to Shareholders from:
Net Investment Income
A-Class		—			(66,316	)		—			(95,329	)
C-Class		—			(131,300	)		—			(133,418	)
H-Class		—			(552,385	)		—			(931,204	)
Return of Capital
A-Class		—			—			—			—
C-Class		—			—			—			—
H-Class		—			—			—			—

Total Distributions to Shareholders		—			(750,001	)		—			(1,159,951	)


Share Transactions
Proceeds from Shares Purchased
A-Class		21,279,025			38,154,649			23,753,793			64,784,194
C-Class		172,825,914			208,594,351			211,141,178			232,352,636
H-Class		3,013,442,068			4,451,245,338			5,188,250,644			6,385,076,672
Value of Shares Purchased through Dividend Reinvestment
A-Class		—			53,573			—			88,641
C-Class		—			121,762			—			122,195
H-Class		—			508,354			—			838,390
Cost of Shares Redeemed
A-Class		(21,060,871	)		(28,580,043	)		(27,071,753	)		(75,658,285	)
C-Class		(184,734,078	)		(192,809,831	)		(203,896,551	)		(263,880,728	)
H-Class		(3,031,758,922	)		(4,460,314,618	)		(5,214,892,840	)		(6,582,448,672	)

Net Increase (Decrease) in Net Assets From Share Transactions		(30,006,864	)		16,973,535			(22,715,529	)		(238,724,957	)

Net Increase (Decrease) in Net Assets		(27,564,661	)		(188,269,681	)		(15,325,558	)		(7,063,073	)
Net Assets—Beginning of Period		158,963,777			347,233,458			210,440,253			217,503,326

Net Assets—End of Period	$	131,399,116		$	158,963,777		$	195,114,695		$	210,440,253

Undistributed Net Investment Income (Loss)—End of Period	$	99,213		$	143,657		$	(1,721,577	)	$	134,135



†		Unaudited

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.


NASDAQ-100^{^®}						Inverse NASDAQ-100^{^®}						Dow						Inverse Dow
2x Strategy Fund						2x Strategy Fund						2x Strategy Fund						2x Strategy Fund
Period			Year			Period			Year			Period			Year			Period			Year
Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended
June 30,			December 31,			June 30,			December 31,			June 30,			December 31,			June 30,			December 31,
2009		†	2008			2009		†	2008			2009		†	2008			2009		†	2008



$	(822,136	)	$	(2,648,211	)	$	(994,392	)	$	569,989		$	85,735		$	325,110		$	(402,727	)	$	(119,834	)
	31,745,504			(196,848,962	)		(54,722,495	)		172,714,116			(10,277,706	)		(35,057,286	)		(5,416,872	)		35,941,712

	21,559,069			(111,463,923	)		1,350,998			(3,270,932	)		3,207,100			(7,563,539	)		2,501,658			(1,978,448	)

	52,482,437			(310,961,096	)		(54,365,889	)		170,013,173			(6,984,871	)		(42,295,715	)		(3,317,941	)		33,843,430



	—			—			—			(27,622	)		—			(43,057	)		—			(3,980	)
	—			—			—			(50,675	)		—			(34,730	)		—			(3,856	)
	—			—			—			(658,110	)		—			(276,502	)		—			(34,526	)

	—			—			—			—			—			(2,544	)		—			—
	—			—			—			—			—			(2,040	)		—			—
	—			—			—			—			—			(16,335	)		—			—

	—			—			—			(736,407	)		—			(375,208	)		—			(42,362	)




	10,111,474			24,296,037			8,945,082			31,229,061			5,141,293			28,301,911			4,999,708			15,143,573
	91,391,749			161,284,485			69,976,466			119,202,987			26,057,576			66,287,893			41,267,771			37,021,655
	2,344,132,944			5,628,157,280			2,159,973,765			4,001,171,880			308,924,637			766,921,455			493,792,661			649,468,228

	—			—			—			22,737			—			34,717			—			3,665
	—			—			—			45,207			—			34,208			—			3,228
	—			—			—			614,440			—			269,453			—			30,102

	(9,295,818	)		(27,065,032	)		(10,111,080	)		(36,393,270	)		(6,460,793	)		(24,576,231	)		(6,994,081	)		(14,957,923	)
	(93,824,332	)		(159,952,982	)		(67,337,661	)		(144,777,995	)		(26,706,061	)		(64,933,546	)		(41,977,032	)		(41,695,360	)
	(2,339,036,700	)		(5,647,110,878	)		(2,138,824,000	)		(4,203,342,048	)		(319,773,949	)		(749,940,577	)		(461,296,768	)		(682,373,834	)

	3,479,317			(20,391,090	)		22,622,572			(232,227,001	)		(12,817,297	)		22,399,283			29,792,259			(37,356,666	)

	55,961,754			(331,352,186	)		(31,743,317	)		(62,950,235	)		(19,802,168	)		(20,271,640	)		26,474,318			(3,555,598	)
	138,041,046			469,393,232			123,345,007			186,295,242			45,909,944			66,181,584			41,016,941			44,572,539

$	194,002,800		$	138,041,046		$	91,601,690		$	123,345,007		$	26,107,776		$	45,909,944		$	67,491,259		$	41,016,941

$	(822,136	)	$	—		$	(994,392	)	$	—		$	85,454		$	—		$	(402,727	)	$	—

See Notes to Financial Statements.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

STATEMENTS OF CHANGES IN NET ASSETS (concluded)


	Russell 2000^{^®}						Inverse Russell 2000^{^®}
	2x Strategy Fund						2x Strategy Fund
	Period			Year			Period			Year
	Ended			Ended			Ended			Ended
	June 30,			December 31,			June 30,			December 31,
	2009		†	2008			2009		†	2008


From Operations
Net Investment Income (Loss)	$	(123,946	)	$	(5,201	)	$	(388,032	)	$	366,699
Net Realized Gain (Loss) on Investments		1,784,663			(36,631,601	)		(22,695,467	)		36,274,296
Net Change in Unrealized Appreciation (Depreciation) on Investments		(603,322	)		4,310,811			3,367,929			(5,820,609	)

Net Increase (Decrease) in Net Assets from Operations		1,057,395			(32,325,991	)		(19,715,570	)		30,820,386

Distributions to Shareholders from:
Net Investment Income
A-Class		—			—			—			(89,831	)
C-Class		—			—			—			(74,579	)
H-Class		—			—			—			(1,291,879	)
Realized Gain on Investments
A-Class		—			—			—			(628,047	)
C-Class		—			—			—			(521,416	)
H-Class		—			—			—			(9,032,131	)
Return of Capital
A-Class		—			(1,260	)		—			—
C-Class		—			(2,730	)		—			—
H-Class		—			(29,522	)		—			—

Total Distributions to Shareholders		—			(33,512	)		—			(11,637,883	)


Share Transactions
Proceeds from Shares Purchased
A-Class		4,105,342			3,558,646			5,390,052			19,319,955
C-Class		121,222,789			68,597,016			178,808,708			57,502,687
H-Class		925,829,230			2,038,224,615			1,040,801,550			1,963,649,383
Value of Shares Purchased through Dividend Reinvestment
A-Class		—			1,124			—			348,454
C-Class		—			2,610			—			562,874
H-Class		—			28,685			—			10,156,874
Cost of Shares Redeemed
A-Class		(3,760,968	)		(2,506,645	)		(5,899,744	)		(65,645,863	)
C-Class		(120,937,118	)		(67,232,181	)		(165,975,204	)		(61,371,408	)
H-Class		(917,715,789	)		(2,040,480,118	)		(1,022,040,454	)		(2,023,634,361	)

Net Increase (Decrease) in Net Assets From Share Transactions		8,743,486			193,752			31,084,908			(99,111,405	)

Net Increase (Decrease) in Net Assets		9,800,881			(32,165,751	)		11,369,338			(79,928,902	)
Net Assets—Beginning of Period		28,501,353			60,667,104			41,909,759			121,838,661

Net Assets—End of Period	$	38,302,234		$	28,501,353		$	53,279,097		$	41,909,759

Undistributed Net Investment Income (Loss)—End of Period	$	(125,027	)	$	(1,081	)	$	(388,032	)	$	—



†		Unaudited

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

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.


																								RATIOS TO
																								AVERAGE NET ASSETS:
						Net Realized			Net Increase																								Combined
	NET ASSET		Net			and			(Decrease)			Distributions			Distributions					NET ASSET										Net			Net					Net Assets,
	VALUE,		Investment			Unrealized			in Net Asset			from Net			from Net					VALUE,		Total								Investment			Investment			Portfolio		End of
	BEGINNING		Income			Gains (Losses)			Value Resulting			Investment			Realized		Total			END OF		Investment		Total			Net			Income			Income			Turnover		Period (000’s
Period Ended	OF PERIOD		(Loss)†			on Investments			from Operations			Income			Gains		Distributions			PERIOD		Return††		Expenses■			Expenses■			(Loss)			(Loss)▲			Rate		omitted)

S&P 500 2x Strategy Fund A-Class
June 30, 2009∆	$	15.10	$	.01		$	(.09	)	$	(.08	)	$	—		$	—	$	—		$	15.02		(0.53)%		1.79%	**		1.79%	**		0.21%	**		—			72%	$	15,008
December 31, 2008		47.66		.17			(32.65	)		(32.48	)		(.08	)		—		(.08	)		15.10		(68.14)%		1.73%			1.73%			0.58%			—			92%		16,149
December 31, 2007		47.50		.38			.11			.49			(.33	)		—		(.33	)		47.66		0.99%		1.70%			1.70%			0.77%			—			40%		18,931
December 31, 2006		39.00		(.32	)		9.61			9.29			(.79	)		—		(.79	)		47.50		23.80%		1.68%			1.68%			(0.75)%			0.63%			19%		15,242
December 31, 2005		38.13		(.28	)		1.56			1.28			(.41	)		—		(.41	)		39.00		3.39%		1.77%			1.69%			(0.76)%			0.42%			77%		4,272
December 31, 2004*		31.91		(.07	)		6.29			6.22			—			—		—			38.13		19.49%		1.61%	**		1.61%	**		(0.68)%	**		0.27%	**		190%		1,555
S&P 500 2x Strategy Fund C-Class
June 30, 2009∆		14.13		(.04	)		(.10	)		(.14	)		—			—		—			13.99		(0.99)%		2.54%	**		2.54%	**		(0.58)%	**		—			72%		19,232
December 31, 2008		44.94		(.05	)		(30.68	)		(30.73	)		(.08	)		—		(.08	)		14.13		(68.37)%		2.48%			2.48%			(0.16)%			—			92%		32,159
December 31, 2007		45.14		.01			.12			.13			(.33	)		—		(.33	)		44.94		0.24%		2.45%			2.45%			0.03%			—			40%		50,376
December 31, 2006		37.37		(.61	)		9.17			8.56			(.79	)		—		(.79	)		45.14		22.89%		2.44%			2.44%			(1.52)%			(0.14)%			19%		57,885
December 31, 2005		36.85		(.53	)		1.46			.93			(.41	)		—		(.41	)		37.37		2.56%		2.50%			2.41%			(1.48)%			(0.30)%			77%		63,328
December 31, 2004		31.57		(.52	)		5.80			5.28			—			—		—			36.85		16.72%		2.45%			2.45%			(1.52)%			(0.57)%			190%		77,838
S&P 500 2x Strategy Fund H-Class
June 30, 2009∆		15.10		—	§		(.09	)		(.09	)		—			—		—			15.01		(0.60)%		1.79%	**		1.79%	**		0.03%	**		—			72%		97,158
December 31, 2008		47.63		.16			(32.61	)		(32.45	)		(.08	)		—		(.08	)		15.10		(68.12)%		1.73%			1.73%			0.53%			—			92%		110,656
December 31, 2007		47.49		.41			.06			.47			(.33	)		—		(.33	)		47.63		0.95%		1.70%			1.70%			0.81%			—			40%		277,926
December 31, 2006		38.98		(.32	)		9.62			9.30			(.79	)		—		(.79	)		47.49		23.84%		1.69%			1.69%			(0.77)%			0.61%			19%		285,214
December 31, 2005		38.13		(.27	)		1.53			1.26			(.41	)		—		(.41	)		38.98		3.34%		1.75%			1.67%			(0.73)%			0.45%			77%		308,677
December 31, 2004		32.43		(.25	)		5.95			5.70			—			—		—			38.13		17.58%		1.70%			1.70%			(0.77)%			0.18%			190%		352,125
Inverse S&P 500 2x Strategy Fund A-Class
June 30, 2009∆		48.14		(.38	)		(10.03	)		(10.41	)		—			—		—			37.73		(21.59)%		1.78%	**		1.78%	**		(1.53)%	**		—			—		11,307
December 31, 2008		29.16		.10			19.18			19.28			(.30	)		—		(.30	)		48.14		66.10%		1.74%			1.74%			0.27%			—			—		14,897
December 31, 2007		31.38		.97			(2.27	)		(1.30	)		(.92	)		—		(.92	)		29.16		(3.99)%		1.70%			1.70%			3.27%			—			—		15,381
December 31, 2006		39.49		(.28	)		(6.63	)		(6.91	)		(1.20	)		—		(1.20	)		31.38		(17.46)%		1.69%			1.69%			(0.76)%			3.42%			—		12,818
December 31, 2005		42.11		(.31	)		(1.62	)		(1.93	)		(.69	)		—		(.69	)		39.49		(4.53)%		1.77%			1.67%			(0.75)%			1.54%			—		4,633
December 31, 2004*		50.99		(.11	)		(8.77	)		(8.88	)		—			—		—			42.11		(17.42)%		1.65%	**		1.65%	**		(0.72)%	**		(0.37)%	**		—		1,498
Inverse S&P 500 2x Strategy Fund C-Class
June 30, 2009∆		45.16		(.51	)		(9.38	)		(9.89	)		—			—		—			35.27		(21.87)%		2.53%	**		2.53%	**		(2.29)%	**		—			—		19,125
December 31, 2008		27.56		(.15	)		18.05			17.90			(.30	)		—		(.30	)		45.16		64.93%		2.49%			2.49%			(0.42)%			—			—		17,565
December 31, 2007		29.94		.72			(2.18	)		(1.46	)		(.92	)		—		(.92	)		27.56		(4.71)%		2.45%			2.45%			2.56%			—			—		26,565
December 31, 2006		38.05		(.54	)		(6.37	)		(6.91	)		(1.20	)		—		(1.20	)		29.94		(18.12)%		2.43%			2.43%			(1.51)%			2.67%			—		29,458
December 31, 2005		40.92		(.61	)		(1.57	)		(2.18	)		(.69	)		—		(.69	)		38.05		(5.28)%		2.51%			2.41%			(1.48)%			0.81%			—		29,768
December 31, 2004		51.58		(.73	)		(9.93	)		(10.66	)		—			—		—			40.92		(20.67)%		2.45%			2.45%			(1.52)%			(1.17)%			—		28,465
Inverse S&P 500 2x Strategy Fund H-Class
June 30, 2009∆		48.17		(.38	)		(10.03	)		(10.41	)		—			—		—			37.76		(21.58)%		1.79%	**		1.79%	**		(1.55)%	**		—			—		164,682
December 31, 2008		29.16		.11			19.20			19.31			(.30	)		—		(.30	)		48.17		66.21%		1.73%			1.73%			0.29%			—			—		177,979
December 31, 2007		31.38		.99			(2.29	)		(1.30	)		(.92	)		—		(.92	)		29.16		(3.99)%		1.71%			1.71%			3.32%			—			—		175,558
December 31, 2006		39.51		(.28	)		(6.65	)		(6.93	)		(1.20	)		—		(1.20	)		31.38		(17.50)%		1.69%			1.69%			(0.77)%			3.41%			—		217,944
December 31, 2005		42.13		(.31	)		(1.62	)		(1.93	)		(.69	)		—		(.69	)		39.51		(4.53)%		1.76%			1.66%			(0.74)%			1.55%			—		256,422
December 31, 2004		52.66		(.38	)		(10.15	)		(10.53	)		—			—		—			42.13		(20.00)%		1.70%			1.70%			(0.77)%			(0.42)%			—		224,369

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

FINANCIAL HIGHLIGHTS (continued)

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.


																								RATIOS TO
																								AVERAGE NET ASSETS:
						Net Realized			Net Increase																								Combined
	NET ASSET		Net			and			(Decrease)			Distributions			Distributions					NET ASSET										Net			Net					Net Assets,
	VALUE,		Investment			Unrealized			in Net Asset			from Net			from Net					VALUE,		Total								Investment			Investment			Portfolio		End of
	BEGINNING		Income			Gains (Losses)			Value Resulting			Investment			Realized		Total			END OF		Investment		Total			Net			Income			Income			Turnover		Period (000’s
Period Ended	OF PERIOD		(Loss)†			on Investments			from Operations			Income			Gains		Distributions			PERIOD		Return††		Expenses■			Expenses■			(Loss)			(Loss)▲			Rate		omitted)

NASDAQ-100^{^®}2x Strategy Fund A-Class
June 30, 2009∆	$	40.54	$	(.06	)	$	16.70		$	16.64		$	—		$	—	$	—		$	57.18		41.05%		1.81%	**		1.81%	**		(0.83)%	**		—			31%	$	9,428
December 31, 2008à		148.85		(.90	)		(107.41	)		(108.31	)		—			—		—			40.54		(72.76)%		1.76%			1.76%			(0.90)%			—			50%		5,835
December 31, 2007à		115.35		(.50	)		34.00			33.50			—			—		—			148.85		29.04%		1.74%			1.74%			(0.36)%			—			107%		19,628
December 31, 2006à		109.50		(.80	)		6.65			5.85			—			—		—			115.35		5.34%		1.69%			1.69%			(0.77)%			(0.65)%			71%		10,474
December 31, 2005à		113.60		(.75	)		(2.75	)		(3.50	)		(.60	)		—		(.60	)		109.50		(3.09)%		1.69%			1.66%			(0.74)%			(0.75)%			133%		5,195
December 31, 2004*à		83.65		(.50	)		30.45			29.95			—			—		—			113.60		35.80%		1.58%	**		1.58%	**		(0.65)%	**		(0.21)%	**		154%		2,308
NASDAQ-100^{^®}2x Strategy Fund C-Class
June 30, 2009∆		37.03		(.10	)		15.03			14.93			—			—		—			51.96		40.32%		2.55%	**		2.55%	**		(1.63)%	**		—			31%		16,671
December 31, 2008à		137.05		(1.45	)		(98.57	)		(100.02	)		—			—		—			37.03		(72.97)%		2.52%			2.52%			(1.67)%			—			50%		13,791
December 31, 2007à		106.95		(1.40	)		31.50			30.10			—			—		—			137.05		28.14%		2.49%			2.49%			(1.10)%			—			107%		46,977
December 31, 2006à		102.30		(1.50	)		6.15			4.65			—			—		—			106.95		4.55%		2.43%			2.43%			(1.51)%			(1.39)%			71%		43,530
December 31, 2005à		107.05		(1.40	)		(2.75	)		(4.15	)		(.60	)		—		(.60	)		102.30		(3.89)%		2.43%			2.40%			(1.48)%			(1.49)%			133%		56,765
December 31, 2004à		94.10		(1.35	)		14.30			12.95			—			—		—			107.05		13.76%		2.44%			2.44%			(1.51)%			(1.07)%			154%		86,591
NASDAQ-100^{^®}2x Strategy Fund H-Class
June 30, 2009∆		40.54		(.06	)		16.70			16.64			—			—		—			57.18		41.05%		1.81%	**		1.81%	**		(0.94)%	**		—			31%		167,904
December 31, 2008à		148.85		(.80	)		(107.51	)		(108.31	)		—			—		—			40.54		(72.76)%		1.77%			1.77%			(0.90)%			—			50%		118,414
December 31, 2007à		115.35		(.40	)		33.90			33.50			—			—		—			148.85		29.04%		1.74%			1.74%			(0.28)%			—			107%		402,788
December 31, 2006à		109.55		(.80	)		6.60			5.80			—			—		—			115.35		5.29%		1.69%			1.69%			(0.77)%			(0.65)%			71%		319,193
December 31, 2005à		113.60		(.75	)		(2.70	)		(3.45	)		(.60	)		—		(.60	)		109.55		(3.05)%		1.68%			1.65%			(0.73)%			(0.74)%			133%		570,220
December 31, 2004à		99.05		(.75	)		15.30			14.55			—			—		—			113.60		14.69%		1.67%			1.67%			(0.76)%			(0.32)%			154%		663,642
Inverse NASDAQ-100^{^®}2x Strategy Fund A-Class
June 30, 2009∆		21.92		(.15	)		(9.42	)		(9.57	)		—			—		—			12.35		(43.66)%		1.82%	**		1.82%	**		(1.65)%	**		—			—		1,509
December 31, 2008		11.78		.03			10.22			10.25			(.11	)		—		(.11	)		21.92		87.03%		1.76%			1.76%			0.21%			—			—		3,847
December 31, 2007		17.22		.51			(5.21	)		(4.70	)		(.74	)		—		(.74	)		11.78		(27.10)%		1.75%			1.75%			3.49%			—			—		4,371
December 31, 2006		19.44		(.15	)		(1.43	)		(1.58	)		(.64	)		—		(.64	)		17.22		(8.04)%		1.69%			1.69%			(0.77)%			3.35%			—		7,981
December 31, 2005		20.06		(.16	)		(.11	)		(.27	)		(.35	)		—		(.35	)		19.44		(1.25)%		1.68%			1.68%			(0.76)%			1.53%			—		6,438
December 31, 2004*		28.20		(.04	)		(8.10	)		(8.14	)		—			—		—			20.06		(28.87)%		1.54%	**		1.54%	**		(0.61)%	**		(0.20)%	**		—		639
Inverse NASDAQ-100^{^®}2x Strategy Fund C-Class
June 30, 2009∆		20.62		(.20	)		(8.84	)		(9.04	)		—			—		—			11.58		(43.84)%		2.56%	**		2.56%	**		(2.39)%	**		—			—		6,489
December 31, 2008		11.17		(.06	)		9.62			9.56			(.11	)		—		(.11	)		20.62		85.61%		2.51%			2.51%			(0.40)%			—			—		8,532
December 31, 2007		16.51		.39			(4.99	)		(4.60	)		(.74	)		—		(.74	)		11.17		(27.67)%		2.50%			2.50%			2.77%			—			—		17,791
December 31, 2006		18.80		(.29	)		(1.36	)		(1.65	)		(.64	)		—		(.64	)		16.51		(8.69)%		2.44%			2.44%			(1.52)%			2.60%			—		32,553
December 31, 2005		19.56		(.31	)		(.10	)		(.41	)		(.35	)		—		(.35	)		18.80		(2.00)%		2.40%			2.40%			(1.48)%			0.81%			—		35,780
December 31, 2004		26.15		(.38	)		(6.21	)		(6.59	)		—			—		—			19.56		(25.20)%		2.45%			2.45%			(1.52)%			(1.11)%			—		27,640
Inverse NASDAQ-100^{^®}2x Strategy Fund H-Class
June 30, 2009∆		21.89		(.14	)		(9.41	)		(9.55	)		—			—		—			12.34		(43.63)%		1.81%	**		1.81%	**		(1.65)%	**		—			—		83,604
December 31, 2008		11.77		.05			10.18			10.23			(.11	)		—		(.11	)		21.89		86.93%		1.76%			1.76%			0.35%			—			—		110,965
December 31, 2007		17.21		.52			(5.22	)		(4.70	)		(.74	)		—		(.74	)		11.77		(27.12)%		1.75%			1.75%			3.52%			—			—		164,133
December 31, 2006		19.43		(.15	)		(1.43	)		(1.58	)		(.64	)		—		(.64	)		17.21		(8.05)%		1.69%			1.69%			(0.77)%			3.35%			—		340,974
December 31, 2005		20.05		(.16	)		(.11	)		(.27	)		(.35	)		—		(.35	)		19.43		(1.25)%		1.66%			1.66%			(0.74)%			1.55%			—		404,055
December 31, 2004		26.59		(.20	)		(6.34	)		(6.54	)		—			—		—			20.05		(24.60)%		1.70%			1.70%			(0.77)%			(0.36)%			—		294,779

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

FINANCIAL HIGHLIGHTS (continued)

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.


																												RATIOS TO
																												AVERAGE NET ASSETS:
						Net Realized			Net Increase																												Combined
	NET ASSET		Net			and			(Decrease)			Distributions			Distributions			Distributions						NET ASSET										Net			Net					Net Assets,
	VALUE,		Investment			Unrealized			in Net Asset			from Net			from Net			from Return						VALUE,		Total								Investment			Investment			Portfolio		End of
	BEGINNING		Income			Gains (Losses)			Value Resulting			Investment			Realized			of			Total			END OF		Investment		Total			Net			Income			Income			Turnover		Period (000’s
Period Ended	OF PERIOD		(Loss)†			on Investments			from Operations			Income			Gains			Capital			Distributions			PERIOD		Return††		Expenses■			Expenses■			(Loss)			(Loss)▲			Rate		omitted)

Dow 2x Strategy Fund A-Class
June 30, 2009∆	$	12.68	$	.03		$	(1.24	)	$	(1.21	)	$	—		$	—		$	—		$	—		$	11.47		(9.54)%		1.80%	**		1.80%	**		0.56%	**		—			118%	$	5,569
December 31, 2008		33.86		.18			(21.27	)		(21.09	)		(.08	)		—			(.01	)		(.09	)		12.68		(62.28)%		1.74%			1.74%			0.80%			—			30%		7,563
December 31, 2007		31.56		.38			1.93			2.31			(.01	)		—			—			(.01	)		33.86		7.32%		1.71%			1.71%			1.09%			—			148%		9,824
December 31, 2006		24.39		(.21	)		7.58			7.37			(.20	)		—			—			(.20	)		31.56		30.21%		1.69%			1.69%			(0.77)%			1.30	%		341%		3,337
December 31, 2005		25.39		(.04	)		(.92	)		(.96	)		(.01	)		(.03	)		—			(.04	)		24.39		(3.78)%		1.67%			1.67%			(0.17)%			0.94	%		410%		1,522
December 31, 2004*		22.72		(.05	)		2.72			2.67			—			—			—			—			25.39		11.75%		1.56%	**		1.56%	**		(0.63)%	**		0.33	%**		796%		359
Dow 2x Strategy Fund C-Class
June 30, 2009∆		12.22		(.01	)		(1.19	)		(1.20	)		—			—			—			—			11.02		(9.82)%		2.55%	**		2.55%	**		(0.22)%	**		—			118%		4,339
December 31, 2008		32.91		.01			(20.61	)		(20.60	)		(.08	)		—			(.01	)		(.09	)		12.22		(62.59)%		2.49%			2.49%			0.07%			—			30%		5,610
December 31, 2007		30.91		.14			1.87			2.01			(.01	)		—			—			(.01	)		32.91		6.50%		2.46%			2.46%			0.41%			—			148%		10,539
December 31, 2006		24.06		(.41	)		7.46			7.05			(.20	)		—			—			(.20	)		30.91		29.29%		2.44%			2.44%			(1.52)%			0.55	%		341%		6,198
December 31, 2005		25.22		(.55	)		(.57	)		(1.12	)		(.01	)		(.03	)		—			(.04	)		24.06		(4.44)%		2.39%			2.39%			(2.31)%			0.22	%		410%		3,988
December 31, 2004*		25.00		(.30	)		.52			.22			—			—			—			—			25.22		0.88%		2.41%	**		2.41%	**		(1.48)%	**		(0.52)	%**		796%		4,368
Dow 2x Strategy Fund H-Class
June 30, 2009∆		12.69		.03			(1.25	)		(1.22	)		—			—			—			—			11.47		(9.54)%		1.80%	**		1.80%	**		0.58%	**		—			118%		16,199
December 31, 2008		33.90		.16			(21.28	)		(21.12	)		(.08	)		—			(.01	)		(.09	)		12.69		(62.30)%		1.74%			1.74%			0.72%			—			30%		32,737
December 31, 2007		31.59		.42			1.90			2.32			(.01	)		—			—			(.01	)		33.90		7.34%		1.72%			1.72%			1.21%			—			148%		45,818
December 31, 2006		24.40		(.21	)		7.60			7.39			(.20	)		—			—			(.20	)		31.59		30.28%		1.69%			1.69%			(0.77)%			1.30	%		341%		57,132
December 31, 2005		25.38		(.16	)		(.78	)		(.94	)		(.01	)		(.03	)		—			(.04	)		24.40		(3.71)%		1.65%			1.65%			(0.67)%			0.96	%		410%		33,896
December 31, 2004*		25.00		(.14	)		.52			.38			—			—			—			—			25.38		1.52%		1.65%	**		1.65%	**		(0.72)%	**		0.24	%**		796%		37,218
Inverse Dow 2x Strategy Fund A-Class
June 30, 2009∆		46.96		(.42	)		(4.13	)		(4.55	)		—			—			—			—			42.41		(9.69)%		1.81%	**		1.81%	**		(1.64)%	**		—			—		2,139
December 31, 2008		30.59		(.17	)		16.59			16.42			(.05	)		—			—			(.05	)		46.96		53.68%		1.75%			1.75%			(0.41)%			—			—		3,889
December 31, 2007		35.38		1.09			(4.41	)		(3.32	)		(1.47	)		—			—			(1.47	)		30.59		(9.16)%		1.70%			1.70%			3.36%			—			—		2,201
December 31, 2006		45.63		(.31	)		(9.79	)		(10.10	)		(.15	)		—			—			(.15	)		35.38		(22.14)%		1.69%			1.69%			(0.77)%			3.51	%		—		3,534
December 31, 2005		45.41		(.35	)		.78			.43			(.07	)		(.14	)		—			(.21	)		45.63		0.94%		1.70%			1.69%			(0.77)%			1.62	%		—		1,177
December 31, 2004*		52.00		(.11	)		(6.29	)		(6.40	)		—			(.19	)		—			(.19	)		45.41		(12.30)%		1.62%	**		1.62%	**		(0.69)%	**		(0.31)	%**		—		347
Inverse Dow 2x Strategy Fund C-Class
June 30, 2009∆		45.18		(.59	)		(3.94	)		(4.53	)		—			—			—			—			40.65		(10.03)%		2.55%	**		2.55%	**		(2.38)%	**		—			—		2,892
December 31, 2008		29.65		(.32	)		15.90			15.58			(.05	)		—			—			(.05	)		45.18		52.55%		2.49%			2.49%			(0.86)%			—			—		3,600
December 31, 2007		34.60		.80			(4.28	)		(3.48	)		(1.47	)		—			—			(1.47	)		29.65		(9.83)%		2.45%			2.45%			2.54%			—			—		5,233
December 31, 2006		44.95		(.60	)		(9.60	)		(10.20	)		(.15	)		—			—			(.15	)		34.60		(22.69)%		2.44%			2.44%			(1.52)%			2.76	%		—		4,572
December 31, 2005		45.10		(.70	)		.76			.06			(.07	)		(.14	)		—			(.21	)		44.95		0.12%		2.42%			2.41%			(1.49)%			0.90	%		—		1,907
December 31, 2004*		50.00		(.69	)		(4.02	)		(4.71	)		—			(.19	)		—			(.19	)		45.10		(9.42)%		2.43%	**		2.43%	**		(1.50)%	**		(1.12)	%**		—		455
Inverse Dow 2x Strategy Fund H-Class
June 30, 2009∆		46.97		(.39	)		(4.15	)		(4.54	)		—			—			—			—			42.43		(9.67)%		1.80%	**		1.80%	**		(1.64)%	**		—			—		62,461
December 31, 2008		30.59		(.06	)		16.49			16.43			(.05	)		—			—			(.05	)		46.97		53.71%		1.74%			1.74%			(0.15)%			—			—		33,528
December 31, 2007		35.38		1.10			(4.42	)		(3.32	)		(1.47	)		—			—			(1.47	)		30.59		(9.16)%		1.70%			1.70%			3.39%			—			—		37,138
December 31, 2006		45.63		(.31	)		(9.79	)		(10.10	)		(.15	)		—			—			(.15	)		35.38		(22.14)%		1.69%			1.69%			(0.77)%			3.51	%		—		59,603
December 31, 2005		45.41		(.35	)		.78			.43			(.07	)		(.14	)		—			(.21	)		45.63		0.94%		1.67%			1.66%			(0.74)%			1.65	%		—		37,047
December 31, 2004*		50.00		(.33	)		(4.07	)		(4.40	)		—			(.19	)		—			(.19	)		45.41		(8.80)%		1.67%	**		1.67%	**		(0.74)%	**		(0.36)	%**		—		17,712

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

FINANCIAL HIGHLIGHTS (concluded)

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.


																												RATIOS TO
																												AVERAGE NET ASSETS:
						Net Realized			Net Increase
	NET ASSET		Net			and			(Decrease)			Distributions			Distributions			Distributions						NET ASSET										Net					Net Assets,
	VALUE,		Investment			Unrealized			in Net Asset			from Net			from Net			from Return						VALUE,		Total								Investment			Portfolio		End of
	BEGINNING		Income			Gains (Losses)			Value Resulting			Investment			Realized			of			Total			END OF		Investment		Total			Operating			Income			Turnover		Period (000’s
Period Ended	OF PERIOD		(Loss)†			on Investments			from Operations			Income			Gains			Capital			Distributions			PERIOD		Return††		Expenses			Expenses†††			(Loss)			Rate		omitted)

Russell 2000^{^®}2x Strategy Fund A-Class
June 30, 2009∆	$	80.46	$	(.04	)	$	.04		$	—		$	—		$	—		$	—		$	—		$	77.89		(3.19)%		1.80%	**		1.80%	**		(0.72)%	**		163%	$	1,523
December 31, 2008à		239.10		(.10	)		(158.44	)		(158.54	)		—			—			(.10	)		(.10	)		80.46		(66.27)%		1.75%			1.75%			(0.05)%			631%		893
December 31, 2007à		279.90		3.90			(43.00	)		(39.10	)		(.30	)		(1.40	)		—			(1.70	)		239.10		(14.00)%		1.71%			1.71%			1.41%			833%		588
December 31, 2006*à		250.00		.70			33.00			33.70			(.50	)		(3.30	)		—			(3.80	)		279.90		13.49%		1.69%	**		1.69%	**		0.46%	**		221%		595
Russell 2000^{^®}2x Strategy Fund C-Class
June 30, 2009∆		78.83		(.07	)		(2.75	)		(2.82	)		—			—			—			—			75.91		(3.72)%		2.54%	**		2.54%	**		(1.46)%	**		163%		3,010
December 31, 2008à		236.20		(1.20	)		(156.07	)		(157.27	)		—			—			(.10	)		(.10	)		78.83		(66.58)%		2.50%			2.50%			(0.78)%			631%		1,446
December 31, 2007à		278.50		1.70			(42.30	)		(40.60	)		(.30	)		(1.40	)		—			(1.70	)		236.20		(14.61)%		2.45%			2.45%			0.62%			833%		1,938
December 31, 2006*à		250.00		(.20	)		32.50			32.30			(.50	)		(3.30	)		—			(3.80	)		278.50		12.93%		2.44%	**		2.44%	**		(0.12)%	**		221%		1,100
Russell 2000^{^®}2x Strategy Fund H-Class
June 30, 2009∆		80.37		(.04	)		(2.33	)		(2.37	)		—			—			—			—			77.90		(3.07)%		1.80%	**		1.80%	**		(0.72)%	**		163%		33,769
December 31, 2008à		239.40		.04			(158.97	)		(158.93	)		—			—			(.10	)		(.10	)		80.37		(66.35)%		1.75%			1.75%			0.03%			631%		26,162
December 31, 2007à		280.00		3.60			(42.50	)		(38.90	)		(.30	)		(1.40	)		—			(1.70	)		239.40		(13.92)%		1.70%			1.70%			1.28%			833%		58,141
December 31, 2006*à		250.00		1.00			32.80			33.80			(.50	)		(3.30	)		—			(3.80	)		280.00		13.53%		1.70%	**		1.70%	**		0.67%	**		221%		60,668
Inverse Russell 2000^{^®}2x Strategy Fund A-Class
June 30, 2009∆		35.62		(.31	)		(10.57	)		(10.88	)		—			—			—			—			24.74		(30.54)%		1.81%	**		1.81%	**		(1.65)%	**		—		1,023
December 31, 2008		40.34		.70			11.41			12.11			(2.11	)		(14.72	)		—			(16.83	)		35.62		25.10%		2.39%			1.78%			1.50%			174%		1,941
December 31, 2007		40.73		1.48			(.69	)		.79			(1.18	)		—			—			(1.18	)		40.34		2.07%		2.06%			1.70%			3.74%			109%		40,656
December 31, 2006*		50.00		.79			(9.49	)		(8.70	)		(.57	)		—			—			(.57	)		40.73		(17.39)%		1.76%	**		1.76%	**		3.15%	**		—		9,138
Inverse Russell 2000^{^®}2x Strategy Fund C-Class
June 30, 2009∆		34.49		(.36	)		(10.28	)		(10.64	)		—			—			—			—			23.85		(30.85)%		2.51%	**		2.51%	**		(2.34)%	**		—		9,814
December 31, 2008		39.87		(.16	)		11.61			11.45			(2.11	)		(14.72	)		—			(16.83	)		34.49		23.72%		3.08%			2.51%			(0.35)%			174%		1,509
December 31, 2007		40.54		1.08			(.57	)		.51			(1.18	)		—			—			(1.18	)		39.87		1.39%		2.66%			2.44%			2.81%			109%		3,852
December 31, 2006*		50.00		.59			(9.48	)		(8.89	)		(.57	)		—			—			(.57	)		40.54		(17.77)%		2.43%	**		2.43%	**		2.13%	**		—		1,605
Inverse Russell 2000^{^®}2x Strategy Fund H-Class
June 30, 2009∆		35.50		(.27	)		(10.58	)		(10.85	)		—			—			—			—			24.65		(30.56)%		1.80%	**		1.80%	**		(1.64)%	**		—		42,442
December 31, 2008		40.37		.19			11.77			11.96			(2.11	)		(14.72	)		—			(16.83	)		35.50		24.71%		2.32%			1.77%			0.42%			174%		38,460
December 31, 2007		40.73		1.40			(.58	)		.82			(1.18	)		—			—			(1.18	)		40.37		1.95%		1.91%			1.67%			3.60%			109%		77,331
December 31, 2006*		50.00		.79			(9.49	)		(8.70	)		(.57	)		—			—			(.57	)		40.73		(17.39)%		1.69%	**		1.69%	**		2.90%	**		—		54,584



*		Since the commencement of operations:

		February 20, 2004 — Dow 2x Strategy Fund C-Class and H-Class and Inverse Dow 2x Strategy Fund C-Class and H-Class.

		September 1, 2004 — S&P 500 2x Strategy Fund A-Class, Inverse S&P 500 2x Strategy Fund A-Class, NASDAQ-100^® 2x Strategy Fund A-Class, Inverse NASDAQ-100^® 2x Strategy Fund A-Class, Dow 2x Strategy Fund A-Class and Inverse Dow 2x Strategy Fund A-Class.

		May 31, 2006 — Russell 2000^® 2x Strategy Fund, A-Class, C-Class, H-Class and Inverse Russell 2000^® 2x Strategy Fund A-Class, C-Class, H-Class.

**		Annualized

†		Calculated using the average daily shares outstanding for the year.

††		Total investment return does not reflect the impact of any applicable sales charges and has not been annualized.

†††		Operating Expenses exclude short dividends expense.

§		Less than $.01 per share.

à		Per share amounts for periods ended:

		December 31, 2004 — December 31, 2008 have been restated to reflect a 1:5 reverse stock split effective April 20, 2009 — NASDAQ-100^® 2x Strategy Fund December 31, 2006 — December 31, 2008 have been restated to reflect a 1:10 reverse stock split effective April 20, 2009 — Russell 2000^® 2x Strategy Fund

∆		Unaudited

		Prior to January 1, 2007, the S&P 500 2x Strategy Fund, Inverse S&P 500 2x Strategy Fund, NASDAQ-100^® 2x Strategy Fund, Inverse NASDAQ-100^® 2x Strategy Fund, Dow 2x Strategy Fund, and Inverse Dow 2x Strategy Fund operated under a Master-Feeder Structure.


▲		Ratios represent combined net investment income of the former Master Portfolio and the Fund. Ratios shown under the caption “Net Investment Income (Loss)” for the year ended December 31, 2006 and preceding periods did not reflect the net investment income of the former Master Portfolio. This has no effect on the Fund’s net asset value, per share value or total increase (decrease) in net assets from operations during any period.

■		Expense ratios to average net assets include expenses of the corresponding former Master Portfolio for the year ended December 31, 2006, and preceding periods.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1. Organization and Significant Accounting Policies Organization
The Rydex Dynamic Funds (the “Trust”) is registered with the SEC under the Investment Company Act of 1940 (the “1940 Act”) as a non-diversified, open-ended investment company, and is authorized to issue an unlimited number of shares (no par value). The Trust offers three classes of shares, A-Class shares, C-Class shares, and H-Class shares. C-Class shares have a 1% contingent deferred sales charge (“CDSC”) if shares are redeemed within 12 months of purchase. Sales of shares of each Class are made without a sales charge at the NAV, with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% CDSC if shares are redeemed within 18 months of purchase.

At June 30, 2009, the Trust consisted of eight separate Funds: the S&P 500 2x Strategy Fund, the Inverse S&P 500 2x Strategy Fund, the NASDAQ-100^® 2x Strategy Fund, the Inverse NASDAQ-100^® 2x Strategy Fund, the Dow 2x Strategy Fund, the Inverse Dow 2x Strategy Fund, the Russell 2000^® 2x Strategy Fund, and the Inverse Russell 2000^® 2x Strategy Fund (the “Funds”).

Rydex Investments provides advisory, transfer agent and administrative services, and accounting services to the Trust. Rydex Distributors, Inc. (the “Distributor”) acts as principal underwriter for the Trust. Both Rydex Investments and the Distributor are affiliated entities.

Significant Accounting Policies
The following significant accounting policies and the preparation of financial statements are in conformity with U.S. generally accepted accounting principles and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of 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.

A. The Trust calculates a NAV twice each business day, first in the morning and again in the afternoon for the Funds. The morning NAV is calculated at 10:45 a.m. and the afternoon NAV is calculated at the close of the New York Stock Exchange (“NYSE”), usually 4:00 p.m. The NAV is calculated using the current market value of each Fund’s total assets, as of the respective time of

calculation. These financial statements are based on the June 30, 2009 afternoon NAV.

B. Equity securities listed on an exchange (NYSE or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE on the valuation date for the afternoon NAV. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date.

Listed options held by the Trust are valued at the last bid price or the Official Settlement Price listed by the exchange. Long options are valued using the bid price and short options are valued using the ask price. In the event that a settlement price is not available, fair valuation is enacted. Over-the-counter options held by the Trust are valued using the average bid price (for long options), or average ask price (for short options) obtained from one or more security dealers.

The value of futures contracts purchased and sold by the Trust is accounted for using the unrealized gain or loss on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the last quoted sales 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.

Debt securities with a maturity greater than 60 days are valued at the last traded fill price at the close of business, unless no trades were executed. If there are no trades, a security is valued at the reported bid price, at the close of business. Short-term debt securities with a maturity of 60 days or less are valued at amortized cost, which approximates market value.

The value of domestic equity index swap agreements entered into by a Fund is accounted for using the unrealized gain or loss on the agreements that is determined by marking the agreements to the last quoted value of the index that the swap pertains to at the close of the NYSE. The swap’s market values are then adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreements.

Investments for which market quotations are not readily available are valued at fair value as determined in good faith by Rydex Investments under direction of

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

the Board of Trustees using methods established or ratified by the Board of Trustees. These methods include, but are not limited to: (i) general information as to how these securities and assets trade; (ii) in connection with futures contracts and options thereupon, and other derivative investments, 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; and (iii) other information and considerations, including current values in related markets.

C. Securities 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 realized gains in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discount, is accrued on a daily basis. Distributions received from investments in REITs are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer.

D. Distributions of net investment income and net realized gains, if any, are declared and paid at least annually. Distributions are recorded on the ex-dividend date and are determined in accordance with income tax regulations which may differ from U.S. generally accepted accounting principles.

E. When a Fund engages in a short sale of an equity or fixed income 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. The Fund is exposed to market risk based on the amount, if any, that the market value of the security exceeds the market value of the securities in the segregated account. Fees, if any, paid to brokers to borrow securities in connection with short sales are considered part of the cost of short sale transactions. In addition, the Fund must pay out the dividend rate of the equity or coupon rate of the treasury obligation to the lender and record this as an expense. Short dividends 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 Funds may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short or incur rebate charges to borrow certain securities.

F. Upon the purchase of an option by a Fund, the premium paid is recorded as an investment, the value of which is marked-to-market daily. When a purchased option expires, that Fund will realize a loss in the amount of the cost of the option. When a Fund enters into a closing sale transaction, that Fund will realize a gain or loss depending on whether the proceeds from the closing sale transaction are greater or less than the cost of the option. When a Fund exercises a put option, that Fund will realize a gain or loss from the sale of the underlying security and the proceeds from such sale will be decreased by the premium originally paid. When a Fund exercises a call option, the cost of the security purchased by that Fund upon exercise will be increased by the premium originally paid. When a Fund writes (sells) an option, an amount equal to the premium received is entered in that Fund’s accounting records as an asset and equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current value of the option written. When a written option expires, or if a Fund enters into a closing purchase transaction, that Fund realizes a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the option was sold).

G. The Trust may enter into stock and bond index futures contracts and options on such futures contracts. Futures contracts are contracts for delayed delivery of securities at a specified future delivery date and at a specific price. Upon entering into a contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is effected. 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 gains or losses. 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.

H. The Trust may enter into domestic equity index swap agreements, which are over-the-counter contracts in which one party agrees to make periodic payments based on the change in market value of a specified equity security, basket of equity securities, equity index or domestic currency index, in return for periodic payments based on a fixed or variable interest rate or the change in market value of a different equity security,

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

basket of equity securities, equity index or domestic currency index. Swap agreements are used to obtain exposure to an equity or market without owning or taking physical custody of securities. The swap agreements are marked-to-market daily based upon quotations from market makers and the change, if any, is recorded as unrealized gain or loss. Payments received or made as a result of an agreement or termination of the agreement are recognized as realized gains or losses.

I. 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. The Funds may also purchase American Depository Receipts, U.S. Government securities, and enter into repurchase agreements.

J. The Funds may leave cash overnight in their cash account with the custodian, U.S. Bank. 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. Segregated cash with the broker is held as collateral for investments in derivative instruments such as futures contracts and index swap agreements.

K. Interest and dividend income, most expenses, all realized gains and losses, and all unrealized gains and losses are allocated to the Classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution fees related to A-Class shares and H-Class shares and service and distribution fees related to C-Class shares, are charged directly to specific Classes. In addition, certain expenses have been allocated to the individual Funds in the Trust on a pro rata basis upon the respective aggregate net assets of each Fund included in the Trust.

L. 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.

2. Financial Instruments
As part of its investment strategy, the Trust may utilize short sales and a variety of derivative instruments,

including options, futures, options on futures, and swap agreements. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statements of Assets and Liabilities.

A short sale is a transaction in which a Fund sells an equity or fixed income 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, that Fund will realize a gain on the transaction. Conversely, if the security increases in price during the period, that Fund will realize a loss on the transaction. The risk of such price increases is the principal risk of engaging in short sales.

The risk associated with purchasing options is limited to the premium originally paid. The risk in writing a covered call option is that a Fund may forego the opportunity for profit if the market price of the underlying security increases and the option is exercised. The risk in writing a covered put option is that a Fund may incur a loss if the market price of the underlying security decreases and the option is exercised. In addition, there is the risk that a Fund may not be able to enter into a closing transaction because of an illiquid secondary market or, for over-the-counter options, because of the counterparty’s inability to perform.

There are several risks in connection with the use of futures contracts. Risks may be caused by an imperfect correlation between movements in the price of the instruments and the price of the underlying securities. In addition, there is the risk that a Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

There are several risks associated with the use of swap agreements that are different from those associated with ordinary portfolio securities transactions, due to the fact they could be considered illiquid. Although the Trust will not enter into any swap agreement unless Rydex Investments believes that the other party to the transaction is creditworthy, the Funds bear the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of the agreement counterparty.

In conjunction with the use of short sales, options, futures, options on futures, and swap agreements, the Funds are required to maintain collateral in various forms. The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes, or the repurchase agreements allocated to each Fund.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The risks inherent in the use of short sales, options, futures contracts, options on futures contracts, and swap agreements, include i) adverse changes in the value of such instruments; ii) imperfect correlation between the price of the instruments and movements in the price of the underlying securities, indices, or futures contracts; iii) the possible absence of a liquid secondary market for any particular instrument at any time; and iv) the potential of counterparty default. 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.

3. Derivative Investment Holdings Categorized by Risk Exposure
In March 2008, the FASB issued FAS 161, “Disclosures about Derivative Instruments and Hedging Activities.” The new requirement is intended to improve disclosures around an entity’s derivatives activity and help investors understand how entities use derivatives, how they are accounted for and how they affect the financial position and operations of that entity. FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. None of the derivatives currently held by the Funds are being used as hedging instruments.

The following is a summary of the location of derivative investments on the Fund’s Statements of Assets and Liabilities as of June 30, 2009:


Location on the Statements of Assets and Liabilities
Derivative Investments Type	Asset Derivatives	Liability Derivatives

Equity contracts	Variation Margin on Futures Contracts	Variation Margin on Futures Contracts
	Unrealized Appreciation on Swap Agreements Investment Securities	Unrealized Depreciation on Swap Agreements Investment Securities

The following is a summary of the Fund’s derivative investments not accounted for as hedging investments under SFAS 133, categorized by primary risk exposure as of June 30, 2009:


	Asset Derivative Investments Value

	Futures		Options		Swaps
	Equity		Equity		Equity		Total Value at
Fund	Contracts*		Contracts		Contracts		June 30, 2009

S&P 500 2x Strategy Fund	$	—	$	—	$	1,891,274	$	1,891,274
Inverse S&P 500 2x Strategy Fund		1,461,987		87,500		3,945,365		5,494,852
NASDAQ-100^{^®}2x Strategy Fund		—		—		438,660		438,660
Inverse NASDAQ-100^{^®}2x Strategy Fund		19,095		50,000		1,860,353		1,929,448
Dow 2x Strategy Fund		3,154		—		—		3,154
Inverse Dow 2x Strategy Fund		38,451		—		2,246,684		2,285,135
Russell 2000^{^®}2x Strategy Fund		—		—		244,934		244,934
Inverse Russell 2000^{^®}2x Strategy Fund		9,156		—		206,344		215,500

Total	$	1,531,843	$	137,500	$	10,833,614	$	12,502,957

	Liability Derivative Investments Value

	Futures		Options		Swaps
	Equity		Equity		Equity		Total Value at
Fund	Contracts*		Contracts		Contracts		June 30, 2009

S&P 500 2x Strategy Fund	$	86,500	$	—	$	—	$	86,500
Inverse S&P 500 2x Strategy Fund		—		—		—		—
NASDAQ-100^{^®}2x Strategy Fund		535,486		—		—		535,486
Inverse NASDAQ-100^{^®}2x Strategy Fund		—		—		—		—
Dow 2x Strategy Fund		—		—		302,496		302,496
Inverse Dow 2x Strategy Fund		—		—		—		—
Russell 2000^{^®}2x Strategy Fund		48,572		—		5,587		54,159
Inverse Russell 2000^{^®}2x Strategy Fund		—		—		—		—

Total	$	670,558	$	—	$	308,083	$	978,641



*		Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The following is a summary of the location of derivative investments on the Fund’s Statements of Operations as of June 30, 2009:


Derivative Investment Type		Location of Gain (Loss) on Derivatives

Equity contracts		Net realized gain (loss) on futures contracts and equity index swaps Change in net unrealized appreciation (depreciation) on futures contracts and equity index swaps Investment Securities

The following is a summary of the Fund’s realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized in the Statements of Operations categorized by primary risk exposure as of June 30, 2009:


Realized Gain (Loss) on Derivative Investments Recognized in the Statement of Operations
	Futures			Options		Swaps
	Equity			Equity		Equity			Total Value at
Fund	Contracts			Contracts		Contracts			June 30, 2009

S&P 500 2x Strategy Fund	$	(2,254,291	)	$	—	$	12,372,688		$	10,118,397
Inverse S&P 500 2x Strategy Fund		(15,063,014	)		—		(56,641,437	)		(71,704,451	)
NASDAQ-100^{^®}2x Strategy Fund		17,330,544			—		14,616,250			31,946,794
Inverse NASDAQ-100^{^®}2x Strategy Fund		(5,918,741	)		—		(47,159,933	)		(53,078,674	)
Dow 2x Strategy Fund		(7,432,422	)		—		3,224,647			(4,207,775	)
Inverse Dow 2x Strategy Fund		(2,303,027	)		—		(14,816,001	)		(17,119,028	)
Russell 2000^{^®}2x Strategy Fund		3,469,554			—		3,306,033			6,775,587
Inverse Russell 2000^{^®}2x Strategy Fund		(7,414,961	)		—		(11,106,548	)		(18,521,509	)

Total	$	(19,586,358	)	$	—	$	(96,204,301	)	$	(115,790,659	)

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized in the Statement of Operations
	Futures			Options		Swaps
	Equity			Equity		Equity			Total Value at
Fund	Contracts			Contracts		Contracts			June 30, 2009

S&P 500 2x Strategy Fund	$	(4,623,024	)	$	—	$	965,547		$	(3,657,477	)
Inverse S&P 500 2x Strategy Fund		3,952,795			41,250		3,166,005			7,160,050
NASDAQ-100^{^®}2x Strategy Fund		(1,671,943	)		—		(341,028	)		(2,012,971	)
Inverse NASDAQ-100^{^®}2x Strategy Fund		259,514			34,500		1,056,984			1,350,998
Dow 2x Strategy Fund		(1,086,821	)		—		(285,220	)		(1,372,041	)
Inverse Dow 2x Strategy Fund		272,185			—		2,229,473			2,501,658
Russell 2000^{^®}2x Strategy Fund		(2,006,652	)		—		30,452			(1,976,200	)
Inverse Russell 2000^{^®}2x Strategy Fund		790,064			—		2,577,865			3,367,929

Total	$	(4,113,882	)	$	75,750	$	9,400,078		$	5,361,946

4. Fees And Other Transactions With Affiliates
Under the terms of an investment advisory contract, the Trust pays Rydex Investments investment advisory fees calculated at an annualized rate of 0.90% of the average daily net assets of each of the Funds.

Rydex Investments provides transfer agent and administrative services to the Funds for fees calculated at an annualized rate of 0.25% of the average daily net assets of each of the Funds. Rydex Investments also provides accounting services to the Trust for fees calculated at an annualized rate of 0.15% of the average daily net assets of each Fund.

Rydex Investments engages external service providers to perform other necessary services for the Trust, such as accounting and auditing services, legal services, printing and mailing, etc. on a pass-through basis. Such expenses vary from Fund to Fund and are allocated to the Funds based on relative net assets. Organizational and setup costs for new Funds are paid by the Trust.

The Trust has adopted a Distribution Plan applicable to A-Class shares and H-Class shares for which the Distributor and other firms that provide distribution and/or shareholder services (“Service Providers”) may receive compensation. If a Service Provider provides distribution services, the Funds will pay distribution fees to the Distributor at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. The Distributor will, in turn, pay the Service Provider out of its fees. The Distributor may, at its discretion, retain a portion of such payments to compensate itself for distribution services.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The Trust has adopted a separate Distribution and Shareholder Services Plan applicable to its C-Class shares that allows the Funds to pay annual distribution and service fees of 1.00% of the Funds’ C-Class shares average daily net assets. The annual 0.25% service fee compensates the shareholder’s financial advisor for providing on-going services to the shareholder. The annual 0.75% distribution fee reimburses the Distributor for paying the shareholder’s financial advisor an ongoing sales commission. The Distributor advances the first year’s service and distribution fees to the financial advisor. The Distributor retains the service and distribution fees on accounts with no authorized dealer of record.

For the period ended June 30, 2009, the Distributor retained sales charges of $107,968 relating to sales of A-Class shares of the Trust.

Certain officers and trustees of the Trust are also officers of Rydex Investments.

5. Federal Income Tax Information
The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all net investment income and capital gains to shareholders.

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 on federal income tax returns for all open tax years (fiscal years 2005 – 2008), and has concluded that no provision for income tax is required in the Funds’ financial statements. Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for losses deferred due to wash sales, losses deferred due to post-October losses, and excise tax regulations.

Permanent book and tax basis differences, if any, will result in reclassifications. This includes net operating losses not utilized during the current period and capital loss carryforward expired, and the utilization of earnings and profits distributed to the shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes. These reclassifications have no effect on net assets or net asset values per share. Any undistributed ordinary income or long-term capital gain remaining at fiscal year end is distributed in the following year.

At June 30, 2009, the cost of securities for Federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value were as follows:


			Tax		Tax			Net
	Tax		Unrealized		Unrealized			Unrealized
Fund	Cost		Gain		Loss			Gain (Loss)

S&P 500 2x Strategy Fund	$	130,955,251	$	19,556,969	$	(20,328,690	)	$	(771,721	)
Inverse S&P 500 2x Strategy Fund		162,549,578		45,897		—			45,897
NASDAQ-100^{^®}2x Strategy Fund		139,030,655		50,265,237		(10,642,926	)		39,622,311
Inverse NASDAQ-100^{^®}2x Strategy Fund		132,596,353		34,500		—			34,500
Dow 2x Strategy Fund		29,239,512		2,279,002		(3,116,624	)		(837,622	)
Inverse Dow 2x Strategy Fund		59,587,670		—		—			—
Russell 2000^{^®}2x Strategy Fund		56,195,267		1,428,119		(4,266,219	)		(2,838,100	)
Inverse Russell 2000^{^®}2x Strategy Fund		47,908,550		—		—			—

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 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 DYNAMIC FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The repurchase agreements executed by the joint account and outstanding at June 30, 2009, were as follows:


Counterparty		Terms of Agreement	Face Value		Market Value		Repurchase Price

UBS Financial Services, Inc.		0.01% due 07/01/09	$	250,000,000	$	250,000,000	$	250,000,069
Credit Suisse Group		0.02% due 07/01/09		172,811,348		172,811,348		172,811,444

					$	422,811,348	$	422,811,513


At June 30, 2009, the collateral for the repurchase agreements in the joint account was as follows:

Security Type		Maturity Dates		Range of Rates	Par Value		Market Value

U.S. TIP Notes	01/15/10 – 04/15/11			0.88% – 4.25%	$	209,221,000	$	255,004,378
U.S. Treasury Note	03/31/11			0.88%		152,710,000		152,851,339
U.S. Treasury Bill	09/10/09			—		23,430,000		23,422,269

							$	431,277,986

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. The Funds’ investment advisor, acting under the supervision of the Board of Trustees, 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.

7. Fair Value Measurement
The Funds adopted Statement of Financial Accounting Standard No. 157 (“FAS 157”), Fair Value Measurement, which provided enhanced guidance for using fair value to measure assets and liabilities. The standard requires companies to provide expanded information about the assets and liabilities measured at fair value and the potential effect of these fair valuations on an entity’s financial performance. The standard does not expand the use of fair value in any new circumstances, but provides clarification on acceptable fair valuation methods and applications.

Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels:

Level 1 — quoted prices in active markets for identical securities.

Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3 — significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following table summarizes the inputs used to value the Funds’ net assets at June 30, 2009:


	Level 1		Level 1			Level 2		Level 2
	Investments		Other Financial			Investments		Other Financial
Fund	In Securities		Instruments		*	In Securities		Instruments		*	Total

Assets
S&P 500 2x Strategy Fund	$	130,183,530	$	—		$	—	$	1,891,274		$	132,074,804
Inverse S&P 500 2x Strategy Fund		82,605,033		1,461,987			79,990,442		3,945,365			168,002,827
NASDAQ-100^{^®}2x Strategy Fund		178,652,966		—			—		438,660			179,091,626
Inverse NASDAQ-100^{^®}2x Strategy Fund		117,633,770		19,095			14,997,083		1,860,353			134,510,301
Dow 2x Strategy Fund		28,401,890		3,154			—		—			28,405,044
Inverse Dow 2x Strategy Fund		59,587,670		38,451			—		2,246,684			61,872,805
Russell 2000^{^®}2x Strategy Fund		53,357,167		—			—		244,934			53,602,101
Inverse Russell 2000^{^®}2x Strategy Fund		47,908,550		9,156			—		206,344			48,124,050

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)


	Level 1		Level 1			Level 2		Level 2
	Investments		Other Financial			Investments		Other Financial
Fund	In Securities		Instruments		*	In Securities		Instruments		*	Total

Liabilities
S&P 500 2x Strategy Fund	$	—	$	86,500		$	—	$	—		$	86,500
Inverse S&P 500 2x Strategy Fund		—		—			—		—			—
NASDAQ-100^{^®}2x Strategy Fund		—		535,486			—		—			535,486
Inverse NASDAQ-100^{^®}2x Strategy Fund		—		—			—		—			—
Dow 2x Strategy Fund		—		—			—		302,496			302,496
Inverse Dow 2x Strategy Fund		—		—			—		—			—
Russell 2000^{^®}2x Strategy Fund		—		48,572			—		5,587			54,159
Inverse Russell 2000^{^®}2x Strategy Fund		—		—			—		—			—



*		Other financial instruments may include forward foreign currency contracts, futures and/or swaps, which are reported as unrealized gain/loss at period end.

In April 2009, FASB issued FASB Staff Position FSP FAS 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (“FAS 157-4”), which provides additional guidance when the volume and level of activity for the asset or liability measured at fair value have significantly decreased. Additionally, FAS 157-4 amends FASB Statement No. 157, Fair Value Measurements, expanding disclosure requirements by reporting entities surrounding the major categories of assets and liabilities carried at fair value. FAS 157-4 is effective for interim and annual periods ending after June 15, 2009. Management has evaluated the impact of adopting FAS 157-4 on the Funds and has determined that there is no impact to the financial statement disclosures.

8. Securities Transactions
For the period ended June 30, 2009, the cost of purchases and proceeds from sales of investment securities, excluding short-term and temporary cash investments, were:


			Inverse				Inverse
	S&P 500 2x		S&P 500 2x		NASDAQ-100^{^®} 2x		NASDAQ-100^{^®} 2x
	Strategy Fund		Strategy Fund		Strategy Fund		Strategy Fund

Purchases	$	73,141,315	$	—	$	35,340,194	$	—
Sales	$	90,293,363	$	—	$	35,918,950	$	—


			Inverse				Inverse
	Dow 2x		Dow 2x		Russell 2000^{^®} 2x		Russell 2000^{^®}
	Strategy Fund		Strategy Fund		Strategy Fund		2x Strategy Fund

Purchases	$	25,032,419	$	—	$	38,890,079	$	—
Sales	$	27,917,638	$	—	$	31,294,723	$	—

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

9. Share Transactions
The Trust is authorized to issue an unlimited number of shares (no par value). Transactions in shares for the periods presented were:


							Shares
							Purchased Through												Net Shares Purchased
	Shares Purchased						Dividend Reinvestment						Shares Redeemed						(Redeemed)

	Period Ended			Year Ended			Period Ended			Year Ended			Period Ended			Year Ended			Period Ended			Year Ended
	June 30,			December 31,			June 30,			December 31,			June 30,			December 31,			June 30,			December 31,
	2009		†	2008			2009		†	2008			2009		†	2008			2009		†	2008

S&P 500 2x Strategy Fund
A-Class		1,665,843			1,697,155			—			3,481			(1,735,756)			(1,028,767)			(198,845	)		671,869
C-Class		15,315,484			9,815,737			—			8,450			(16,217,014)			(8,669,215)			(901,530	)		1,154,972
H-Class		235,452,905			154,084,035			—			33,053			(236,310,644)			(152,622,067)			(728,807	)		1,495,021
Inverse S&P 500 2x Strategy Fund
A-Class		482,913			1,651,421			—			1,826			(492,730)			(1,871,170)			(9,817	)		(217,923	)
C-Class		4,585,269			6,027,165			—			2,681			(4,431,929)			(6,604,918)			153,341			(575,072	)
H-Class		111,071,009			168,408,923			—			17,258			(110,404,432)			(170,750,658)			666,576			(2,324,477	)
NASDAQ-100^{^®}2x Strategy Fund
A-Class		1,121,414			281,531	††		—			—			(1,676,233)			(269,448)	††		(554,819	)		12,083	††
C-Class		10,015,053			2,158,893	††		—			—			(11,556,238)			(2,129,295)	††		(1,541,184	)		29,598	††
H-Class		187,207,690			63,911,888	††		—			—			(198,874,842)			(63,697,002)	††		(11,667,151	)		214,886	††
Inverse NASDAQ-100^{^®}2x Strategy Fund
A-Class		464,185			1,963,706			—			1,036			(517,521)			(2,160,203)			(53,336	)		(195,461	)
C-Class		4,692,620			7,987,217			—			2,190			(4,545,852)			(9,168,484)			146,768			(1,179,077	)
H-Class		134,085,386			262,887,523			—			28,057			(132,379,417)			(271,796,341)			1,705,969			(8,880,761	)
Dow 2x Strategy Fund
A-Class		511,756			1,407,874			—			2,636			(622,939)			(1,104,090)			(111,183	)		306,420
C-Class		2,682,814			3,458,505			—			2,691			(2,748,189)			(3,322,466)			(65,375	)		138,730
H-Class		30,035,438			36,426,753			—			20,429			(31,202,971)			(35,219,212)			(1,167,533	)		1,227,970
Inverse Dow 2x Strategy Fund
A-Class		100,828			342,289			—			79			(133,210)			(331,532)			(32,382	)		10,836
C-Class		850,198			938,562			—			73			(858,747)			(1,035,429)			(8,549	)		(96,794	)
H-Class		10,045,612			16,787,368			—			651			(9,287,421)			(17,288,492)			758,190			(500,473	)
Russell 2000^{^®}2x Strategy Fund
A-Class		549,393			25,653	††		—			15	††		(640,861)			(17,024)	††		(91,468	)		8,644	††
C-Class		9,725,511			474,323	††		—			35	††		(9,869,309)			(464,219)	††		(143,797	)		10,139	††
H-Class		88,978,562			12,758,205	††		—			378	††		(91,800,427)			(12,675,950)	††		(2,821,865	)		82,633	††
Inverse Russell 2000^{^®}2x Strategy Fund
A-Class		153,111			383,620			—			8,586			(166,241)			(1,345,628)			(13,131	)		(953,422	)
C-Class		6,229,283			1,247,100			—			14,392			(5,861,584)			(1,314,356)			367,699			(52,864	)
H-Class		31,657,371			43,964,057			—			252,594			(31,018,792)			(45,048,809)			638,578			(832,158	)



†		Unaudited

††		Per share amounts for periods ended December 31, 2008 have been restated to reflect:

		1:5 reverse stock split effective April 20, 2009 — NASDAQ-100^® 2x Strategy Fund

		1:10 reverse stock split effective April 20, 2009 — Russell 2000^® 2x Strategy Fund

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (concluded)

10. New Accounting Pronouncements
In September 2008, FASB issued a FASB Staff Position No. FAS 133-1 and FIN 45-4, “Disclosures about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45” (the “Position”), which was effective for fiscal years ending after November 15, 2008. The Position amends FASB Statement No. 133 (“FAS 133”), Accounting for Derivative Instruments and Hedging Activities, and also amends FASB Interpretation No. 45 (“FIN 45”), Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others. The amendments to FAS 133 include required disclosure for (i) the nature and terms of the credit derivative, reasons for entering into the credit derivative, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative, (ii) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative, (iii) the fair value of the credit derivative, and (iv) the nature of any recourse provisions and assets held either as collateral or by third parties. The amendments to FIN 45 require additional disclosures about the current status of the payment/performance risk of a guarantee. Management has evaluated the impact of SFAS No. 133-1 and FIN 45-4 and there is no impact on the Funds’ financial statement disclosures.

11. Reverse Share Splits
Effective April 20, 2009, the NASDAQ-100^® 2x Strategy Fund and Russell 2000^® 2x Strategy Fund underwent a 1-for-5 and 1-for-10 reverse share split, respectively. The effect of this transaction was to divide the number of outstanding shares of the Funds by the reverse split factor, resulting in a corresponding increase in the net asset value per share. The share transactions presented in Note 9 for December 31, 2008 and the per share data in the financial highlights for December 31, 2008 and any prior periods have been given retroactive effect to reflect these reverse share splits. There were no changes in net assets, results of operations or total return as a result of these transactions.

12. Subsequent Events
Management has evaluated events or transactions that may have occurred since June 30, 2009, that would merit recognition or disclosure in the financial statements. This evaluation was completed through August 21, 2009, the date the financial statements were available to be issued and there were no events or transactions to be reported.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)

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 1-800-820-0888. This information is also available from the EDGAR database on the SEC’s website at http://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 1-800-820-0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

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 on Form N-Q; which are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 1-800-820-0888.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees all Rydex Investments, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by calling 1-800-820-0888.

All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell Rd., Suite 500, Rockville, MD 20850.

TRUSTEES AND OFFICERS


	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen

Carl G. Verboncoeur*	Rydex Series Funds – 2004	151
Trustee, President (1952)	Rydex Variable Trust – 2004
	Rydex Dynamic Funds – 2004
	Rydex ETF Trust – 2004

Principal Occupations During Past Five Years: Treasurer of Rydex Specialized Products, LLC (2005 to 2009) Chief Executive Officer of Rydex Specialized Products, LLC (2005 to 2008); Chief Executive Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to 2009)



Michael P. Byrum*	Rydex Series Funds – 2005	151
Trustee, Vice President	Rydex Variable Trust – 2005
(1970)	Rydex Dynamic Funds – 2005
	Rydex ETF Trust – 2005

Principal Occupations During Past Five Years: Chief Investment Officer of Rydex Investments (2003 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); Vice President of Rydex Series Funds (1997 to present); Vice President of Rydex Variable Trust (1998 to present); Vice President of Rydex Dynamic Funds (1999 to present); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2006); President of Rydex Investments (2004 to present)

INDEPENDENT TRUSTEES


	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen

John O. Demaret	Rydex Series Funds – 1997	151
Trustee, Chairman of the	Rydex Variable Trust – 1998
Board (1940)	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003


Principal Occupations During Past Five Years: Retired



Corey A. Colehour	Rydex Series Funds – 1993	151
Trustee (1945)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003

Principal Occupations During Past Five Years: Retired (2006 to present); Owner and President of Schield Management Company, registered investment adviser (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment adviser (1985 to 2005)



J. Kenneth Dalton	Rydex Series Funds – 1995	151
Trustee (1941)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003

Principal Occupations During Past Five Years: Mortgage Banking Consultant and Investor, The Dalton Group

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)


	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen

Werner E. Keller	Rydex Series Funds – 2005	151
Trustee (1940)	Rydex Variable Trust – 2005
	Rydex Dynamic Funds – 2005
	Rydex ETF Trust – 2005

Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001)



Thomas F. Lydon, Jr.	Rydex Series Funds – 2005	151
Trustee (1960)	Rydex Variable Trust – 2005
	Rydex Dynamic Funds – 2005
	Rydex ETF Trust – 2005

Principal Occupations During Past Five Years: President, Global Trends Investments



Patrick T. McCarville	Rydex Series Funds – 1997	151
Trustee (1942)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003

Principal Occupations During Past Five Years: Founder and Chief Executive Officer, Par Industries, Inc.



Roger Somers	Rydex Series Funds – 1993	151
Trustee (1944)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003

Principal Occupations During Past Five Years: Owner, Arrow Limousine

EXECUTIVE OFFICERS


Name, Position and		Principal Occupations
Year of Birth		During Past Five Years

Nick Bonos* Vice President and Treasurer (1963)		Chief Financial Officer of Rydex Specialized Products, LLC (2005 to present); Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Investments (2003 to present); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006)

Joanna M. Haigney* Chief Compliance Officer and Secretary (1966)		Chief Compliance Officer of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2004 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Vice President of Compliance of Rydex Investments (2000 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006)

Joseph Arruda* Assistant Treasurer (1966)		Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Director of Accounting of Rydex Investments (2003 to 2004)

Paula Billos* Controller (1974)		Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006 to present); Director of Fund Administration of Rydex Investments (2001 to present)



*		Officers of the Funds are deemed to be “interested persons” of the Trust, within the meaning of Section 2(a)(19) of the 1940 Act, inasmuch as this person is affiliated with Rydex Investments.

THE RYDEX DYNAMIC FUNDS SEMI-ANNUAL REPORT

Item 2. Code of Ethics.

Not applicable at this time.

Item 3. Audit Committee Financial Expert.

Not applicable at this time.

Item 4. Principal Accountant Fees and Services.

Not applicable at this time.

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.

Not applicable.

Item 11. Controls and Procedures.

(a) Based on their evaluation on September 4, 2009, the Vice President (principal executive officer) and the Treasurer (principal financial officer) of the Rydex Dynamic Funds (the “Trust”) believe that there were no significant deficiencies in the design or operation of the internal controls of the Trust or Rydex Investments (“RI”), the investment advisor and manager of the Trust, or Rydex Distributors, Inc. (“RD”), which acts as distributor for the Trust, including

disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) which would have adversely affected the ability of the Trust or RI on behalf of the Trust, to record, process, summarize, and report the subject matter contained in this Report.

There was no fraud, whether or not material, involving officers or employees of RI, RD or the Trust who have a significant role in the Trust’s internal controls, including disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) that has come to the attention of the Advisor or the officers of the Trust, including its Vice President and Treasurer.

(b) There were no significant changes in the Trust’s or RI’s internal controls over financial reporting, (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of 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. Exhibits.

(a)(2) Separate certifications by the Vice 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.

(b) A certification by the registrant’s Vice 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.

EX.-12(a)(2)(i)

CERTIFICATION

I, Michael P. Byrum, certify that:

1. I have reviewed this report on Form N-CSR of Rydex Dynamic Funds;

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:

	(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;

	(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;

	(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

EX.-12(a)(2)(ii)

CERTIFICATION

I, Nick Bonos, certify that:

1. I have reviewed this report on Form N-CSR of Rydex Dynamic Funds;

	(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;

	(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;

	(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

	(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

	(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: September 4, 2009
	/s/ Michael P. Byrum
	Michael P. Byrum,
	Vice President


Date: September 4, 2009
	/s/ Nick Bonos
	Nick Bonos,
	Vice President and Treasurer

	1.		The Form N-CSR of the Trust (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

	2.		The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust.


By (Signature and Title)*		/s/ Michael P. Byrum

		Michael P. Byrum, Vice President


By (Signature and Title)*		/s/ Nick Bonos

		Nick Bonos, Vice President and Treasurer