What Is an Exchange Traded Fund (ETF)?
ETFs combine many of the benefits of an index mutual fund with the flexibility of stocks. Like mutual funds, ETFs enable you to invest in a pool of securities in one transaction. And similar to stocks, ETFs are listed on a stock exchange so you purchase them through a brokerage account. ETFs offer stock-like trading features enabling you to trade throughout the day, purchase on margin, use limit and stop orders and even short-sell.
ETFs are subject to risks similar to those of stocks and may not be suitable for
all investors. Investment returns and principal value will fluctuate so that when
shares are redeemed, they may be worth more or less than original cost.
There are special risks associated with margin investing. Investors may be called upon to deposit additional cash or securities if their account value decreases. This strategy may not be suitable for all investors.
Short selling involves increased risks and costs. You risk paying more for a security than you received from its sale. This strategy may not be suitable for all investors.
Securities are not guaranteed by any bank, are not insured by the FDIC or any
other agency, and involve investment risks, including the possible loss of the principal
amount invested.
RydexShares are distributed by Rydex Distributors, Inc., an affiliate of Rydex Investments.
For more complete information regarding Rydex funds, call 800.820.0888 or click here for a prospectus. Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. The fund's prospectus contains this and other information about the fund. Read the prospectus carefully before you invest or send money.
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