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February 2016 State Street Global Advisors SPDR ® ETFs Chart Pack Investment Professional Use Only — Not for use with the Public. All the information contained in this presentation is as of date Indicated unless otherwise noted.
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February 2016
State Street Global
Advisors SPDR® ETFs Chart Pack
Investment Professional Use Only — Not for use with the Public. All the information contained in this presentation is as of date Indicated unless otherwise noted.
State Street Investor Confidence — Investor Sentiment Continued to Move Lower, a Trend that Began During the Middle of 2015
127.1
108.8
70
80
90
100
110
120
130
140
150
STT
Co
nfi
de
nce
Ind
ex
Leve
l
State Street Investor Confidence Index 1 Year Moving Average
Source: Bloomberg LP. As of January 29, 2016 State Street Confidence Indexes Measures investor confidence or risk appetite quantitatively by analyzing the actual buying and selling patterns of institutional investors. The index assigns a precise meaning to changes in investor risk appetite: the greater the percentage allocation to equities, the higher risk appetite or confidence. A reading of 100 is neutral; it is the level at which investors are neither increasing nor decreasing their long-term allocations to risky assets. Past performance is not a guarantee of future results.
State Street Investor Confidence Index
2
Market Volatility — One Potential Reason for the Negative Sentiment has been the Continued Decline in Energy Prices, as Equities have Moved in Lockstep
Source: Bloomberg LP. As of January 29, 2016 . Past performance is not a guarantee of future results Index returns are unmanaged and do not reflect the deduction of any fees or expenses. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income.
Brent Crude vs. S&P 500 Index Rolling 3 Month Average Correlation
3
0.88
-0.6
-0.4
-0.2
0.0
0.2
0.4
0.6
0.8
1.0
20
25
30
35
40
45
50
55
1,800
1,850
1,900
1,950
2,000
2,050
2,100
2,150
Spo
t P
rice
of
Bre
nt
Cru
de
S&P
50
0 In
de
x Le
vel
S&P 500 Index Brent Crude
Brent Crude vs. S&P 500 Index Since Q3 of 2015
Market Volatility — Market Volatility Remains Below 2015 Peaks. However, as Oil Volatility has Crept Higher, so have Volatility Levels in the US and the Eurozone
45
75
105
135
165
195
225
Ind
ex
Leve
l (B
ase
= 1
00
)
CBOE S&P 500 Volatility Index EURO STOXX 50 Volatility Index CBOE/NYMEX Oil Volatility Index
Source: Bloomberg LP. As of January 29, 2016 . Past performance is not a guarantee of future results Index returns are unmanaged and do not reflect the deduction of any fees or expenses. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income.
Measures of Market Volatility
4
Asset Class Performance — With Volatility High, Risk Aversion was Equally as High, and Returns Favored Treasuries and Gold over Traditional Risk Assets
Source: Bloomberg LP. As of January 29, 2016 Past performance is not a guarantee of future results. Index returns are unmanaged and do not reflect the deduction of any fees or expenses. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income. Performance returns for periods of less than one year are not annualized.
5
-5.0
-7.2
-8.8
-6.5
2.1 1.4
-1.5
5.4
-1.7
-6.2
-9.8 -10.6
-12.2
1.5 0.8
-6.0
-2.1
-11.7
-5.0
-7.2
-8.8
-6.5
2.1 1.4
-1.5
5.4
-1.7
S&P 500 Index MSCI EAFE Index Russell 2000 Index MSCI EmergingMarkets Index
Bloomberg USTreasury Index
Barclays USAggregate Index
Bloomberg US HighYield Index
Gold Spot BloombergCommodity Index
US Large Cap Developed US Small Cap EM Treasuries Aggregate High Yield Gold Broad Commodities
Prior Month Trailing 3 Month Year to Date
Asset Class Performance (Total Return %)
Global Equity Factors — With Markets In Turmoil, Returns Favored Low Volatility, Quality and Income Producing Exposures
6
Source: Bloomberg LP. As of January 29, 2016 Past performance is not a guarantee of future results. MSCI World Minimum Volatility Index, MSCI World Value Weighted Index, MSCI World Quality Index, MSCI World Equal Weighted Index, MSCI World High Dividend Yield Index, and MSCI World Momentum Index were used above compared to the MSCI World Index. Index returns are unmanaged and do not reflect the deduction of any fees or expenses. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income. The calculation method for value added returns may show rounding differences. Performance returns for periods of less than one year are not annualized.
MSCI World Factor Index Returns versus MSCI World Index
94
96
98
100
102
104
106
108
110
112
Ind
ex
Leve
l (B
ase
10
0)
Value Min. Vol. Quality Size Yield Momentum
4.29%
1.75%
1.72%
3.36%
-0.70%
0.22%
7.0%
5.9%
5.9%
2.0%
-2.1%
-3.3%
Min. Vol
Momentum
Quality
Yield
Size
Value
January 1 Year
Period Excess Returns versus MSCI World Index
6
35
6
10
14
4
18
6
8
30
10
8
18
4
14
6
2
-5
4
-3
4
0
-4
0
-7.0
-2.0
3.0
8.0
13.0
18.0
23.0
28.0
33.0
38.0
U.S. Equity InternationalEquity
Global RealEstate
High Yield Fixed Income InflationLinked Bonds
Cash U.S. SectorEquity
%
December January Change
Source: State Street Global Advisors As of January 29, 2016 Exposures are as of the date indicated, are subject to change, and should not be relied upon as current thereafter.
SSGA Tactical Asset Allocation — With Risk Elevated SSGA Rotated Out of International Equities and High Yield, In Favor of Real Estate and IG Fixed Income
SPDR SSGA Global Allocation ETF [GAL] Exposure and Changes
7
December January
January Sector Rotation Positions
Consumer Discretionary
Technology
Health Care
Consumer Discretionary
Technology
Health Care
Sector positions are included based on their relative valuation, momentum and earnings sentiment
January Tactical Rebalance Trades: Bought Real Estate Bought Aggregate Fixed Income Bought US Large Cap Sold High Yield Sold Europe and Asia Pac Equities Sold Cash
ETF Flows —Investors Positioned More Conservatively on January than in the Last Twelve Months by Allocating More Towards Fixed Income Than Equities
Source: State Street Global Advisors, Bloomberg LP, As of January 29, 2016 Sectors, asset classes and flows are as of the date indicated, are subject to change, and should not be relied upon as current thereafter.
Equity Flows By Region ($ billions) Flows by Asset Class ($ billions)
8
(16)
13
170
69
Equity Fixed Income
Prior Month ($M) Trailing 12 Month ($M)
(13)
(0.1) (1) (1.1)
0.1
(1.1)
67
5
39 36
15 8
U.S. Global CurrencyHedged
International -Broad
International -Region
International -Single Country
Prior Month ($M) Trailing 12 Month ($M)
249 271
11,393
2,493
Investment Grade High YieldPrior Month ($M) Trailing 12 Month ($M)
Corporate Flows by Credit Rating ($ millions)
9
Sector Flows — Investors Favored Defensive Sectors Such as Staples, Real Estate, and Utilities. Inflows into Energy Coincided With an Uptick in Short Interest
Source: State Street Global Advisors, Bloomberg LP. As of January 29, 2016 . Sectors, asset classes and flows are as of the date indicated, are subject to change, and should not be relied upon as current thereafter.
Prior
Month ($M) Year to
Date ($M) Trailing 12
Month ($M) Current
AUM ($M) Current Short
Interest % 1M Prior Short
Interest %
Telecommunications (10) (10) (1) 1,991 1% 3%
Consumer Discretionary (1,793) (1,793) 1,835 20,271 16% 14%
Consumer Staples 661 661 (318) 17,152 9% 9%
Energy 1,075 1,075 9,637 31,546 15% 13%
Financial (2,460) (2,460) 1,376 32,108 15% 10%
Health Care (721) (721) 4,486 42,901 22% 17%
Industrials (316) (316) (4,140) 10,608 20% 16%
Materials 55 55 (357) 11,677 18% 16%
Technology (2,682) (2,682) 684 36,872 6% 5%
Real Estate 701 701 1,141 52,762 8% 9%
Utilities 916 916 (3,277) 10,017 20% 20%
6.3 7.2 5.6
-9.9 -5.8
-1.9 -3.1 -2.6
-24.7
28.1
-78.6
13.1 9.2 8.3
5.7 5.0 5.0 4.8 3.6 3.0 2.5
-42.8
ConsumerDiscretionary
Health Care Financials Industrials S&P 500 ConsumerStaples
Technology Utilities Materials Telecom Energy
Q4 Earnings Growth 2016 Earnings Growth
Sector Fundamental — Earnings Growth Appears Mixed for Q4 and 2016, With Certain Sectors Forecasted to Post Below Market Growth1
1 EPS estimates based on consensus earnings forecasts from analysts polled by FactSet as of As of January 29, 2016 Estimated Earnings Per Share should not be construed as an indication of the current or future profitability of any investment product. Source: Bloomberg, FactSet, State Street Global Advisors. As of December 31, 2015. Past performance is not a guarantee of future results. Index returns are unmanaged and do not reflect the deduction of any fees or expenses. Index returns reflect all items of income, gain and loss and the reinvestment of dividends net of withholding taxes and other income.
10
S&P 500 GICS Sector Earnings Growth Forecasts (%)
Equity Fundamental — Leverage has Increased for Both Large and Small Cap Firms in the US, and Return on Equity for EM is Barely Above That of Developed
Source: Bloomberg, State Street Global Advisors. As of January 29, 2016 Past performance is not a guarantee of future results. Index returns are unmanaged and do not reflect the deduction of any fees or expenses. Index returns reflect all items of income, gain and loss and the reinvestment of dividends net of withholding taxes and other income.
11
4.2
2.3
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
5.50
Russell 2000 Index Russell 1000 Index
Net Debt to EBITDA for US Equity Markets
8.8
10.9
0
5
10
15
20
25
MSCI EAFE Index MSCI Emerging Markets Index
Return on Equity for International Markets
Macroeconomic — Even as the Probability of Future Fed Rate Hikes Declines1, Global Interest Rates Continue to Diverge, Pushing the Dollar Higher
1Bloomberg, as measured by the Fed Funds Future Market Source: Bloomberg LP. As of January 29, 2016 Past performance is not a guarantee of future results. Index returns are unmanaged and do not reflect the deduction of any fees or expenses. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income
12
Short Term Global Interest Rate Differences versus the US Dollar
60
65
70
75
80
85
90
95
100
105
110
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
US
Do
llar
Spo
t R
ate
Yie
ld D
iffe
ren
ces
(%)
Dollar Spot Index US Generic Govt 2 Year Yield - UK Govt Bonds 2 Year Note Yield US Generic Govt 2 Year Yield - German Govt Bonds 2 Year Note Yield
Rates —As Markets Were in a Risk Off Mode Last Month , the Curve Shifted Lower and Flattened
Source: Bloomberg LPAs of January 29, 2016 . Past performance is not a guarantee of future results. The Actives curve is comprised of US dollar-denominated US Treasury active/securities. The 1-month, 3-month, 6-month and 1-year maturities are the most recently auctioned 4-week, 13-week, 26-week, and 1-year US Treasury bills. The 2-year, 3-year, 5-year, 7-year, and 10-year maturities are the most recently auctioned US Treasury notes. The 30-year maturity is the most recently auctioned 30-year US Treasury bond. The curve is updated on each auction day.
10 15
-5 -15
-27 -34
-43 -42 -35 -27
21 31
38 31 32
23 17 21 28
52
-60
-40
-20
0
20
40
60
1M 3M 6M 1Y 2Y 3Y 5Y 7Y 10Y 30Y
Bas
is P
oin
ts
1 Month Change 1 Year Change
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
1M 3M 6M 1Y 2Y 3Y 5Y 7Y 10Y 30Y
Yie
ld
US Treasury Actives Curve 01/29/16 US Treasury Actives Curve 12/31/15 US Treasury Actives Curve 01/31/15
13
Active US Treasury Curve
Credit — Over the Last Year, Spreads on CCC-Rated Issues have Widened Nearly Six Times as Much as the Upper tiered BB-rated Issues
Source: St. Louis Federal Reserve, Bloomberg, State Street Global Advisors. As of January 29, 2016 Past performance is not a guarantee of future results. Index returns are unmanaged and do not reflect the deduction of any fees or expenses. Index returns reflect all items of income, gain and loss and the reinvestment of dividends net of withholding taxes and other income.
14
1,863
1,597
777
787
486
202
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Cre
dit
Sp
read
s (B
ps)
BofA Merrill Lynch US High Yield CCC or Below Rated Bloomberg USD High Yield Corporate Bond Index EnergyBofA Merrill Lynch US High Yield Master II Index BofA Merrill Lynch US High Yield B RatedBofA Merrill Lynch US High Yield BB Rated BofA Merrill Lynch US Corporate Master Index
High Yield Spread Changes
894
654
273
254
156
58
BofA Merrill LynchUS High Yield CCC
or Below Rated
Bloomberg USDHigh Yield
Corporate BondIndex Energy
BofA Merrill LynchUS High Yield
Master II Index
BofA Merrill LynchUS High Yield B
Rated
BofA Merrill LynchUS High Yield BB
Rated
BofA Merrill LynchUS CorporateMaster Index
Spread Change (Bps)
Product Highlights – SPDR S&P Dividend ETF
15
Source: Bloomberg, SSGA. As of January 29, 2016 1 The term "Taper Tantrum" refers to the surge in US treasury yields (global government bond yields as well), in the spring and summer of 2013 when then-Fed Chairman Ben Bernanke put a spotlight on the wind down of Fed asset purchases (tapering off QE). Performance quoted represents past performance, which is no guarantee of future results. It is not possible to invest directly in an index. Index performance does not reflect charges and expenses associated with the fund or brokerage commissions associated with buying and selling a fund. Index performance is not meant to represent that of any particular fund. Characteristics are as of the date indicated, are subject to change, and should not be relied upon as current thereafter. EPS estimates based on consensus earnings forecasts from analysts and compiled by Bloomberg . Estimated Earnings Per Share (EPS), which are based on analyst estimates, should not be construed as an indication of the current or future profitability of any investment product. Actual earnings per share may differ, even substantially, from that of estimated earnings per share.
SDY
Total Return During Taper Tantrum (5/2013 - 08/2013)
Focus on Growers, Not Yielders In a Rising Rate Environment Balance Sheet Fundamentals Potential for Higher Quality Balance Sheets
SDY DVY HDV
SPDR S&P Dividend ETF
iShares Select Dividend ETF
iShares High Dividend ETF
Sustainability & Growth
Min. # Years of Increasing Dividends
20 5 0
Trailing 12 Month EPS Growth
1.4% -4.3% -0.4%
Consensus Analyst 3-5 Year EPS Growth
Estimates 7.6% 6.7% 5.6%
Return on Equity 29% 34% 37%
Financial Leverage
Debt to Equity 233% 368% 254%
Current Ratio (Total Assets/Total Liabilities)
1.35 1.14 1.29
Energy Exposure
% of Portfolio allocated to Energy
3.6% 9.1% 20.7%
• SDY’s index screens for firms that have consistently increased their dividend for at least 20 consecutive years, and these firms tend to have higher quality balance sheets which may provide downside protection in turbulent markets
• Additionally, as shown by the movements in the US 10 Year yield during the Taper Tantrum1, dividend growers may be a more optimal dividend exposure than high dividend yielders if the Fed proceeds with their gradual pace of rate hikes
1.10%
-1.73%
S&P High Yield Dividend AristocratsIndex(Dividend Growth)
Morningstar Dividend Yield Focus Index(Dividend Yield)
16
• Despite the sluggish headline growth and declining equity markets, investors should not overlook the resiliency of the U.S. consumer and housing markets, which may continue to benefit from the 51% decline in gas prices since the middle of 20141
• In addition to the exposure to new home construction firms, XHB also has more than 65%2 allocated to household discretionary sub-industries, which is important as existing home sales make up approximately 90% of all home sales3
1 Decline in the Daily National Average Gasoline Price from June 2014 to January 2016
2 As of January 29, 2016 3 National Association of Realtors. Source: Bloomberg,, State Street Global Advisors As of January, 2016. Past performance is not a guarantee of future results. It is not possible to invest directly in an index. Index performance does not reflect charges and expenses associated with the fund or brokerage commissions associated with buying and selling a fund. Index performance is not meant to represent that of any particular fund.
Homebuilder Sentiment and Contribution to GDP Housing Conditions Continue to Improve
Employment and Housing Indicators Labor and Housing Markets are Improving
0
10
20
30
40
50
60
70
2.4
2.6
2.8
3.0
3.2
3.4
3.6
Ho
me
bu
ilde
r In
de
x Le
vels
Re
sid
en
tial
Fix
ed
In
vest
me
nt
% o
f G
DP
Residential Fixed Investment % of GDP
National Association of Home Builders Market Index (Sentiment)NAHB Remodeling Current Maket Conditions Index
Product Highlights – SPDR S&P Homebuilders ETF XHB
4.0
4.2
4.4
4.6
4.8
5.0
5.2
5.4
5.6
5.8
6.0
110
112
114
116
118
120
122
124
Ho
use
ho
ld F
orm
atio
n (
M)
US Full Time Employment (M) - Rolling 12mth averageNew and Existing Home Sales (M) - Rolling 12mth average
Product Highlights – SPDR DoubleLine Total Return Tactical ETF
17
• With uncertainty over the path of interest rates remaining high and difficult for investors to predict, an actively managed core fixed income strategy may play a critical role in a portfolio by seeking to provide stability, diversification and income
• With TOTL, investors can rely on DoubleLine Capital’s expertise to navigate an uncertain macro environment by allocating across multiple bond subsectors and applying individual security selection to potentially deliver improved risk-adjusted returns
Source: SSGA, Barclays, Bloomberg. As of January 29, 2016. TOTL Inception Date = 2/23/2015 1 An annualized yield that is calculated by dividing the investment income earned by the fund less expenses over the most recent 30-day period by the current maximum offering price that does not take into account expense ratio subsidizations. * 30 Day SEC Yield as of January 29, 2016, The subsidized yield reflects the yield calculation with expense limitations currently in effect. Without the limitation returns would have been lower. , ** Since inception cumulative total return as 2/23/2015 ***Standard Deviation of daily returns since 2/23/2015. Performance quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted. All results are historical and assume the reinvestment of dividends and capital gains. Visit www.spdrs.com for most recent month-end performance. It is not possible to invest directly in an index. Index performance does not reflect charges and expenses associated with the fund or brokerage commissions associated with buying and selling a fund. Index performance is not meant to represent that of any particular funds. Characteristics and Sector Weights are as of the date indicated, are subject to change, and should not be relied upon as current thereafter. Standard deviation is a historical measure of the volatility of returns. If a portfolio has a high standard deviation, its returns have been volatile; a low standard deviation indicates returns have been less volatile.Standard Deviation is normally shown over a time period of 36 months, but the illustrations noted in this material may reflect a shorter time frame. This may not depict a true historical measure, and shouldn’t be relied upon as an accurate assessment of volatility.
Yield, Duration, Return, and Standard Deviation TOTL has a Higher Yield, Lower Duration, and Lower Volatility than the Agg
3.04
4.30
0.63
2.35 2.38
5.50
0.76
3.35
Yield (%)* Duration Return (%)** Standard Deviation(%)***
TOTL Barclays U.S. Aggegate Bond Index
TOTL
Sector Allocations (%)
TOTL Balances Interest Rate and Non-Traditional Credit Sensitive Sectors
35.2
12.5
16.7
6.3 7.9 5.8 5.4
4.1 2.7 2.5
0.1 0.8
28.6
2.0
36.8
1.8
23.6
0.5
6.7
TOTL Barclays U.S. Aggregate Bond Index
TOTL Unsubsidized Yield 2.93
TOTL Subsidized Yield1 3.04
Appendix A: Fixed Income ETF Information and Performance
18
Source: State Street Global Advisors As of January 29, 2016 . Performance quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted. Visit spdrs.com for most recent month-end performance. The gross expense ratio is the fund’s total annual operating expenses ratio. It is gross of any fee waivers or expense reimbursements. It can be found in the fund’s most recent prospectus. Performance returns for periods of less than one year are not annualized. The market price used to calculate the Market Value return is the midpoint between the highest bid and the lowest offer on the exchange on which the shares of the Fund are listed for trading, as of the time that the Fund's NAV is calculated. If you trade your shares at another time, your return may differ. ^ SSGA Funds Management, Inc. (“SSGA FM” or “Adviser”) has contractually agreed to waive its advisory fee and/or reimburse certain expenses, until October 31, 2016, so that the net annual fund operating expenses of the Fund will be limited to 0.55% of the Fund’s average daily net assets before application of any extraordinary expenses or acquired fund fees and expenses. The contractual fee waiver and/or reimbursement does not provide for the recoupment by the Adviser of any fees the Adviser previously waived. The Adviser may continue the waiver and/or reimbursement from year to year, but there is no guarantee that the Adviser will do so and after October 31, 2016, the waiver and/ or reimbursement may be cancelled or modified at any time. This waiver and/or reimbursement may not be terminated during the relevant period except with the approval of the Fund’s Board of Trustees.
Standard Performance Annualized Annualized Annualized Annualized
QTD YTD 1 Year 3 Year 5 Year 10 Year Since
Inception Inception
Date
Gross Expense
Ratio Net Expense
Ratio^
TOTL (NAV) SPDR® DoubleLine Total Return Tact ETF (0.70) — — — — — (0.24) 2/23/2015 0.65 0.55
Market Value (0.85) — — — — — (0.28) 2/23/2015 0.65 0.55
Appendix B: Sector and Industry Information
19
Source: FactSet. As of January 29, 2016 Past performance is not a guarantee of future results. Characteristics are as of the date indicated, are subject to change, and should not be relied upon as current thereafter. Estimated Earnings Per Share (EPS), which are based on a consensus of analyst estimates, should not be construed as an indication of the current or future profitability of any investment product. Actual earnings per share may differ, even substantially, from that of estimated earnings per share.
Fundamental Valuations International Exposure Macro Sensitivies
ETF ETF Name
Price to Earnings
(FY1) Return on
Equity Debt to
Equity (%)
EST 1 Year EPS
Growth
EST 3-5 Years EPS Growth
% of Foreign Assets
% of Foreign
Sales
US $ Sensitivity (36 Mth)
Beta to EAFE FX
Index (36M)
Beta to EM FX Index
(36M)
US 10 Year Yield
Sensitivity (36 Mth)
US 10 Year - 2 Year
Yield Sensitivity (36 Mth)
Brent Crude Oil
Sensitivity (36 Mth)
Industry
KCE SPDR S&P Capital Markets ETF 12.9 17.7 97 9.7 10.9 6.5 18.7 -0.11 0.04 1.25 0.18 0.24 0.20
KIE SPDR S&P Insurance ETF 11.2 11.2 38 -0.4 7.5 6.6 24.4 -0.36 0.36 1.12 0.07 0.15 0.12
KBE SPDR S&P Bank ETF 11.6 9.8 98 9.3 10.0 12.2 18.0 -0.31 0.22 0.86 0.22 0.33 0.22
XME SPDR S&P Metals & Mining ETF 18.6 -5.3 72 -11.3 4.6 16.2 40.3 -1.39 1.57 2.29 0.22 0.33 0.37
KRE SPDR S&P Regional Banking ETF 11.9 8.5 85 10.4 9.2 11.2 11.1 -0.31 0.24 0.83 0.23 0.33 0.21
XTN SPDR S&P Transportation ETF 11.0 23.5 162 9.6 16.8 6.7 14.1 -0.02 -0.16 0.70 0.09 0.12 0.13
XTL SPDR S&P Telecom ETF 14.5 6.5 1,753 2.9 12.9 5.9 31.9 -0.44 0.54 1.08 0.15 0.06 0.17
XRT SPDR S&P Retail ETF 15.1 17.1 102 3.7 10.7 4.9 15.6 -0.32 0.23 0.89 0.08 0.16 0.06
XPH SPDR S&P Pharmaceuticals ETF 15.3 4.1 118 9.8 11.7 2.7 31.3 0.32 -0.06 0.81 0.01 -0.01 0.08
XOP SPDR S&P Oil & Gas Exploration & Production ETF 18.9 11.6 94 -71.3 2.1 11.2 13.6 -1.04 1.42 2.87 0.20 0.37 0.47
XES SPDR S&P Oil & Gas Equipment & Services ETF 8.8 4.4 53 -52.1 -12.7 26.5 44.8 -1.83 2.27 2.54 0.29 0.50 0.57
XSW SPDR S&P Software & Services ETF 20.8 4.3 104 8.2 17.7 5.1 32.3 -0.26 0.33 1.03 0.15 0.23 0.20
XHS SPDR S&P Health Care Services ETF 17.2 11.4 156 14.3 14.8 6.2 9.7 0.18 -0.22 0.51 0.12 0.17 0.09
XHE SPDR S&P Health Care Equipment ETF 22.2 5.3 61 9.8 13.3 7.5 40.5 0.29 -0.26 0.32 0.04 0.02 0.00
XAR SPDR S&P Aerospace & Defense ETF 15.2 17.9 182 4.2 12.4 4.2 27.0 -0.07 0.10 0.85 0.09 0.16 0.12
XSD SPDR S&P Semiconductor ETF 17.9 11.2 37 -2.5 12.6 10.3 78.2 -0.09 0.10 1.27 0.13 0.13 0.20
XBI SPDR S&P Biotech ETF 16.6 -12.5 53 6.1 27.6 2.3 17.1 0.82 -0.46 0.53 -0.02 -0.10 0.03
XHB SPDR S&P Homebuilders ETF 14.5 20.4 487 18.8 17.2 12.5 28.0 0.04 -0.01 0.67 0.00 0.04 0.02
Sector
XLU Utilities Select Sector SPDR Fund 16.6 10.1 138 5.2 4.9 1.9 3.7 -0.19 0.33 0.72 -0.27 -0.35 -0.15
XLRE Real Estate Select Sector SPDR Fund 16.1 19.0 130 5.9 10.2 11.9 41.0 -0.30 0.33 1.08 0.04 0.08 0.13
XLFS Financial Services Select Sector SPDR Fund 38.4 15.0 185 5.9 7.2 5.5 13.4 0.09 0.19 1.07 -0.29 -0.38 -0.14
XLF Financial Select Sector SPDR Fund 13.1 11.1 137 8.0 10.4 7.4 20.8 -0.20 0.11 0.87 0.10 0.13 0.11
XLE Energy Select Sector SPDR Fund 21.2 10.0 64 -46.3 -3.8 31.8 44.8 -0.81 1.02 2.17 0.14 0.22 0.30
XLY Consumer Discretionary Select Sector SPDR Fund 18.7 25.5 115 9.7 16.5 8.4 26.4 -0.33 0.37 1.12 0.06 0.14 0.14
XLP Consumer Staples Select Sector SPDR Fund 21.1 19.0 247 5.5 7.8 21.4 46.6 -0.16 0.15 0.87 -0.05 -0.02 0.04
XLV Health Care Select Sector SPDR Fund 15.3 20.4 94 9.1 11.3 5.7 39.7 -0.05 0.13 0.90 0.00 0.04 0.06
XLK Technology Select Sector SPDR Fund 15.9 22.2 89 4.7 12.1 4.2 59.0 -0.40 0.46 1.09 0.07 0.09 0.19
XLI Industrial Select Sector SPDR Fund 14.7 23.6 197 5.3 10.0 8.9 34.7 -0.28 0.26 1.08 0.07 0.13 0.13
XLB Materials Select Sector SPDR Fund 15.1 20.8 153 6.2 9.9 20.5 53.2 -0.46 0.63 1.73 0.09 0.13 0.25
Core
SPY SPDR S&P500 ETF Trust 11.4 10.2 126 8.3 11.3 8.1 23.4 -0.27 0.09 0.83 0.18 0.24 0.17
Important Disclosures
Investment Professional Use Only — Not for Use with the Public
The views expressed in this material are the views of State Street Global Advisors IBG Research Team through the period ended December 31, 2015 and are subject to change based on market and other conditions. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.
The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor. All material has been obtained from sources believed to be reliable. There is no representation or warranty as to the accuracy of the information and State Street shall have no liability for decisions based on such information.
In general, ETFs can be expected to move up or down in value with the value of the applicable index. Although ETF shares may be bought and sold on the exchange through any brokerage account, ETF shares are not individually redeemable from the Fund. Investors may acquire ETFs and tender them for redemption through the Fund in Creation Unit Aggregations only. Please see the prospectus for more details.
Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates rise, bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.
Passively managed funds invest by sampling the Index, holding a range of securities that, in the aggregate, approximates the full Index in terms of key risk factors and other characteristics which may cause the fund to experience tracking errors relative to performance of the Index.
Risk associated with equity investing include stock values which may fluctuate in response to the activities of individual companies and general market and economic conditions.
Foreign investments involve greater risks than US investments, including political and economic risks and the risk of currency fluctuations, all of which may be magnified in emerging markets. Diversification does not ensure a profit or guarantee against loss.
Non-diversified funds that focus on a relatively small number of securities tend to be more volatile than diversified funds and the market as a whole.
Increase in real interest rates can cause the price of inflation-protected debt securities to decrease. Interest payments on inflation-protected debt securities can be unpredictable.
Investments in asset backed and mortgage backed securities are subject to prepayment risk which can limit the potential for gain during a declining interest rate environment and increases the potential for loss in a rising interest rate environment.
Asset Allocation is a method of diversification which positions assets among major investment categories. Asset Allocation may be used in an effort to manage risk and enhance returns. It does not, however, guarantee a profit or protect against loss.
Government bonds and corporate bonds generally have more moderate short-term price fluctuations than stocks, but provide lower potential long-term returns.
Actively managed funds do not seek to replicate the performance of a specified index. An actively managed fund may underperform its benchmark. An investment in the fund is not appropriate for all investors and is not intended to be a complete investment program. Investing in the fund involves risks, including the risk that investors may receive little or no return on the investment or that investors may lose part or even all of the investment.
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Important Disclosures (continued)
Because of their narrow focus, sector investing tends to be more volatile than investments that diversify across many sectors and companies.
Select Sector SPDR Funds bear a higher level of risk than more broadly diversified funds. All ETFs are subject to risk, including the possible loss of principal. Sector ETFs products are also subject to sector risk and non-diversification risk, which generally results in greater price fluctuations than the overall market.
Risks associated with investing in the natural resources sector include; large price volatility due to non-diversification and concentration in natural resources companies.
Investments in Small/Mid-sized companies may involve greater risks than in those of larger, better known companies.
Investments in Senior Loans are subject to credit risk and general investment risk. Credit risk refers to the possibility that the borrower of a Senior Loan will be unable and/or unwilling to make timely interest payments and/or repay the principal on its obligation. Default in the payment of interest or principal on a Senior Loan will result in a reduction in the value of the Senior Loan and consequently a reduction in the value of the Portfolio's investments and a potential decrease in the net asset value ("NAV") of the Portfolio.
These investments may have difficulty in liquidating an investment position without taking a significant discount from current market value, which can be a significant problem with certain lightly traded securities.
Securities with floating or variable interest rates may decline in value if their coupon rates do not keep pace with comparable market interest rates. Narrowly focused investments typically exhibit higher volatility and are subject to greater geographic or asset class risk. The Fund is subject to credit risk, which refers to the possibility that the debt issuers will not be able to make principal and interest payments.
Commodities investing entail significant risk as commodity prices can be extremely volatile due to wide range of factors Bond funds contain interest rate risk (as interest rates rise bond prices usually fall); the risk of issuer default; issuer credit risk; liquidity risk; and inflation risk.
Investing in REITs involves certain distinct risks in addition to those risks associated with investing in the real estate industry in general. Equity REITs may be affected by changes in the value of the underlying property owned by the REITs, while mortgage REITs may be affected by the quality of credit extended. REITs are subject to heavy cash flow dependency, default by borrowers and self-liquidation. REITs, especially mortgage REITs, are also subject to interest rate risk (i.e., as interest rates rise, the value of the REIT may decline).
Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.
The values of debt securities may decrease as a result of many factors, including, by way of example, general market fluctuations; increases in interest rates; actual or perceived inability or unwillingness of issuers, guarantors or liquidity providers to make scheduled principal or interest payments; illiquidity in debt securities markets; and prepayments of principal, which often must be reinvested in obligations paying interest at lower rates.
All the index performance results referred to are provided exclusively for comparison purposes only. It should not be assumed that they represent the performance of any particular investment.
SSGA uses quantitative models in an effort to enhance returns and manage risk. While SSGA expects these models to perform as expected, deviation between the forecasts and the actual events can result in either no advantage or in results opposite to those desired by SSGA. In particular, these models may draw from unique historical data that may not predict future trades or market performance adequately. There can be no assurance that the models will behave as expected in all market conditions. In addition, computer programming used to create quantitative models, or the data on which such models operate, might contain one or more errors. Such errors might never be detected, or might be detected only after the Portfolio has sustained a loss (or reduced performance) related to such errors. Availability of third-party models could be reduced or eliminated in the future.
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Important Disclosures (continued)
The funds presented herein have different investment objectives, costs and expenses. The performance of each fund will necessarily depend on the ability of their respective managers to select portfolio investments. These differences, among others, may result in significant disparity in the funds' portfolio assets and performance. For further information on the funds, please review their respective prospectuses.
Convertible securities generally provide yields higher than the underlying stocks, but generally lower than comparable non-convertible securities, in exchange for limited upside potential. Issuers of convertible securities may not be as financially strong as those issuing securities with higher credit ratings and may be more vulnerable to changes in the economy. Other risks associated with convertible bond investments include: Call risk which is the risk that bond issuers may repay securities with higher coupon or interest rates before the security’s maturity date; liquidity risk which is the risk that certain types of investments may not be possible to sell the investment at any particular time or at an acceptable price; and investments in derivatives, which can be more sensitive to sudden fluctuations in interest rates or market prices, potential illiquidity of the markets, as well as potential loss of principal.
Value stocks can perform differently from the market as a whole. They can remain undervalued by the market for long periods of time.
Companies with large market capitalizations go in and out of favor based on market and economic conditions. Larger companies tend to be less volatile than companies with smaller market capitalizations. In exchange for this potentially lower risk, the value of the security may not rise as much as companies with smaller market capitalizations.
Investing in high yield fixed income securities, otherwise known as "junk bonds", is considered speculative and involves greater risk of loss of principal and interest than investing in investment grade fixed income securities. These Lower-quality debt securities involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.
Certain funds may contain interest rate risk (as interest rates rise bond prices usually fall); the risk of issuer default; inflation risk; and issuer call risk. The Fund may invest in US dollar-denominated securities of foreign issuers traded in the United States.
Barclays is a trademark of Barclays, Inc. and has been licensed for use in connection with the listing and trading of the SPDR Barclays ETFs. SPDR Barclays ETFs are not sponsored by, endorsed, sold or promoted by Barclays, Inc. and Barclays makes no representation regarding the advisability of investing in them.
The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data.
Standard & Poor’s, S&P and SPDR are registered trademarks of Standard & Poor/s Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain purposes by State Street Corporation. State Street Corporation’s financial products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and third party licensors and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability in relation thereto, including for any errors, omissions, or interruptions of any index.
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Important Disclosures (continued)
Distributor: State Street Global Markets, LLC, member FINRA, SIPC, a wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the SPDR ETFs. ALPS Distributors, Inc., a registered broker-dealer, is distributor for SPDR S&P 500, SPDR S&P MidCap 400 and SPDR Dow Jones Industrial Average, and all unit investment trusts. ALPS Portfolio Solutions Distributor, Inc. is distributor for Select Sector SPDRs. ALPS Distributors, Inc. and ALPS Portfolio Solutions Distributor, Inc. are not affiliated with State Street Global Markets, LLC. State Street Global Markets, LLC is the distributor for all registered products on behalf of the advisor. SSGA Funds Management has retained GSO Capital Partners, & DoubleLine Capital LP as the sub-advisor.
DoubleLine® is a registered trademark of DoubleLine Capital LP.
GSO Capital Partners and DoubleLine Capital LP are not affiliated with State Street Global Markets, LLC.
Before investing, consider the funds' investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 1-866-787-2257 or visit www.spdrs.com. For other fund family prospectuses, please refer to each fund family website. Read it carefully. State Street Global Advisors, One Lincoln Street, Boston, MA 02111-2900.
© 2016 State Street Corporation — All Rights Reserved.
Tracking Code: SR-6839
Expiration Date: 04/20/2016
Not FDIC Insured — No Bank Guarantee — May Lose Value
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