SPDR Series Trust
4972020-06-30SPDR®
SERIES TRUST0001064642false2020-10-282020-10-31N-1AANNUAL
TOTAL RETURNS (years ended 12/31)0.17590.16340.27830.04730.15410.26100.06130.17490.34080.15840.30230.00010.03630.16980.01390.09870.01400.24210.16430.09240.20040.13990.37080.13090.14390.22930.06060.06300.06670.30230.21690.15390.22320.26700.05150.28540.27380.07340.25010.15840.01600.00830.05190.00920.00910.06460.01070.12750.00660.02600.03490.07610.25390.06290.22160.00900.04700.09680.06610.05640.29740.07250.01530.03490.14930.11890.01010.01420.00050.05230.18240.28200.00890.13770.12170.10600.11580.09160.04430.05270.32850.14330.16800.13540.17610.20820.07080.57510.06520.00790.02620.08320.03470.00630.00040.15430.03640.15940.06320.11990.01290.18000.11490.16510.22600.03460.16870.15170.17420.20720.14310.13510.22660.02010.26750.03940.14390.18290.17380.20380.17050.01610.03950.16780.16140.11010.08600.11970.17280.15910.32770.37900.23200.00190.60660.40980.06990.27930.01070.06850.01460.32440.52010.31630.33840.42440.02080.50050.01590.41510.05380.05890.42150.58640.20770.47300.12750.37160.36310.30050.39620.00890.05890.03590.33290.01370.34720.47810.00070.27000.01100.01230.36300.00260.05410.25500.09420.45550.33210.26930.00940.32410.48500.33220.12250.44700.14640.31640.02830.04950.13390.07610.04260.03160.25240.01100.07070.00390.16590.34640.12560.00100.04570.11850.00880.12490.30980.09240.15620.00910.07180.13770.16260.25270.24870.01970.00740.07610.10770.09930.01150.16460.02680.05920.02600.05840.03660.11780.12100.33780.07380.02450.00730.06040.29430.16440.05540.29640.04130.04580.07340.13140.00860.03490.01660.00920.01500.02070.03710.35710.01940.06560.01080.01930.20200.03200.06800.02640.00500.12370.01220.02630.08140.07210.08810.00380.00460.00670.04880.01290.03200.08830.00830.06820.01120.04510.03340.10310.00480.00800.02890.07390.00110.01880.36510.02350.00210.01070.00820.50500.00600.01870.06010.07780.04340.04390.04200.05380.13630.03000.08510.10920.15430.06750.06310.10920.21490.11800.13350.15950.21350.04670.12480.23110.00231.06160.00910.05400.29250.01590.11250.28250.30640.00120.09410.17790.02110.12810.00180.10980.00440.31140.20160.12650.08190.01210.34890.03820.10480.21370.03320.14720.00540.30820.01290.06240.02570.22090.26350.17210.26950.14610.00950.14240.10410.38310.02170.26450.24770.23220.04050.25490.18210.12020.21610.15270.00450.03820.12040.12590.13140.03850.09330.06560.05320.01050.19740.21630.15180.12160.14560.03510.31450.02210.10370.10490.06490.04150.32810.16240.01770.07540.08420.17120.30000.15840.11450.01260.19670.12210.05590.21150.01700.17770.27580.00690.05240.21960.17850.01980.25240.05800.00590.20140.31660.15190.30300.20710.03140.12910.17890.08920.40270.21190.15380.24460.03530.35570.27200.43670.22880.23720.03850.04340.14910.00040.08260.04330.09200.11100.03220.07820.05000.05890.08690.01620.11990.14760.00150.07980.25660.26160.01070.17540.06260.02310.01580.00540.47060.06030.19540.01700.08880.07760.01460.05260.00430.07420.03420.01390.12690.02720.09280.02610.01870.18990.00420.02280.04470.08030.03170.04570.19600.00880.15080.00130.04130.11970.08950.15200.17010.10440.01950.00250.02790.28240.03800.08500.04770.00360.06030.10300.04710.32060.25110.12050.10080.21350.22630.10100.09320.13080.09530.06380.26080.21610.25650.31780.25880.20920.08720.27130.06230.29780.17360.14970.14130.39250.22440.06760.27440.14760.18740.22390.23380.24310.03530.23770.23620.07530.31560.36900.05190.26370.35540.02050.30340.23860.08850.31060.03830.14760.64590.35110.62020.03540.14420.41440.26930.33550.07910.26420.08580.09400.39660.27130.30610.38100.32310.25870.22040.22720.36930.31030.32200.32140.29682019-03-312019-03-312019-03-312010-09-302013-03-312019-03-312019-03-312019-03-312016-12-312019-03-312019-03-312019-12-312016-03-312011-12-312016-03-312012-03-312019-03-312019-03-312019-03-312019-03-312019-03-312010-09-302016-03-312019-03-312019-03-312019-03-312019-03-312019-03-312012-03-312019-03-312019-03-312019-03-312019-03-312011-09-302010-03-312019-03-312016-09-302019-03-312011-12-312010-12-312014-03-312019-03-312019-06-302012-03-312019-12-312013-03-312010-06-302019-03-312010-12-312011-12-302010-06-302010-09-302013-12-312016-12-312019-03-312016-12-312019-03-312016-03-312011-09-302019-12-312012-03-312011-09-302014-12-312013-03-312011-12-312011-06-302019-03-312011-09-302011-09-302011-12-312019-03-312010-09-302011-09-302016-12-312011-09-302011-09-302010-12-312018-12-312016-12-312018-12-312018-12-312011-09-302016-12-312011-09-302018-12-312016-12-312015-06-302011-09-302014-09-302011-09-302011-09-302011-09-302018-12-312018-12-312013-06-302011-09-302018-12-312016-12-312011-09-302018-12-312015-09-302011-09-302015-06-302013-06-302018-12-312015-09-302018-12-312018-12-312018-12-312010-09-302011-09-302013-06-302018-12-312018-12-312018-06-302018-12-312019-12-312018-12-312018-12-312018-12-312018-12-312018-12-312018-12-312016-03-312011-09-302018-12-312011-09-302018-12-312013-06-302018-12-312018-12-312011-09-302011-09-302016-12-312018-12-312018-12-312019-09-302018-12-312018-12-312018-12-312018-12-312018-12-312011-09-302011-09-302019-12-312019-03-312013-06-302013-06-30<div 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compact * ~</div><div style="display:none">~
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column period compact * ~</div>As of 9/30/2020, the Fund's Calendar Year-To-Date return was
-21.55%.As of
9/30/2020, the Fund's Calendar Year-To-Date return was
48.87%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was -7.11%.Returns shown are reflective of the Index for
periods beginning on the Benchmark Index Change Date and the Previous Benchmark
Index for periods prior to the Benchmark Index Change
Date.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was -15.29%.As of 9/30/2020, the Fund's Calendar Year-To-Date
return was 0.68%.Returns
shown are reflective of the SSGA Small Cap Index for the period from November
16, 2017 to December 31, 2019, and the Russell 2000 Index for periods prior to
November 16, 2017. As
of 9/30/2020, the Fund's Calendar Year-To-Date return was
6.92%.SSGA Funds
Management, Inc. (“SSGA FM” or “Adviser”) has contractually agreed to waive a
portion of its management fee and/or reimburse certain expenses, until October
31, 2021, so that the net annual Fund operating expenses, before application of
any fees and expenses not paid by the Adviser pursuant to the Investment
Advisory Agreement, if any, are limited to 0.20% of the Fund's average daily net
assets. 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 the waiver and/or reimbursement may be
cancelled or modified at any time after October 31, 2021. This waiver and/or
reimbursement may not be terminated prior to October 31, 2021 except with the
approval of the Fund's Board of Trustees.As of 9/30/2020, the Fund's Calendar Year-To-Date return was
45.86%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was 20.54%.As of 9/30/2020, the Fund's Calendar Year-To-Date
return was 8.66%.As of
9/30/2020, the Fund's Calendar Year-To-Date return was
17.10%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was -8.55%.As of 9/30/2020, the Fund's Calendar Year-To-Date
return was 5.64%. As of
9/30/2020, the Fund's Calendar Year-To-Date return was
-12.29%.As of
9/30/2020, the Fund's Calendar Year-To-Date return was
-19.67%.The Fund's
“Management fees” and “Total annual Fund operating expenses” have been restated
to reflect current fees. As of 9/30/2020, the Fund's Calendar Year-To-Date return was
-5.42%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was 9.68%. As of 9/30/2020, the Fund's Calendar Year-To-Date
return was 44.96%.As of
9/30/2020, the Fund's Calendar Year-To-Date return was
-4.29%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was -18.52%.As of 9/30/2020, the Fund's Calendar Year-To-Date
return was 60.54%.As of
9/30/2020, the Fund's Calendar Year-To-Date return was
-0.66%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was 3.12%. As of 9/30/2020, the Fund's Calendar Year-To-Date
return was 19.17%.As of
9/30/2020, the Fund's Calendar Year-To-Date return was
6.90%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was -19.62%.As of 9/30/2020, the Fund's Calendar Year-To-Date
return was -3.61%.As of
9/30/2020, the Fund's Calendar Year-To-Date return was
19.13%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was 19.01%.As of 9/30/2020, the Fund's Calendar Year-To-Date
return was 0.58%.As of
9/30/2020, the Fund's Calendar Year-To-Date return was 3.16%.
As of 9/30/2020, the
Fund's Calendar Year-To-Date return was 4.08%.As of 9/30/2020, the Fund's Calendar Year-To-Date
return was -8.48%.Returns shown are reflective of the SSGA Total Stock Market
Index for the period from November 16, 2017 to December 31, 2019, the Russell
3000 Index for the period from July 9, 2013 to November 15, 2017, and the Dow
Jones U.S. Total Stock Market Index for periods prior to July 9,
2013.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was 0.40%.As of 9/30/2020, the Fund's Calendar Year-To-Date
return was 25.40%.As of
9/30/2020, the Fund's Calendar Year-To-Date return was
17.90%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was -64.82%.As of 9/30/2020, the Fund's Calendar Year-To-Date
return was -0.19%.As of
9/30/2020, the Fund's Calendar Year-To-Date return was
-54.54%.As of
9/30/2020, the Fund's Calendar Year-To-Date return was
-22.99%.As of
9/30/2020, the Fund's Calendar Year-To-Date return was
-27.79%.As of
9/30/2020, the Fund's Calendar Year-To-Date return was
-1.03%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was -2.86%.As of 9/30/2020, the Fund's Calendar Year-To-Date
return was 5.85%.As of
9/30/2020, the Fund's Calendar Year-To-Date return was
-15.19%.As of
9/30/2020, the Fund's Calendar Year-To-Date return was
-4.54%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was -11.46%.As of 9/30/2020, the Fund's Calendar Year-To-Date
return was 1.22%.As of
9/30/2020, the Fund's Calendar Year-To-Date return was
8.13%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was -9.22%.As of 9/30/2020, the Fund's Calendar Year-To-Date
return was -7.96%.As of
9/30/2020, the Fund's Calendar Year-To-Date return was
-19.41%.“Acquired fund
fees and expenses” are not included in the Fund's financial statements, which
provide a clearer picture of the Fund's actual operating
costs.SSGA Funds
Management, Inc. (the “Adviser”) has contractually agreed to waive a portion of
its management fee and/or reimburse expenses in an amount equal to any acquired
fund fees and expenses (excluding holdings in acquired funds for cash management
purposes, if any) until October 31, 2021. This waiver and/or reimbursement does
not provide for the recoupment by the Adviser of any amounts waived or
reimbursed. 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 the waiver
and/or reimbursement may be cancelled or modified at any time after October 31,
2021. This waiver and/or reimbursement may not be terminated prior to October
31, 2021 except with the approval of the Fund's Board of
Trustees.As of
9/30/2020, the Fund's Calendar Year-To-Date return was 3.84%.
As of 9/30/2020, the
Fund's Calendar Year-To-Date return was -0.48%.“Other expenses” are based on estimated amounts for
the current fiscal year.As of 9/30/2020, the Fund's Calendar Year-To-Date return was
6.50%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was 6.63%.As of 9/30/2020, the Fund's Calendar Year-To-Date
return was 13.48%.As of
9/30/2020, the Fund's Calendar Year-To-Date return was
2.56%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was -12.02%.SSGA Funds Management, Inc. (the “Adviser”) has
contractually agreed to waive a portion of its management fee and reimburse
certain expenses, until October 31, 2021, so that the net annual Fund operating
expenses, before application of any fees and expenses not paid by the Adviser
pursuant to the Investment Advisory Agreement, if any, are limited to 0.23% of
the Fund's average daily net assets. The contractual fee waiver 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 the waiver and/or
reimbursement may be cancelled or modified at any time after October 31, 2021.
This waiver and/or reimbursement may not be terminated prior to October 31, 2021
except with the approval of the Fund's Board of
Trustees.As of
9/30/2020, the Fund's Calendar Year-To-Date return was
4.00%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was 0.26%.As of 9/30/2020, the Fund's Calendar Year-To-Date
return was -36.84%.As
of 9/30/2020, the Fund's Calendar Year-To-Date return was
26.05%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was -22.76%.As of 9/30/2020, the Fund's Calendar Year-To-Date
return was -19.43%.As
of 9/30/2020, the Fund's Calendar Year-To-Date return was
-1.26%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was 21.34%. As of 9/30/2020, the Fund's Calendar Year-To-Date
return was 8.09%. As of
9/30/2020, the Fund's Calendar Year-To-Date return was
8.97%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was -36.11%.As of 9/30/2020, the Fund's Calendar Year-To-Date
return was 1.98%As of
9/30/2020, the Fund's Calendar Year-To-Date return was
-8.75%.As of 9/30/2020,
the Fund's Calendar Year-To-Date return was 5.64%.Returns shown are reflective of the SSGA Large Cap
Index for the period from November 16, 2017 to December 31, 2019, the Russell
1000 Index for the period from July 9, 2013 to November 15, 2017, and the Dow
Jones U.S. Large-Cap Total Stock Market Index for periods prior to July 9, 2013.
Returns shown are
reflective of the S&P 1000 Index for the period from August 31, 2016 to
December 31, 2019, the Russell Small Cap Completeness Index for the period from
July 9,2013 to August 30, 2016, and the Dow Jones U.S. Mid-Cap Total Stock
Market Index for periods prior to July 9, 2013.As of 9/30/2020, the Fund's Calendar Year-To-Date
return was -0.22%. 0001064642
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iso4217:USD xbrli:pure
SPDR
Dow Jones REIT ETF (RWR)
SPDR
FactSet Innovative Technology ETF (XITK)
SPDR
Global Dow ETF (DGT)
SPDR
MSCI USA StrategicFactors
SM
ETF
(QUS)
SPDR
NYSE Technology ETF (XNTK)
SPDR
Portfolio S&P 1500 Composite Stock Market ETF (formerly, SPDR Portfolio
Total Stock Market ETF) (SPTM)
SPDR
Portfolio S&P 400 Mid Cap ETF (formerly, SPDR Portfolio Mid Cap ETF)
(SPMD)
SPDR
Portfolio S&P 500
®
ETF
(formerly, SPDR Portfolio Large Cap ETF) (SPLG)
SPDR
Portfolio S&P 500 Growth ETF (SPYG)
SPDR
Portfolio S&P 500 High Dividend ETF (SPYD)
SPDR
Portfolio S&P 500 Value ETF (SPYV)
SPDR
Portfolio S&P 600 Small Cap ETF (formerly, SPDR Portfolio Small Cap ETF)
(SPSM)
SPDR
Russell 1000
®
Low
Volatility Focus ETF (ONEV)
SPDR
Russell 1000 Momentum Focus ETF (ONEO)
SPDR
Russell 1000 Yield Focus ETF (ONEY)
SPDR
S&P 1500 Momentum Tilt ETF (MMTM)
SPDR
S&P 1500 Value Tilt ETF (VLU)
SPDR
S&P 400 Mid Cap Growth ETF (MDYG)
SPDR
S&P 400 Mid Cap Value ETF (MDYV)
SPDR
S&P 500 ESG ETF (EFIV)
SPDR
S&P 500 Fossil Fuel Reserves Free ETF (SPYX)
SPDR
S&P 600 Small Cap ETF (SLY)
SPDR
S&P 600 Small Cap Growth ETF (SLYG)
SPDR
S&P 600 Small Cap Value ETF (SLYV)
SPDR
S&P Aerospace & Defense ETF (XAR)
SPDR
S&P Bank ETF (KBE)
SPDR
S&P Biotech ETF (XBI)
SPDR
S&P Capital Markets ETF (KCE)
SPDR
S&P Dividend ETF (SDY)
SPDR
S&P Health Care Equipment ETF (XHE)
SPDR
S&P Health Care Services ETF (XHS)
SPDR
S&P Homebuilders ETF (XHB)
SPDR
S&P Insurance ETF (KIE)
SPDR
S&P Internet ETF (XWEB)
SPDR
S&P Kensho Clean Power ETF (CNRG)
SPDR
S&P Kensho Final Frontiers ETF (ROKT)
SPDR
S&P Kensho Future Security ETF (FITE)
SPDR
S&P Kensho Intelligent Structures ETF (SIMS)
SPDR
S&P Kensho New Economies Composite ETF (KOMP)
SPDR
S&P Kensho Smart Mobility ETF (HAIL)
SPDR
S&P Metals & Mining ETF (XME)
SPDR
S&P Oil & Gas Equipment & Services ETF (XES)
SPDR
S&P Oil & Gas Exploration & Production ETF (XOP)
SPDR
S&P Pharmaceuticals ETF (XPH)
SPDR
S&P Regional Banking ETF (KRE)
SPDR
S&P Retail ETF (XRT)
SPDR
S&P Semiconductor ETF (XSD)
SPDR
S&P Software & Services ETF (XSW)
SPDR
S&P Telecom ETF (XTL)
SPDR
S&P Transportation ETF (XTN)
SPDR
Wells Fargo
®
Preferred
Stock ETF (PSK)
Principal
U.S. Listing Exchange: NYSE Arca, Inc.
Beginning
on January 1, 2021, as permitted by regulations adopted by the U.S. Securities
and Exchange Commission, paper copies of a Fund's annual and semi- annual
shareholder reports will no longer be sent by mail, unless you specifically
request paper copies of the reports from the Fund (or from your financial
intermediary, such as a broker-dealer or bank). Instead, the reports will be
made available on a Fund's website (
https://www.ssga.com/spdrs
),
and you will be notified by mail each time a report is posted, and provided with
a website link to access the report. If you already elected to receive reports
electronically, you will not be affected by this change and you need not take
any action. You may elect to receive shareholder reports and other
communications by contacting your financial intermediary.
You
may elect to receive all future reports in paper free of charge. If you invest
through a financial intermediary, you can contact your financial intermediary to
request that you continue to receive paper copies of your shareholder reports.
Your election to receive reports in paper will apply to all funds held in your
account.
The
U.S. Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the accuracy or adequacy of this Prospectus. Any
representation to the contrary is a criminal offense. Shares in the Funds are
not guaranteed or insured by the Federal Deposit Insurance Corporation or any
other agency of the U.S. Government, nor are shares deposits or obligations of
any bank. It is possible to lose money by investing in the
Funds.
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Fund
Summaries
Investment
Objective |
The SPDR Dow Jones REIT ETF (the “Fund”) seeks to provide
investment results that, before fees and expenses, correspond generally to
the total return performance of an index that tracks the performance of
publicly traded real estate investment
trusts. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.25% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.25% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$26 |
$80 |
$141 |
$318 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 17% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the Dow Jones U.S. Select REIT Index (the “Index”), the
Fund employs a sampling strategy, which means that the Fund is not required to
purchase all of the securities represented in the Index. Instead, the Fund may
purchase a subset of the securities in the Index in an effort to hold a
portfolio of securities with generally the same risk and return characteristics
of the Index. The quantity of holdings in the Fund will be based on a number of
factors, including asset size of the Fund. Based on its analysis of these
factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as
repurchase
agreements and money
market funds (including money market funds advised by the Adviser). In seeking
to track the Index, the Fund's assets will generally be concentrated in an
industry or group of industries to the extent that the Index concentrates in a
particular industry or group of industries. Futures contracts (a type of
derivative instrument) may be used by the Fund in seeking performance that
corresponds to the Index and in managing cash
flows.
The
Index is designed to provide a measure of real estate securities that serve as
proxies for direct real estate investing, in part by excluding securities whose
value is not always closely tied to the value of the underlying real estate. The
reason for the exclusions is that performance of such securities may be driven
by factors other than the value of real estate. The Index is a market
capitalization weighted index of publicly traded real estate investment trusts
(“REITs”) and is comprised of companies whose charters are the equity ownership
and operation of commercial and/or residential real estate and which operate
under the REIT Act of 1960. To be included in the Index, a company must be both
an equity owner and operator of commercial and/or residential real estate.
Businesses excluded from the Index include: those classified under the Dow Jones
REIT/RESI Industry Classification Hierarchy as “Specialty” (
, REIT types
that cannot be easily classified within the Hierarchy, including net-lease
REITs, timber REITs, railroad REITs and tower REITs), hybrid REITS, mortgage
REITs, real estate finance companies, mortgage brokers and bankers, commercial
and residential real estate brokers and estate agents, home builders, large
landowners and subdividers of unimproved land, as well as companies that have
more than 25% of their assets in direct mortgage investments. A company must
have a minimum float-adjusted market capitalization of at least $200 million at
the time of its inclusion, and at least 75% of the company's total revenue must
be derived from the ownership and operation of real estate assets. A stock must
have a median daily value traded of at least $5 million for the three-months
prior to the rebalancing reference date. The Index is generally rebalanced
quarterly, and returns are calculated on a buy and hold basis except as
necessary to reflect the occasional occurrence of Index changes in the middle of
the month. Each REIT in the Index is weighted by its float-adjusted market
capitalization. That is, each security is weighted to reflect the attainable
market capitalization of the security which reflects that portion of securities
shares that are accessible to investors. The Index is priced daily and is a
total return (price and income) benchmark. As of July 31, 2020, the Index
comprised 116 REITs.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index
Provider”), which is not affiliated with the Fund or the Adviser. The Index
Provider determines the composition of the Index, relative weightings of the
securities in the Index and publishes information regarding the market value of
the Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Real
Estate Sector Risk:
An
investment in a real property company may be subject to risks similar to those
associated with direct ownership of real estate, including, by way of example,
the possibility of declines in the value of real estate, losses from casualty or
condemnation, and changes in local and general economic conditions, supply and
demand, interest rates, environmental liability, zoning laws, regulatory
limitations on rents, property taxes, and operating expenses. Some real property
companies have limited diversification because they invest in a limited number
of properties, a narrow geographic area, or a single type of
property.
REIT
Risk:
Real
estate investment trusts (“REITs”) are subject to the risks associated with
investing in the securities of real property companies. In particular, REITs may
be affected by changes in the values of the underlying properties that they own
or operate. Further, REITs are dependent upon specialized management skil
2
and
their investments may be concentrated in relatively few properties, or in a
small geographic area or a single property type. REITs are also subject to heavy
cash flow dependency and, as a result, are particularly reliant on the proper
functioning of capital markets. A variety of economic and other factors may
adversely affect a lessee's ability to meet its obligations to a REIT. In the
event of a default by a lessee, the REIT may experience delays in enforcing its
rights as a lessor and may incur substantial costs associated in protecting its
investments. In addition, a REIT could fail to qualify for favorable regulatory
treatment.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of
more
diversified
funds. The Fund may become non-diversified for periods of time solely as a
result of changes in the composition of the Index (e.g., changes in weightings
of one or more component
securities).
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)
*
Highest
Quarterly Return: 15.60% (Q1, 2019)
Lowest
Quarterly Return: -14.49% (Q3, 2011)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -21.55%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through
tax-advantaged arrangements, such as 401(k) plans or individual retirement
accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
22.72% |
6.13% |
11.30% |
Return
After Taxes on Distributions |
21.26% |
4.56% |
9.79% |
Return
After Taxes on Distributions and Sale of Fund Shares |
13.65% |
4.02% |
8.53% |
Dow
Jones U.S. Select REIT Index (reflects no deduction for fees, expenses or
taxes) |
23.10% |
6.40% |
11.57% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Daniel TenPas.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Daniel
TenPas, CFA, is a Principal of the Adviser and a Portfolio Manager in the Global
Equity Beta Solutions Group. He joined the Adviser in 2010.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary
market,
you may incur costs attributable to the difference between the highest price a
buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a
seller is willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you. Some distributions may be treated as a return of capital for tax
purposes.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR FactSet Innovative Technology ETF (the “Fund”)
seeks to provide investment results that, before fees and expenses,
correspond generally to the total return performance of the FactSet
Innovative Technology
Index. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.45% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.45% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$46 |
$144 |
$252 |
$567 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 35% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the FactSet Innovative Technology Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under
normal market conditions, the Fund generally invests substantially all, but at
least 80%, of its total assets in the securities comprising the Index. In
addition, in seeking to track the Index, the Fund may invest in equity
securities that are not included in the Index (including common stock,
preferred stock, depositary receipts and shares of other investment companies),
cash and cash equivalents or money market instruments, such as repurchase
agreements and money market funds (including money market funds advised by the
Adviser). In seeking to track the Index, the
Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used by
the Fund in seeking performance that corresponds to its Index.
The
Index is designed to represent the performance of U.S.-listed stock and American
Depository Receipts (“ADRs”) of Technology companies and Technology-related
companies (including Electronic Media companies) within the most innovative
segments of the Technology sector and Electronic Media sub-sector of the Media
sector, as defined by FactSet Research Systems, Inc. (“FactSet” or the “Index
Provider”). The Index Provider considers the most innovative segments of the
Technology sector and Electronic Media sub-sector to be those with the highest
revenue growth and believes that these companies are often involved in cutting
edge research, innovative product and service development, disruptive business
models, or a combination of these activities. In addition to traditional
Technology companies, Electronic Media companies are included in the Index
because of their core focus on technology and the integral role technology plays
in determining how such companies operate, innovate and compete within their
industry. FactSet defines the Technology sector to include Information
Technology Services providers, Hardware manufacturers, Software manufacturers,
Electronic Components manufacturers, and Manufacturing Equipment and Services
providers. FactSet defines the Electronic Media sub-sector to include companies
that produce media content in digital format and deliver, distribute and
monetize their content via an electronic medium such as the Internet.
FactSet
sector determinations are based on a comprehensive, structured taxonomy designed
to seek to offer precise industry classification of global companies according
to the products and services sold by such companies (the “FactSet Revere
Hierarchy”). The FactSet Revere Hierarchy reflects a variable depth structure
that, with respect to the Index, consists of twelve levels of increasingly
specialized Technology or Electronic Media sub-sectors. Technology and
electronic media companies are classified or mapped to the sub-sectors from
which they each derive 50% or more of their respective revenues. A company will
be eligible for inclusion in the Index if it satisfies the following criteria:
(i) is mapped to a Technology or Electronic Media sub-sector at the fourth level
or lower (levels four through twelve) in the FactSet Revere Hierarchy; (ii) is
mapped to a sub-sector in the top quartile of FactSet's composite revenue growth
scoring system for the Technology sector or Electronic Media sub-sector (the
“revenue growth scoring system”); (iii) has a market capitalization of shares
publicly available to investors (i.e., a “float-adjusted” market capitalization)
above $500 million with a float-adjusted liquidity ratio (defined by dollar
value traded over the previous 12 months divided by the float-adjusted market
capitalization as of the index rebalancing reference date) above 90% or have a
float-adjusted market capitalization above $400 million with a float-adjusted
liquidity ratio (as defined above) above 150%; (iv) is a U.S.-listed stock or
ADR; and (v) has not had an initial public offering of shares within three
months of the Review Selection Day (defined below).
The
Index is equal-weighted to ensure that each of its component securities is
represented in approximate equal dollar value at each reconstitution. The Index
is capped at a maximum of 100 constituent securities. If there are fewer than 50
stocks suitable for inclusion based on the eligibility criteria, stocks mapped
to the next highest-ranked quartile of sub-sectors would be added until the
minimum number of Index constituents is met. To ensure that each component stock
continues to represent approximate equal market value in the Index, adjustments,
if necessary, are made annually after the close of trading on the third Friday
of December (the “Reconstitution Day”) based on information as of the last
business day two weeks before the Reconstitution Day (the “Review Selection
Day”). As of July 31, 2020, the Index was comprised of 98 stocks.
The
Index is sponsored by FactSet (the “Index Provider”), which is not
affiliated with the Fund or the Adviser. The Index Provider determines the
composition of the Index, relative weightings of the securities in the Index and
publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily dependent on patent and intellectual property
rights, the loss or impairment of which may adversely affect profitability.
Additionally, companies in the technology sector may face dramatic and often
unpredictable changes in growth rates and competition for the services of
qualified personnel.
Electronic
Media Companies Risk:
Electronic
media companies create, own, an
d
distribute
various forms of technology-based visual, audio, and interactive content, as
well as information databases that they sell or lease to others. Electronic
media companies can be adversely affected by, among other things, changes in
government regulation, intense competition, dependency on patent protection, and
rapid obsolescence of products and services due to product compatibility or
changing consumer preferences.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Depositary
Receipts Risk:
Investments
in depositary receipts may be less liquid and more volatile than the underlying
securities in their primary trading market. If a depositary receipt is
denominated in a different currency than its underlying securities, the Fund
will be subject to the currency risk of both the investment in the depositary
receipt and the underlying security. Holders of depositary receipts may have
limited or no rights to take action with respect to the underlying securities or
to compel the issuer of the receipts to take action. The prices of depositary
receipts may differ from the prices of securities upon which they are based. To
the extent the Fund invests in depositary receipts based on securities included
in the Index, such differences in prices may increase index tracking risk.
Investments in depositary receipts are generally subject to the same risks as
their underlying securities, including political, regulatory, and economic
risks. There may be less information publicly available about a non-U.S. entity
that issues the underlying securities than about a U.S. entity, and many
non-U.S. entities are not subject to accounting, auditing, legal and financial
report standards comparable to those in the United States. Further, such
entities and/or their securities may be subject to risks associated with
currency controls; expropriation; changes in tax policy; greater market
volatility; liquidity risks; differing securities market structures; higher
transaction costs; and various administrative difficulties.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Growth
Stock Risk:
The
prices of growth stocks may be based largely on expectations of future earnings,
and their prices can decline rapidly and significantly in reaction to negative
news. Growth stocks may underperform value stocks and stocks in other broad
style categories (and the stock market as a whole) over any period of time and
may shift in and out of favor with investors generally, sometimes rapidly,
depending on changes in market, economic, and other factors.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)
*
Highest
Quarterly Return: 25.93% (Q1, 2019)
Lowest
Quarterly Return: -18.68% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was 48.87%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your actual after-tax returns will depend on
your specific tax situation and may differ from those shown below. After-tax
returns are not relevant to investors
who
hold
Fund Shares through tax-advantaged arrangements, such as 401(k) plans or
individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Since
Inception (01/13/16)
|
Return
Before Taxes |
36.93% |
24.53% |
Return
After Taxes on Distributions |
36.88% |
23.95% |
Return
After Taxes on Distributions and Sale of Fund Shares |
21.89% |
19.63% |
FactSet
Innovative Technology Index (reflects no deduction for fees, expenses or
taxes) |
37.71% |
25.07% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
16.83% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Michael Finocchi.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Michael
Finocchi is a Principal of the Adviser and a Portfolio Manager in the Global
Equity Beta Solutions Group. He joined the Adviser in 2005.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR Global Dow ETF (the “Fund”) seeks to provide
investment results that, before fees and expenses, correspond generally to
the total return performance of an index that tracks the performance of
multinational blue-chip issuers. |
Fees and
Expenses of the Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expense
S
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.50% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.50% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$51 |
$160 |
$280 |
$628 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 8% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of The Global Dow (the “Index”), the Fund employs a
sampling strategy, which means that the Fund is not required to purchase all of
the securities represented in the Index. Instead, the Fund may purchase a subset
of the securities in the Index in an effort to hold a portfolio of securities
with generally the same risk and return characteristics of the Index. The
quantity of holdings in the Fund will be based on a number of factors, including
asset size of the Fund. Based on its analysis of these factors, SSGA Funds
Management, Inc. (“SSGA FM” or the “Adviser”), the investment adviser to the
Fund, either may invest the Fund's assets in a subset of securities in the Index
or may invest the Fund's assets in substantially all of the securities
represented in the Index in approximately the same proportions as the Index, as
determined by the Adviser to be in the best interest of the Fund in pursuing its
objective. The Fund is classified as “diversified” under the Investment
Company Act of 1940, as amended; however, the Fund may become “non-diversified”
solely as a result of tracking the Index (e.g., changes in weightings of one or
more component securities). When the Fund is non-diversified, it may invest a
relatively high percentage of its assets in a limited number of
issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used
by the Fund in seeking performance that corresponds to the Index and in managing
cash flows.
The Index is made up
of approximately 150 companies from around the world. The companies are selected
not just based on size and reputation, but also on their importance in the
global economy. The Index has been designed to cover both developed and emerging
countries. The Index is equal weighted and will be reset to equal weights
annually each September. As of July 31, 2020, the Index comprised 152
stocks.
The Index is
sponsored by S&P Dow Jones Indices LLC (the “Index Provider”), which
is not affiliated with the Fund or the Adviser. The Index Provider determines
the composition of the Index, relative weightings of the securities in the Index
and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Non-U.S.
Securities Risk:
Non-U.S.
securities (including depositary receipts) are subject to political,
regulatory, and economic risks not present in domestic investments. There may be
less information publicly available about a non-U.S. entity than about a U.S.
entity, and many non-U.S. entities are not subject to accounting, auditing,
legal and financial report standards comparable to those in the United States.
Further, such entities and/or their securities may be subject to risks
associated with currency controls; expropriation; changes in tax policy; greater
market volatility; differing securities market structures; higher transaction
costs; and various administrative difficulties, such as delays in clearing and
settling portfolio transactions or in receiving payment of dividends. To the
extent underlying securities held by the Fund trade on foreign exchanges that
are closed when the exchange on which the Fund's shares trade is open, there may
be deviations between the current price of an underlying security and the last
quoted price for the underlying security on the closed foreign market. These
deviations could result in the Fund experiencing premiums or discounts greater
than those of ETFs that invest in domestic securities. Securities traded on
foreign markets may be less liquid (harder to sell) than securities traded
domestically. Foreign governments may impose restrictions on the repatriation of
capital to the U.S. In addition, to the extent that the Fund buys
securities denominated in a foreign currency, there are special risks such as
changes in currency exchange rates and the risk that a foreign government could
regulate foreign exchange transactions. In addition, to the extent investments
are made in a limited number of countries, events in those countries will have a
more significant impact on the Fund. Investments in depositary receipts may be
less liquid and more volatile than the underlying shares in their primary
trading market.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain
on the investment or
transaction, or to recover collateral posted to the counterparty, resulting in a
loss to the Fund. If the Fund holds collateral posted by its counterparty, it
may be delayed or prevented from realizing on the collateral in the event of a
bankruptcy or insolvency proceeding relating to the counterparty.
Currency
Risk:
The
value of the Fund's assets may be affected favorably or unfavorably by currency
exchange rates, currency exchange control regulations, and delays, restrictions
or prohibitions on the repatriation of foreign currencies. Foreign currency
exchange rates may have significant volatility, and changes in the values of
foreign currencies against the U.S. dollar may result in substantial declines in
the values of the Fund's assets denominated in foreign
currencies.
Depositary
Receipts Risk:
Investments
in depositary receipts may be less liquid and more volatile than the underlying
securities in their primary trading market. If a depositary receipt is
denominated in a different currency than its underlying securities, the Fund
will be subject to the currency risk of both the investment in the depositary
receipt and the underlying security. Holders of depositary receipts may have
limited or no rights to take action with respect to the underlying securities or
to compel the issuer of the receipts to take action. The prices of depositary
receipts may differ from the prices of securities upon which they are based. To
the extent the Fund invests in depositary receipts based on securities included
in the Index, such differences in prices may increase index tracking
risk.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Emerging
Markets Risk:
Risks
of investing in emerging markets include, among others, greater political and
economic instability, greater volatility in currency exchange rates, less
developed securities markets, possible trade barriers, currency transfer
restrictions, a more limited number of potential buyers and issuers, an emerging
market country's dependence on revenue from particular commodities or
international aid, less governmental supervision and regulation, unavailability
of currency hedging techniques, differences in auditing and financial reporting
standards, and less developed legal systems. There is also the potential for
unfavorable action such as expropriation, nationalization, embargo, and acts of
war. The securities of emerging market companies may trade less frequently and
in smaller volumes than more widely held securities. Market disruptions or
substantial market corrections may limit very significantly the liquidity of
securities of certain companies in a particular country or geographic region, or
of all companies in the country or region. The Fund may be unable to liquidate
its positions in such securities at any time, or at a favorable price, in order
to meet the Fund's obligations. These risks are generally greater for
investments in frontier market countries, which typically have smaller economies
or less developed capital markets than traditional emerging market
countries.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the
Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares ma
y
be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps significantly.
Valuation
Risk:
Some
portfolio holdings, potentially a large portion of the Fund's investment
portfolio, may be valued on the basis of factors other than market quotations.
This may occur more often in times of market turmoil or reduced liquidity. There
are multiple methods that can be used to value a portfolio holding when market
quotations are not readily available. The value established for any portfolio
holding at a point in time might differ from what would be produced using a
different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued using techniques other than market
quotations, including “fair valued” securities, may be subject to greater
fluctuation in their valuations from one day to the next than if market
quotations were used. In addition, there is no assurance that the Fund could
sell or close out a portfolio position for the value established for it at any
time, and it is possible that the Fund would incur a loss because a portfolio
position is sold or closed out at a discount to the valuation established by the
Fund at that time.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 12.45% (Q3, 2010)
Lowest
Quarterly Return: -18.76% (Q3, 2011)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -7.11%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
Effective May
2, 2011 (the “Benchmark Index Change Date”), the Fund's benchmark index changed
from the Dow Jones Global Titans Index (the “Previous Benchmark Index”) to The
Global Dow, consistent with a change in the Fund's principal investment strategy
to track the performance of the current index. Performance of the Fund
prior to the Benchmark Index Change Date is therefore based on the Fund's
investment strategy to track the Previous Benchmark Index.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
22.04% |
7.90% |
7.22% |
Return
After Taxes on Distributions |
21.33% |
7.37% |
6.70% |
Return
After Taxes on Distributions and Sale of Fund Shares |
13.71% |
6.20% |
5.79% |
The
Global Dow/Dow Jones Global Titans Index
1 (reflects
no deduction for fees, expenses or taxes other than withholding taxes on
reinvested dividends) |
21.95% |
7.86% |
7.23% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
1 |
Returns
shown are reflective of the Index for periods beginning on the Benchmark
Index Change Date and the Previous Benchmark Index for periods prior to
the Benchmark Index Change Date. |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Kathleen Morgan.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Kathleen
Morgan, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager
in the Global Equity Beta Solutions Group. She joined the Adviser in 2017.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR MSCI USA StrategicFactors
SM ETF
(the “Fund”) seeks to provide investment results that, before fees and
expenses, correspond generally to the total return performance of an index
based upon the U.S. equity
market. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.15% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.15% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$15 |
$48 |
$85 |
$192 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 21% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the MSCI USA Factor Mix A-Series Capped Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used
by the Fund in seeking performance that corresponds to the Index and in managing
cash
flows.
The
Index is designed to measure the equity market performance of large-and mid-cap
companies across the U.S. equity market. It aims to represent the performance of
a combination of three factors: value, quality, and low volatility. The Index is
an equal weighted combination of the following three MSCI Factor Indices in a
single composite index: the MSCI USA Value Weighted Index, the MSCI USA Quality
Index, and the MSCI USA Minimum Volatility Index (each, a “Component Index”). If
the MSCI USA Minimum Volatility Index is not available due to the concentrated
nature of its underlying parent index (for example, in the event of a low number
of stocks or where a relatively few number of constituents constitutes a large
proportion of index weight), the MSCI USA Minimum Volatility Index is replaced
with the MSCI USA Risk Weighted Index (if used to replace the MSCI USA Minimum
Volatility Index, also a “Component Index”) and the Index is an equal weighted
combination of the MSCI USA Value Weighted Index, the MSCI USA Quality Index and
the MSCI USA Risk Weighted Index. The Index Provider (defined below) determines
if such replacement is necessary and reviews the MSCI USA Minimum Volatility
Index for viability on a regular basis. The MSCI USA Value Weighted Index
includes publicly-traded companies domiciled in the U.S., weighted to emphasize
stocks with lower valuations, by giving higher index weight to stocks with
higher values of fundamental variables such as sales, earnings, cash earnings
and book value. The MSCI USA Quality Index includes publicly-traded companies
domiciled in the U.S., weighted to emphasize stocks with historically high
return on equity, stable year-over-year earnings growth, and low financial
leverage. The MSCI USA Minimum Volatility Index aims to reflect the performance
characteristics of a minimum variance strategy applied to publicly-traded
companies domiciled in the U.S. and is weighted to provide the lowest absolute
risk within a given set of constraints. The MSCI USA Risk Weighted Index
includes publicly-traded companies domiciled in the U.S., and reweights the
constituents so that stocks with lower volatility, measured as the weekly return
variance over the prior three years, are given higher index weight. Each
Component Index is attributed equal weight (1/3) at each rebalancing. All
constituents of each Component Index are included in the Index. The weight of
each security in the Index is determined based on 1) the security's weight in
each underlying Component Index; and 2) the weight of each underlying Component
Index in the Index. The Index is then subject to the MSCI A-Series Index
Methodology. The MSCI A-Series Index Methodology first seeks to ensure the Index
includes at least 25 constituents. In the event the Index does not contain at
least 25 constituents, the Index is supplemented by including constituents of
the MSCI USA Small Cap Index, selected in decreasing order based on full market
capitalization, until the target of 25 constituents is reached. The MSCI
A-Series Index Methodology then applies the MSCI 25/50 Index Methodology, which
aims to reflect 5/25/50 weight constraints (i.e., no issuer has a weight above
25%, and the sum of weights of all issuers with weights above 5% does not exceed
50%). The Index is rebalanced semi-annually, usually as of the close of the last
business day of May and November, coinciding with the semi-annual index reviews
of the MSCI Global Investable Market Indices and of each Component Index. As of
July 31, 2020, a significant portion of the Fund comprised companies in the
technology and health care sectors, although this may change from time to
time. As of July 31, 2020, the Index comprised 616 securities.
The
Index is sponsored by MSCI, Inc. (the “Index Provider”), which is not
affiliated with the Fund or the Adviser. The Index Provider determines the
composition of the Index, relative weightings of the securities in the Index and
publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market Risk:
The Fund's
investments are subject to changes in general economic conditions, general
market fluctuations and the risks inherent in investment in securities markets.
Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Large-Capitalization
Securities Risk:
Returns
on investments in securities of large companies could trail the returns on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as smaller and mid-sized companies to
competitive challenges or to changes in business, product, financial,
or other market conditions. Larger companies may not be able to maintain
growth at the high rates that may be achieved by well-managed smaller and
mid-sized companies.
Mid-Capitalization
Securities Risk:
The
securities of mid-capitalization companies may be more volatile and may involve
more risk than the securities of larger companies. These companies may have
limited product lines, markets or financial resources, may lack the competitive
strength of larger companies, and may depend on a few key employees. In
addition, these companies may have been recently organized and may have little
or no track record of success. The securities of mid-sized companies may trade
less frequently and in smaller volumes than more widely held securities. Some
securities of mid-sized issuers may be illiquid or may be restricted as to
resale, and their values may be volatile.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Health
Care Sector Risk:
Companies
in the health care sector are subject to extensive government regulation and
their profitability can be significantly affected by restrictions on government
reimbursement for medical expenses, rising costs of medical products and
services, pricing pressure (including price discounting), limited product lines
and an increased emphasis on the delivery of healthcare through outpatient
services. Companies in the health care sector are heavily dependent on obtaining
and defending patents, which may be time consuming and costly, and the
expiration of patents may also adversely affect the profitability of these
companies. Health care companies are also subject to extensive litigation based
on product liability and similar claims. In addition, their products can become
obsolete due to industry innovation, changes in technologies or other market
developments. Many new products in the health care sector require significant
research and development and may be subject to regulatory approvals, all of
which may be time consuming and costly with no guarantee that any product will
come to market.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or
reconstituting
its securities holdings to reflect changes in the securities included in the
Index. The Fund also may be required to distribute any such gains to its
shareholders to avoid adverse federal income tax consequences. While the Adviser
seeks to track the performance of the Index (
, achieve a
high degree of correlation with the Index), the Fund's return may not match the
return of the Index. The Fund incurs a number of operating expenses not
applicable to the Index, and incurs costs in buying and selling securities. In
addition, the Fund may not be fully invested at times, generally as a result of
cash flows into or out of the Fund or reserves of cash held by the Fund to meet
redemptions. The Adviser may attempt to
track
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Low
Volatility Risk:
Although
subject to the risks of common stocks, low volatility stocks are seen as having
a lower risk profile than the overall markets. However, a portfolio comprised of
low volatility stocks may not produce investment exposure that has lower
variability to changes in such stocks' price levels. Low volatility stocks are
likely to underperform the broader market during periods of rapidly rising stock
prices.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Quality
Risk:
A
“quality” style of investing emphasizes companies with high returns on equity,
stable earnings per share growth, and low financial leverage. This style of
investing is subject to the risk that the past performance of these companies
does not continue or that the returns on “quality” equity securities are less
than returns on other styles of investing or the overall stock
market.
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily dependent on patent and intellectual property
rights, the loss or impairment of which may adversely affect profitability.
Additionally, companies in the technology sector may face dramatic and often
unpredictable changes in growth rates and competition for the services of
qualified personnel.
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps significantly.
Valuation
Risk:
Some
portfolio holdings, potentially a large portion of the Fund's investment
portfolio, may be valued on the basis of factors other than market quotations.
This may occur more often in times of market turmoil or reduced liquidity. There
are multiple methods that can be used to value a portfolio holding when market
quotations are not readily available. The value established for any portfolio
holding at a point in time might differ from what would be produced using a
different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued using techniques other than market
quotations, including “fair valued” securities, may be subject to greater
fluctuation in their valuations from one day to the next than if market
quotations were used. In addition, there is no assurance that the Fund could
sell or close out a portfolio position for the value established for it at any
time, and it is possible that the Fund would incur a loss because a portfolio
position is sold or closed out at a discount to the valuation established by the
Fund at that time.
Value
Stock Risk:
A
“value” style of investing is subject to the risk that the returns on “value”
equity securities are less than returns on other styles of investing or the
overall stock market. Value stocks present the risk that they may decline in
price or never reach their expected full market value because the market fails
to recognize a stock's intrinsic
worth.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 13.97% (Q1, 2019)
Lowest
Quarterly Return: -11.66% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was 0.68%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Since
Inception (4/15/15)
|
Return
Before Taxes |
32.31% |
12.43% |
Return
After Taxes on Distributions |
31.61% |
11.81% |
Return
After Taxes on Distributions and Sale of Fund Shares |
19.40% |
9.72% |
MSCI
USA Factor Mix A-Series Capped Index (reflects no deduction for fees,
expenses or taxes) |
32.64% |
12.62% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.77% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and John Law.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
John
Law, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. He joined the Adviser in 2016.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR NYSE Technology ETF (the “Fund”) seeks to provide
investment results that, before fees and expenses, correspond generally to
the total return performance of an index that tracks the performance of
publicly traded technology
companies. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 20% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the NYSE Technology Index (the “Index”), the Fund
employs a sampling strategy, which means that the Fund is not required to
purchase all of the securities represented in the Index. Instead, the Fund may
purchase a subset of the securities in the Index in an effort to hold a
portfolio of securities with generally the same risk and return characteristics
of the Index. The quantity of holdings in the Fund will be based on a number of
factors, including asset size of the Fund. Based on its analysis of these
factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used
by the Fund in seeking performance that corresponds to the Index and in managing
cash
flows.
The
Index is composed of 35 leading U.S.-listed technology-related companies. The
investible universe of the Index comprises all stocks in the Technology sector
and technology-related stocks in the Consumer Discretionary sector, as defined
by the Index Provider (as defined below) that are listed on major U.S. stock
exchanges and meet the following criteria as of the index rebalance reference
date: (i) issued by a company with a minimum market capitalization of $2 billion
and (ii) have a trailing 3-month average daily traded value of $10 million.
Stocks must also meet at least one of the following three revenue- and
sales-based criteria: (i) have an increase in sales over the last twelve months,
(ii) have only one consecutive quarter of negative sales growth over the last
two years, or (iii) have revenue totals from the last four quarters that
classify it within the top 75 companies within the specific industry
classification designated to it by the Index Provider. Eligible stocks are then
ranked based on market capitalization and liquidity, and the top 35 stocks are
selected for inclusion in the Index. At least 75% of the companies included in
the Index must be headquartered in the United States. The Index is
equal-weighted and rebalanced annually after the close of trading on the third
Friday of December. As of July 31, 2020 the Index comprised 35 stocks.
The
Index is sponsored by ICE Data Indices, LLC (the “Index Provider”), which
is not affiliated with the Fund or the Adviser. The Index Provider determines
the composition of the Index, relative weightings of the securities in the Index
and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily dependent on patent and intellectual property
rights, the loss or impairment of which may adversely affect profitability.
Additionally, companies in the technology sector may face dramatic and often
unpredictable changes in growth rates and competition for the services of
qualified personnel.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Consumer
Discretionary Sector Risk:
The
success of consumer product manufacturers and retailers is tied closely to the
performance of the overall global economy, interest rates, competition and
consumer confidence. Success depends heavily on disposable household income and
consumer spending. Also, companies in the consumer discretionary sector may be
subject to severe competition, which may have an adverse impact on their
respective profitability. Changes in demographics and consumer tastes can also
affect the demand for, and success of, consumer products and services in the
marketplace.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated performance
information is available by calling 1-866-787-2257
or visiting our
website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 21.87% (Q1, 2012)
Lowest
Quarterly Return: -18.59% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was 45.86%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
Effective
September 11, 2017, the Fund's benchmark was renamed the NYSE Technology Index
due to a transfer of the Index's management to ICE Data Indices, LLC. Prior to
September 11, 2017, the Fund's benchmark was named the Morgan Stanley Technology
Index.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
38.10% |
16.88% |
14.86% |
Return
After Taxes on Distributions |
37.88% |
15.22% |
13.95% |
Return
After Taxes on Distributions and Sale of Fund Shares |
22.69% |
13.19% |
12.31% |
NYSE
Technology Index (reflects no deduction for fees, expenses or taxes) |
38.70% |
17.48% |
15.43% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Kathleen Morgan.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Kathleen
Morgan, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager
in the Global Equity Beta Solutions Group. She joined the Adviser in 2017.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary
market, you may incur costs attributable to the difference
between the highest price a buyer is willing to pay to purchase Fund Shares
(bid) and the lowest price a seller is willing to accept for Fund Shares (ask)
(the “bid-ask spread”). Recent information regarding the Fund's NAV, market
price, premiums and discounts, and bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If you purchase Fund
Shares through a broker-dealer or other financial intermediary (such as a bank),
the Adviser or its affiliates may pay the financial intermediary for
certain activities related to the Fund, including educational training programs,
conferences, the development of technology platforms and reporting systems, or
other services related to the sale or promotion of the Fund. These payments may
create a conflict of interest by influencing the broker-dealer or other
intermediary and your salesperson to recommend the Fund over another investment.
Ask your salesperson or visit your financial intermediary's website for more
information.
(formerly, SPDR Portfolio Total Stock Market
ETF)
Investment
Objective |
The SPDR Portfolio S&P 1500 Composite Stock Market ETF
(the “Fund”) seeks to provide investment results that, before fees and
expenses, correspond generally to the total return performance of an index
that tracks a broad universe of exchange traded U.S. equity
securities. |
Fees and
Expenses of the Fund
The table below describes the fees and expenses that you may pay
if you buy, hold and sell shares of the Fund (“Fund Shares”). You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.03% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.03% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$3 |
$10 |
$17 |
$39 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 12% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P Composite 1500 Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index (including common stock, preferred stock,
depositary receipts and shares of other investment companies), cash and cash
equivalents or money market instruments, such as repurchase
agreements
and money market
funds (including money market funds advised by the Adviser). In seeking to track
the Index, the Fund's assets will generally be concentrated in an industry or
group of industries to the extent that the Index concentrates in a particular
industry or group of industries. Futures contracts (a type of
derivative instrument) may be used by the Fund in seeking performance that
corresponds to the Index and in managing cash
flows.
The
Index is designed to measure the performance of the large-, mid-, and
small-capitalization segments of the U.S. equity market. The Index consists of
those stocks included in the S&P 500 Index, the S&P MidCap 400 Index,
and the S&P SmallCap 600 Index. Each underlying index includes U.S. common
equities listed on the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select
Market, NASDAQ Select Market, NASDAQ Capital Market, Investors Exchange (IEX),
Cboe BZX, Cboe BYX, Cboe EDGA, or Cboe EDGX that meet specific market
capitalization requirements. To be included in an underlying index, a security
(or issuer of a security, as applicable) should (i) have an annual dollar value
traded to float-adjusted market capitalization ratio of 1 or greater; (ii) trade
a minimum of 250,000 shares in each of the six months leading up to the
evaluation date; (iii) have a public float of at least 10%; and (iv) have
positive aggregate earnings over the four most recent quarters and for the most
recent quarter.
The
Index is float-adjusted market capitalization weighted. Index constituents are
added and removed on an as-needed basis. The Index is rebalanced on a quarterly
basis in March, June, September and December. As of July 31, 2020, a significant
portion of the Fund comprised companies in the technology sector,
although this may change from time to time. As of July 31, 2020, the Index
comprised 1,506 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or
otherwise
honor its obligations. A derivatives transaction may not behave in the manner
anticipated by the Adviser or may not have the effect on the Fund anticipated by
the Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily dependent on patent and intellectual property
rights, the loss or impairment of which may adversely affect profitability.
Additionally, companies in the technology sector may face dramatic and often
unpredictable changes in growth rates and competition for the services of
qualified personnel.
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps significantly.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index. The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 14.41% (Q1, 2019)
Lowest
Quarterly Return: -15.03% (Q3, 2011)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was 4.08%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares. Effective July 9, 2013, the Fund's benchmark index
changed from the Dow Jones U.S. Total Stock Market Index to Russell 3000
Index. Effective November 16, 2017, the Fund's benchmark index changed
from the Russell 3000 Index to the SSGA Total Stock Market Index.
Effective January 24, 2020, the Fund's benchmark index changed from the
SSGA Total Stock Market Index to the S&P Composite 1500 Index. Each
benchmark index change was consistent with a change in the Fund's principal
investment strategy to track the performance of a new index. Performance
of the Fund prior to January 24, 2020 is therefore based on the Fund's
investment strategy to track the applicable prior indexes.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
31.56% |
11.35% |
13.40% |
Return
After Taxes on Distributions |
30.94% |
10.81% |
12.91% |
Return
After Taxes on Distributions and Sale of Fund Shares |
18.99% |
8.90% |
11.12% |
SSGA
Total Stock Market Index/Russell 3000 Index/Dow Jones U.S. Total Stock
Market Index
1 (reflects
no deduction for fees, expenses or taxes) |
31.57% |
11.34% |
13.53% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
1 |
Returns
shown are reflective of the SSGA Total Stock Market Index for the period
from November 16, 2017 to December 31, 2019, the Russell 3000 Index for
the period from July 9, 2013 to November 15, 2017, and the Dow Jones U.S.
Total Stock Market Index for periods prior to July 9,
2013. |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Kathleen Morgan.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Kathleen
Morgan, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager
in the Global Equity Beta Solutions Group. She joined the Adviser in
2017.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
(formerly, SPDR Portfolio Mid Cap
ETF)
Investment
Objective |
The SPDR Portfolio S&P 400 Mid Cap ETF (the “Fund”)
seeks to provide investment results that, before fees and expenses,
correspond generally to the total return performance of an index that
tracks the performance of mid-capitalization exchange traded U.S. equity
securities. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.05% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.05% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$5 |
$16 |
$28 |
$64 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 30% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P MidCap 400 Index (the “Index”), the Fund
employs a sampling strategy, which means that the Fund is not required to
purchase all of the securities represented in the Index. Instead, the Fund may
purchase a subset of the securities in the Index in an effort to hold a
portfolio of securities with generally the same risk and return characteristics
of the Index. The quantity of holdings in the Fund will be based on a number of
factors, including asset size of the Fund. Based on its analysis of these
factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used
by the Fund in seeking performance that corresponds to the Index and in managing
cash flows.
The
Index is designed to measure the performance of the mid-capitalization segment
of the U.S. equity market. The selection universe for the Index includes all
U.S. common equities listed on the NYSE, NYSE Arca, NYSE American, NASDAQ Global
Select Market, NASDAQ Select Market, NASDAQ Capital Market, Investors Exchange
(IEX), Cboe BZX, Cboe BYX, Cboe EDGA, or Cboe EDGX with unadjusted market
capitalizations between $2.4 billion and $8.2 billion and float-adjusted market
capitalizations of at least $1.2 billion at the time of inclusion. These
capitalization ranges may be revised by the Index Provider (as defined below) at
any time. To be included in the Index, a security (or issuer of a security, as
applicable) should (i) have an annual dollar value traded to float-adjusted
market capitalization ratio of 1 or greater; (ii) trade a minimum of 250,000
shares in each of the six months leading up to the evaluation date; (iii) have a
public float of at least 10%; and (iv) have positive aggregate earnings over the
four most recent quarters and for the most recent quarter. In selecting
securities for inclusion in the Index, the Index Provider also considers sector
balance by comparing the weight of each GICS (Global Industry Classification
Standard) sector in the Index to its weight in the relevant market
capitalization range of the S&P Total Market Index.
The
Index is float-adjusted market capitalization weighted. Index constituents are
added and removed on an as-needed basis. The Index is rebalanced on a quarterly
basis in March, June, September and December. As of July 31, 2020, a significant
portion of the Index comprised companies in the industrial and
technology sectors, although this may change from time to time. As of July
31, 2020, the Index comprised 400 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index
Provider”), which is not affiliated with the Fund or the Adviser. The Index
Provider determines the composition of the Index, relative weightings of the
securities in the Index and publishes information regarding the market value of
the Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Mid-Capitalization
Securities Risk:
The
securities of mid-capitalization companies may be more volatile and may involve
more risk than the securities of larger companies. These companies may have
limited product lines, markets or financial resources, may lack the competitive
strength of larger companies, and may depend on a few key employees. In
addition, these companies may have been recently organized and may have little
or no track record of success. The securities of mid-sized companies may trade
less frequently and in smaller volumes than more widely held securities. Some
securities of mid-sized issuers may be illiquid or may be restricted as to
resale, and their values may be volatile.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Industrial
Sector Risk:
Industrial
companies are affected by supply and demand both for their specific product or
service and for industrial sector products in general. Government regulation,
world events, exchange rates and economic conditions, technological developments
and liabilities for environmental damage and general civil liabilities will
likewise affect the performance of these companies. Aerospace and defense
companies, a component of the industrial sector, can be significantly affected
by government spending policies because companies involved in this industry
rely, to a significant extent, on U.S. and foreign government demand for their
products and services. Thus, the financial condition of, and investor interest
in, aerospace and defense companies are heavily influenced by governmental
defense spending policies which are typically under pressure from efforts to
control the U.S. (and other) government budgets. Transportation securities, a
component of the industrial sector, are cyclical and have occasional sharp price
movements which may result from changes in the economy, fuel prices, labor
agreements and insurance costs.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily dependent on patent and intellectual property
rights, the loss or impairment of which may adversely affect profitability.
Additionally, companies in the technology sector may face dramatic and often
unpredictable changes in growth rates and competition for the services of
qualified personnel.
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps significantly.
Valuation
Risk:
Some
portfolio holdings, potentially a large portion of the Fund's investment
portfolio, may be valued on the basis of factors other than market quotations.
This may occur more often in times of market turmoil or reduced liquidity. There
are multiple methods that can be used to value a portfolio holding when market
quotations are not readily available. The value established for any portfolio
holding at a point in time might differ from what would be produced using a
different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued using techniques other than market
quotations, including “fair valued” securities, may be subject to greater
fluctuation in their valuations from one day to the next than if market
quotations were used. In addition, there is no assurance that the Fund could
sell or close out a portfolio position for the value established for it at any
time, and it is possible that the Fund would incur a loss because a portfolio
position is sold or closed out at a discount to the valuation established by the
Fund at that time.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 14.02% (Q4, 2011)
Lowest
Quarterly Return: -20.45% (Q3, 2011)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -8.75%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares. Effective July 9, 2013, the Fund's benchmark index
changed from the Dow Jones U.S. Mid-Cap Total Stock Market Index to the Russell
Small Cap Completeness Index. Effective August 31, 2016, the Fund's
benchmark index changed from the Russell Small Cap Completeness Index to
the S&P 1000 Index. Effective January 24, 2020, the Fund's benchmark
index changed from the S&P 1000 Index to the S&P MidCap
400 Index. Each benchmark index change was consistent with a change
in the Fund's principal investment strategy to track the performance of a
new index. Performance of the Fund prior to January 24, 2020 is
therefore based on the Fund's investment strategy to track the applicable prior
indexes.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
25.11% |
8.09% |
12.25% |
Return
After Taxes on Distributions |
24.52% |
7.28% |
11.16% |
Return
After Taxes on Distributions and Sale of Fund Shares |
15.08% |
6.09% |
9.79% |
S&P
1000 Index/Russell Small Cap Completeness Index/Dow Jones U.S. Mid-Cap
Total Stock Market Index
1 (reflects
no deduction for fees, expenses or taxes) |
25.14% |
8.14% |
12.40% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
1 |
Returns
shown are reflective of the S&P 1000 Index for the period from August
31, 2016 to December 31, 2019, the Russell Small Cap Completeness Index
for the period from July 9,2013 to August 30, 2016, and the Dow Jones U.S.
Mid-Cap Total Stock Market Index for periods prior to July 9,
2013. |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Mark Krivitsky.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Mark
Krivitsky is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group and the Tax-Efficient Market Capture
Group. He joined the Adviser in 1996.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
(formerly, SPDR Portfolio Large Cap
ETF)
Investment
Objective |
The SPDR Portfolio S&P 500 ETF (the “Fund”) seeks to
provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index that tracks the
performance of large capitalization exchange traded U.S. equity
securities. |
Fees and
Expenses of the Fund
The table below describes the fees and expenses that you may pay
if you buy, hold and sell shares of the Fund (“Fund Shares”). You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.03% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.03% |
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell all of your Fund Shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the Fund's
operating expenses remain the same. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$3 |
$10 |
$17 |
$39 |
The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund Shares are held in a taxable account. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio turnover
rate was 11% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In
seeking to track the performance of the S&P 500 Index (the “Index”),
the Fund employs a sampling strategy, which means that the Fund is not required
to purchase all of the securities represented in the Index. Instead, the Fund
may purchase a subset of the securities in the Index in an effort to hold a
portfolio of securities with generally the same risk and return characteristics
of the Index. The quantity of holdings in the Fund will be based on a number of
factors, including asset size of the Fund. Based on its analysis of these
factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of
the
Index (e.g., changes in weightings of one or more component securities). When
the Fund is non-diversified, it may invest a relatively high percentage of its
assets in a limited number of issuers.
Under
normal market conditions, the Fund generally invests substantially all, but at
least 80%, of its total assets in the securities comprising the Index. In
addition, in seeking to track the Index, the Fund may invest in equity
securities that are not included in the Index (including common stock,
preferred stock, depositary receipts and shares of other investment companies),
cash and cash equivalents or money market instruments, such as repurchase
agreements
and money market
funds (including money market funds advised by the Adviser). In seeking to track
the Index, the Fund's assets will generally be concentrated in an industry or
group of industries to the extent that the Index concentrates in a particular
industry or group of industries. Futures contracts (a type of derivative
instrument) may be used by the Fund in seeking performance that corresponds to
the Index and in managing cash flows.
The
Index is designed to measure the performance of the large-capitalization segment
of the U.S. equity market. The selection universe for the Index includes all
U.S. common equities listed on the NYSE, NYSE Arca, NYSE American, NASDAQ Global
Select Market, NASDAQ Select Market, NASDAQ Capital Market, Investors Exchange
(IEX), Cboe BZX, Cboe BYX, Cboe EDGA, or Cboe EDGX with unadjusted market
capitalizations of at least $8.2 billion and float-adjusted market
capitalizations of at least $4.1 billion at the time of inclusion. These
capitalization ranges may be revised by the Index Provider (as defined below) at
any time. To be included in the Index, a security (or issuer of a security, as
applicable) should (i) have an annual dollar value traded to float-adjusted
market capitalization ratio of 1 or greater; (ii) trade a minimum of 250,000
shares in each of the six months leading up to the evaluation date; (iii) have a
public float of at least 10%; and (iv) have positive aggregate earnings over the
four most recent quarters and for the most recent quarter. In selecting
securities for inclusion in the Index, the Index Provider also considers sector
balance by comparing the weight of each GICS (Global Industry Classification
Standard) sector in the Index to its weight in the relevant market
capitalization range of the S&P Total Market Index.
The
Index is float-adjusted market capitalization weighted. Index constituents are
added and removed on an as-needed basis. The Index is rebalanced on a quarterly
basis in March, June, September and December. As of July 31, 2020, a significant
portion of the Index comprised companies in the technology sector,
although this may change from time to time. As of July 31, 2020, the Index
comprised 505 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Large-Capitalization
Securities Risk:
Returns
on investments in securities of large companies could trail the returns on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as smaller and mid-sized companies to
competitive challenges or to changes in business, product, financial,
or other market conditions. Larger companies may not be able to maintain
growth at the high rates that may be achieved by well-managed smaller and
mid-sized companies.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily dependent on patent and intellectual property
rights, the loss or impairment of which may adversely affect profitability.
Additionally, companies in the technology sector may face dramatic and often
unpredictable changes in growth rates and competition for the services of
qualified personnel.
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps
significantly.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index. The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 14.30% (Q1, 2019)
Lowest
Quarterly Return: -14.27% (Q3, 2011)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was 5.64%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares. Effective July 9, 2013, the Fund's benchmark index
changed from the Dow Jones U.S. Large-Cap Total Stock Market Index to the
Russell 1000 Index. Effective November 16, 2017, the Fund's benchmark index
changed from the Russell 1000 Index to the SSGA Large Cap Index. Effective
January 24, 2020, the Fund's benchmark index changed from the SSGA Large Cap
Index to the S&P 500 Index. Each benchmark index change was consistent with
a change in the Fund's principal investment strategy to track the performance of
a new index. Performance of the Fund prior to January 24, 2020 is therefore
based on the Fund's investment strategy to track the applicable prior
indexes.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
32.06% |
11.57% |
13.48% |
Return
After Taxes on Distributions |
31.41% |
10.96% |
12.93% |
Return
After Taxes on Distributions and Sale of Fund Shares |
19.30% |
9.03% |
11.14% |
SSGA
Large Cap Index/Russell 1000 Index/Dow Jones U.S. Large-Cap Total Stock
Market Index
1 (reflects
no deduction for fees, expenses or taxes) |
32.15% |
11.63% |
13.60% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
1 |
Returns
shown are reflective of the SSGA Large Cap Index for the period from
November 16, 2017 to December 31, 2019, the Russell 1000 Index for the
period from July 9, 2013 to November 15, 2017, and the Dow Jones U.S.
Large-Cap Total Stock Market Index for periods prior to July 9,
2013. |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and John Law.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
John
Law, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. He joined the Adviser in 2016.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR Portfolio S&P 500 Growth ETF (the “Fund”) seeks
to provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index that tracks the
performance of large capitalization exchange traded U.S. equity securities
exhibiting “growth”
characteristics. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.04% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.04% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$4 |
$13 |
$23 |
$51 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 23% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P 500 Growth Index (the “Index”), the Fund
employs a sampling strategy, which means that the Fund is not required to
purchase all of the securities represented in the Index. Instead, the Fund may
purchase a subset of the securities in the Index in an effort to hold a
portfolio of securities with generally the same risk and return characteristics
of the Index. The quantity of holdings in the Fund will be based on a number of
factors, including asset size of the Fund. Based on its analysis of these
factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track the Index, the
Fund's assets will generally be concentrated in an industry or group of
industries to the extent that the Index concentrates in a particular industry or
group of industries. Futures contracts (a type of derivative instrument) may be
used by the Fund in seeking performance that corresponds to the Index and in
managing cash flows.
The Index measures
the performance of the large-capitalization growth segment of the U.S. equity
market. The Index consists of those stocks in the S&P 500 Index exhibiting
the strongest growth characteristics based on: (i) sales growth; (ii) earnings
change to price; and (iii) momentum. The S&P 500 Index focuses on the large
capitalization U.S. equity market, including common stock and real estate
investment trusts (“REITs”). The selection universe for the S&P 500 Index
includes all U.S. common equities listed on the NYSE, NYSE Arca, NYSE American,
NASDAQ Global Select Market, NASDAQ Select Market, NASDAQ Capital Market,
Investors Exchange (IEX), Cboe BZX, Cboe BYX, Cboe EDGA, or Cboe EDGX with
unadjusted market capitalizations of at least $8.2 billion and float-adjusted
market capitalizations of at least $4.1 billion at the time of inclusion. The
minimum required capitalization may be revised by the Index Provider (as defined
below) at any time. To be included in the Index, a security (or issuer of a
security, as applicable) should (i) have an annual dollar value traded to
float-adjusted market capitalization ratio of 1 or greater; (ii) trade a minimum
of 250,000 shares in each of the six months leading up to the evaluation date;
(iii) have a public float of at least 10%; and (iv) have positive as-reported
earnings over the most recent four consecutive quarters (measured using the sum
of earnings over those quarters) and for the most recent quarter. Meeting these
criteria does not guarantee automatic inclusion into the Index. Given the
limited number of companies that the Index can have and that it must reflect
sector representation, some eligible companies may not be added to the Index at
a particular time. S&P Dow Jones Indices LLC's Index Committee makes the
final determination and approval of all Index constituents. The Index is market
capitalization weighted and rebalanced annually on the third Friday of December.
As of July 31, 2020, a significant portion of the Fund comprised companies
in the technology and consumer discretionary sectors, although this
may change from time to time. As of July 31, 2020, the Index comprised 279
stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Growth
Stock Risk:
The
prices of growth stocks may be based largely on expectations of future earnings,
and their prices can decline rapidly and significantly in reaction to negative
news. Growth stocks may underperform value stocks and stocks in other broad
style categories (and the stock market as a whole) over any period of time and
may shift in and out of favor with investors generally, sometimes rapidly,
depending on changes in market, economic, and other factors.
Large-Capitalization
Securities Risk:
Returns
on investments in securities of large companies could trail the returns on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as smaller and mid-sized companies to
competitive challenges or to changes in business, product, financial,
or other market conditions. Larger companies may not be able to maintain
growth at the high rates that may be achieved by well-managed smaller and
mid-sized companies.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times
when the market
price of the shares is more than the net asset value per share (premium) or less
than the net asset value per share (discount). This risk is heightened in times
of market volatility or periods of steep market declines.
Consumer
Discretionary Sector Risk:
The
success of consumer product manufacturers and retailers is tied closely to the
performance of the overall global economy, interest rates, competition and
consumer confidence. Success depends heavily on disposable household income and
consumer spending. Also, companies in the consumer discretionary sector may be
subject to severe competition, which may have an adverse impact on their
respective profitability. Changes in demographics and consumer tastes can also
affect the demand for, and success of, consumer products and services in the
marketplace.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
As a
“non-diversified” fund, the Fund may hold a smaller number of portfolio
securities than many other funds. To the extent the Fund invests in a relatively
small number of issuers, a decline in the market value of a particular security
held by the Fund may affect its value more than if it invested in a larger
number of issuers. The value of Fund Shares may be more volatile than the values
of shares of more diversified funds. The Fund may become diversified for periods
of time solely as a result of changes in the composition of the Index (e.g.,
changes in weightings of one or more component
securities).
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both
domestically
and internationally, including competition from foreign competitors with lower
production costs. Stocks of technology companies and companies that rely heavily
on technology, especially those of smaller, less-seasoned companies, tend to be
more volatile than the overall market. Technology companies are heavily
dependent on patent and intellectual property rights, the loss or impairment of
which may adversely affect profitability. Additionally, companies in the
technology sector may face dramatic and often unpredictable changes in growth
rates and competition for the services of qualified personnel.
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps
significantly.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 14.91% (Q1, 2019)
Lowest
Quarterly Return: -14.70% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was 20.54%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
Effective
December 17, 2010 (the “Benchmark Index Change Date”), the Fund's benchmark
index changed from the Dow Jones U.S. Large-Cap Growth Total Stock Market Index
(the “Previous Benchmark Index”) to the S&P 500 Growth Index, consistent
with a change in the Fund's principal investment strategy to track the
performance of the current index. Performance of the Fund prior to the
Benchmark Index Change Date is therefore based on the Fund's investment strategy
to track the Previous Benchmark Index.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
31.03% |
13.39% |
14.73% |
Return
After Taxes on Distributions |
30.55% |
12.95% |
14.35% |
Return
After Taxes on Distributions and Sale of Fund Shares |
18.63% |
10.62% |
12.36% |
S&P
500 Growth Index/Dow Jones U.S. Large-Cap Growth Total Stock Market Index
1 (reflects
no deduction for fees, expenses or taxes) |
31.13% |
13.52% |
14.92% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
1 |
Returns
shown are reflective of the Index for periods beginning on the Benchmark
Index Change Date and the Previous Benchmark Index for periods prior to
the Benchmark Index Change Date. |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Mark Krivitsky.
Michael Feehily, CFA, is a Senior Managing Director of the
Adviser and the Head of Global Equity Beta Solutions in the Americas. He worked
at the Adviser from 1997 to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Mark
Krivitsky is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group and the Tax-Efficient Market Capture
Group. He joined the Adviser in 1996.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR Portfolio S&P 500 High Dividend ETF (the
“Fund”) seeks to provide investment results that, before fees and
expenses, correspond generally to the total return performance of an index
that tracks the performance of publicly traded issuers that have high
dividend yields. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.07% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.07% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$7 |
$23 |
$40 |
$90 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 45% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P 500 High Dividend Index (the “Index”),
the Fund employs a sampling strategy, which means that the Fund is not required
to purchase all of the securities represented in the Index. Instead, the Fund
may purchase a subset of the securities in the Index in an effort to hold a
portfolio of securities with generally the same risk and return characteristics
of the Index. The quantity of holdings in the Fund will be based on a number of
factors, including asset size of the Fund. Based on its analysis of these
factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used
by the Fund in seeking performance that corresponds to the Index and in managing
cash
flows.
The Index is
designed to measure the performance of 80 high dividend-yielding companies
within the S&P 500
®
Index.
The S&P 500 Index focuses on the large capitalization U.S. equity market,
including common stock and real estate investment trusts (“REITs”). The
selection universe for the S&P 500 Index includes all U.S. common equities
listed on the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select Market,
NASDAQ Select Market, NASDAQ Capital Market, Investors Exchange (IEX), Cboe BZX,
Cboe BYX, Cboe EDGA, or Cboe EDGX with unadjusted market capitalizations of at
least $8.2 billion and float-adjusted market capitalizations of at least $4.1
billion at the time of inclusion. The minimum required capitalization may be
revised by the Index Provider (as defined below) at any time. To determine
dividend yield: (i) an indicated dividend is measured by taking the latest
dividend paid (excluding special payments) multiplied by the annual frequency of
the payment; and (ii) the indicated dividend is then divided by the company's
share price as of the rebalancing reference date. Index constituents are equally
weighted and the Index is rebalanced semi-annually, in January and July. As of
July 31, 2020, a significant portion of the Fund comprised companies in
the financial and industrial sectors, although this may change from time to
time. As of July 31, 2020, the Index comprised 61
stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Dividend
Paying Securities Risk:
Securities
that pay dividends, as a group, can fall out of favor with the market, causing
such companies to underperform companies that do not pay dividends. In addition,
changes in the dividend policies of the companies held by the Fund or the
capital resources available for such company's dividend payments may adversely
affect the Fund.
Large-Capitalization
Securities Risk:
Returns
on investments in securities of large companies could trail the returns on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as smaller and mid-sized companies to
competitive challenges or to changes in business, product, financial,
or other market conditions. Larger companies may not be able to maintain
growth at the high rates that may be achieved by well-managed smaller and
mid-sized companies.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Financial
Sector Risk:
Financial
services companies are subject to extensive governmental regulation which may
limit both the amounts and types of loans and other financial commitments they
can make, the interest rates and fees they can charge, the scope of their
activities, the prices they can charge and the amount of capital they must
maintain. Profitability is largely dependent on the availability and cost of
capital funds and can fluctuate significantly when interest rates change or due
to increased competition. In addition, deterioration of the credit markets
generally may cause an adverse impact in a broad range of markets, including
U.S. and international credit and interbank money markets generally, thereby
affecting a wide range of financial institutions and markets. Certain events in
the financial sector may cause an unusually high degree of volatility in the
financial markets, both domestic and foreign, and cause certain financial
services companies to incur large losses. Securities of financial services
companies may experience a dramatic decline in value when such companies
experience substantial declines in the valuations of their assets, take action
to raise capital (such as the issuance of debt or equity securities), or cease
operations. Credit losses resulting from financial difficulties of borrowers and
financial losses associated with investment activities can negatively impact the
sector. Insurance companies may be subject to severe price competition. Adverse
economic, business or political developments could adversely affect financial
institutions engaged in mortgage finance or other lending or investing
activities directly or indirectly connected to the value of real
estate.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Industrial
Sector Risk:
Industrial
companies are affected by supply and demand both for their specific product or
service and for industrial sector products in general. Government regulation,
world events, exchange rates and economic conditions, technological developments
and liabilities for environmental damage and general civil liabilities will
likewise affect the performance of these companies. Aerospace and defense
companies, a component of the industrial sector, can be significantly affected
by government spending policies because companies involved in this industry
rely, to a significant extent, on U.S. and foreign government demand for their
products and services. Thus, the financial condition of, and investor interest
in, aerospace and defense companies are heavily influenced by governmental
defense spending policies which are typically under pressure from
efforts
to
control the U.S. (and other) government budgets. Transportation securities, a
component of the industrial sector, are cyclical and have occasional sharp price
movements which may result from changes in the economy, fuel prices, labor
agreements and insurance costs.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
REIT
Risk:
Real
estate investment trusts (“REITs”) are subject to the risks associated with
investing in the securities of real property companies. In particular, REITs may
be affected by changes in the values of the underlying properties that they own
or operate. Further, REITs are dependent upon specialized management skills, and
their investments may be concentrated in relatively few properties, or in a
small geographic area or a single property type. REITs are also subject to heavy
cash flow dependency and, as a result, are particularly reliant on the proper
functioning of capital markets. A variety of economic and other factors may
adversely affect a lessee's ability to meet its obligations to a REIT. In the
event of a default by a lessee, the REIT may experience delays in enforcing its
rights as a lessor and may incur substantial costs associated in protecting its
investments. In addition, a REIT could fail to qualify for favorable regulatory
treatment.
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps significantly.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 12.18% (Q1, 2019)
Lowest
Quarterly Return: -8.04% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -27.79%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Since
Inception (10/21/2015)
|
Return
Before Taxes |
21.35% |
11.81% |
Return
After Taxes on Distributions |
19.82% |
10.19% |
Return
After Taxes on Distributions and Sale of Fund Shares |
13.26% |
8.77% |
S&P
500 High Dividend Index (reflects no deduction for fees, expenses or
taxes) |
21.49% |
11.94% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
14.18% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and John Law.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
John
Law, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. He joined the Adviser in 2016.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR Portfolio S&P 500 Value ETF (the “Fund”) seeks
to provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index that tracks the
performance of large capitalization exchange traded U.S. equity securities
exhibiting “value”
characteristics. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.04% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.04% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$4 |
$13 |
$23 |
$51 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 34% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P 500 Value Index (the “Index”), the Fund
employs a sampling strategy, which means that the Fund is not required to
purchase all of the securities represented in the Index. Instead, the Fund may
purchase a subset of the securities in the Index in an effort to hold a
portfolio of securities with generally the same risk and return characteristics
of the Index. The quantity of holdings in the Fund will be based on a number of
factors, including asset size of the Fund. Based on its analysis of these
factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
52
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used
by the Fund in seeking performance that corresponds to the Index and in managing
cash
flows.
The Index measures
the performance of the large-capitalization value segment of the U.S. equity
market. The Index consists of those stocks in the S&P 500 Index exhibiting
the strongest value characteristics based on: (i) book value to price ratio;
(ii) earnings to price ratio; and (iii) sales to price ratio. The S&P 500
Index focuses on the large capitalization U.S. equity market, including common
stock and real estate investment trusts (“REITs”). The selection universe for
the S&P 500 Index includes all U.S. common equities listed on the NYSE, NYSE
Arca, NYSE American, NASDAQ Global Select Market, NASDAQ Select Market, NASDAQ
Capital Market, Investors Exchange (IEX), Cboe BZX, Cboe BYX, Cboe EDGA, or Cboe
EDGX with unadjusted market capitalizations of at least $8.2 billion and
float-adjusted market capitalizations of at least $4.1 billion at the time of
inclusion. The minimum required capitalization may be revised by the Index
Provider (as defined below) at any time. To be included in the Index, a security
(or issuer of a security, as applicable) should (i) have an annual dollar value
traded to float-adjusted market capitalization ratio of 1 or greater; (ii) trade
a minimum of 250,000 shares in each of the six months leading up to the
evaluation date; (iii) have a public float of at least 10%; and (iv) have
positive as-reported earnings over the most recent four consecutive quarters
(measured using the sum of earnings over those quarters) and for the most recent
quarter. Meeting these criteria does not guarantee automatic inclusion into the
Index. Given the limited number of companies that the Index can have and that it
must reflect sector representation, some eligible companies may not be added to
the Index at a particular time. S&P Dow Jones Indices LLC's Index Committee
makes the final determination and approval of all Index constituents. The Index
is market capitalization weighted and rebalanced annually on the third Friday of
December. As of July 31, 2020, a significant portion of the Fund comprised
companies in the financial and health care sectors, although this may
change from time to time. As of July 31, 2020, the Index comprised 390
stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Value
Stock Risk:
A
“value” style of investing is subject to the risk that the returns on “value”
equity securities are less than returns on other styles of investing or the
overall stock market. Value stocks present the risk that they may decline in
price or never reach their expected full market value because the market fails
to recognize a stock's intrinsic worth.
Large-Capitalization
Securities Risk:
Returns
on investments in securities of large companies could trail the returns on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as smaller and mid-sized companies to
competitive challenges or to changes in business, product, financial,
or other market conditions. Larger companies may not be able to maintain
growth at the high rates that may be achieved by well-managed smaller and
mid-sized companies.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times
when
the market price of the shares is more than the net asset value per share
(premium) or less than the net asset value per share (discount). This risk is
heightened in times of market volatility or periods of steep market
declines.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Financial
Sector Risk:
Financial
services companies are subject to extensive governmental regulation which may
limit both the amounts and types of loans and other financial commitments they
can make, the interest rates and fees they can charge, the scope of their
activities, the prices they can charge and the amount of capital they must
maintain. Profitability is largely dependent on the availability and cost of
capital funds and can fluctuate significantly when interest rates change or due
to increased competition. In addition, deterioration of the credit markets
generally may cause an adverse impact in a broad range of markets, including
U.S. and international credit and interbank money markets generally, thereby
affecting a wide range of financial institutions and markets. Certain events in
the financial sector may cause an unusually high degree of volatility in the
financial markets, both domestic and foreign, and cause certain financial
services companies to incur large losses. Securities of financial services
companies may experience a dramatic decline in value when such companies
experience substantial declines in the valuations of their assets, take action
to raise capital (such as the issuance of debt or equity securities), or cease
operations. Credit losses resulting from financial difficulties of borrowers and
financial losses associated with investment activities can negatively impact the
sector. Insurance companies may be subject to severe price competition. Adverse
economic, business or political developments could adversely affect financial
institutions engaged in mortgage finance or other lending or investing
activities directly or indirectly connected to the value of real
estate.
Health
Care Sector Risk:
Companies
in the health care sector are subject to extensive government regulation and
their profitability can be significantly affected by restrictions on government
reimbursement for medical expenses, rising costs of medical products and
services, pricing pressure (including price discounting), limited product lines
and an increased emphasis on the delivery of healthcare through outpatient
services. Companies in the health care sector are heavily dependent on obtaining
and defending patents, which may be time consuming and costly, and the
expiration of patents may also adversely affect the profitability of these
companies. Health care companies are also subject to extensive litigation based
on product liability and similar claims. In addition, their products can become
obsolete due to industry innovation, changes in technologies or other market
developments. Many new products in the health care sector require significant
research and development and may be subject to regulatory approvals, all of
which may be time consuming and costly with no guarantee that any product will
come to market.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully
invested
at times, generally as a result of cash flows into or out of the Fund or
reserves of cash held by the Fund to meet redemptions. The Adviser may attempt
to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps significantly.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 12.87% (Q1, 2012)
Lowest
Quarterly Return: -16.26% (Q3, 2011)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -11.46%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
Effective
December 17, 2010 (the “Benchmark Index Change Date”), the Fund's benchmark
index changed from the Dow Jones U.S. Large-Cap Value Total Stock Market Index
(the “Previous Benchmark Index”) to the S&P 500 Value Index, consistent with
a change in the Fund's principal investment strategy to track the performance of
the current index. Performance of the Fund prior to the Benchmark Index
Change Date is therefore based on the Fund's investment strategy to track the
Previous Benchmark Index.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
31.78% |
9.41% |
12.03% |
Return
After Taxes on Distributions |
30.95% |
8.66% |
11.38% |
Return
After Taxes on Distributions and Sale of Fund Shares |
19.20% |
7.24% |
9.85% |
S&P
500 Value Index/Dow Jones U.S. Large-Cap Value Total Stock Market Index
1 (reflects
no deduction for fees, expenses or taxes) |
31.93% |
9.52% |
12.21% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
1 |
Returns
shown are reflective of the Index for periods beginning on the Benchmark
Index Change Date and the Previous Benchmark Index for periods prior to
the Benchmark Index Change Date. |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Mark Krivitsky.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Mark
Krivitsky is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group and the Tax-Efficient Market Capture
Group. He joined the Adviser in 1996.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
(formerly, SPDR Portfolio Small Cap
ETF)
Investment
Objective |
The SPDR Portfolio S&P 600 Small Cap ETF (the “Fund”)
seeks to provide investment results that, before fees and expenses,
correspond generally to the total return performance of an index that
tracks the performance of small capitalization exchange traded U.S. equity
securities. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.05% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.05% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$5 |
$16 |
$28 |
$64 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 80% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In
seeking to track the performance of the S&P SmallCap
600 Index (the “Index”), the Fund employs a sampling strategy, which
means that the Fund is not required to purchase all of the securities
represented in the Index. Instead, the Fund may purchase a subset of the
securities in the Index in an effort to hold a portfolio of securities with
generally the same risk and return characteristics of the Index. The quantity of
holdings in the Fund will be based on a number of factors, including asset size
of the Fund. Based on its analysis of these factors, SSGA Funds Management, Inc.
(“SSGA FM” or the “Adviser”), the investment adviser to the Fund, either may
invest the Fund's assets in a subset of securities in the Index or may invest
the Fund's assets in substantially all of the securities represented in the
Index in approximately the same proportions as the Index, as determined by the
Adviser to be in the best interest of the Fund in pursuing its
objective. The Fund is classified as “diversified” under the Investment
Company Act of 1940, as amended; however, the Fund may become “non-diversified”
solely as a result of
tracking
the
Index (e.g., changes in weightings of one or more component securities). When
the Fund is non-diversified, it may invest a relatively high percentage of its
assets in a limited number of issuers.
Under
normal market conditions, the Fund generally invests substantially all, but at
least 80%, of its total assets in the securities comprising the Index. In
addition, in seeking to track the Index, the Fund may invest in equity
securities that are not included in the Index, cash and cash equivalents or
money market instruments, such as repurchase agreements and money market funds
(including money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used
by the Fund in seeking performance that corresponds to the Index and in managing
cash flows.
The
Index measures the performance of the small-capitalization segment of the U.S.
equity market. The selection universe for the Index includes all U.S. common
equities listed on the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select
Market, NASDAQ Select Market, NASDAQ Capital Market, Investors Exchange (IEX),
Cboe BZX, Cboe BYX, Cboe EDGA, or Cboe EDGX with unadjusted market
capitalizations between $600 million and $2.4 billion and float-adjusted market
capitalizations of at least $300 million at the time of inclusion. These
capitalization ranges may be revised by the Index Provider (as defined below) at
any time. To be included in the Index, a security (or issuer of a security, as
applicable) should (i) have an annual dollar value traded to float-adjusted
market capitalization ratio of 1 or greater; (ii) trade a minimum of 250,000
shares in each of the six months leading up to the evaluation date; (iii) have a
public float of at least 10%; and (iv) have positive aggregate earnings over the
four most recent quarters and for the most recent quarter. In selecting
securities for inclusion in the Index, the Index Provider also considers sector
balance by comparing the weight of each GICS (Global Industry Classification
Standard) sector in the Index to its weight in the relevant market
capitalization range of the S&P Total Market Index.
The
Index is float-adjusted market capitalization weighted. Index constituents are
added and removed on an as-needed basis. The Index is rebalanced on a quarterly
basis in March, June, September and December. As of July 31, 2020, a significant
portion of the Index comprised companies in the financial,
industrial and consumer discretionary sectors, although this may
change from time to time. As of July 31, 2020, the Index comprised 601
stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Small-Capitalization
Securities Risk:
The
securities of small-capitalization companies may be more volatile and may
involve more risk than the securities of larger companies. These companies may
have limited product lines, markets or financial resources, may lack the
competitive strength of larger companies, and may depend on a few key employees.
In addition, these companies may have been recently organized and may have
little or no track record of success. The securities of smaller companies may
trade less frequently and in smaller volumes than more widely held securities.
Some securities of smaller issuers may be illiquid or may be restricted as to
resale, and their values may have significant volatility. The Fund may be unable
to liquidate its positions in such securities at any time, or at a favorable
price, in order to meet the Fund's obligations. Returns on investments in
securities of small-capitalization companies could trail the returns on
investments in securities of larger companies.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Consumer
Discretionary Sector Risk:
The
success of consumer product manufacturers and retailers is tied closely to the
performance of the overall global economy, interest rates, competition and
consumer confidence. Success depends heavily on disposable household income and
consumer spending. Also, companies in the consumer discretionary sector may be
subject to severe competition, which may have an adverse impact on their
respective profitability. Changes in demographics and consumer tastes can also
affect the demand for, and success of, consumer products and services in the
marketplace.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Financial
Sector Risk:
Financial
services companies are subject to extensive governmental regulation which may
limit both the amounts and types of loans and other financial commitments they
can make, the interest rates and fees they can charge, the scope of their
activities, the prices they can charge and the amount of capital they must
maintain. Profitability is largely dependent on the availability and cost of
capital funds and can fluctuate significantly when interest rates change or due
to increased competition. In addition, deterioration of the credit markets
generally may cause an adverse impact in a broad range of markets, including
U.S. and international credit and interbank money markets generally, thereby
affecting a wide range of financial institutions and markets. Certain events in
the financial sector may cause an unusually high degree of volatility in the
financial markets, both domestic and foreign, and cause certain financial
services companies to incur large losses. Securities of financial services
companies may experience a dramatic decline in value when such companies
experience substantial declines in the valuations of their assets, take action
to raise capital (such as the issuance of debt or equity securities), or cease
operations. Credit losses resulting from financial difficulties of borrowers and
financial losses associated with investment activities can negatively impact the
sector. Insurance companies may be subject to severe price competition. Adverse
economic, business or political developments could adversely affect financial
institutions engaged in mortgage finance or other lending or investing
activities directly or indirectly connected to the value of real
estate.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Industrial
Sector Risk:
Industrial
companies are affected by supply and demand both for their specific product or
service and for industrial sector products in general. Government regulation,
world events, exchange rates and economic conditions, technological developments
and liabilities for environmental damage and general civil liabilities will
likewise affect the performance of these companies. Aerospace and defense
companies, a
component
of the industrial sector, can be significantly affected by government spending
policies because companies involved in this industry rely, to a significant
extent, on U.S. and foreign government demand for their products and services.
Thus, the financial condition of, and investor interest in, aerospace and
defense companies are heavily influenced by governmental defense spending
policies which are typically under pressure from efforts to control the U.S.
(and other) government budgets. Transportation securities, a component of the
industrial sector, are cyclical and have occasional sharp price movements which
may result from changes in the economy, fuel prices, labor agreements and
insurance costs.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps significantly.
Valuation
Risk:
Some
portfolio holdings, potentially a large portion of the Fund's investment
portfolio, may be valued on the basis of factors other than market quotations.
This may occur more often in times of market turmoil or reduced liquidity. There
are multiple methods that can be used to value a portfolio holding when market
quotations are not readily available. The value established for any portfolio
holding at a point in time might differ from what would be produced using a
different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued using techniques other than market
quotations, including “fair valued” securities, may be subject to greater
fluctuation in their valuations from one day to the next than if market
quotations were used. In addition, there is no assurance that the Fund could
sell or close out a portfolio position for the value established for it at any
time, and it is possible that the Fund would incur a loss because a portfolio
position is sold or closed out at a discount to the valuation established by the
Fund at that time.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 15.04% (Q1, 2019)
Lowest
Quarterly Return: -20.08% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -15.29%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
Effective
November 16, 2017, the Fund's benchmark index changed from
the
Russell
2000 Index to the SSGA Small Cap Index. Effective January 24, 2020,
the Fund's benchmark index changed from the SSGA Small Cap Index to the
S&P SmallCap 600 Index. Each benchmark index change was
consistent with a change in the Fund's principal investment strategy to track
the performance of a new index. Performance of the Fund prior to
January 24, 2020 is therefore based on the Fund's investment strategy to track
the applicable prior indexes.
|
One Year |
Five Years |
Since
Inception (7/8/13)
|
Return
Before Taxes |
25.87% |
8.46% |
9.73% |
Return
After Taxes on Distributions |
25.25% |
7.81% |
9.08% |
Return
After Taxes on Distributions and Sale of Fund Shares |
15.51% |
6.40% |
7.52% |
SSGA
Small Cap Index/Russell 2000 Index
1 (reflects
no deduction for fees, expenses or taxes) |
26.02% |
8.43% |
9.72% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.32% |
1 |
Returns
shown are reflective of the SSGA Small Cap Index for the period from
November 16, 2017 to December 31, 2019, and the Russell 2000 Index for
periods prior to November 16, 2017. |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Teddy Wong.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Teddy
Wong is a Vice President of the Adviser and a Senior Portfolio Manager in the
Global Equity Beta Solutions Group. He joined the Adviser in 2001.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual Fund
Shares may only be purchased and sold on the NYSE Arca, Inc., other national
securities exchanges, electronic crossing networks and other alternative trading
systems through your broker-dealer at market prices. Because Fund Shares trade
at market prices rather than at net asset value (“NAV”), Fund Shares may trade
at a price greater than NAV (premium) or less than NAV (discount). When buying
or selling Fund Shares in the secondary market, you may incur costs attributable
to the difference between the highest price a buyer is willing to pay to
purchase Fund Shares (bid) and the lowest price a seller is willing to accept
for Fund Shares (ask) (the “bid-ask spread”). Recent information regarding the
Fund's NAV, market price, premiums and discounts, and bid-ask spreads is
available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR Russell 1000 Low Volatility Focus ETF (the “Fund”)
seeks to provide investment results that, before fees and expenses,
correspond generally to the total return performance of the Russell 1000
Low Volatility Focused Factor
Index. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.20% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.20% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$20 |
$64 |
$113 |
$255 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 28% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In
seeking to track the performance of the Russell 1000 Low Volatility Focused
Factor Index (the “Index”), the Fund employs a sampling strategy, which
means that the Fund is not required to purchase all of the securities
represented in the Index. Instead, the Fund may purchase a subset of the
securities in the Index in an effort to hold a portfolio of securities with
generally the same risk and return characteristics of the Index. The quantity of
holdings in the Fund will be based on a number of factors, including asset size
of the Fund. Based on its analysis of these factors, SSGA Funds Management, Inc.
(“SSGA FM” or the “Adviser”), the investment adviser to the Fund, either may
invest the Fund's assets in a subset of securities in the Index or may invest
the Fund's assets in substantially all of the securities represented in the
Index in approximately the same proportions as the Index, as determined by the
Adviser to be in the best interest of the Fund in pursuing its
objective. The Fund is classified as “diversified” under the Investment
Company Act of 1940, as amended; however, the Fund may become “non-diversified”
solely as a result of
tracking
the
Index (e.g., changes in weightings of one or more component securities). When
the Fund is non-diversified, it may invest a relatively high percentage of its
assets in a limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index (including common stock, preferred stock,
depositary receipts and shares of other investment companies), cash and cash
equivalents or money market instruments, such as repurchase agreements and money
market funds (including money market funds advised by the Adviser). In seeking
to track the Index, the
Fund's assets will
generally be concentrated in an industry or group of industries to the extent
that the Index concentrates in a particular industry or group of industries.
Futures contracts (a type of derivative instrument) may be used by the Fund
in seeking performance that corresponds to the Index and in managing cash
flows.
The Index is
designed to reflect the performance of a segment of large-capitalization U.S.
equity securities demonstrating a combination of core factors (high value, high
quality, and low size characteristics), with a focus factor comprising low
volatility characteristics (the “Factor Characteristics”). To construct the
Index, Frank Russell Company (the “Index Provider”) utilizes a rules-based
multi-factor scoring process that seeks to increase exposure (or “tilt”) to
companies in the Russell 1000 Index demonstrating the Factor Characteristics.
The Russell 1000 Index is a market-capitalization index that measures the
performance of the large-cap segment of the U.S. equity universe. Within the
multi-factor scoring process, a specific focus is applied towards a company's
volatility factor. Volatility is a statistical measurement of the magnitude of
movements in a stock's price over time. Each stock's factor scores are
multiplied by the stock's free float market cap weight in the Russell 1000 Index
to determine each constituent's weight in the multi-factor Index. Companies in
the Russell 1000 Index are excluded from the Index if they do not meet a minimum
weight in the Index. A company's volatility factor score is based on the
standard deviation of weekly total returns to a company's stock price over the
trailing five years ending on the last business day of the month prior to the
Index rebalancing month. A company's value factor score is based on cash flow
yield, earnings yield, and country relative sales to price ratio, calculated
based on the company's total market capitalization and information reported in
the company's most recent annual financial statement as of the last business day
of the month prior to the Index rebalancing month. A company's quality factor
score is based on return on assets, change in asset turnover, accruals, and
leverage, calculated based on information reported in the company's most recent
annual financial statement as of the last business day of the month prior to the
Index rebalancing month. A company's size factor score is based on total market
capitalization as of the last business day of the month prior to the Index
rebalancing month.
The
weight of each individual stock in the Index is capped at 2000% of the stock's
weight in the Russell 1000 Index, and any weight exceeding this limit will be
redistributed to all stocks below the limit in proportion to their combination
of market capitalization and factor scoring. The weight of each industry in the
Index is capped at 120% of the industry's weight in the Russell 1000 Index plus
an additional 5%, and any weight exceeding this limit is redistributed to all
other industries below the limit in proportion to their combination of market
capitalization and factor scoring. The weight of each industry in the Index must
be at least 80% of the industry's weight in the Russell 1000 Index less 5%. The
weights of any industries below this minimum will be increased to the minimum by
redistributing the weights of industries above the minimum in proportion to
their combination of market capitalization and factor scoring. The Index is
rebalanced annually in June. As of July 31, 2020, a significant portion of the
Fund comprised companies in the financial and consumer
discretionary sectors, although this may change from time to time. As of
July 31, 2020 there were approximately 460 securities in the Index.
The
Index is sponsored by the Index Provider, which is not affiliated with the Fund
or the Adviser. The Index Provider determines the composition of the Index,
relative weightings of the securities in the Index and publishes information
regarding the market value of the Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Low
Volatility Risk:
Although
subject to the risks of common stocks, low volatility stocks are seen as having
a lower risk profile than the overall markets. However, a portfolio comprised of
low volatility stocks may not produce investment exposure that has lower
variability to changes in such stocks' price levels. Low volatility stocks are
likely to underperform the broader market during periods of rapidly rising stock
prices.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Consumer
Discretionary Sector Risk:
The
success of consumer product manufacturers and retailers is tied closely to the
performance of the overall global economy, interest rates, competition and
consumer confidence. Success depends heavily on disposable household income and
consumer spending. Also, companies in the consumer discretionary sector may be
subject to severe competition, which may have an adverse impact on their
respective profitability. Changes in demographics and consumer tastes can also
affect the demand for, and success of, consumer products and services in the
marketplace.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Financial
Sector Risk:
Financial
services companies are subject to extensive governmental regulation which may
limit both the amounts and types of loans and other financial commitments they
can make, the interest rates and fees they can charge, the scope of their
activities, the prices they can charge and the amount of capital they must
maintain. Profitability is largely dependent on the availability and cost of
capital funds and can fluctuate significantly when interest rates change or due
to increased competition. In addition, deterioration of the credit markets
generally may cause an adverse impact in a broad range of markets, including
U.S. and international credit and interbank money markets generally, thereby
affecting a wide range of financial institutions and markets. Certain events in
the financial sector may cause an unusually high degree of volatility in the
financial markets, both domestic and foreign, and cause certain financial
services companies to incur large losses. Securities of financial services
companies may experience a dramatic decline in value when such companies
experience substantial declines in the valuations of their assets, take action
to raise capital (such as the issuance of debt or equity securities), or cease
operations. Credit losses resulting from financial difficulties of borrowers and
financial losses associated with investment activities can negatively impact the
sector. Insurance companies may be subject to severe price competition. Adverse
economic, business or political developments could adversely affect financial
institutions engaged in mortgage finance or other lending or investing
activities directly or indirectly connected to the value of real
estate.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences.
While
the Adviser seeks to track the performance of the Index (
, achieve a
high degree of correlation with the Index), the Fund's return may not match the
return of the Index. The Fund incurs a number of operating expenses not
applicable to the Index, and incurs costs in buying and selling securities. In
addition, the Fund may not be fully invested at times, generally as a result of
cash flows into or out of the Fund or reserves of cash held by the Fund to meet
redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Large-Capitalization
Securities Risk:
Returns
on investments in securities of large companies could trail the returns on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as smaller and mid-sized companies to
competitive challenges or to changes in business, product, financial,
or other market conditions. Larger companies may not be able to maintain
growth at the high rates that may be achieved by well-managed smaller and
mid-sized companies.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Quality
Risk:
A
“quality” style of investing emphasizes companies with high returns on equity,
stable earnings per share growth, and low financial leverage. This style of
investing is subject to the risk that the past performance of these companies
does not continue or that the returns on “quality” equity securities are less
than returns on other styles of investing or the overall stock
market.
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps significantly.
Value
Stock Risk:
A
“value” style of investing is subject to the risk that the returns on “value”
equity securities are less than returns on other styles of investing or the
overall stock market. Value stocks present the risk that they may decline in
price or never reach their expected full market value because the market fails
to recognize a stock's intrinsic worth.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 13.41% (Q1, 2019)
Lowest
Quarterly Return: -11.28% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -8.55%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Since
Inception (12/02/15)
|
Return
Before Taxes |
30.61% |
13.39% |
Return
After Taxes on Distributions |
29.89% |
12.11% |
Return
After Taxes on Distributions and Sale of Fund Shares |
18.50% |
10.15% |
Russell
1000 Low Volatility Focused Factor Index (reflects no deduction for fees,
expenses or taxes) |
30.94% |
13.66% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
13.69% |
SSGA
FM serves as the investment adviser to the
Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Emiliano Rabinovich.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Emiliano
Rabinovich, CFA, is a Managing Director of the Adviser and a Senior Portfolio
Manager in the Global Equity Beta Solutions Group. He joined the Adviser in
2006.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR Russell 1000 Momentum Focus ETF (the “Fund”) seeks
to provide investment results that, before fees and expenses, correspond
generally to the total return performance of the Russell 1000 Momentum
Focused Factor
Index. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.20% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.20% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$20 |
$64 |
$113 |
$255 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 42% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the Russell 1000 Momentum Focused Factor Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index (including common stock, preferred stock,
depositary receipts and shares of other investment companies), cash and cash
equivalents or money market instruments, such as repurchase agreements and money
market funds (including money market funds advised by the Adviser). In seeking
to track the Index, the
Fund's assets will
generally be concentrated in an industry or group of industries to the extent
that the Index concentrates in a particular industry or group of industries.
Futures contracts (a type of derivative instrument) may be used by the Fund
in seeking performance that corresponds to the Index and in managing cash
flows.
The
Index is designed to reflect the performance of a segment of
large-capitalization U.S. equity securities demonstrating a combination of core
factors (high value, high quality, and low size characteristics), with a focus
factor comprising high momentum characteristics (the “Factor Characteristics”).
To construct the Index, Frank Russell Company (the “Index Provider”) utilizes a
rules-based multi-factor scoring process that seeks to increase exposure (or
“tilt”) to companies in the Russell 1000 Index demonstrating the Factor
Characteristics. The Russell 1000 Index is a market-capitalization index that
measures the performance of the large-cap segment of the U.S. equity universe.
Within the multi-factor scoring process, a specific focus is applied towards a
company's momentum factor. Companies with higher momentum are those whose
securities have had higher recent price performance compared to other
securities. Each stock's factor scores are multiplied by the stock's free float
market cap weight in the Russell 1000 Index to determine each constituent's
weight in the multi-factor Index. Companies in the Russell 1000 Index are
excluded from the Index if they do not meet a minimum weight in the Index. A
company's momentum factor score is based on historical total return over the 11
months ending on the last business day of the month prior to the Index
rebalancing month. A company's value factor score is based on cash flow yield,
earnings yield, and country relative sales to price ratio, calculated based on
the company's total market capitalization and information reported in the
company's most recent annual financial statement as of the last business day of
the month prior to the Index rebalancing month. A company's quality factor score
is based on return on assets, change in asset turnover, accruals, and leverage,
calculated based on information reported in the company's most recent annual
financial statement as of the last business day of the month prior to the Index
rebalancing month. A company's size factor score is based on total market
capitalization as of the last business day of the month prior to the Index
rebalancing month.
The
weight of each individual stock in the Index is capped at 2000% of the stock's
weight in the Russell 1000 Index, and any weight exceeding this limit will be
redistributed to all stocks below the limit in proportion to their combination
of market capitalization and factor scoring. The weight of each industry in the
Index is capped at 120% of the industry's weight in the Russell 1000 Index plus
an additional 5%, and any weight exceeding this limit is redistributed to all
other industries below the limit in proportion to their combination of market
capitalization and factor scoring. The weight of each industry in the Index must
be at least 80% of the industry's weight in the Russell 1000 Index less 5%. The
weights of any industries below this minimum will be increased to the minimum by
redistributing the weights of industries above the minimum in proportion to
their combination of market capitalization and factor scoring. The Index is
rebalanced semi-annually in June and December. As of July 31, 2020, a
significant portion of the Fund comprised companies in the consumer
discretionary and technology sectors, although this may change from time to
time. As of July 31, 2020 there were approximately 931 securities in the
Index.
The
Index is sponsored by the Index Provider, which is not affiliated with the Fund
or the Adviser. The Index Provider determines the composition of the Index,
relative weightings of the securities in the Index and publishes information
regarding the market value of the Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Momentum
Risk:
The
Fund employs a “momentum” style of investing that emphasizes investing in
securities that have had higher recent price performance compared to other
securities. This style of investing is subject to the risk that these securities
may be more volatile than a broad cross-section of securities or that the
returns on securities that have previously exhibited price momentum are less
than returns on other styles of investing or the overall stock market. Momentum
can turn quickly and cause significant variation from other types of
investments.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Consumer
Discretionary Sector Risk:
The
success of consumer product manufacturers and retailers is tied closely to the
performance of the overall global economy, interest rates, competition and
consumer confidence. Success depends heavily on disposable household income and
consumer spending. Also, companies in the consumer discretionary sector may be
subject to severe competition, which may have an adverse impact on their
respective profitability. Changes in demographics and consumer tastes can also
affect the demand for, and success of, consumer products and services in the
marketplace.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Large-Capitalization
Securities Risk:
Returns
on investments in securities of large companies could trail the returns on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as smaller and mid-sized companies to
competitive challenges or to changes in business, product, financial,
or other market conditions. Larger companies may not be able to maintain
growth at the high rates that may be achieved by well-managed smaller and
mid-sized companies.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the
ability
of the Fund to obtain cash to meet redemptions on a timely basis. In addition,
the Fund, due to limitations on investments in any illiquid securities and/or
the difficulty in purchasing and selling such investments, may be unable to
achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Quality
Risk:
A
“quality” style of investing emphasizes companies with high returns on equity,
stable earnings per share growth, and low financial leverage. This style of
investing is subject to the risk that the past performance of these companies
does not continue or that the returns on “quality” equity securities are less
than returns on other styles of investing or the overall stock
market.
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily dependent on patent and intellectual property
rights, the loss or impairment of which may adversely affect profitability.
Additionally, companies in the technology sector may face dramatic and often
unpredictable changes in growth rates and competition for the services of
qualified personnel.
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps significantly.
Value
Stock Risk:
A
“value” style of investing is subject to the risk that the returns on “value”
equity securities are less than returns on other styles of investing or the
overall stock market. Value stocks present the risk that they may decline in
price or never reach their expected full market value because the market fails
to recognize a stock's intrinsic worth.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 13.63% (Q1, 2019)
Lowest
Quarterly Return: -16.84% (Q4, 2018)
* |
As
of
9/30/2020, the Fund's
Calendar Year-To-Date
return was -5.42%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Since
Inception (12/02/15)
|
Return
Before Taxes |
26.42% |
10.11% |
Return
After Taxes on Distributions |
25.91% |
9.19% |
Return
After Taxes on Distributions and Sale of Fund Shares |
15.97% |
7.76% |
Russell
1000 Momentum Focused Factor Index (reflects no deduction for fees,
expenses or taxes) |
26.73% |
10.37% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
13.69% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Emiliano Rabinovich.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Emiliano
Rabinovich, CFA, is a Managing Director of the Adviser and a Senior Portfolio
Manager in the Global Equity Beta Solutions Group. He joined the Adviser in
2006.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR Russell 1000 Yield Focus ETF (the “Fund”) seeks to
provide investment results that, before fees and expenses, correspond
generally to the total return performance of the Russell 1000 Yield
Focused Factor
Index. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.20% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.20% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$20 |
$64 |
$113 |
$255 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 34% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the Russell 1000 Yield Focused Factor Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index (including common stock, preferred stock,
depositary receipts and shares of other investment companies), cash and cash
equivalents or money market instruments, such as repurchase agreements and money
market funds (including money market funds advised by the Adviser). In seeking
to track the Index, the
Fund's assets will
generally be concentrated in an industry or group of industries to the extent
that the Index concentrates in a particular industry or group of industries.
Futures contracts (a type of derivative instrument) may be used by the Fund
in seeking performance that corresponds to the Index and in managing cash
flows.
The
Index is designed to reflect the performance of a segment of
large-capitalization U.S. equity securities demonstrating a combination of core
factors (high value, high quality, and low size characteristics), with a focus
factor comprising high yield characteristics (the “Factor Characteristics”). To
construct the Index, Frank Russell Company (the “Index Provider”) utilizes a
rules-based multi-factor scoring process that seeks to increase exposure (or
“tilt”) to companies in the Russell 1000 Index demonstrating the Factor
Characteristics. The Russell 1000 Index is a market-capitalization index that
measures the performance of the large-cap segment of the U.S. equity universe.
Within the multi-factor scoring process, a specific focus is applied towards a
company's yield factor. Companies with higher yield are those whose securities
have paid higher dividends compared to other securities. Each stock's factor
scores are multiplied by the stock's free float market cap weight in the Russell
1000 Index to determine each constituent's weight in the multi-factor Index.
Companies in the Russell 1000 Index are excluded from the Index if they do not
meet a minimum weight in the Index. A company's yield factor score is based on
12-month trailing dividend yield as of the last business day of the month prior
to the Index rebalancing month. A company's value factor score is based on cash
flow yield, earnings yield, and country relative sales to price ratio,
calculated based on the company's total market capitalization and information
reported in the company's most recent annual financial statement as of the last
business day of the month prior to the Index rebalancing month. A company's
quality factor score is based on return on assets, change in asset turnover,
accruals, and leverage, calculated based on information reported in the
company's most recent annual financial statement as of the last business day of
the month prior to the Index rebalancing month. A company's size factor score is
based on the log of the total market capitalization as of the last business day
of the month prior to the Index rebalancing month.
The
weight of each individual stock in the Index is capped at 2000% of the stock's
weight in the Russell 1000 Index, and any weight exceeding this limit will be
redistributed to all stocks below the limit in proportion to their combination
of market capitalization and factor scoring. The weight of each industry in the
Index is capped at 120% of the industry's weight in the Russell 1000 Index plus
an additional 5%, and any weight exceeding this limit is redistributed to all
other industries below the limit in proportion to their combination of market
capitalization and factor scoring. The weight of each industry in the Index must
be at least 80% of the industry's weight in the Russell 1000 Index less 5%. The
weights of any industries below this minimum will be increased to the minimum by
redistributing the weights of industries above the minimum in proportion to
their combination of market capitalization and factor scoring. The Index is
rebalanced annually in June. As of July 31, 2020, a significant portion of the
Fund comprised companies in the consumer discretionary sector,
although this may change from time to time. As of July 31, 2020, there were
approximately 286 securities in the Index.
The
Index is sponsored by the Index Provider, which is not affiliated with the Fund
or the Adviser. The Index Provider determines the composition of the Index,
relative weightings of the securities in the Index and publishes information
regarding the market value of the Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Dividend
Paying Securities Risk:
Securities
that pay dividends, as a group, can fall out of favor with the market, causing
such companies to underperform companies that do not pay dividends. In addition,
changes in the dividend policies of the companies held by the Fund or the
capital resources available for such company's dividend payments may adversely
affect the Fund.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Consumer
Discretionary Sector Risk:
The
success of consumer product manufacturers and retailers is tied closely to the
performance of the overall global economy, interest rates, competition and
consumer confidence. Success depends heavily on disposable household income and
consumer spending. Also, companies in the consumer discretionary sector may be
subject to severe competition, which may have an adverse impact on their
respective profitability. Changes in demographics and consumer tastes can also
affect the demand for, and success of, consumer products and services in the
marketplace.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the
Index.
Large-Capitalization
Securities Risk:
Returns
on investments in securities of large companies could trail the returns on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as smaller and mid-sized companies to
competitive challenges or to changes in business, product, financial,
or other market conditions. Larger companies may not be able to maintain
growth at the high rates that may be achieved by well-managed smaller and
mid-sized companies.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to
limitations
on
investments in any illiquid securities and/or the difficulty in purchasing and
selling such investments, may be unable to achieve its desired level of exposure
to a certain market or sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Quality
Risk:
A
“quality” style of investing emphasizes companies with high returns on equity,
stable earnings per share growth, and low financial leverage. This style of
investing is subject to the risk that the past performance of these companies
does not continue or that the returns on “quality” equity securities are less
than returns on other styles of investing or the overall stock
market.
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps significantly.
Value
Stock Risk:
A
“value” style of investing is subject to the risk that the returns on “value”
equity securities are less than returns on other styles of investing or the
overall stock market. Value stocks present the risk that they may decline in
price or never reach their expected full market value because the market fails
to recognize a stock's intrinsic worth.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance
(before
and after taxes) is not necessarily an indication of how the Fund will perform
in the future. Updated performance information is available by
calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 12.44% (Q1, 2019)
Lowest
Quarterly Return: -13.24% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -18.52%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Since
Inception (12/02/15)
|
Return
Before Taxes |
26.93% |
12.39% |
Return
After Taxes on Distributions |
25.79% |
10.33% |
Return
After Taxes on Distributions and Sale of Fund Shares |
16.44% |
9.04% |
Russell
1000 Yield Focused Factor Index (reflects no deduction for fees, expenses
or taxes) |
27.26% |
12.68% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
13.69% |
SSGA
FM serves as the investment adviser to the Fund.
The professionals
primarily responsible for the day-to-day management of the Fund are Michael
Feehily, Karl Schneider and John Law.
Michael Feehily,
CFA, is a Senior Managing Director of the Adviser and the Head of Global Equity
Beta Solutions in the Americas. He worked at the Adviser from 1997 to 2006 and
rejoined in 2010.
Karl Schneider,
CAIA, is a Managing Director of the Adviser and Deputy Head of Global Equity
Beta Solutions in the Americas. He joined the Adviser in 1997.
John Law, CFA, is a
Vice President of the Adviser and a Senior Portfolio Manager in the Global
Equity Beta Solutions Group. He joined the Adviser in 2016.
Purchase and Sale
Information
The Fund will issue
(or redeem) Fund Shares to certain institutional investors (typically market
makers or other broker-dealers) only in large blocks of Fund Shares known as
“Creation Units.” Creation Unit transactions are conducted in exchange for the
deposit or delivery of a designated portfolio of in-kind securities and/or
cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The Fund's
distributions are expected to be taxed as ordinary income, qualified dividend
income and/or capital gains, unless you are investing through a tax-advantaged
arrangement, such as a 401(k) plan or individual retirement account. Any
withdrawals made from such tax-advantaged arrangement may be taxable to
you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If you purchase Fund
Shares through a broker-dealer or other financial intermediary (such as a bank),
the Adviser or its affiliates may pay the financial intermediary for
certain activities related to the Fund, including educational training programs,
conferences, the development of technology platforms and reporting systems, or
other services related to the sale or promotion of the Fund. These payments may
create a conflict of interest by influencing the broker-dealer or other
intermediary and your salesperson to recommend the Fund over another investment.
Ask your salesperson or visit your financial intermediary's website for more
information.
Investment
Objective |
The SPDR S&P 1500 Momentum Tilt ETF (the “Fund”) seeks
to provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index that tracks the
performance of U.S. equity securities exhibiting price
momentum. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.12% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.12% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$12 |
$39 |
$68 |
$154 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 65% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P 1500 Positive Momentum Tilt Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track the Index, the
Fund's assets will generally be concentrated in an industry or group of
industries to the extent that the Index concentrates in a particular industry or
group of industries. Futures contracts (a type of derivative instrument)
may be used by the Fund in seeking performance that corresponds to the Index and
in managing cash flows.
The Index applies an
alternative weighting methodology to the S&P Composite 1500 Index so that
stocks with relatively high momentum are overweight relative to the S&P
Composite 1500 Index and stocks with relatively low momentum are underweight.
The S&P Composite 1500 Index, one of the leading indices of the U.S. equity
market, is a capitalization-weighted combination of the large-cap S&P 500
Index, the S&P MidCap 400 Index, and the S&P SmallCap 600 Index. A
“momentum” style of investing emphasizes investing in securities that have had
higher recent price performance compared to other securities. In constructing
the Index, the Index Provider (as defined below) estimates the momentum of each
stock in the S&P Composite 1500 Index based on its price performance over
the 11 months ending on the rebalancing reference date and ranks all 1,500 Index
constituents in order of momentum. S&P then forms 20 sub-portfolios of
approximately equal market capitalization, grouped by momentum. S&P defines
a sub-portfolio allocation factor so that a sub-portfolio with relatively high
momentum will have a higher allocation factor than a sub-portfolio with
relatively low momentum. The weight of each stock in the Index is proportionate
to its market capitalization and to its sub-portfolio allocation factor. The
Index is rebalanced quarterly, effective after the close on the third Friday of
January, April, July, and October. As of July 31, 2020, a significant portion of
the Fund comprised companies in the technology and heath care sectors,
although this may change from time to time. As of July 31, 2020, there were
approximately 1,505 securities in the Index.
The Index is
sponsored by S&P Dow Jones Indices LLC (the “Index Provider”), which
is not affiliated with the Fund or the Adviser. The Index Provider determines
the composition of the Index, relative weightings of the securities in the Index
and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Momentum
Risk:
The
Fund employs a “momentum” style of investing that emphasizes investing in
securities that have had higher recent price performance compared to other
securities. This style of investing is subject to the risk that these securities
may be more volatile than a broad cross-section of securities or that the
returns on securities that have previously exhibited price momentum are less
than returns on other styles of investing or the overall stock market. Momentum
can turn quickly and cause significant variation from other types of
investments.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Health
Care Sector Risk:
Companies
in the health care sector are subject to extensive government regulation and
their profitability can be significantly affected by restrictions on government
reimbursement for medical expenses, rising costs of medical products and
services, pricing pressure (including price discounting), limited product lines
and an increased emphasis on the delivery of healthcare through outpatient
services. Companies in the health care sector are heavily dependent on obtaining
and defending patents, which may be time consuming and costly, and the
expiration of patents may also adversely affect the profitability of these
companies. Health care companies are also subject to extensive litigation based
on product liability and similar claims. In addition, their products can become
obsolete due to industry innovation, changes in technologies or other market
developments. Many new products in the health care sector require significant
research and development and may be subject to regulatory approvals, all of
which may be time consuming and costly with no guarantee that any product will
come to market.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the
Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
As
a “non-diversified” fund, the Fund may hold a smaller number of portfolio
securities than many other funds. To the extent the Fund invests in a relatively
small number of issuers, a decline in the market value of a particular security
held by the Fund may affect its value more than if it invested in a larger
number of issuers. The value of Fund Shares may be more volatile than the values
of shares of more diversified funds. The Fund may become diversified for periods
of time solely as a result of changes in the composition of the Index (e.g.,
changes in weightings of one or more component
securities).
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily dependent on patent and intellectual property
rights, the loss or impairment of which may adversely
affect
profitability.
Additionally, companies in the technology sector may face dramatic and often
unpredictable changes in growth rates and competition for the services of
qualified personnel.
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps
significantly.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 14.39% (Q1, 2019)
Lowest
Quarterly Return: -15.51% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was 8.66%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Since
Inception (10/24/12)
|
Return
Before Taxes |
29.68% |
11.51% |
14.24% |
Return
After Taxes on Distributions |
29.17% |
11.01% |
13.69% |
Return
After Taxes on Distributions and Sale of Fund Shares |
17.89% |
9.04% |
11.53% |
S&P
1500 Positive Momentum Tilt Index (reflects no deduction for fees,
expenses or taxes) |
29.83% |
11.64% |
14.49% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
14.60% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and John Law.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
John
Law, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. He joined the Adviser in 2016.
Purchase and Sale
Information
The Fund will issue
(or redeem) Fund Shares to certain institutional investors (typically market
makers or other broker-dealers) only in large blocks of Fund Shares known as
“Creation Units.” Creation Unit transactions are conducted in exchange for the
deposit or delivery of a designated portfolio of in-kind securities and/or
cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The Fund's
distributions are expected to be taxed as ordinary income, qualified dividend
income and/or capital gains, unless you are investing through a tax-advantaged
arrangement, such as a 401(k) plan or individual retirement account. Any
withdrawals made from such tax-advantaged arrangement may be taxable to
you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If you purchase Fund
Shares through a broker-dealer or other financial intermediary (such as a bank),
the Adviser or its affiliates may pay the financial intermediary for
certain activities related to the Fund, including educational training programs,
conferences, the development of technology platforms and reporting systems, or
other services related to the sale or promotion of the Fund. These payments may
create a conflict of interest by influencing the broker-dealer or other
intermediary and your salesperson to recommend the Fund over another investment.
Ask your salesperson or visit your financial intermediary's website for more
information.
Investment
Objective |
The SPDR S&P 1500 Value Tilt ETF (the “Fund”) seeks to
provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index that tracks the
performance of U.S. equity securities exhibiting “value”
characteristics. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.12% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.12% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$12 |
$39 |
$68 |
$154 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 16% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P 1500 Low Valuation Tilt Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track the Index, the
Fund's assets will generally be concentrated in an industry or group of
industries to the extent that the Index concentrates in a particular industry or
group of industries. Futures contracts (a type of derivative instrument)
may be used by the Fund in seeking performance that corresponds to the Index and
in managing cash flows.
The
Index applies an alternative weighting methodology to the S&P Composite 1500
Index so that stocks with relatively low valuations (
, relatively
“cheap”) are overweight relative to the S&P Composite 1500 Index and stocks
with relatively high valuations (
, relatively
“rich”) are underweight. The S&P Composite 1500 Index, one of the leading
indices of the U.S. equity market, is a capitalization-weighted combination of
the large-cap S&P 500 Index, the S&P MidCap 400 Index, and the S&P
SmallCap 600 Index. In constructing the Index, the Index Provider (as defined
below) estimates the valuation of each stock in the S& P Composite 1500
Index based on the ratio of its price to its level of earnings, cash flow,
sales, book value, and dividends. S&P weights this data from the last five
calendar years to create a composite valuation measure, and ranks all 1,500
index constituents in order of composite valuation. S&P then forms 20
sub-portfolios of approximately equal market capitalization, grouped by
composite valuations. S&P derives a sub-portfolio allocation factor using
each sub-portfolio's composite valuation, so that a sub-portfolio with
relatively low valuation will have a higher allocation factor than a
sub-portfolio with relatively high valuation. The weight of each stock in the
Index is proportionate to its market capitalization and to its sub-portfolio
allocation factor. The Index is rebalanced annually after the close of business
on the third Friday of April. As of July 31, 2020, a significant portion of the
Fund comprised companies in the financial sector, although this may change
from time to time. As of July 31, 2020, there were approximately 1,483
securities in the Index.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index
Provider”), which is not affiliated with the Fund or the Adviser. The Index
Provider determines the composition of the Index, relative weightings of the
securities in the Index and publishes information regarding the market value of
the Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Value
Stock Risk:
A
“value” style of investing is subject to the risk that the returns on “value”
equity securities are less than returns on other styles of investing or the
overall stock market. Value stocks present the risk that they may decline in
price or never reach their expected full market value because the market fails
to recognize a stock's intrinsic worth.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to
a
derivatives
contract may be unable or unwilling to make timely settlement payments, return
the Fund's margin, or otherwise honor its obligations. A derivatives transaction
may not behave in the manner anticipated by the Adviser or may not have the
effect on the Fund anticipated by the Adviser.
Financial
Sector Risk:
Financial
services companies are subject to extensive governmental regulation which may
limit both the amounts and types of loans and other financial commitments they
can make, the interest rates and fees they can charge, the scope of their
activities, the prices they can charge and the amount of capital they must
maintain. Profitability is largely dependent on the availability and cost of
capital funds and can fluctuate significantly when interest rates change or due
to increased competition. In addition, deterioration of the credit markets
generally may cause an adverse impact in a broad range of markets, including
U.S. and international credit and interbank money markets generally, thereby
affecting a wide range of financial institutions and markets. Certain events in
the financial sector may cause an unusually high degree of volatility in the
financial markets, both domestic and foreign, and cause certain financial
services companies to incur large losses. Securities of financial services
companies may experience a dramatic decline in value when such companies
experience substantial declines in the valuations of their assets, take action
to raise capital (such as the issuance of debt or equity securities), or cease
operations. Credit losses resulting from financial difficulties of borrowers and
financial losses associated with investment activities can negatively impact the
sector. Insurance companies may be subject to severe price competition. Adverse
economic, business or political developments could adversely affect financial
institutions engaged in mortgage finance or other lending or investing
activities directly or indirectly connected to the value of real
estate.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
As a
“non-diversified” fund, the Fund may hold a smaller number of portfolio
securities than many other funds. To the extent the Fund invests in a relatively
small number of issuers, a decline in the market value of a particular security
held by the Fund may affect its value more than if it invested in a larger
number of issuers. The value of Fund Shares may be more volatile than the values
of shares of more diversified funds. The Fund may become diversified for periods
of time solely as a result of changes in the composition of the Index (e.g.,
changes in weightings of one or more component
securities).
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps significantly.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 11.71% (Q1, 2013)
Lowest
Quarterly Return: -13.91% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -8.48%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your actual after-tax returns will depend on
your specific tax situation and may differ from those shown below. After-tax
returns are not relevant to investors who
hold Fund Shares through tax-advantaged arrangements,
such as 401(k) plans or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Since
Inception (10/24/12)
|
Return
Before Taxes |
26.37% |
9.44% |
13.08% |
Return
After Taxes on Distributions |
25.64% |
8.56% |
11.98% |
Return
After Taxes on Distributions and Sale of Fund Shares |
16.02% |
7.21% |
10.30% |
S&P
1500 Low Valuation Tilt Index (reflects no deduction for fees, expenses or
taxes) |
26.44% |
9.54% |
13.32% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
14.60% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and John Law.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
John
Law, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. He joined the Adviser in 2016.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary
market,
you may incur costs attributable to the difference between the highest price a
buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a
seller is willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P 400 Mid Cap Growth ETF (the “Fund”) seeks
to provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index that tracks the
performance of medium capitalization exchange traded U.S. equity
securities exhibiting “growth”
characteristics. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.15% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.15% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$15 |
$48 |
$85 |
$192 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 45% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P MidCap 400 Growth Index (the “Index”),
the Fund employs a sampling strategy, which means that the Fund is not required
to purchase all of the securities represented in the Index. Instead, the Fund
may purchase a subset of the securities in the Index in an effort to hold a
portfolio of securities with generally the same risk and return characteristics
of the Index. The quantity of holdings in the Fund will be based on a number of
factors, including asset size of the Fund. Based on its analysis of these
factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used
by the Fund in seeking performance that corresponds to the Index and in managing
cash flows.
The
Index measures the performance of the mid-capitalization growth segment of the
U.S. equity market. The Index consists of those stocks in the S&P MidCap 400
Index exhibiting the strongest growth characteristics based on: (i) sales
growth; (ii) earnings change to price; and (iii) momentum. The selection
universe for the S&P MidCap 400 Index includes all U.S. common equities
listed on the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select Market,
NASDAQ Select Market, Investors Exchange (IEX), NASDAQ Capital Market, Cboe BZX,
Cboe BYX, Cboe EDGA, or Cboe EDGX with market capitalizations between $2.4
billion and $8.2 billion at the time of inclusion. This capitalization range may
be revised by the Index Provider (as defined below) at any time. To be included
in the Index, a security (or issuer of a security, as applicable) should (i)
have an annual dollar value traded to float adjusted market capitalization ratio
of 1 or greater; (ii) trade a minimum of 250,000 shares in each of the six
months leading up to the evaluation date; (iii) have a public float of at least
10%; and (iv) have positive as-reported earnings over the most recent four
consecutive quarters (measured using the sum of earnings over those quarters)
and for the most recent quarter. The Index is market capitalization weighted and
rebalanced annually on the third Friday of December. As of July 31, 2020, a
significant portion of the Fund comprised companies in the consumer
discretionary, industrial and health care sectors, although this may change
from time to time. As of July 31, 2020, the Index comprised 240 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Mid-Capitalization
Securities Risk:
The
securities of mid-capitalization companies may be more volatile and may involve
more risk than the securities of larger companies. These companies may have
limited product lines, markets or financial resources, may lack the competitive
strength of larger companies, and may depend on a few key employees. In
addition, these companies may have been recently organized and may have little
or no track record of success. The securities of mid-sized companies may trade
less frequently and in smaller volumes than more widely held securities. Some
securities of mid-sized issuers may be illiquid or may be restricted as to
resale, and their values may be volatile.
Growth
Stock Risk:
The
prices of growth stocks may be based largely on expectations of future earnings,
and their prices can decline rapidly and significantly in reaction to negative
news. Growth stocks may underperform value stocks and stocks in other broad
style categories (and the stock market as a whole) over any period of time and
may shift in and out of favor with investors generally, sometimes rapidly,
depending on changes in market, economic, and other factors.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times
when
the market price of the shares is more than the net asset value per share
(premium) or less than the net asset value per share (discount). This risk is
heightened in times of market volatility or periods of steep market
declines.
Consumer
Discretionary Sector Risk:
The
success of consumer product manufacturers and retailers is tied closely to the
performance of the overall global economy, interest rates, competition and
consumer confidence. Success depends heavily on disposable household income and
consumer spending. Also, companies in the consumer discretionary sector may be
subject to severe competition, which may have an adverse impact on their
respective profitability. Changes in demographics and consumer tastes can also
affect the demand for, and success of, consumer products and services in the
marketplace.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Health
Care Sector Risk:
Companies
in the health care sector are subject to extensive government regulation and
their profitability can be significantly affected by restrictions on government
reimbursement for medical expenses, rising costs of medical products and
services, pricing pressure (including price discounting), limited product lines
and an increased emphasis on the delivery of healthcare through outpatient
services. Companies in the health care sector are heavily dependent on obtaining
and defending patents, which may be time consuming and costly, and the
expiration of patents may also adversely affect the profitability of these
companies. Health care companies are also subject to extensive litigation based
on product liability and similar claims. In addition, their products can become
obsolete due to industry innovation, changes in technologies or other market
developments. Many new products in the health care sector require significant
research and development and may be subject to regulatory approvals, all of
which may be time consuming and costly with no guarantee that any product will
come to market.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the
Index.
Industrial
Sector Risk:
Industrial
companies are affected by supply and demand both for their specific product or
service and for industrial sector products in general. Government regulation,
world events, exchange rates and economic conditions, technological developments
and liabilities for environmental damage and general civil liabilities will
likewise affect the performance of these companies. Aerospace and defense
companies, a component of the industrial sector, can be significantly affected
by government spending policies because
companies
involved in this industry rely, to a significant extent, on U.S. and foreign
government demand for their products and services. Thus, the financial condition
of, and investor interest in, aerospace and defense companies are heavily
influenced by governmental defense spending policies which are typically under
pressure from efforts to control the U.S. (and other) government budgets.
Transportation securities, a component of the industrial sector, are cyclical
and have occasional sharp price movements which may result from changes in the
economy, fuel prices, labor agreements and insurance costs.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Unconstrained Sector
Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps significantly.
Valuation
Risk:
Some
portfolio holdings, potentially a large portion of the Fund's investment
portfolio, may be valued on the basis of factors other than market quotations.
This may occur more often in times of market turmoil or reduced liquidity. There
are multiple methods that can be used to value a portfolio holding when market
quotations are not readily available. The value established for any portfolio
holding at a point in time might differ from what would be produced using a
different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued using techniques other than market
quotations, including “fair valued” securities, may be subject to greater
fluctuation in their valuations from one day to the next than if market
quotations were used. In addition, there is no assurance that the Fund could
sell or close out a portfolio position for the value established for it at any
time, and it is possible that the Fund would incur a loss because a portfolio
position is sold or closed out at a discount to the valuation established by the
Fund at that time.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 14.90% (Q1, 2019)
Lowest
Quarterly Return: -18.77% (Q3, 2011)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was 1.22%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
Effective
December 17, 2010 (the “Benchmark Index Change Date”), the Fund's benchmark
index changed from the Dow Jones U.S. Mid-Cap Growth Total Stock Market Index
(the “Previous
Benchmark
Index”) to the S&P MidCap 400 Growth Index, consistent with a change in the
Fund's principal investment strategy to track the performance of the
current index. Performance of the Fund prior to the Benchmark Index Change
Date is therefore based on the Fund's investment strategy to track the Previous
Benchmark Index.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
26.08% |
9.57% |
12.66% |
Return
After Taxes on Distributions |
25.62% |
9.05% |
12.27% |
Return
After Taxes on Distributions and Sale of Fund Shares |
15.61% |
7.43% |
10.49% |
S&P
MidCap 400 Growth Index/Dow Jones U.S. Mid-Cap Growth Total Stock Market
Index
1 (reflects
no deduction for fees, expenses or taxes) |
26.29% |
9.72% |
12.85% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
1 |
Returns
shown are reflective of the Index for periods beginning on the Benchmark
Index Change Date and the Previous Benchmark Index for periods prior to
the Benchmark Index Change Date. |
SSGA FM serves as
the investment adviser to the Fund.
The professionals
primarily responsible for the day-to-day management of the Fund are Michael
Feehily, Karl Schneider and Juan Acevedo.
Michael Feehily,
CFA, is a Senior Managing Director of the Adviser and the Head of Global Equity
Beta Solutions in the Americas. He worked at the Adviser from 1997 to 2006 and
rejoined in 2010.
Karl Schneider,
CAIA, is a Managing Director of the Adviser and Deputy Head of Global Equity
Beta Solutions in the Americas. He joined the Adviser in 1997.
Juan Acevedo is a
Vice President of the Adviser and a Senior Portfolio Manager in the Global
Equity Beta Solutions Group. He joined the Adviser in 2000.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P 400 Mid Cap Value ETF (the “Fund”) seeks to
provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index that tracks the
performance of medium capitalization exchange traded U.S. equity
securities exhibiting “value”
characteristics. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.15% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.15% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$15 |
$48 |
$85 |
$192 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 45% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P MidCap 400 Value Index (the “Index”), the
Fund employs a sampling strategy, which means that the Fund is not required to
purchase all of the securities represented in the Index. Instead, the Fund may
purchase a subset of the securities in the Index in an effort to hold a
portfolio of securities with generally the same risk and return characteristics
of the Index. The quantity of holdings in the Fund will be based on a number of
factors, including asset size of the Fund. Based on its analysis of these
factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
92
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used
by the Fund in seeking performance that corresponds to the Index and in managing
cash
flows.
The
Index measures the performance of the mid-capitalization value segment of the
U.S. equity market. The Index consists of those stocks in the S&P MidCap 400
Index exhibiting the strongest value characteristics based on: (i) book value to
price ratio; (ii) earnings to price ratio; and (iii) sales to price ratio. The
selection universe for the S&P MidCap 400 Index includes all U.S. common
equities listed on the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select
Market, NASDAQ Select Market, Investors Exchange (IEX), NASDAQ Capital Market,
Cboe BZX, Cboe BYX, Cboe EDGA, or Cboe EDGX with market capitalizations between
$2.4 billion and $8.2 billion at the time of inclusion. This capitalization
range may be revised by the Index Provider (as defined below) at any time. To be
included in the Index, a security (or issuer of a security, as applicable)
should (i) have an annual dollar value traded to float adjusted market
capitalization ratio of 1 or greater; (ii) trade a minimum of 250,000 shares in
each of the six months leading up to the evaluation date; (iii) have a public
float of at least 10%; and (iv) have positive as-reported earnings over the most
recent four consecutive quarters (measured using the sum of earnings over those
quarters) and for the most recent quarter. The Index is market capitalization
weighted and rebalanced annually on the third Friday of December. As of July 31,
2020, a significant portion of the Fund comprised companies in
the financial sector, although this may change from time to time. As of
July 31, 2020, the Index comprised 295 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Mid-Capitalization
Securities Risk:
The
securities of mid-capitalization companies may be more volatile and may involve
more risk than the securities of larger companies. These companies may have
limited product lines, markets or financial resources, may lack the competitive
strength of larger companies, and may depend on a few key employees. In
addition, these companies may have been recently organized and may have little
or no track record of success. The securities of mid-sized companies may trade
less frequently and in smaller volumes than more widely held securities. Some
securities of mid-sized issuers may be illiquid or may be restricted as to
resale, and their values may be volatile.
Value
Stock Risk:
A
“value” style of investing is subject to the risk that the returns on “value”
equity securities are less than returns on other styles of investing or the
overall stock market. Value stocks present the risk that they may decline in
price or never reach their expected full market value because the market fails
to recognize a stock's intrinsic worth.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times
when
the market price of
the shares is more than the net asset value per share (premium) or less than the
net asset value per share (discount). This risk is heightened in times of market
volatility or periods of steep market
declines.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Financial
Sector Risk:
Financial
services companies are subject to extensive governmental regulation which may
limit both the amounts and types of loans and other financial commitments they
can make, the interest rates and fees they can charge, the scope of their
activities, the prices they can charge and the amount of capital they must
maintain. Profitability is largely dependent on the availability and cost of
capital funds and can fluctuate significantly when interest rates change or due
to increased competition. In addition, deterioration of the credit markets
generally may cause an adverse impact in a broad range of markets, including
U.S. and international credit and interbank money markets generally, thereby
affecting a wide range of financial institutions and markets. Certain events in
the financial sector may cause an unusually high degree of volatility in the
financial markets, both domestic and foreign, and cause certain financial
services companies to incur large losses. Securities of financial services
companies may experience a dramatic decline in value when such companies
experience substantial declines in the valuations of their assets, take action
to raise capital (such as the issuance of debt or equity securities), or cease
operations. Credit losses resulting from financial difficulties of borrowers and
financial losses associated with investment activities can negatively impact the
sector. Insurance companies may be subject to severe price competition. Adverse
economic, business or political developments could adversely affect financial
institutions engaged in mortgage finance or other lending or investing
activities directly or indirectly connected to the value of real
estate.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of
more
diversified
funds. The Fund may become non-diversified for periods of time solely as a
result of changes in the composition of the Index (e.g., changes in weightings
of one or more component
securities).
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps significantly.
Valuation
Risk:
Some
portfolio holdings, potentially a large portion of the Fund's investment
portfolio, may be valued on the basis of factors other than market quotations.
This may occur more often in times of market turmoil or reduced liquidity. There
are multiple methods that can be used to value a portfolio holding when market
quotations
are not readily available. The value established for any portfolio holding at a
point in time might differ from what would be produced using a different
methodology or if it had been priced using market quotations. Portfolio holdings
that are valued using techniques other than market quotations, including “fair
valued” securities, may be subject to greater fluctuation in their valuations
from one day to the next than if market quotations were used. In addition, there
is no assurance that the Fund could sell or close out a portfolio position for
the value established for it at any time, and it is possible that the Fund would
incur a loss because a portfolio position is sold or closed out at a discount to
the valuation established by the Fund at that
time.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 15.74% (Q4, 2011)
Lowest
Quarterly Return: -20.91% (Q3, 2011)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -19.41%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
Effective
December 17, 2010 (the “Benchmark Index Change Date”), the Fund's benchmark
index changed from the Dow Jones U.S. Mid-Cap Value Total Stock Market Index
(the “Previous Benchmark Index”) to the S&P MidCap 400 Value Index,
consistent with a change in the Fund's principal investment strategy to track
the performance of the current index. Performance of the Fund prior to the
Benchmark Index Change Date is therefore based on the Fund's investment strategy
to track the Previous Benchmark Index.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
25.88% |
7.91% |
11.87% |
Return
After Taxes on Distributions |
25.23% |
7.01% |
11.04% |
Return
After Taxes on Distributions and Sale of Fund Shares |
15.61% |
5.87% |
9.52% |
S&P
MidCap 400 Value Index/Dow Jones U.S. Mid-Cap Value Total Stock Market
Index
1 (reflects
no deduction for fees, expenses or taxes) |
26.08% |
8.07% |
12.06% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
1 |
Returns
shown are reflective of the Index for periods beginning on the Benchmark
Index Change Date and the Previous Benchmark Index for periods prior to
the Benchmark Index Change Date. |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Juan Acevedo.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Juan
Acevedo is a Vice President of the Adviser and a Senior Portfolio Manager in the
Global Equity Beta Solutions Group. He joined the Adviser in 2000.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more
information.
Investment
Objective |
The SPDR S&P 500 ESG ETF (the “Fund”) seeks to provide
investment results that, before fees and expenses, correspond generally to
the total return performance of an index that provides exposure to
securities that meet certain sustainability criteria (criteria related to
environmental, social and governance (“ESG”) factors) while maintaining
similar overall industry group weights as the S&P 500
Index. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.10% |
Distribution
and service (12b-1) fees |
None |
Other
expenses
1 |
0.00% |
Total
annual Fund operating expenses |
0.10% |
1 |
“Other
expenses” are based on estimated amounts for the current fiscal
year. |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. The Fund commenced operations on July 28, 2020 and, as a
result, does not have a portfolio turnover rate to report as of the most recent
fiscal year end.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P 500 ESG Index (the “Index”), the Fund
employs a sampling strategy, which means that the Fund is not required to
purchase all of the securities represented in the Index. Instead, the Fund may
purchase a subset of the securities in the Index in an effort to hold a
portfolio of securities with generally the same risk and return characteristics
of the Index. The quantity of holdings in the Fund will be based on a number of
factors, including asset size of the Fund. Based on its analysis of these
factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective.
The Fund
is classified as “diversified” under the Investment Company Act of 1940, as
amended; however, the Fund may become “non-diversified” solely as a result of
tracking the Index (e.g., changes in weightings of one or more component
securities). When the Fund is non-diversified, it may invest a relatively
high percentage of its assets in a limited number of
issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase
agreements and money
market funds (including money market funds advised by the Adviser). In seeking
to track the Index, the Fund's assets will generally be concentrated in an
industry or group of industries to the extent that the Index concentrates in a
particular industry or group of industries. Futures contracts (a type of
derivative instrument) may be used by the Fund in seeking performance that
corresponds to the Index and in managing cash flows.
The
Index is designed to measure the performance of securities meeting certain
sustainability criteria (criteria related to ESG factors), while maintaining
similar overall industry group weights as the S&P 500 Index. Securities
eligible for inclusion in the Index comprise all constituents of the S&P 500
Index except for companies that:
• |
Have
involvement with tobacco-related products and services, based on certain
levels of production, revenue or ownership, as determined by
Sustainalytics; |
• |
Are
involved in controversial weapons, including cluster weapons, landmines,
biological or chemical weapons, depleted uranium weapons, white phosphorus
weapons, or nuclear weapons, or hold certain ownership stakes in a company
involved in these activities, as determined by Sustainalytics; |
• |
Have
a United Nations Global Compact (“UNGC”) score in the bottom 5% of all
UNGC-scored companies globally, as determined by Arabesque; |
• |
Have
an S&P DJI ESG Score, as assigned by SAM, that falls within the worst
25% from each Global Industry Classification Standard (GICS) industry
group among the combined constituents of the S&P Global LargeMidCap
Index and the S&P Global 1200 Index; |
• |
Generate 5% or
greater of their revenue from thermal coal extraction or power generation,
as determined by Sustainalytics; or |
• |
Do not have
(i) Sustainalytics coverage for tobacco-, controversial weapons- and
thermal coal-related involvement; (ii) a UNGC score determined by
Arabesque; or (iii) an S&P DJI ESG Score.
|
UNGC
scores provided by Arabesque implement quantitative models and data to arrive at
a company score based on the normative principles of the UNGC: human rights,
labor rights, the environment, and anti-corruption. S&P DJI ESG Scores are
assigned by SAM, an ESG scoring business unit of S&P Global Inc. (an
affiliate of the Index Provider (defined below)), using its Corporate
Sustainability Assessment, which is an annual evaluation of a company, based on
ESG factors that SAM determines are financially material to the company,
relative to its industry peer companies as determined by SAM.
After
implementing the exclusion criteria described above, the remaining companies are
then ranked based on their S&P DJI ESG Score. For each GICS industry group,
companies are selected for inclusion in the Index primarily in decreasing order
of S&P DJI ESG Score until approximately 75% of the float adjusted market
capitalization of the industry group is reached.
The
Index is float-adjusted market capitalization weighted. The Index is
reconstituted and rebalanced annually on the last business day in April. In
addition, between Index rebalances, Index constituents may be removed from the
Index for their involvement in economic crime and corruption, fraud, illegal
commercial practices, human rights abuses, labor disputes, workplace safety
catastrophic accidents, environmental disasters, and certain other activities
associated with environmental, social and governance risks. Any companies
removed from the Index on account of such activities are not eligible for
inclusion in the Index until one full calendar year from the next rebalancing of
the Index. As of July 31, 2020, a significant portion of the Fund comprised
companies in the technology sector, although this may change from time to
time. As of July 31, 2020, the Index comprised 310 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely
affect
global economies and markets. Local, regional or global events such as war, acts
of terrorism, the spread of infectious illness or other public health issues, or
other events could have a significant impact on the Fund and its
investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
ESG
Investing Risk:
The
Index's incorporation of ESG considerations in its methodology may cause the
Fund to make different investments than funds that do not incorporate such
considerations in their strategy or investment processes. Under certain economic
conditions, this could cause the Fund's investment performance to be worse than
funds that do not incorporate such considerations. The Index's incorporation of
ESG considerations may affect the Fund's exposure to certain sectors and/or
types of investments, and may adversely impact the Fund's performance depending
on whether such sectors or investments are in or out of favor in the
market.
Large-Capitalization
Securities Risk:
Returns
on investments in securities of large companies could trail the returns on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as smaller and mid-sized companies to
competitive challenges or to changes in business, product, financial,
or other market conditions. Larger companies may not be able to maintain
growth at the high rates that may be achieved by well-managed smaller and
mid-sized companies.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the
Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
New
Fund Risk:
The
Fund is new and there is no assurance that the Fund will grow quickly. When the
Fund's size is small, the Fund may experience low trading volume, which could
lead to wider bid/ask spreads. In addition, the Fund may face the risk of being
delisted if the Fund does not meet certain conditions of the listing exchange.
Any resulting liquidation of the Fund could cause elevated transaction costs for
the Fund and negative tax consequences for its shareholders.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily dependent on patent and intellectual property
rights, the loss or impairment of which may adversely affect profitability.
Additionally, companies in the technology sector may face dramatic and often
unpredictable changes in growth rates and competition for the services of
qualified personnel.
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps
significantly.
The Fund
has not yet completed a full calendar year of operations and therefore does not
have any performance history. Once the Fund has completed a full calendar year
of operations, a bar chart and table will be included that will provide some
indication of the risks of investing in the Fund by showing the variability of
the Fund's returns based on net assets and comparing the Fund's performance to
the Index.
Updated
performance information may be obtained by calling
1-866-787-2257
or visiting the Fund's website:
https://www.ssga.com/spdrs
.
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Emiliano Rabinovich, Karl Schneider and Olga Winner.
Emiliano
Rabinovich, CFA, is a Managing Director of the Adviser and a Senior Portfolio
Manager in the Global Equity Beta Solutions Group. He joined the Adviser in
2006.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Olga Winner, CFA, is
a Vice President of the Adviser and a Senior Portfolio Manager in the Global
Equity Beta Solutions Group. She joined the Adviser in
2007.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P 500 Fossil Fuel Reserves Free ETF (the
“Fund”) seeks to provide investment results that, before fees and
expenses, correspond generally to the total return performance of the
S&P 500 Fossil Fuel Free
Index. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.25% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.25% |
Less
contractual fee waiver
1 |
(0.05)% |
Net
annual Fund operating expenses |
0.20% |
1 |
SSGA
Funds Management, Inc. (“SSGA FM” or “Adviser”) has contractually agreed
to waive a portion of its management fee and/or reimburse certain
expenses, until October 31, 2021, so that the net annual Fund operating
expenses, before application of any fees and expenses not paid by the
Adviser pursuant to the Investment Advisory Agreement, if any, are limited
to 0.20% of the Fund's average daily net assets. 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 the waiver and/or
reimbursement may be cancelled or modified at any time after October 31,
2021. This waiver and/or reimbursement may not be terminated prior to
October
31, 2021 except with the approval of the Fund's Board of
Trustees. |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. The Example reflects the Fund's contractual fee waiver and/or
expense reimbursement only in the periods for which the contractual fee waiver
and/or expense reimbursement is expected to continue. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$20 |
$75 |
$136 |
$313 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 4% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In
seeking to track the performance of the S&P 500 Fossil Fuel Free
Index (the “Index”), the Fund employs a sampling strategy, which means that
the Fund is not required to purchase all of the securities represented in the
Index. Instead, the Fund may purchase a subset of the securities in the Index in
an effort to hold a portfolio of securities with generally the same risk and
return characteristics of the Index. The quantity of holdings in the Fund will
be based on a number of factors, including asset size of the Fund. Based on its
analysis of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the
“Adviser”), the investment adviser to the Fund, either may invest the Fund's
assets in a subset of securities in the Index or may invest the Fund's assets in
substantially all of the securities represented in the
Index
in approximately the
same proportions as the Index, as determined by the Adviser to be in the best
interest of the Fund in pursuing its objective. The Fund is classified as
“diversified” under the Investment Company Act of 1940, as amended; however, the
Fund may become “non-diversified” solely as a result of tracking the Index
(e.g., changes in weightings of one or more component securities). When the Fund
is non-diversified, it may invest a relatively high percentage of its assets in
a limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index (including common stock, preferred stock,
depositary receipts and shares of other investment companies), cash and cash
equivalents or money market instruments, such as repurchase agreements and money
market funds (including money market funds advised by the Adviser). In seeking
to track the Index, the Fund's assets will generally be concentrated in an
industry or group of industries to the extent that the Index concentrates in a
particular industry or group of industries. Futures contracts (a type of
derivative instrument) may be used by the Fund in seeking performance that
corresponds to the Index and in managing cash
flows.
The Index is
designed to measure the performance of companies in the S&P 500 Index that
are “fossil fuel free”, which are defined as companies that do not own fossil
fuel reserves (either proven or probable). For purposes of the composition of
the Index, fossil fuel reserves are defined as (i) thermal coal reserves, (ii)
other non-metallurgical coal reserves (e.g., coal for chemical biproducts, coal
briquettes, residential use, liquid fuel, cement production, paper
manufacturing, pharmaceutical, alumina refineries, ferrochrome, anthracite)
(iii) conventional or unconventional oil reserves (e.g., natural gas liquids,
oil sands, condensates and liquid petroleum gas), (iv) natural gas reserves, (v)
shale gas reserves, and (vi) oil and gas reserves that have not been disclosed
transparently as specific types of oil or gas, or are disclosed as one aggregate
quantity of oil and gas reserves combined. The Index is a subset of the S&P
500 Index (the “Underlying Index”), which serves as the initial universe of
eligible securities for the Index. The Underlying Index focuses on the large
capitalization U.S. equity market, including common stock and real estate
investment trusts (“REITs”). The selection universe for the S&P 500 Index
includes all U.S. common equities listed on the NYSE, NYSE Arca, NYSE American,
NASDAQ Global Select Market, NASDAQ Select Market, NASDAQ Capital Market,
Investors Exchange (IEX), Cboe BZX, Cboe BYX, Cboe EDGA, or Cboe EDGX with
unadjusted market capitalizations of at least $8.2 billion and float-adjusted
market capitalizations of at least $4.1 billion at the time of inclusion. The
minimum required capitalization may be revised by the Index Provider (as defined
below) at any time. In constructing the Index, the initial universe is screened
in an effort to exclude companies with any ownership of fossil fuel reserves,
including for third-party and in-house power generation, as determined by
publicly available information, such as annual reports and other company
publications.
The
Index is weighted by float-adjusted market capitalization. The Index is
rebalanced quarterly after the close of business on the third Friday of March,
June, September, and December. The rebalancing reference dates are after the
close of the third Friday of February, May, August, and November, respectively.
New additions to the Underlying Index are reviewed for inclusion in the Index
each quarter, provided they have been added to the Underlying Index by the Index
rebalancing reference dates. Fossil fuel reserve ownership information is
updated as part of each quarterly rebalancing. As of July 31, 2020, a
significant portion of the Fund comprised companies in the technology
sector, although this may change from time to time. As of July 31, 2020, the
Index comprised 487 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Fossil
Fuel Reserves Free Ownership Risk:
The
lack of ownership of fossil fuel reserves may potentially have an adverse effect
on a company's profitability. The returns on a portfolio of securities that
seeks to exclude companies that own fossil fuel reserves may trail the returns
on a portfolio of securities that includes companies that own fossil fuel
reserves. Investing in a portfolio of securities of companies that do not own
fossil fuel reserves may affect the Fund's exposure to certain types of
investments and may impact the Fund's relative investment performance depending
on whether such investments are in or out of favor in the market.
Large-Capitalization
Securities Risk:
Returns
on investments in securities of large companies could trail the returns on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as smaller and mid-sized companies to
competitive challenges or to changes in business, product, financial,
or other market conditions. Larger companies may not be able to maintain
growth at the high rates that may be achieved by well-managed smaller and
mid-sized companies.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the
ability
of the Fund to obtain cash to meet redemptions on a timely basis. In addition,
the Fund, due to limitations on investments in any illiquid securities and/or
the difficulty in purchasing and selling such investments, may be unable to
achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily dependent on patent and intellectual property
rights, the loss or impairment of which may adversely affect profitability.
Additionally, companies in the technology sector may face dramatic and often
unpredictable changes in growth rates and competition for the services of
qualified personnel.
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps
significantly.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 13.54% (Q1, 2019)
Lowest
Quarterly Return: -13.50% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was 6.92%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Since
Inception (11/30/2015)
|
Return
Before Taxes |
32.14% |
13.87% |
Return
After Taxes on Distributions |
31.62% |
13.37% |
Return
After Taxes on Distributions and Sale of Fund Shares |
19.35% |
10.91% |
S&P
500 Fossil Fuel Free Index (reflects no deduction for fees, expenses or
taxes) |
32.48% |
14.13% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
13.67% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and John Law.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
John
Law, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. He joined the Adviser in 2016.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P 600 Small Cap ETF (the “Fund”) seeks to
provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index that tracks the
performance of small capitalization exchange traded U.S. equity
securities. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of
your investment):
Management
fees |
0.15% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.15% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$15 |
$48 |
$85 |
$192 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 15% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P SmallCap 600 Index (the “Index”), the Fund
employs a sampling strategy, which means that the Fund is not required to
purchase all of the securities represented in the Index. Instead, the Fund may
purchase a subset of the securities in the Index in an effort to hold a
portfolio of securities with generally the same risk and return characteristics
of the Index. The quantity of holdings in the Fund will be based on a number of
factors, including asset size of the Fund. Based on its analysis of these
factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under
normal market conditions, the Fund generally invests substantially all, but at
least 80%, of its total assets in the securities comprising the Index. In
addition, in seeking to track the Index, the Fund may invest in equity
securities that are not included in the Index, cash and cash equivalents or
money market instruments, such as repurchase agreements and money market funds
(including money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used
by the Fund in seeking performance that corresponds to the Index and in managing
cash flows.
The
Index measures the performance of the small-capitalization segment of the U.S.
equity market. The selection universe for the Index includes all U.S. common
equities listed on the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select
Market, NASDAQ Select Market, NASDAQ Capital Market, Investors Exchange (IEX),
Cboe BZX, Cboe BYX, Cboe EDGA, or Cboe EDGX with unadjusted market
capitalizations between $600 million and $2.4 billion and float-adjusted market
capitalizations of at least $300 million at the time of inclusion. These
capitalization ranges may be revised by the Index Provider (as defined below) at
any time. To be included in the Index, a security (or issuer of a security, as
applicable) should (i) have an annual dollar value traded to float-adjusted
market capitalization ratio of 1 or greater; (ii) trade a minimum of 250,000
shares in each of the six months leading up to the evaluation date; (iii) have a
public float of at least 10%; and (iv) have positive aggregate earnings over the
four most recent quarters and for the most recent quarter. In selecting
securities for inclusion in the Index, the Index Provider also considers sector
balance by comparing the weight of each GICS (Global Industry Classification
Standard) sector in the Index to its weight in the relevant market
capitalization range of the S&P Total Market Index.
The
Index is float-adjusted market capitalization weighted. Index constituents are
added and removed on an as-needed basis. The Index is rebalanced on a quarterly
basis in March, June, September and December. As of July 31, 2020, a significant
portion of the Fund comprised companies in the consumer discretionary,
industrial and financial sectors, although this may change from time to time. As
of July 31, 2020, the Index comprised 601 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Small-Capitalization
Securities Risk:
The
securities of small-capitalization companies may be more volatile and may
involve more risk than the securities of larger companies. These companies may
have limited product lines, markets or financial resources, may lack the
competitive strength of larger companies, and may depend on a few key employees.
In addition, these companies may have been recently organized and may have
little or no track record of success. The securities of smaller companies may
trade less frequently and in smaller volumes than more widely held securities.
Some securities of smaller issuers may be illiquid or may be restricted as to
resale, and their values may have significant volatility. The Fund may be unable
to liquidate its positions in such securities at any time, or at a favorable
price, in order to meet the Fund's obligations. Returns on investments in
securities of small-capitalization companies could trail the returns on
investments in securities of larger companies.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Consumer
Discretionary Sector Risk:
The
success of consumer product manufacturers and retailers is tied closely to the
performance of the overall global economy, interest rates, competition and
consumer confidence. Success depends heavily on disposable household income and
consumer spending. Also, companies in the consumer discretionary sector may be
subject to severe competition, which may have an adverse impact on their
respective profitability. Changes in demographics and consumer tastes can also
affect the demand for, and success of, consumer products and services in the
marketplace.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Financial
Sector Risk:
Financial
services companies are subject to extensive governmental regulation which may
limit both the amounts and types of loans and other financial commitments they
can make, the interest rates and fees they can charge, the scope of their
activities, the prices they can charge and the amount of capital they must
maintain. Profitability is largely dependent on the availability and cost of
capital funds and can fluctuate significantly when interest rates change or due
to increased competition. In addition, deterioration of the credit markets
generally may cause an adverse impact in a broad range of markets, including
U.S. and international credit and interbank money markets generally, thereby
affecting a wide range of financial institutions and markets. Certain events in
the financial sector may cause an unusually high degree of volatility in the
financial markets, both domestic and foreign, and cause certain financial
services companies to incur large losses. Securities of financial services
companies may experience a dramatic decline in value when such companies
experience substantial declines in the valuations of their assets, take action
to raise capital (such as the issuance of debt or equity securities), or cease
operations. Credit losses resulting from financial difficulties of borrowers and
financial losses associated with investment activities can negatively impact the
sector. Insurance companies may be subject to severe price competition. Adverse
economic, business or political developments could adversely affect financial
institutions engaged in mortgage finance or other lending or investing
activities directly or indirectly connected to the value of real
estate.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Industrial
Sector Risk:
Industrial
companies are affected by supply and demand both for their specific product or
service and for industrial sector products in general. Government regulation,
world events, exchange rates and economic conditions, technological developments
and liabilities for environmental damage and general civil liabilities will
likewise affect the performance of these companies. Aerospace and defense
companies, a
component
of the industrial sector, can be significantly affected by government spending
policies because companies involved in this industry rely, to a significant
extent, on U.S. and foreign government demand for their products and services.
Thus, the financial condition of, and investor interest in, aerospace and
defense companies are heavily influenced by governmental defense spending
policies which are typically under pressure from efforts to control the U.S.
(and other) government budgets. Transportation securities, a component of the
industrial sector, are cyclical and have occasional sharp price movements which
may result from changes in the economy, fuel prices, labor agreements and
insurance costs.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps significantly.
Valuation
Risk:
Some
portfolio holdings, potentially a large portion of the Fund's investment
portfolio, may be valued on the basis of factors other than market quotations.
This may occur more often in times of market turmoil or reduced liquidity. There
are multiple methods that can be used to value a portfolio holding when market
quotations are not readily available. The value established for any portfolio
holding at a point in time might differ from what would be produced using a
different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued using techniques other than market
quotations, including “fair valued” securities, may be subject to greater
fluctuation in their valuations from one day to the next than if market
quotations were used. In addition, there is no assurance that the Fund could
sell or close out a portfolio position for the value established for it at any
time, and it is possible that the Fund would incur a loss because a portfolio
position is sold or closed out at a discount to the valuation established by the
Fund at that time.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website
at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 17.07% (Q4, 2011)
Lowest
Quarterly Return: -20.10% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -15.19%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
Effective
December 17, 2010 (the “Benchmark Index Change Date”),
the
Fund's
benchmark index changed from the Dow Jones U.S. Small-Cap Total Stock Market
Index (the “Previous Benchmark Index”) to the S&P SmallCap 600 Index,
consistent with a change in the Fund's principal investment strategy to track
the performance of the current index. Performance of the Fund prior to the
Benchmark Index Change Date is therefore based on the Fund's investment strategy
to track the Previous Benchmark Index.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
22.63% |
9.47% |
13.32% |
Return
After Taxes on Distributions |
22.14% |
8.67% |
12.57% |
Return
After Taxes on Distributions and Sale of Fund Shares |
13.59% |
7.24% |
10.91% |
S&P
SmallCap 600 Index/Dow Jones U.S. Small-Cap Total Stock Market Index
1 (reflects
no deduction for fees, expenses or taxes) |
22.78% |
9.56% |
13.49% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
1 |
Returns
shown are reflective of the Index for periods beginning on the Benchmark
Index Change Date and the Previous Benchmark Index for periods prior to
the Benchmark Index Change Date. |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Mark Krivitsky.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Mark
Krivitsky is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group and the Tax-Efficient Market Capture
Group. He joined the Adviser in 1996.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P 600 Small Cap Growth ETF (the “Fund”) seeks
to provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index that tracks the
performance of small capitalization exchange traded U.S. equity securities
exhibiting “growth”
characteristics. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.15% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.15% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$15 |
$48 |
$85 |
$192 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 50% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P SmallCap 600 Growth Index (the “Index”), the
Fund employs a sampling strategy, which means that the Fund is not required to
purchase all of the securities represented in the Index. Instead, the Fund may
purchase a subset of the securities in the Index in an effort to hold a
portfolio of securities with generally the same risk and return characteristics
of the Index. The quantity of holdings in the Fund will be based on a number of
factors, including asset size of the Fund. Based on its analysis of these
factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used by
the Fund in seeking performance that corresponds to the Index and in managing
cash
flows.
The
Index measures the performance of the small-capitalization growth segment of the
U.S. equity market. The Index consists of those stocks in the S&P SmallCap
600 Index exhibiting the strongest growth characteristics based on: (i) sales
growth; (ii) earnings change to price; and (iii) momentum. The selection
universe for the S&P SmallCap 600 Index includes all U.S. common equities
listed on the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select Market,
NASDAQ Select Market, Investors Exchange (IEX), NASDAQ Capital Market, Cboe BZX,
Cboe BYX, Cboe EDGA, or Cboe EDGX with market capitalizations between $600
million and $2.4 billion at the time of inclusion. This capitalization range may
be revised by the Index Provider (as defined below) at any time. To be included
in the Index, a security (or issuer of a security, as applicable) should (i)
have an annual dollar value traded to float adjusted market capitalization ratio
of 1 or greater; (ii) trade a minimum of 250,000 shares in each of the six
months leading up to the evaluation date; (iii) have a public float of at least
10%; and (iv) have positive as-reported earnings over the most recent four
consecutive quarters (measured using the sum of earnings over those quarters)
and for the most recent quarter. The Index is market capitalization weighted and
rebalanced annually on the third Friday of December. As of July 31, 2020, a
significant portion of the Fund comprised companies in the consumer
discretionary, technology and industrial sectors, although this may change
from time to time. As of July 31, 2020, the Index comprised 338 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Small-Capitalization
Securities Risk:
The
securities of small-capitalization companies may be more volatile and may
involve more risk than the securities of larger companies. These companies may
have limited product lines, markets or financial resources, may lack the
competitive strength of larger companies, and may depend on a few key employees.
In addition, these companies may have been recently organized and may have
little or no track record of success. The securities of smaller companies may
trade less frequently and in smaller volumes than more widely held securities.
Some securities of smaller issuers may be illiquid or may be restricted as to
resale, and their values may have significant volatility. The Fund may be unable
to liquidate its positions in such securities at any time, or at a favorable
price, in order to meet the Fund's obligations. Returns on investments in
securities of small-capitalization companies could trail the returns on
investments in securities of larger companies.
Growth
Stock Risk:
The
prices of growth stocks may be based largely on expectations of future earnings,
and their prices can decline rapidly and significantly in reaction to negative
news. Growth stocks may underperform value stocks and stocks in other broad
style categories (and the stock market as a whole) over any period of time and
may shift in and out of favor with investors generally, sometimes rapidly,
depending on changes in market, economic, and other factors.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times
when
the market price of the shares is more than the net asset value per share
(premium) or less than the net asset value per share (discount). This risk is
heightened in times of market volatility or periods of steep market
declines.
Consumer
Discretionary Sector Risk:
The
success of consumer product manufacturers and retailers is tied closely to the
performance of the overall global economy, interest rates, competition and
consumer confidence. Success depends heavily on disposable household income and
consumer spending. Also, companies in the consumer discretionary sector may be
subject to severe competition, which may have an adverse impact on their
respective profitability. Changes in demographics and consumer tastes can also
affect the demand for, and success of, consumer products and services in the
marketplace.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Industrial
Sector Risk:
Industrial
companies are affected by supply and demand both for their specific product or
service and for industrial sector products in general. Government regulation,
world events, exchange rates and economic conditions, technological developments
and liabilities for environmental damage and general civil liabilities will
likewise affect the performance of these companies. Aerospace and defense
companies, a component of the industrial sector, can be significantly affected
by government spending policies because companies involved in this industry
rely, to a significant extent, on U.S. and foreign government demand for their
products and services. Thus, the financial condition of, and investor interest
in, aerospace and defense companies are heavily influenced by governmental
defense spending policies which are typically under pressure from efforts to
control the U.S. (and other) government budgets. Transportation securities, a
component of the industrial sector, are cyclical and have occasional sharp price
movements which may result from changes in the economy, fuel prices, labor
agreements and insurance costs.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to
limitations
on
investments in any illiquid securities and/or the difficulty in purchasing and
selling such investments, may be unable to achieve its desired level of exposure
to a certain market or sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily dependent on patent and intellectual property
rights, the loss or impairment of which may adversely affect profitability.
Additionally, companies in the technology sector may face dramatic and often
unpredictable changes in growth rates and competition for the services of
qualified personnel.
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps significantly.
Valuation
Risk:
Some
portfolio holdings, potentially a large portion of the Fund's investment
portfolio, may be valued on the basis of factors other than market quotations.
This may occur more often in times of market turmoil or reduced liquidity. There
are multiple methods that can be used to value a portfolio holding when market
quotations are not readily available. The value established for any portfolio
holding at a point in time might differ from what would be produced using a
different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued using techniques other than market
quotations, including “fair valued” securities, may be subject to greater
fluctuation in their valuations from one day to the next than if market
quotations were used. In addition, there is no assurance that the Fund could
sell or close out a portfolio position for the value established for it at any
time, and it is possible that the Fund would incur a loss because a portfolio
position is sold or closed out at a discount to the valuation established by the
Fund at that time.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 16.89% (Q4, 2010)
Lowest
Quarterly Return: -19.65% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -7.96%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
Effective
December 17, 2010 (the “Benchmark Index Change Date”), the Fund's benchmark
index changed from the Dow Jones U.S. Small-Cap Growth Total Stock Market Index
(the “Previous
Benchmark
Index”) to the S&P SmallCap 600 Growth Index, consistent with a change in
the Fund's principal investment strategy to track the performance of the
current index. Performance of the Fund prior to the Benchmark Index Change
Date is therefore based on the Fund's investment strategy to track the Previous
Benchmark
Index.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
20.92% |
10.72% |
14.25% |
Return
After Taxes on Distributions |
20.53% |
9.92% |
13.60% |
Return
After Taxes on Distributions and Sale of Fund Shares |
12.53% |
8.29% |
11.81% |
S&P
SmallCap 600 Growth Index/Dow Jones U.S. Small-Cap Growth Total Stock
Market Index
1 (reflects
no deduction for fees, expenses or taxes) |
21.13% |
10.87% |
14.42% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
1 |
Returns
shown are reflective of the Index for periods beginning on the Benchmark
Index Change Date and the Previous Benchmark Index for periods prior to
the Benchmark Index Change Date. |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and David Chin.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
David
Chin is a Vice President of the Adviser and a Senior Portfolio Manager in the
Global Equity Beta Solutions Group. He joined the Adviser in 1999.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P 600 Small Cap Value ETF (the “Fund”) seeks
to provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index that tracks the
performance of small capitalization exchange traded U.S. equity securities
exhibiting “value”
characteristics. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”). You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of
your investment):
Management
fees |
0.15% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.15% |
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell all of your Fund Shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the Fund's
operating expenses remain the same. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$15 |
$48 |
$85 |
$192 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 51% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P SmallCap 600 Value Index (the “Index”),
the Fund employs a sampling strategy, which means that the Fund is not required
to purchase all of the securities represented in the Index. Instead, the Fund
may purchase a subset of the securities in the Index in an effort to hold a
portfolio of securities with generally the same risk and return characteristics
of the Index. The quantity of holdings in the Fund will be based on a number of
factors, including asset size of the Fund. Based on its analysis of these
factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
117
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used by
the Fund in seeking performance that corresponds to the Index and in managing
cash
flows.
The
Index measures the performance of the small-capitalization value segment of the
U.S. equity market. The Index consists of those stocks in the S&P SmallCap
600 Index exhibiting the strongest value characteristics based on: (i) book
value to price ratio; (ii) earnings to price ratio; and (iii) sales to price
ratio. The selection universe for the S&P SmallCap 600 Index includes all
U.S. common equities listed on the NYSE, NYSE Arca, NYSE American, NASDAQ Global
Select Market, NASDAQ Select Market, Investors Exchange (IEX), NASDAQ Capital
Market, Cboe BZX, Cboe BYX, Cboe EDGA, or Cboe EDGX with market capitalizations
between $600 million and $2.4 billion at the time of inclusion. The
capitalization range may be revised by the Index Provider (as defined below) at
any time. To be included in the Index, a security (or issuer of a security, as
applicable) should (i) have an annual dollar value traded to float adjusted
market capitalization ratio of 1 or greater; (ii) trade a minimum of 250,000
shares in each of the six months leading up to the evaluation date; (iii) have a
public float of at least 50%; and (iv) have positive as-reported earnings over
the most recent four consecutive quarters (measured using the sum of earnings
over those quarters) and for the most recent quarter. The Index is market
capitalization weighted and rebalanced annually on the third Friday of December.
As of July 31, 2020, a significant portion of the Fund comprised companies
in the financial, industrial and consumer discretionary sectors, although this
may change from time to time. As of July 31, 2020, the Index comprised 450
stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Small-Capitalization
Securities Risk:
The
securities of small-capitalization companies may be more volatile and may
involve more risk than the securities of larger companies. These companies may
have limited product lines, markets or financial resources, may lack the
competitive strength of larger companies, and may depend on a few key employees.
In addition, these companies may have been recently organized and may have
little or no track record of success. The securities of smaller companies may
trade less frequently and in smaller volumes than more widely held securities.
Some securities of smaller issuers may be illiquid or may be restricted as to
resale, and their values may have significant volatility. The Fund may be unable
to liquidate its positions in such securities at any time, or at a favorable
price, in order to meet the Fund's obligations. Returns on investments in
securities of small-capitalization companies could trail the returns on
investments in securities of larger companies.
Value
Stock Risk:
A
“value” style of investing is subject to the risk that the returns on “value”
equity securities are less than returns on other styles of investing or the
overall stock market. Value stocks present the risk that they may decline in
price or never reach their expected full market value because the market fails
to recognize a stock's intrinsic worth.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times
when
the market price of the shares is more than the net asset value per share
(premium) or less than the net asset value per share (discount). This risk is
heightened in times of market volatility or periods of steep market
declines.
Consumer
Discretionary Sector Risk:
The
success of consumer product manufacturers and retailers is tied closely to the
performance of the overall global economy, interest rates, competition and
consumer confidence. Success depends heavily on disposable household income and
consumer spending. Also, companies in the consumer discretionary sector may be
subject to severe competition, which may have an adverse impact on their
respective profitability. Changes in demographics and consumer tastes can also
affect the demand for, and success of, consumer products and services in the
marketplace.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Financial
Sector Risk:
Financial
services companies are subject to extensive governmental regulation which may
limit both the amounts and types of loans and other financial commitments they
can make, the interest rates and fees they can charge, the scope of their
activities, the prices they can charge and the amount of capital they must
maintain. Profitability is largely dependent on the availability and cost of
capital funds and can fluctuate significantly when interest rates change or due
to increased competition. In addition, deterioration of the credit markets
generally may cause an adverse impact in a broad range of markets, including
U.S. and international credit and interbank money markets generally, thereby
affecting a wide range of financial institutions and markets. Certain events in
the financial sector may cause an unusually high degree of volatility in the
financial markets, both domestic and foreign, and cause certain financial
services companies to incur large losses. Securities of financial services
companies may experience a dramatic decline in value when such companies
experience substantial declines in the valuations of their assets, take action
to raise capital (such as the issuance of debt or equity securities), or cease
operations. Credit losses resulting from financial difficulties of borrowers and
financial losses associated with investment activities can negatively impact the
sector. Insurance companies may be subject to severe price competition. Adverse
economic, business or political developments could adversely affect financial
institutions engaged in mortgage finance or other lending or investing
activities directly or indirectly connected to the value of real
estate.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the
Index.
Industrial
companies are affected by supply and demand both for their specific product or
service and for industrial sector products in general. Government regulation,
world events, exchange rates and economic conditions, technological developments
and liabilities for environmental damage and general civil liabilities will
likewise affect the performance of these companies. Aerospace and defense
companies, a component of the industrial sector, can be significantly affected
by government spending policies because companies involved in this industry
rely, to a significant extent, on U.S. and foreign government demand for their
products and services. Thus, the financial condition of, and investor interest
in, aerospace and defense companies are heavily influenced by governmental
defense spending policies which are typically under pressure from efforts to
control the U.S. (and other) government budgets. Transportation securities, a
component of the industrial sector, are cyclical and have occasional sharp price
movements which may result from changes in the economy, fuel prices, labor
agreements and insurance
costs.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps significantly.
Valuation
Risk:
Some
portfolio holdings, potentially a large portion of the Fund's investment
portfolio, may be valued on the basis of factors other than market quotations.
This may occur more often in times of market turmoil or reduced liquidity. There
are multiple methods that can be used to value a portfolio holding when market
quotations are not readily available. The value established for any portfolio
holding at a point in time might differ from what would be produced using a
different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued using techniques other than market
quotations, including “fair valued” securities, may be subject to greater
fluctuation in their valuations from one day to the next than if market
quotations were used. In addition, there is no assurance that the Fund could
sell or close out a portfolio position for the value established for it at any
time, and it is possible that the Fund would incur a loss because a portfolio
position is sold or closed out at a discount to the valuation established by the
Fund at that time.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index. The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 18.46% (Q4, 2011)
Lowest
Quarterly Return: -20.55% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -22.76%. |
Average Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
Effective December
17, 2010 (the “Benchmark Index Change Date”), the Fund's benchmark index changed
from the Dow Jones U.S. Small-Cap Value Total Stock Market Index (the “Previous
Benchmark Index”) to the S&P SmallCap 600 Value Index, consistent with a
change in the Fund's principal investment strategy to track the performance of
the current index. Performance of the Fund prior to the Benchmark Index
Change Date is therefore based on the Fund's investment strategy to track the
Previous Benchmark Index.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
24.31% |
8.13% |
12.31% |
Return
After Taxes on Distributions |
23.69% |
6.89% |
11.21% |
Return
After Taxes on Distributions and Sale of Fund Shares |
14.62% |
5.92% |
9.81% |
S&P
SmallCap 600 Value Index/Dow Jones U.S. Small-Cap Value Total Stock Market
Index
1 (reflects
no deduction for fees, expenses or taxes) |
24.54% |
8.26% |
12.54% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
1 |
Returns
shown are reflective of the Index for periods beginning on the Benchmark
Index Change Date and the Previous Benchmark Index for periods prior to
the Benchmark Index Change Date. |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and David Chin.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
David
Chin is a Vice President of the Adviser and a Senior Portfolio Manager in the
Global Equity Beta Solutions Group. He joined the Adviser in 1999.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to
Broker-Dealers and Other Financial
Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Aerospace & Defense ETF (the “Fund”)
seeks to provide investment results that, before fees and expenses,
correspond generally to the total return performance of an index derived
from the aerospace and defense segment of a U.S. total market composite
index. |
Fees and
Expenses of the Fund
The table below describes the fees and expenses that you may pay
if you buy, hold and sell shares of the Fund (“Fund Shares”). You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell all of your Fund Shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the Fund's
operating expenses remain the same. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund Shares are held in a taxable account. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio turnover
rate was 28% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In seeking to track
the performance of the S&P Aerospace & Defense Select Industry Index
(the “Index”), the Fund employs a sampling strategy, which means that the
Fund is not required to purchase all of the securities represented in the Index.
Instead, the Fund may purchase a subset of the securities in the Index in an
effort to hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used by
the Fund in seeking performance that corresponds to the Index and in managing
cash
flows.
The
Index represents the aerospace and defense segment of the S&P Total Market
Index (“S&P TMI”). The S&P TMI is designed to track the broad U.S.
equity market. The aerospace & defense segment of the S&P TMI comprises
the Aerospace & Defense sub-industry. The Index is one of twenty-one (21) of
the S&P Select Industry Indices (the “Select Industry Indices”), each
designed to measure the performance of a narrow sub-industry or group of
sub-industries determined based on the Global Industry Classification Standard
(“GICS”). Membership in the Select Industry Indices is based on the GICS
classification, as well as liquidity and market cap requirements. Companies in
the Select Industry Indices are classified according to GICS which determines
classifications primarily based on revenues; however, earnings and market
perception are also considered. The Index consists of the S&P TMI
constituents belonging to the Aerospace & Defense sub-industry that satisfy
the following criteria: (i) have a float-adjusted market capitalization greater
than or equal to $500 million with a float-adjusted liquidity ratio (defined by
dollar value traded over the previous 12 months divided by the float-adjusted
market capitalization as of the index rebalancing reference date) greater than
or equal to 90% or have a float-adjusted market capitalization greater than or
equal to $400 million with a float-adjusted liquidity ratio (as defined above)
greater than or equal to 150%; and (ii) are U.S. based companies. The length of
time to evaluate liquidity is reduced to the available trading period for
initial public offerings or spin-offs that do not have 12 months of trading
history. The market capitalization threshold may be relaxed to ensure that there
are at least 22 stocks in the Index as of the rebalancing effective date.
Existing Index constituents are removed at the quarterly rebalancing effective
date if either their float-adjusted market capitalization falls below $300
million or their float-adjusted liquidity ratio falls below 50%. The market
capitalization threshold and the liquidity threshold are each reviewed from time
to time based on market conditions. Rebalancing occurs on the third Friday of
the quarter ending month. The S&P TMI tracks all eligible U.S. common
equities listed on the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select
Market, NASDAQ Select Market, Investors Exchange (IEX), NASDAQ Capital Market,
Cboe BZX, Cboe BYX, Cboe EDGA, or Cboe EDGX exchanges. The Index is modified
equal weighted. As of July 31, 2020, the Index comprised 31 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Aerospace
and Defense Companies Risk:
Aerospace
and defense companies can be significantly affected by government aerospace and
defense regulation and spending policies because companies involved in this
industry rely to a significant extent on U.S. (and other) government demand for
their products and services. Thus, the financial condition of, and investor
interest in, aerospace and defense companies are heavily influenced by
governmental defense spending policies which are typically under pressure from
efforts to control the U.S. (and other) government
budgets.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Industrial
Sector Risk:
Industrial
companies are affected by supply and demand both for their specific product or
service and for industrial sector products in general. Government regulation,
world events, exchange rates and economic conditions, technological developments
and liabilities for environmental damage and general civil liabilities will
likewise affect the performance of these companies. Aerospace and defense
companies, a component of the industrial sector, can be significantly affected
by government spending policies because companies involved in this industry
rely, to a significant extent, on U.S. and foreign government demand for their
products and services. Thus, the financial condition of, and investor interest
in, aerospace and defense companies are heavily influenced by governmental
defense spending policies which are typically under pressure from efforts to
control the U.S. (and other) government budgets. Transportation securities, a
component of the industrial sector, are cyclical and have occasional sharp price
movements which may result from changes in the economy, fuel prices, labor
agreements and insurance costs.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to
limitations
on
investments in any illiquid securities and/or the difficulty in purchasing and
selling such investments, may be unable to achieve its desired level of exposure
to a certain market or sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index. The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 17.76% (Q4, 2013)
Lowest
Quarterly Return: -20.51% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -19.43%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Since
Inception (9/28/11)
|
Return
Before Taxes |
39.25% |
16.39% |
21.26% |
Return
After Taxes on Distributions |
38.99% |
16.00% |
20.78% |
Return
After Taxes on Distributions and Sale of Fund Shares |
23.40% |
13.12% |
17.95% |
S&P
Aerospace & Defense Select Industry Index (reflects no deduction for
fees, expenses or taxes) |
39.79% |
16.81% |
21.71% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
15.71% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Keith Richardson.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Keith
Richardson is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. He joined the Adviser in 1999.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Bank ETF (the “Fund”) seeks to provide
investment results that, before fees and expenses, correspond generally to
the total return performance of an index that tracks the performance of
publicly traded national money centers and leading regional
banks. |
Fees and
Expenses of the Fund
The table below describes the fees and expenses that you may pay
if you buy, hold and sell shares of the Fund (“Fund Shares”). You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell all of your Fund Shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the Fund's
operating expenses remain the same. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 30% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In seeking to track
the performance of the S&P Banks Select Industry Index (the “Index”),
the Fund employs a sampling strategy, which means that the Fund is not required
to purchase all of the securities represented in the Index. Instead, the Fund
may purchase a subset of the securities in the Index in an effort to hold a
portfolio of securities with generally the same risk and return characteristics
of the Index. The quantity of holdings in the Fund will be based on a number of
factors, including asset size of the Fund. Based on its analysis of these
factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used by
the Fund in seeking performance that corresponds to the Index and in managing
cash
flows.
The
Index represents the banks segment of the S&P Total Market Index (“S&P
TMI”). The S&P TMI is designed to track the broad U.S. equity market. The
banks segment of the S&P TMI comprises the following sub-industries: Asset
Management & Custody Banks, Diversified Banks, Regional Banks, Other
Diversified Financial Services, and Thrifts & Mortgage Finance. The Index is
one of twenty-one (21) of the S&P Select Industry Indices (the “Select
Industry Indices”), each designed to measure the performance of a narrow
sub-industry or group of sub-industries determined based on the Global Industry
Classification Standard (“GICS”). Membership in the Select Industry Indices is
based on the GICS classification, as well as liquidity and market cap
requirements. Companies in the Select Industry Indices are classified according
to GICS which determines classifications primarily based on revenues; however,
earnings and market perception are also considered. The Index consists of the
S&P TMI constituents belonging to the Asset Management & Custody Banks,
Diversified Banks, Regional Banks, Other Diversified Financial Services, and
Thrifts & Mortgage Finance sub-industries that satisfy the following
criteria: (i) have a float-adjusted market capitalization above $2 billion with
a float-adjusted liquidity ratio (defined by dollar value traded over the
previous 12 months divided by the float-adjusted market capitalization as of the
index rebalancing reference date) above 100%; and (ii) are U.S. based companies.
The length of time to evaluate liquidity is reduced to the available trading
period for initial public offerings or spin-offs that do not have 12 months of
trading history. The market capitalization threshold may be relaxed to ensure
that there are at least 22 stocks in the Index as of the rebalancing effective
date. Existing Index constituents are removed at the quarterly rebalancing
effective date if either their float-adjusted market capitalization falls below
$1 billion or their float-adjusted liquidity ratio falls below 50%. The market
capitalization threshold and the liquidity threshold are each reviewed from time
to time based on market conditions. Rebalancing occurs on the third Friday of
the quarter ending month. The S&P TMI tracks all eligible U.S. common
equities listed on the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select
Market, NASDAQ Select Market, Investors Exchange (IEX), NASDAQ Capital Market,
Cboe BZX, Cboe BYX, Cboe EDGA, or Cboe EDGX exchanges. The Index is modified
equal weighted. As of July 31, 2020, the Index comprised 86 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Banking
Companies Risk:
The
performance of bank stocks may be affected by extensive governmental regulation
which may limit both the amounts and types of loans and other financial
commitments they can make, and the interest rates and fees they can charge and
the amount of capital they must maintain. Profitability is largely dependent on
the availability and cost of capital funds, and can fluctuate significantly when
interest rates change. Credit losses resulting from financial difficulties of
borrowers can negatively impact banking companies. Banks may also be subject to
severe price competition. Competition is high among banking companies and
failure to maintain or increase market share may result in lost market
value.
Financial
Institutions Risk:
Changes
in the creditworthiness of financial institutions (such as banks and
broker-dealers) may adversely affect the values of instruments of issuers in
financial industries. Adverse developments in banking and other financial
industries may cause the Fund to underperform relative to other funds that
invest more broadly across different industries or have a smaller exposure to
financial institutions. Changes in governmental regulation and oversight of
financial institutions may have an adverse effect on the financial condition of
a financial institution.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the
Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of
more
diversified
funds. The Fund may become non-diversified for periods of time solely as a
result of changes in the composition of the Index (e.g., changes in weightings
of one or more component
securities).
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by callin
g
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 30.75% (Q4, 2016)
Lowest
Quarterly Return: -26.45% (Q3, 2011)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -36.11%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares. Effective October 24, 2011 (the “Benchmark Index Change
Date”), the Fund's benchmark index changed from the KBW Bank Index (the
“Previous Benchmark Index”) to the S&P Banks Select Industry Index,
consistent with a change in the Fund's principal investment strategy to track
the performance of the current index. Performance of the Fund prior to the
Benchmark Index Change Date is therefore based on the Fund's investment strategy
to track the Previous Benchmark Index.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
29.78% |
9.11% |
10.18% |
Return
After Taxes on Distributions |
29.01% |
8.63% |
9.78% |
Return
After Taxes on Distributions and Sale of Fund Shares |
18.10% |
7.13% |
8.34% |
S&P
Banks Select Industry Index/KBW Bank Index
1 (reflects
no deduction for fees, expenses or taxes) |
30.19% |
9.45% |
10.56% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
1 |
Returns
shown are reflective of the Index for periods beginning on the Benchmark
Index Change Date and the Previous Benchmark Index for periods prior to
the Benchmark Index Change Date. |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Melissa Kapitulik.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Melissa
Kapitulik is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. She joined the Adviser in 2006.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Biotech ETF (the “Fund”) seeks to provide
investment results that, before fees and expenses, correspond generally to
the total return performance of an index derived from the biotechnology
segment of a U.S. total market composite
index. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 66% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P Biotechnology Select Industry Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used by
the Fund in seeking performance that corresponds to the Index and in managing
cash flows.
The
Index represents the biotechnology segment of the S&P Total Market Index
(“S&P TMI”). The S&P TMI is designed to track the broad U.S. equity
market. The biotechnology segment of the S&P TMI comprises the Biotechnology
sub-industry. The Index is one of twenty-one (21) of the S&P Select Industry
Indices (the “Select Industry Indices”), each designed to measure the
performance of a narrow sub-industry or group of sub-industries determined based
on the Global Industry Classification Standard (“GICS”). Membership in the
Select Industry Indices is based on the GICS classification, as well as
liquidity and market cap requirements. Companies in the Select Industry Indices
are classified according to GICS which determines classifications primarily
based on revenues; however, earnings and market perception are also considered.
The Index consists of the S&P TMI constituents belonging to the
Biotechnology sub-industry that satisfy the following criteria: (i) have a
float-adjusted market capitalization greater than or equal to $500 million with
a float-adjusted liquidity ratio (defined by dollar value traded over the
previous 12 months divided by the float-adjusted market capitalization as of the
index rebalancing reference date) greater than or equal to 90% or have a
float-adjusted market capitalization greater than or equal to $400 million with
a float-adjusted liquidity ratio (as defined above) greater than or equal to
150%; and (ii) are U.S. based companies. The length of time to evaluate
liquidity is reduced to the available trading period for initial public
offerings or spin-offs that do not have 12 months of trading history. If there
are fewer than 35 stocks, stocks from the Life Sciences Tools & Services
sub-industry that meet the market capitalization and liquidity thresholds are
included in order of their float-adjusted market capitalization. The market
capitalization threshold may be relaxed to ensure that there are at least 22
stocks in the Index as of the rebalancing effective date. Existing Index
constituents are removed at the quarterly rebalancing effective date if either
their float-adjusted market capitalization falls below $300 million or their
float-adjusted liquidity ratio falls below 50%. The market capitalization
threshold and the liquidity threshold are each reviewed from time to time based
on market conditions. Rebalancing occurs on the third Friday of the quarter
ending month. The S&P TMI tracks all eligible U.S. common equities listed on
the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select Market, NASDAQ Select
Market, Investors Exchange (IEX), NASDAQ Capital Market, Cboe BZX, Cboe BYX,
Cboe EDGA, or Cboe EDGX exchanges. The Index is modified equal weighted. As of
July 31, 2020, the Index comprised 132 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Biotechnology
Companies Risk:
Biotech
companies invest heavily in research and development which may not necessarily
lead to commercially successful products. These companies are also subject to
increased governmental regulation which may delay or inhibit the release of new
products. Many biotech companies are dependent upon their ability to use and
enforce intellectual property rights and patents. Any impairment of such
rights
may have adverse
financial consequences. Biotech stocks, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Biotech companies can be significantly affected by technological change and
obsolescence, product liability lawsuits and consequential high insurance
costs.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Health
Care Sector Risk:
Companies
in the health care sector are subject to extensive government regulation and
their profitability can be significantly affected by restrictions on government
reimbursement for medical expenses, rising costs of medical products and
services, pricing pressure (including price discounting), limited product lines
and an increased emphasis on the delivery of healthcare through outpatient
services. Companies in the health care sector are heavily dependent on obtaining
and defending patents, which may be time consuming and costly, and the
expiration of patents may also adversely affect the profitability of these
companies. Health care companies are also subject to extensive litigation based
on product liability and similar claims. In addition, their products can become
obsolete due to industry innovation, changes in technologies or other market
developments. Many new products in the health care sector require significant
research and development and may be subject to regulatory approvals, all of
which may be time consuming and costly with no guarantee that any product will
come to market.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the
Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to
limitations
on
investments in any illiquid securities and/or the difficulty in purchasing and
selling such investments, may be unable to achieve its desired level of exposure
to a certain market or sector.
Non-Diversification Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 25.73% (Q1, 2019)
Lowest
Quarterly Return: -26.22% (Q1, 2016)
* |
As
of 9/30/2020, the Fund's
Calendar
Year-To-Date
return was 17.10%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
32.20% |
9.20% |
18.56% |
Return
After Taxes on Distributions |
32.20% |
9.10% |
18.43% |
Return
After Taxes on Distributions and Sale of Fund Shares |
19.06% |
7.24% |
15.94% |
S&P
Biotechnology Select Industry Index (reflects no deduction for fees,
expenses or taxes) |
32.34% |
9.08% |
18.42% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Raymond Donofrio.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Raymond
Donofrio is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. He joined the Adviser in 2008.
Purchase and
Sale Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Capital Markets ETF (the “Fund”) seeks to
provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index that tracks the
performance of publicly traded companies that do business as
broker-dealers, asset managers, trust and custody banks or
exchanges. |
Fees and
Expenses of the Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell all of your Fund Shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the Fund's
operating expenses remain the same. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 20% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In seeking to track
the performance of the S&P Capital Markets Select Industry Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used by
the Fund in seeking performance that corresponds to the Index and in managing
cash
flows.
The
Index represents the capital markets segment of the S&P Total Market Index
(“S&P TMI”). The S&P TMI is designed to track the broad U.S. equity
market. The capital markets segment of the S&P TMI comprises the following
sub-industries: Asset Management & Custody Banks, Diversified Capital
Markets, Financial Exchanges & Data, and Investment Banking & Brokerage.
The Index is one of twenty-one (21) of the S&P Select Industry Indices (the
“Select Industry Indices”), each designed to measure the performance of a narrow
sub-industry or group of sub-industries determined based on the Global Industry
Classification Standard (“GICS”). Membership in the Select Industry Indices is
based on the GICS classification, as well as liquidity and market cap
requirements. Companies in the Select Industry Indices are classified according
to GICS which determines classifications primarily based on revenues; however,
earnings and market perception are also considered. The Index consists of the
S&P TMI constituents belonging to the Asset Management & Custody Banks,
Diversified Capital Markets, Financial Exchanges & Data, and Investment
Banking & Brokerage sub-industries that satisfy the following criteria: (i)
have a float-adjusted market capitalization greater than or equal to $500
million with a float-adjusted liquidity ratio (defined by dollar value traded
over the previous 12 months divided by the float-adjusted market capitalization
as of the index rebalancing reference date) greater than or equal to 90% or have
a float-adjusted market capitalization greater than or equal to $400 million
with a float-adjusted liquidity ratio (as defined above) greater than or equal
to 150%; and (ii) are U.S. based companies. The length of time to evaluate
liquidity is reduced to the available trading period for initial public
offerings or spin-offs that do not have 12 months of trading history. The market
capitalization threshold may be relaxed to ensure that there are at least 22
stocks in the Index as of the rebalancing effective date. Existing Index
constituents are removed at the quarterly rebalancing effective date if either
their float-adjusted market capitalization falls below $300 million or their
float-adjusted liquidity ratio falls below 50%. The market capitalization
threshold and the liquidity threshold are each reviewed from time to time based
on market conditions. Rebalancing occurs on the third Friday of the quarter
ending month. The S&P TMI tracks all eligible U.S. common equities listed on
the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select Market, NASDAQ Select
Market, Investors Exchange (IEX), NASDAQ Capital Market, Cboe BZX, Cboe BYX,
Cboe EDGA, or Cboe EDGX exchanges. The Index is modified equal weighted. As of
July 31, 2020, the Index comprised 58 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Capital
Markets Companies Risk:
Capital
Markets companies may be significantly affected by stock and bank trading
activity, changes in governmental regulation, continuing increases in price
competition, decreases in fees or fee-related business, including investment
banking, brokerage, asset management and other servicing fees, fluctuation in
interest rates and other factors which could adversely affect financial
markets.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Financial
Sector Risk:
Financial
services companies are subject to extensive governmental regulation which may
limit both the amounts and types of loans and other financial commitments they
can make, the interest rates and fees they can charge, the scope of their
activities, the prices they can charge and the amount of capital they must
maintain. Profitability is largely dependent on the availability and cost of
capital funds and can fluctuate significantly when interest rates change or due
to increased competition. In addition, deterioration of the credit markets
generally may cause an adverse impact in a broad range of markets, including
U.S. and international credit and interbank money markets generally, thereby
affecting a wide range of financial institutions and markets. Certain events in
the financial sector may cause an unusually high degree of volatility in the
financial markets, both domestic and foreign, and cause certain financial
services companies to incur large losses. Securities of financial services
companies may experience a dramatic decline in value when such companies
experience substantial declines in the valuations of their assets, take action
to raise capital (such as the issuance of debt or equity securities), or cease
operations. Credit losses resulting from financial difficulties of borrowers and
financial losses associated with investment activities can negatively impact the
sector. Insurance companies may be subject to severe price competition. Adverse
economic, business or political developments could adversely affect financial
institutions engaged in mortgage finance or other lending or investing
activities directly or indirectly connected to the value of real
estate.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the
Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 21.90% (Q1, 2012)
Lowest
Quarterly Return: -26.98% (Q3, 2011)
* |
As
of 9/30/2020, the Fund's
Calendar
Year-To-Date
return was -0.48%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
Effective
October 24, 2011 (the “Benchmark Index Change Date”), the Fund's benchmark index
changed from the KBW Capital Markets Index (the “Previous Benchmark Index”) to
the S&P Capital Markets Select Industry Index, consistent with a change in
the Fund's principal investment strategy to track the performance of the
current index. Performance of the Fund prior to the Benchmark Index Change
Date is therefore based on the Fund's investment strategy to track the Previous
Benchmark Index.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
27.13% |
5.73% |
7.41% |
Return
After Taxes on Distributions |
26.39% |
5.08% |
6.80% |
Return
After Taxes on Distributions and Sale of Fund Shares |
16.52% |
4.32% |
5.83% |
S&P
Capital Markets Select Industry Index/KBW Capital Markets Index
1 (reflects
no deduction for fees, expenses or taxes) |
27.13% |
5.92% |
7.68% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
1 |
Returns
shown are reflective of the Index for periods beginning on the Benchmark
Index Change Date and the Previous Benchmark Index for periods prior to
the Benchmark Index Change Date. |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Kala O'Donnell.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Kala
O'Donnell is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. She joined the Adviser in 1995.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Dividend ETF (the “Fund”) seeks to provide
investment results that, before fees and expenses, correspond generally to
the total return performance of an index that tracks the performance of
publicly traded issuers that have historically followed a policy of making
dividend payments. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 31% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P High Yield Dividend Aristocrats Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used
by the Fund in seeking performance that corresponds to the Index and in managing
cash
flows.
The
Index is designed to measure the performance of the highest dividend yielding
S&P Composite 1500
®
Index
constituents that have followed a managed-dividends policy of consistently
increasing dividends every year for at least 20 consecutive years. Stocks
included in the Index have both capital growth and dividend income
characteristics, as opposed to stocks that are pure yield, or pure capital
oriented, and must meet minimum float-adjusted market capitalization and
liquidity requirements. Stocks within the Index are weighted by indicated yield
(annualized gross dividend payment per share divided by price per share) and
weight-adjusted each quarter. The Index components are reviewed annually in
January for continued inclusion in the Index and re-weighted quarterly after the
closing of the last business day of January, April, July and October. If between
annual reviews the Index Provider (as defined below) determines, based on
publicly available information, that an Index constituent has eliminated or
suspended its dividend, omitted a payment, or reduced its calendar year dividend
amount and will no longer qualify for the Index at the subsequent
reconstitution, the Index constituent will be removed from the index effective
prior to the open of the first business day of the following month. As of July
31, 2020, a significant portion of the Fund comprised companies in
the industrial and energy sectors, although this may change from time to
time. As of July 31, 2020, the Index comprised 117 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government
agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Dividend
Paying Securities Risk:
Securities
that pay dividends, as a group, can fall out of favor with the market, causing
such companies to underperform companies that do not pay dividends. In addition,
changes in the dividend policies of the companies held by the Fund or the
capital resources available for such company's dividend payments may adversely
affect the Fund.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Energy
Sector Risk:
Issuers
in energy-related industries can be significantly affected by fluctuations in
energy prices and supply and demand of energy fuels. Markets for various
energy-related commodities can have significant volatility, and are subject to
control or manipulation by large producers or purchasers. Companies in the
energy sector may need to make substantial expenditures, and to incur
significant amounts of debt, in order to maintain or expand their reserves. Oil
and gas exploration and production can be significantly affected by natural
disasters as well as changes in exchange rates, interest rates, government
regulation, world events and economic conditions. These companies may be at risk
for environmental damage
claims.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the
Index.
Industrial
Sector Risk:
Industrial
companies are affected by supply and demand both for their specific product or
service and for industrial sector products in general. Government regulation,
world events, exchange rates and economic conditions, technological developments
and liabilities for environmental damage and general civil liabilities will
likewise affect the performance of these companies. Aerospace and defense
companies, a component of the industrial sector, can be significantly affected
by government spending policies because companies involved in this industry
rely, to a significant extent, on U.S. and foreign government demand for their
products and services. Thus, the financial condition of, and investor interest
in, aerospace and defense companies are heavily influenced by governmental
defense spending policies which are typically under pressure from efforts to
control the U.S. (and other) government budgets. Transportation securities, a
component of the industrial sector, are cyclical and have occasional sharp price
movements which may result from changes in the economy, fuel prices, labor
agreements and insurance costs.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps
significantly.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 14.22% (Q1, 2013)
Lowest
Quarterly Return: -9.42% (Q3, 2011)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -12.02%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Y
our
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
23.38% |
10.63% |
13.06% |
Return
After Taxes on Distributions |
22.59% |
9.49% |
11.97% |
Return
After Taxes on Distributions and Sale of Fund Shares |
14.29% |
8.11% |
10.55% |
S&P
High Yield Dividend Aristocrats Index (reflects no deduction for fees,
expenses or taxes) |
23.88% |
11.07% |
13.50% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Emiliano Rabinovich.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Emiliano
Rabinovich, CFA, is a Managing Director of the Adviser and a Senior Portfolio
Manager in the Global Equity Beta Solutions Group. He joined the Adviser in
2006.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Health Care Equipment ETF (the “Fund”)
seeks to provide investment results that, before fees and expenses,
correspond generally to the total return performance of an index derived
from the health care equipment and supplies segment of a U.S. total market
composite index. |
Fees and
Expenses of the Fund
The table below describes the fees and expenses that you may pay
if you buy, hold and sell shares of the Fund (“Fund Shares”). You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell all of your Fund Shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the Fund's
operating expenses remain the same. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund Shares are held in a taxable account. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio turnover
rate was 25% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In seeking to track
the performance of the S&P Health Care Equipment Select Industry Index
(the “Index”), the Fund employs a sampling strategy, which means that the
Fund is not required to purchase all of the securities represented in the Index.
Instead, the Fund may purchase a subset of the securities in the Index in an
effort to hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used by
the Fund in seeking performance that corresponds to the Index and in managing
cash
flows.
The
Index represents the health care equipment segment of the S&P Total Market
Index (“S&P TMI”). The S&P TMI is designed to track the broad U.S.
equity market. The health care equipment segment of the S&P TMI comprises
the following sub-industries: Health Care Equipment and Health Care Supplies.
The Index is one of twenty-one (21) of the S&P Select Industry Indices (the
“Select Industry Indices”), each designed to measure the performance of a narrow
sub-industry or group of sub-industries determined based on the Global Industry
Classification Standard (“GICS”). Membership in the Select Industry Indices is
based on the GICS classification, as well as liquidity and market cap
requirements. Companies in the Select Industry Indices are classified according
to GICS which determines classifications primarily based on revenues; however,
earnings and market perception are also considered. The Index consists of the
S&P TMI constituents belonging to the Health Care Equipment and Health Care
Services sub-industries that satisfy the following criteria: (i) have a
float-adjusted market capitalization greater than or equal to $500 million with
a float-adjusted liquidity ratio (defined by dollar value traded over the
previous 12 months divided by the float-adjusted market capitalization as of the
index rebalancing reference date) greater than or equal to 90% or have a
float-adjusted market capitalization greater than or equal to $400 million with
a float-adjusted liquidity ratio (as defined above) greater than or equal to
150%; and (ii) are U.S. based companies. The length of time to evaluate
liquidity is reduced to the available trading period for initial public
offerings or spin-offs that do not have 12 months of trading history. The market
capitalization threshold may be relaxed to ensure that there are at least 22
stocks in the Index as of the rebalancing effective date. Existing Index
constituents are removed at the quarterly rebalancing effective date if either
their float-adjusted market capitalization falls below $300 million or their
float-adjusted liquidity ratio falls below 50%. The market capitalization
threshold and the liquidity threshold are each reviewed from time to time based
on market conditions. Rebalancing occurs on the third Friday of the quarter
ending month. The S&P TMI tracks all eligible U.S. common equities listed on
the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select Market, NASDAQ Select
Market, Investors Exchange (IEX), NASDAQ Capital Market, Cboe BZX, Cboe BYX,
Cboe EDGA, or Cboe EDGX exchanges. The Index is modified equal weighted. As of
July 31, 2020, the Index comprised 72 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Health
Care Equipment Companies Risk:
Health
care equipment companies are affected by rising costs of medical products,
devices and services and the increased emphasis on the delivery of health care
through outpatient services. Competition among health care equipment companies
is high and can be significantly affected by extensive government regulation or
government reimbursement for medical expenses. The equipment may be subject to
extensive litigation based on malpractice claims, product liability claims or
other litigation. Medical equipment manufacturers are heavily dependent on
patent protection and the expiration of patents may adversely
affect
their profitability.
Many new health care products are subject to the approval of the U.S. Food and
Drug Administration (“FDA”). The process of obtaining FDA approval is often long
and expensive.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Health
Care Sector Risk:
Companies
in the health care sector are subject to extensive government regulation and
their profitability can be significantly affected by restrictions on government
reimbursement for medical expenses, rising costs of medical products and
services, pricing pressure (including price discounting), limited product lines
and an increased emphasis on the delivery of healthcare through outpatient
services. Companies in the health care sector are heavily dependent on obtaining
and defending patents, which may be time consuming and costly, and the
expiration of patents may also adversely affect the profitability of these
companies. Health care companies are also subject to extensive litigation based
on product liability and similar claims. In addition, their products can become
obsolete due to industry innovation, changes in technologies or other market
developments. Many new products in the health care sector require significant
research and development and may be subject to regulatory approvals, all of
which may be time consuming and costly with no guarantee that any product will
come to market.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the
Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to
limitations
on
investments in any illiquid securities and/or the difficulty in purchasing and
selling such investments, may be unable to achieve its desired level of exposure
to a certain market or sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 18.26% (Q4, 2014)
Lowest
Quarterly Return: -20.06% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was 13.48%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Since
Inception (1/26/11)
|
Return
Before Taxes |
22.39% |
16.34% |
16.31% |
Return
After Taxes on Distributions |
22.37% |
15.83% |
15.87% |
Return
After Taxes on Distributions and Sale of Fund Shares |
13.26% |
13.00% |
13.57% |
S&P
Health Care Equipment Select Industry Index (reflects no deduction for
fees, expenses or taxes) |
22.72% |
16.68% |
16.67% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.11% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Kala O'Donnell.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Kala
O'Donnell is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. She joined the Adviser in 1995.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Health Care Services ETF (the “Fund”) seeks
to provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index derived from the
health care providers and services segment of a U.S. total market
composite index. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 25% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P Health Care Services Select Industry Index
(the “Index”), the Fund employs a sampling strategy, which means that the
Fund is not required to purchase all of the securities represented in the Index.
Instead, the Fund may purchase a subset of the securities in the Index in an
effort to hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used by
the Fund in seeking performance that corresponds to the Index and in managing
cash
flows.
The
Index represents the health care services segment of the S&P Total Market
Index (“S&P TMI”). The S&P TMI is designed to track the broad U.S.
equity market. The health care services segment of the S&P TMI comprises the
following sub-industries: Health Care Distributors, Health Care Facilities,
Health Care Services, and Managed Health Care. The Index is one of twenty-one
(21) of the S&P Select Industry Indices (the “Select Industry Indices”),
each designed to measure the performance of a narrow sub-industry or group of
sub-industries determined based on the Global Industry Classification Standard
(“GICS”). Membership in the Select Industry Indices is based on the GICS
classification, as well as liquidity and market cap requirements. Companies in
the Select Industry Indices are classified according to GICS which determines
classifications primarily based on revenues; however, earnings and market
perception are also considered. The Index consists of the S&P TMI
constituents belonging to the Health Care Distributors, Health Care Facilities,
Health Care Services, and Managed Health Care sub-industries that satisfy the
following criteria: (i) have a float-adjusted market capitalization greater than
or equal to $500 million with a float-adjusted liquidity ratio (defined by
dollar value traded over the previous 12 months divided by the float-adjusted
market capitalization as of the index rebalancing reference date) greater than
or equal to 90% or have a float-adjusted market capitalization greater than or
equal to $400 million with a float-adjusted liquidity ratio (as defined above)
greater than or equal to 150%; and (ii) are U.S. based companies. The length of
time to evaluate liquidity is reduced to the available trading period for
initial public offerings or spin-offs that do not have 12 months of trading
history. The market capitalization threshold may be relaxed to ensure that there
are at least 22 stocks in the Index as of the rebalancing effective date.
Existing Index constituents are removed at the quarterly rebalancing effective
date if either their float-adjusted market capitalization falls below $300
million or their float-adjusted liquidity ratio falls below 50%. The market
capitalization threshold and the liquidity threshold are each reviewed from time
to time based on market conditions. Rebalancing occurs on the third Friday of
the quarter ending month. The S&P TMI tracks all eligible U.S. common
equities listed on the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select
Market, NASDAQ Select Market, Investors Exchange (IEX), NASDAQ Capital Market,
Cboe BZX, Cboe BYX, Cboe EDGA, or Cboe EDGX exchanges. The Index is modified
equal weighted. As of July 31, 2020, the Index comprised 48 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Health
Care Services Companies Risk:
Health
care services companies are affected by rising costs of medical products,
devices and services and the increased emphasis on the delivery of health care
through outpatient services. Competition is high among health care services
companies and can be significantly affected by extensive government regulation
or government reimbursement for medical expenses. The equipment may be subject
to extensive litigation based on malpractice claims, product liability claims or
other litigation. Medical equipment
manufacturers
are heavily
dependent on patent protection and the expiration of patents may adversely
affect their profitability. Many new health care products are subject to the
approval of the U.S. Food and Drug Administration (“FDA”). The process of
obtaining FDA approval is often long and
expensive.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a
p
articular
industry or sector, financial, economic, business, and other developments
affecting issuers in that industry, market, or economic sector will have a
greater effect on the Fund than if it had not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Health
Care Sector Risk:
Companies
in the health care sector are subject to extensive government regulation and
their profitability can be significantly affected by restrictions on government
reimbursement for medical expenses, rising costs of medical products and
services, pricing pressure (including price discounting), limited product lines
and an increased emphasis on the delivery of healthcare through outpatient
services. Companies in the health care sector are heavily dependent on obtaining
and defending patents, which may be time consuming and costly, and the
expiration of patents may also adversely affect the profitability of these
companies. Health care companies are also subject to extensive litigation based
on product liability and similar claims. In addition, their products can become
obsolete due to industry innovation, changes in technologies or other market
developments. Many new products in the health care sector require significant
research and development and may be subject to regulatory approvals, all of
which may be time consuming and costly with no guarantee that any product will
come to market.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the
Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to
limitations
on
investments in any illiquid securities and/or the difficulty in purchasing and
selling such investments, may be unable to achieve its desired level of exposure
to a certain market or sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 19.23% (Q4, 2019)
Lowest
Quarterly Return: -17.67% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was
6.50%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shar
es
through
tax-advantaged arrangements, such as 401(k) plans or individual retirement
accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Since
Inception (9/28/11)
|
Return
Before Taxes |
18.74% |
6.22% |
15.16% |
Return
After Taxes on Distributions |
17.96% |
5.96% |
14.75% |
Return
After Taxes on Distributions and Sale of Fund Shares |
11.44% |
4.80% |
12.50% |
S&P
Health Care Services Select Industry Index (reflects no deduction for
fees, expenses or taxes) |
19.18% |
6.58% |
15.58% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
15.71% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Raymond Donofrio.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Raymond
Donofrio is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. He joined the Adviser in 2008.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Homebuilders ETF (the “Fund”) seeks to
provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index derived from the
homebuilding segment of a U.S. total market composite
index. |
Fees and
Expenses of the Fund
The table below describes the fees and expenses that you may pay
if you buy, hold and sell shares of the Fund (“Fund Shares”). You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell all of your Fund Shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the Fund's
operating expenses remain the same. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund Shares are held in a taxable account. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio turnover
rate was 27% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In seeking to track
the performance of the S&P Homebuilders Select Industry Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used by
the Fund in seeking performance that corresponds to the Index and in managing
cash
flows.
The
Index represents the homebuilders segment of the S&P Total Market Index
(“S&P TMI”). The S&P TMI is designed to track the broad U.S. equity
market. The homebuilders segment of the S&P TMI comprises the Homebuilding
sub-industry. The Index is one of twenty-one (21) of the S&P Select Industry
Indices (the “Select Industry Indices”), each designed to measure the
performance of a narrow sub-industry or group of sub-industries determined based
on the Global Industry Classification Standard (“GICS”). Membership in the
Select Industry Indices is based on the GICS classification, as well as
liquidity and market cap requirements. Companies in the Select Industry Indices
are classified according to GICS which determines classifications primarily
based on revenues; however, earnings and market perception are also considered.
The Index consists of the S&P TMI constituents belonging to the Homebuilding
sub-industry that satisfy the following criteria: (i) have a float-adjusted
market capitalization greater than or equal to $500 million with a
float-adjusted liquidity ratio (defined by dollar value traded over the previous
12 months divided by the float-adjusted market capitalization as of the index
rebalancing reference date) greater than or equal to 90% or have a
float-adjusted market capitalization greater than or equal to $400 million with
a float-adjusted liquidity ratio (as defined above) greater than or equal to
150%; and (ii) are U.S. based companies. The length of time to evaluate
liquidity is reduced to the available trading period for initial public
offerings or spin-offs that do not have 12 months of trading history. If there
are fewer than 35 stocks, stocks from the Building Products, Home Furnishings,
Home Improvement Retail, Homefurnishing Retail, or Household Appliances
sub-industries that meet the market capitalization and liquidity thresholds are
included in order of their float-adjusted market capitalization. The market
capitalization threshold may be relaxed to ensure that there are at least 22
stocks in the Index as of the rebalancing effective date. Existing Index
constituents are removed at the quarterly rebalancing effective date if either
their float-adjusted market capitalization falls below $300 million or their
float-adjusted liquidity ratio falls below 50%. The market capitalization
threshold and the liquidity threshold are each reviewed from time to time based
on market conditions. Rebalancing occurs on the third Friday of the quarter
ending month. The S&P TMI tracks all eligible U.S. common equities listed on
the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select Market, NASDAQ Select
Market, Investors Exchange (IEX), NASDAQ Capital Market, Cboe BZX, Cboe BYX,
Cboe EDGA, or Cboe EDGX exchanges. The Index is modified equal weighted. As of
July 31, 2020, the Index comprised 35 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Homebuilding
Companies Risk:
Homebuilding
companies
can be significantly affected by the national, regional and local real estate
markets. This industry is also sensitive to interest rate fluctuations which can
cause changes in the availability of mortgage capital and directly affect the
purchasing power of potential homebuyers. The building industry can be
significantly affected by changes in government spending, consumer confidence,
demographic patterns and the level of new and existing home
sales.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Consumer
Discretionary Sector Risk:
The
success of consumer product manufacturers and retailers is tied closely to the
performance of the overall global economy, interest rates, competition and
consumer confidence. Success depends heavily on disposable household income and
consumer spending. Also, companies in the consumer discretionary sector may be
subject to severe competition, which may have an adverse impact on their
respective profitability. Changes in demographics and consumer tastes can also
affect the demand for, and success of, consumer products and services in the
marketplace.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Industrial
Sector Risk:
Industrial
companies are affected by supply and demand both for their specific product or
service and for industrial sector products in general. Government regulation,
world events, exchange rates and economic conditions, technological developments
and liabilities for environmental damage and general civil liabilities will
likewise affect the performance of these companies. Aerospace and defense
companies, a component of the industrial sector, can be significantly affected
by government spending policies because companies involved in this industry
rely, to a significant extent, on U.S. and foreign government demand for their
products and services. Thus, the financial condition of, and investor interest
in, aerospace and defense companies are heavily influenced by governmental
defense spending policies which are typically under pressure from
efforts
to
control the U.S. (and other) government budgets. Transportation securities, a
component of the industrial sector, are cyclical and have occasional sharp price
movements which may result from changes in the economy, fuel prices, labor
agreements and insurance costs.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Retail
Companies Risk:
Retail
companies can be significantly affected by the performance of the domestic and
international economy, consumer confidence and spending, intense competition,
changes in demographics, and changing consumer tastes and
preferences.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index. The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling 1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 28.86% (Q4, 2011)
Lowest
Quarterly Return: -26.18% (Q3, 2011)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was 19.17%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
41.44% |
6.80% |
12.68% |
Return
After Taxes on Distributions |
41.11% |
6.60% |
12.45% |
Return
After Taxes on Distributions and Sale of Fund Shares |
24.73% |
5.30% |
10.58% |
S&P
Homebuilders Select Industry Index (reflects no deduction for fees,
expenses or taxes) |
41.98% |
7.14% |
13.03% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Raymond Donofrio.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Raymond
Donofrio is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. He joined the Adviser in 2008.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Insurance ETF (the “Fund”) seeks to provide
investment results that, before fees and expenses, correspond generally to
the total return performance of an index that tracks the performance of
publicly traded companies in the insurance
industry. |
Fees and
Expenses of the Fund
The table below describes the fees and expenses that you may pay
if you buy, hold and sell shares of the Fund (“Fund Shares”). You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell all of your Fund Shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the Fund's
operating expenses remain the same. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund Shares are held in a taxable account. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio turnover
rate was 19% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In seeking to track
the performance of the S&P Insurance Select Industry Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used by
the Fund in seeking performance that corresponds to the Index and in managing
cash
flows.
The
Index represents the insurance segment of the S&P Total Market Index
(“S&P TMI”). The S&P TMI is designed to track the broad U.S. equity
market. The insurance segment of the S&P TMI comprises the following
sub-industries: Insurance Brokers, Life & Health Insurance, Multi-Line
Insurance, Property & Casualty Insurance, and Reinsurance. The Index is one
of twenty-one (21) of the S&P Select Industry Indices (the “Select Industry
Indices”), each designed to measure the performance of a narrow sub-industry or
group of sub-industries determined based on the Global Industry Classification
Standard (“GICS”). Membership in the Select Industry Indices is based on the
GICS classification, as well as liquidity and market cap requirements. Companies
in the Select Industry Indices are classified according to GICS which determines
classifications primarily based on revenues; however, earnings and market
perception are also considered. The Index consists of the S&P TMI
constituents belonging to the Insurance Brokers, Life & Health Insurance,
Multi-Line Insurance, Property & Casualty Insurance, and Reinsurance
sub-industries that satisfy the following criteria: (i) have a float-adjusted
market capitalization above $2 billion with a float-adjusted liquidity ratio
(defined by dollar value traded over the previous 12 months divided by the
float-adjusted market capitalization as of the index rebalancing reference date)
above 90%; and (ii) are U.S. based companies. The length of time to evaluate
liquidity is reduced to the available trading period for initial public
offerings or spin-offs that do not have 12 months of trading history. The market
capitalization threshold may be relaxed to ensure that there are at least 22
stocks in the Index as of the rebalancing effective date. Existing Index
constituents are removed at the quarterly rebalancing effective date if either
their float-adjusted market capitalization falls below $1 billion or their
float-adjusted liquidity ratio falls below 50%. The market capitalization
threshold and the liquidity threshold are each reviewed from time to time based
on market conditions. Rebalancing occurs on the third Friday of the quarter
ending month. The S&P TMI tracks all eligible U.S. common equities listed on
the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select Market, NASDAQ Select
Market, Investors Exchange (IEX), NASDAQ Capital Market, Cboe BZX, Cboe BYX,
Cboe EDGA, or Cboe EDGX exchanges. The Index is modified equal weighted. As of
July 31, 2020, the Index comprised 51 stocks.
The Index is
sponsored by S&P Dow Jones Indices LLC (the “Index Provider”), which is
not affiliated with the Fund or the Adviser. The Index Provider determines the
composition of the Index, relative weightings of the securities in the Index and
publishes information regarding the market value of the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Insurance
Companies Risk:
Insurance
companies' profits are affected by many factors, including interest rate
movements, the imposition of premium rate caps, competition and pressure to
compete globally. Certain types of insurance companies may also be affected by
weather catastrophes and other disasters and mortality rates. In addition,
although insurance companies are currently subject to extensive regulation, such
companies may be adversely affected by increased governmental regulations or tax
law changes in the future.
Fluctuation of Net
Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times
when
the market price of the shares is more than the net asset value per share
(premium) or less than the net asset value per share (discount). This risk is
heightened in times of market volatility or periods of steep market
declines.
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Financial
Sector Risk:
Financial
services companies are subject to extensive governmental regulation which may
limit both the amounts and types of loans and other financial commitments they
can make, the interest rates and fees they can charge, the scope of their
activities, the prices they can charge and the amount of capital they must
maintain. Profitability is largely dependent on the availability and cost of
capital funds and can fluctuate significantly when interest rates change or due
to increased competition. In addition, deterioration of the credit markets
generally may cause an adverse impact in a broad range of markets, including
U.S. and international credit and interbank money markets generally, thereby
affecting a wide range of financial institutions and markets. Certain events in
the financial sector may cause an unusually high degree of volatility in the
financial markets, both domestic and foreign, and cause certain financial
services companies to incur large losses. Securities of financial services
companies may experience a dramatic decline in value when such companies
experience substantial declines in the valuations of their assets, take action
to raise capital (such as the issuance of debt or equity securities), or cease
operations. Credit losses resulting from financial difficulties of borrowers and
financial losses associated with investment activities can negatively impact the
sector. Insurance companies may be subject to severe price competition. Adverse
economic, business or political developments could adversely affect financial
institutions engaged in mortgage finance or other lending or investing
activities directly or indirectly connected to the value of real
estate.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the
Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the
ability
of the Fund to obtain cash to meet redemptions on a timely basis. In addition,
the Fund, due to limitations on investments in any illiquid securities and/or
the difficulty in purchasing and selling such investments, may be unable to
achieve its desired level of exposure to a certain market or sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https
://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 19.16% (Q1, 2010)
Lowest
Quarterly Return: -23.22% (Q3, 2011)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -19.67%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares. Effective October 24, 2011 (the “Benchmark Index Change
Date”), the Fund's benchmark index changed from the KBW Insurance Index (the
“Previous Benchmark Index”) to the S&P Insurance Select Industry Index,
consistent with a change in the Fund's principal investment strategy to track
the performance of the current index. Performance of the Fund prior to the
Benchmark Index Change Date is therefore based on the Fund's investment strategy
to track the Previous Benchmark
Index
.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
27.13% |
11.69% |
13.80% |
Return
After Taxes on Distributions |
26.57% |
11.64% |
14.15% |
Return
After Taxes on Distributions and Sale of Fund Shares |
16.42% |
9.65% |
12.33% |
S&P
Insurance Select Industry Index/KBW Insurance Index
1 (reflects
no deduction for fees, expenses or taxes) |
27.65% |
12.09% |
14.23% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
1 |
Returns
shown are reflective of the Index for periods beginning on the Benchmark
Index Change Date and the Previous Benchmark Index for periods prior to
the Benchmark Index Change Date. |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Raymond Donofrio.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Raymond
Donofrio is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. He joined the Adviser in 2008.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Internet ETF (the “Fund”) seeks to provide
investment results that, before fees and expenses, correspond generally to
the total return performance of an index derived from the internet segment
of a U.S. total market composite
index. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 57% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P Internet Select Industry Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of derivative instrument) may be used by
the Fund in seeking performance that corresponds to the Index and in managing
cash
flows.
The
Index represents the internet segment of the S&P Total Market Index
(“S&P TMI”). The S&P TMI is designed to track the broad U.S. equity
market. The internet segment of the S&P TMI comprises the Internet &
Direct Marketing Retail, Internet Services & Infrastructure, and Interactive
Media & Services sub-industries. The Index is one of twenty-one (21) of the
S&P Select Industry Indices (the “Select Industry Indices”), each designed
to measure the performance of a narrow sub-industry or group of sub-industries
determined based on the Global Industry Classification Standard (“GICS”).
Membership in the Select Industry Indices is based on the GICS classification,
as well as liquidity and market cap requirements. Companies in the Select
Industry Indices are classified according to GICS which determines
classifications primarily based on revenues; however, earnings and market
perception are also considered. The Index consists of the S&P TMI
constituents belonging to the Internet & Direct Marketing Retail, Internet
Services & Infrastructure, and Interactive Media & Services
sub-industries that satisfy the following criteria: (i) have a float-adjusted
market capitalization greater than or equal to $500 million with a
float-adjusted liquidity ratio (defined by dollar value traded over the previous
12 months divided by the float-adjusted market capitalization as of the index
rebalancing reference date) greater than or equal to 90% or have a
float-adjusted market capitalization greater than or equal to $400 million with
a float-adjusted liquidity ratio (as defined above) greater than or equal to
150%; and (ii) are U.S. based companies. The length of time to evaluate
liquidity is reduced to the available trading period for initial public
offerings or spin-offs that do not have 12 months of trading history. The market
capitalization threshold may be relaxed to ensure that there are at least 22
stocks in the Index as of the rebalancing effective date. Existing Index
constituents are removed at the quarterly rebalancing effective date if either
their float-adjusted market capitalization falls below $300 million or their
float-adjusted liquidity ratio falls below 50%. The market capitalization
threshold and the liquidity threshold are each reviewed from time to time based
on market conditions. Rebalancing occurs on the third Friday of the quarter
ending month. The S&P TMI tracks all eligible U.S. common equities listed on
the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select Market, NASDAQ Select
Market, Investors Exchange (IEX), NASDAQ Capital Market, Cboe BZX, Cboe BYX,
Cboe EDGA, or Cboe EDGX exchanges. The Index is modified equal weighted. As of
July 31, 2020, the Index comprised 43 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Internet
Segment Risk:
Internet
companies are subject to rapid changes in technology, worldwide competition,
rapid obsolescence of products and services, loss of patent protections,
cyclical market patterns, evolving industry standards and frequent new product
introductions. Competitive pressures, such as technological developments,
fixed-rate pricing and the ability to attract and retain skilled employees, can
significantly affect internet companies,
and changing
domestic and international demand, research and development costs, availability
and price components and product obsolescence also can affect their
profitability.
Fluctuation of Net
Asset Value, Share Premiums and Discounts Risk:
As with all
exchange-traded funds, Fund Shares may be bought and sold in the secondary
market at market prices. The trading prices of Fund Shares in the secondary
market may differ from the Fund's daily net asset value per share and there may
be times when the market price of the shares is more than the net asset value
per share (premium) or less than the net asset value per share (discount). This
risk is heightened in times of market volatility or periods of steep market
declines.
Communication
Services Sector Risk:
Communication
services companies are particularly vulnerable to the potential obsolescence of
products and services due to technological advancement and the innovation of
competitors. Companies in the communication services sector may also be affected
by other competitive pressures, such as pricing competition, as well as research
and development costs, substantial capital requirements and government
regulation. Additionally, fluctuating domestic and international demand,
shifting demographics and often unpredictable changes in consumer tastes can
drastically affect a communication services company's profitability. While all
companies may be susceptible to network security breaches, certain companies in
the communication services sector may be particular targets of hacking and
potential theft of proprietary or consumer information or disruptions in
service, which could have a material adverse effect on their
businesses.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Consumer
Discretionary Sector Risk:
The
success of consumer product manufacturers and retailers is tied closely to the
performance of the overall global economy, interest rates, competition and
consumer confidence. Success depends heavily on disposable household income and
consumer spending. Also, companies in the consumer discretionary sector may be
subject to severe competition, which may have an adverse impact on their
respective profitability. Changes in demographics and consumer tastes can also
affect the demand for, and success of, consumer products and services in the
marketplace.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the
Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both
domestically
and internationally,
including competition from foreign competitors with lower production costs.
Stocks of technology companies and companies that rely heavily on technology,
especially those of smaller, less-
seasoned companies,
tend to be more volatile than the overall market. Technology companies are
heavily dependent on patent and intellectual property rights, the loss or
impairment of which may adversely affect profitability. Additionally, companies
in the technology sector may face dramatic and often unpredictable changes in
growth rates and competition for the services of qualified
personnel.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 16.46% (Q1, 2019)
Lowest
Quarterly Return: -20.17% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was 44.96%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Since
Inception (06/27/16) |
Return
Before Taxes |
7.91% |
19.63% |
Return
After Taxes on Distributions |
7.67% |
17.81% |
Return
After Taxes on Distributions and Sale of Fund Shares |
4.75% |
14.75% |
S&P
Internet Select Industry Index (reflects no deduction for fees, expenses
or taxes) |
7.77% |
19.97% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
16.95% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Raymond Donofrio.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Raymond
Donofrio is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. He joined the Adviser in 2008.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Kensho Clean Power ETF (the “Fund”) seeks
to provide investment results that, before fees and expenses, correspond
generally to the total return performance of the S&P Kensho Clean
Power Index. |
Fees and
Expenses of the Fund
The table below describes the fees and expenses that you may pay
if you buy, hold and sell shares of the Fund (“Fund Shares”). You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.45% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.45% |
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell all of your Fund Shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the Fund's
operating expenses remain the same. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$46 |
$144 |
$252 |
$567 |
The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund Shares are held in a taxable account. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio turnover
rate was 37% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In seeking to track
the performance of the S&P Kensho Clean Power Index (the “Index”), the
Fund employs a sampling strategy, which means that the Fund is not required to
purchase all of the securities represented in the Index. Instead, the Fund may
purchase a subset of the securities in the Index in an effort to hold a
portfolio of securities with generally the same risk and return characteristics
of the Index. The quantity of holdings in the Fund will be based on a number of
factors, including asset size of the Fund. Based on its analysis of these
factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track the Index, the
Fund's assets will generally be concentrated in an industry or group of
industries to the extent that the Index concentrates in a particular industry or
group of industries. Futures contracts (a type of derivative instrument) may be
used by the Fund in seeking performance that corresponds to the Index and in
managing cash flows.
The Index is
comprised of U.S.-listed equity securities (including depositary receipts) of
companies domiciled across developed and emerging markets worldwide which are
included in the Clean Power sector as determined by a classification standard
produced by S&P Dow Jones Indices LLC (the “Index Provider”). The Index is
designed to capture companies whose products and services are driving innovation
behind clean power. In particular, the Index comprises the components of the
S&P Kensho Cleantech Index and the S&P Kensho Clean Energy Index (the
“Underlying Indexes”) as of the Index's semi-annual selection date, on the first
Friday in June and December, subject to the following liquidity thresholds for
each component: (i) must be issued by a company with a minimum float market
capitalization of at least $100 million and (ii) must have a minimum three-month
average daily traded value of at least $1 million. The S&P Kensho Cleantech
Index seeks to track companies focused on building technologies or products that
enable generation of energy in a clean manner (solar, wind, hydro and
geothermal). The S&P Kensho Clean Energy Index seeks to track companies
focused on the generation and transmission of energy derived from clean sources
(solar, wind, hydro and
geothermal).
To
determine the constituents of the Underlying Indexes, the Index Provider's
classification standard utilizes an automated scan of companies' most recent
annual reports filed with the U.S. Securities and Exchange Commission on Form
10-K, Form 20-F, Form 40-F, or S-1 filing and prospectus, as applicable, to
identify specific search terms and phrases that describe a company as producing
products and services related to the particular segment targeted by the
Underlying Index. The resulting list of eligible securities for each Underlying
Index is then filtered by eliminating companies that do not include in their
annual reports a reference to a product or service that (i) is related to a
search term or phrase and (ii) is used in a manner that is within the scope of
the Underlying Index's objective. Each Underlying Index then screens the
remaining securities to remove securities that are not listed on NYSE, NASDAQ,
IEX, or CBOE exchanges (or an affiliate of one of those exchanges) or do not
meet certain minimum liquidity thresholds. The Index Provider's Index Committee
then reviews each remaining eligible constituent to verify the rules of the
automated scan were implemented correctly.
Underlying
Index constituents are then categorized as either “Core” or “Non-Core.” A
company is categorized as Core if its products and services related to the
Underlying Index's objective are identified in its annual report as principal
components of the company's strategy. Products and services are deemed to be
principal components of a company's strategy if the company's annual report
disclosures regarding such products and services are determined to be
sufficiently prominent according to a proprietary algorithm of the Index
Provider which calculates prominence based on the frequency and position of such
disclosures within an annual report. All other companies are categorized as
Non-Core, including companies whose products and services are identified as
forming a necessary component of the supply chain of the segment targeted by the
Underlying Index. An Index constituent categorized as Core by at least one of
the Underlying Indexes will be categorized as Core for purposes of the Index. At
the time of each rebalance, to tilt the Index's exposure toward Core Index
Constituents, the Core Index Constituents are systematically overweighted
relative to the Non-Core Index Constituents. Each Core Index Constituent and
Non-Core Index Constituent is then equally weighted within the group of Core
Index Constituents and Non-Core Index Constituents, respectively, subject to
liquidity adjustments.
The
Index is rebalanced semi-annually on the third Friday of June and December. As
of July 31, 2020, the Index comprised 39 securities.
The
Index Provider is not affiliated with the Fund or the Adviser. The Index
Provider establishes and maintains rules which are used to determine the
composition of the Index and relative weightings of the securities in the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government
agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Clean
Power Companies Risk
:
Clean power companies may be highly dependent upon government subsidies,
contracts with government entities, and the successful development of new and
proprietary technologies. Clean power companies may be affected by competition
from new and existing market entrants, obsolescence of technology, short product
cycles, changes in exchange rates, imposition of import controls, and depletion
of resources. In addition, seasonal weather conditions, fluctuations in supply
of and demand for clean energy products or services, and international political
events may cause fluctuations in the performance of clean power companies and
the prices of their securities. Risks associated with fluctuations in energy
prices and supply and demand of alternative energy fuels, energy conservation,
the success of exploration projects and tax and other government regulations can
significantly affect clean power companies.
Cybersecurity-Related
Risk:
The
companies included in the Index rely on technologies such as the Internet and
depend on computer systems to perform business and operational functions, and
therefore may be prone to operational and information security risks resulting
from cyber-attacks and/or technological malfunctions. Cyber-attacks include,
among others, stealing or corrupting data maintained online or digitally,
preventing legitimate users from accessing information or services on a website,
releasing confidential information without authorization, and causing
operational disruption. In general, cyber-attacks are deliberate, but
unintentional events may have similar effects. Successful cyber-attacks against,
or security breakdowns of, a company included in the Index may result in
material adverse consequences for such company, as well as other companies
included in the Index, and may cause the Fund's investments to lose
value.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Depositary
Receipts Risk:
Investments
in depositary receipts may be less liquid and more volatile than the underlying
securities in their primary trading market. If a depositary receipt is
denominated in a different currency than its underlying securities, the Fund
will be subject to the currency risk of both the investment in the depositary
receipt and the underlying security. Holders of depositary receipts may have
limited or no rights to take action with respect to the underlying securities or
to compel the issuer of the receipts to take action. The prices of depositary
receipts may differ from the prices of securities upon which they are based. To
the extent the Fund invests in depositary receipts based on securities included
in the Index, such differences in prices may increase index tracking
risk.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Emerging
Markets Risk:
Risks
of investing in emerging markets include, among others, greater political and
economic instability, greater volatility in currency exchange rates, less
developed securities markets, possible trade barriers, currency transfer
restrictions, a more limited number of potential buyers and issuers, an emerging
market country's dependence on revenue from particular commodities or
international aid, less governmental supervision and regulation, unavailability
of currency hedging techniques, differences in auditing and financial reporting
standards, and less developed legal systems. There is also the potential for
unfavorable action such as expropriation, nationalization, embargo, and acts of
war. The securities of emerging market companies may trade less frequently and
in smaller volumes than more widely held securities. Market disruptions or
substantial market corrections may limit very significantly the liquidity of
securities of certain companies in a particular country or geographic region, or
of all companies in the country or region. The Fund may be unable to liquidate
its positions in such securities at any time, or at a favorable price, in order
to meet the Fund's obligations. These risks are generally greater for
investments in frontier market countries, which typically have smaller economies
or less developed capital markets than traditional emerging market
countries.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Industrial
Sector Risk:
Industrial
companies are affected by supply and demand both for their specific product or
service and for industrial sector products in general. Government regulation,
world events, exchange rates and economic conditions, technological developments
and liabilities for environmental damage and general civil liabilities will
likewise affect the performance of these companies. Aerospace and defense
companies, a component of the industrial sector, can be significantly affected
by government spending policies because companies involved in this industry
rely, to a significant extent, on U.S. and foreign government demand for their
products and services. Thus, the financial condition of, and investor interest
in, aerospace and defense companies are heavily influenced by governmental
defense spending policies which are typically under pressure from efforts to
control the U.S. (and other) government budgets. Transportation securities, a
component of the industrial sector, are cyclical and have occasional sharp price
movements which may result from changes in the economy, fuel prices, labor
agreements and insurance costs.
Large-Capitalization
Securities Risk:
Returns
on investments in securities of large companies could trail the returns on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as smaller and mid-sized companies to
competitive challenges or to changes in business, product, financial,
or other market conditions. Larger companies may not be able to maintain
growth at the high rates that may be achieved by well-managed smaller and
mid-sized companies.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Mid-Capitalization
Securities Risk:
The
securities of mid-capitalization companies may be more volatile and may involve
more risk than the securities of larger companies. These companies may have
limited product lines, markets or financial resources, may lack the competitive
strength of larger companies, and may depend on a
few
key
employees. In addition, these companies may have been recently organized and may
have little or no track record of success. The securities of mid-sized companies
may trade less frequently and in smaller volumes than more widely held
securities. Some securities of mid-sized issuers may be illiquid or may be
restricted as to resale, and their values may be
volatile.
Non-Diversification
Risk:
As a
“non-diversified” fund, the Fund may hold a smaller number of portfolio
securities than many other funds. To the extent the Fund invests in a relatively
small number of issuers, a decline in the market value of a particular security
held by the Fund may affect its value more than if it invested in a larger
number of issuers. The value of Fund Shares may be more volatile than the values
of shares of more diversified funds. The Fund may become diversified for periods
of time solely as a result of changes in the composition of the Index (e.g.,
changes in weightings of one or more component
securities).
Non-U.S.
Securities Risk:
Non-U.S.
securities (including depositary receipts) are subject to political,
regulatory, and economic risks not present in domestic investments. There may be
less information publicly available about a non-U.S. entity than about a U.S.
entity, and many non-U.S. entities are not subject to accounting, auditing,
legal and financial report standards comparable to those in the United States.
Further, such entities and/or their securities may be subject to risks
associated with currency controls; expropriation; changes in tax policy; greater
market volatility; differing securities market structures; higher transaction
costs; and various administrative difficulties, such as delays in clearing and
settling portfolio transactions or in receiving payment of dividends. To the
extent underlying securities held by the Fund trade on foreign exchanges that
are closed when the exchange on which the Fund's shares trade is open, there may
be deviations between the current price of an underlying security and the last
quoted price for the underlying security on the closed foreign market. These
deviations could result in the Fund experiencing premiums or discounts greater
than those of ETFs that invest in domestic securities. Securities traded on
foreign markets may be less liquid (harder to sell) than securities traded
domestically. Foreign governments may impose restrictions on the repatriation of
capital to the U.S. In addition, to the extent that the Fund buys
securities denominated in a foreign currency, there are special risks such as
changes in currency exchange rates and the risk that a foreign government could
regulate foreign exchange transactions. In addition, to the extent investments
are made in a limited number of countries, events in those countries will have a
more significant impact on the Fund. Investments in depositary receipts may be
less liquid and more volatile than the underlying shares in their primary
trading market.
Small-Capitalization
Securities Risk:
The
securities of small-capitalization companies may be more volatile and may
involve more risk than the securities of larger companies. These companies may
have limited product lines, markets or financial resources, may lack the
competitive strength of larger companies, and may depend on a few key employees.
In addition, these companies may have been recently organized and may have
little or no track record of success. The securities of smaller companies may
trade less frequently and in smaller volumes than more widely held securities.
Some securities of smaller issuers may be illiquid or may be restricted as to
resale, and their values may have significant volatility. The Fund may be unable
to liquidate its positions in such securities at any time, or at a favorable
price, in order to meet the Fund's obligations. Returns on investments in
securities of small-capitalization companies could trail the returns on
investments in securities of larger companies.
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily dependent on patent and intellectual property
rights, the loss or impairment of which may adversely affect profitability.
Additionally, companies in the technology sector may face dramatic and often
unpredictable changes in growth rates and competition for the services of
qualified personnel.
Utilities
Sector Risk:
Utility
companies are affected by supply and demand, operating costs, government
regulation, environmental factors, liabilities for environmental damage and
general civil liabilities, and rate caps or rate changes. Although rate changes
of a utility usually fluctuate in approximate correlation with financing costs,
due to political and regulatory factors rate changes ordinarily occur only
following a delay after the changes in financing costs. This factor will tend to
favorably affect a regulated utility company's earnings and dividends in times
of decreasing costs, but conversely, will tend to adversely affect earnings and
dividends when costs are rising. The value of regulated utility debt securities
(and, to a lesser extent, equity securities) may tend to have an inverse
relationship to the movement of interest rates. Certain utility companies have
experienced full or partial deregulation in recent years. These utility
companies are frequently more similar to industrial companies in
that
they
are subject to greater competition and have been permitted by regulators to
diversify outside of their original geographic regions and their traditional
lines of business. These opportunities may permit certain utility companies to
earn more than their traditional regulated rates of return. Some companies,
however, may be forced to defend their core business and may be less profitable.
In addition, natural disasters, terrorist attacks, government intervention or
other factors may render a utility company's equipment unusable or obsolete and
negatively impact profitability.
Among
the risks that may affect utility companies are the following: risks of
increases in fuel and other operating costs; the high cost of borrowing to
finance capital construction during inflationary periods; restrictions on
operations and increased costs and delays associated with compliance with
environmental and nuclear safety regulations; and the difficulties involved in
obtaining natural gas for resale or fuel for generating electricity at
reasonable prices. Other risks include those related to the construction and
operation of nuclear power plants, the effects of energy conservation and the
effects of regulatory changes.
Valuation
Risk:
Some
portfolio holdings, potentially a large portion of the Fund's investment
portfolio, may be valued on the basis of factors other than market quotations.
This may occur more often in times of market turmoil or reduced liquidity. There
are multiple methods that can be used to value a portfolio holding when market
quotations are not readily available. The value established for any portfolio
holding at a point in time might differ from what would be produced using a
different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued using techniques other than market
quotations, including “fair valued” securities, may be subject to greater
fluctuation in their valuations from one day to the next than if market
quotations were
used. In addition,
there is no assurance that the Fund could sell or close out a portfolio position
for the value established for it at any time, and it is possible that the Fund
would incur a loss because a portfolio position is sold or closed out at a
discount to the valuation established by the Fund at that
time.
The
following bar chart and table provide an
indication
of
the risks of investing in the Fund by showing changes in the Fund's performance
from year to year and by showing how the Fund's average annual returns for
certain time periods compare with the average annual returns of the
Index and of a relevant broad-based securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(year
ended 12/31)*
Highest
Quarterly Return: 18.09% (Q4, 2019)
Lowest
Quarterly Return: 2.91% (Q3, 2019)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was 60.54%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Since
Inception (10/22/18)
|
Return
Before Taxes |
62.02% |
45.45% |
Return
After Taxes on Distributions |
61.11% |
44.65% |
Return
After Taxes on Distributions and Sale of Fund Shares |
36.63% |
34.52% |
S&P
Kensho Clean Power Index (reflects no deduction for fees, expenses or
taxes) |
62.95% |
46.27% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
16.63% |
SSGA
FM serves as the investment adviser to the Fund.
The professionals
primarily responsible for the day-to-day management of the Fund are Michael
Feehily, Kathleen Morgan and Mark Krivitsky.
Michael Feehily,
CFA, is a Senior Managing Director of the Adviser and the Head of Global Equity
Beta Solutions in the Americas. He worked at the Adviser from 1997 to 2006 and
rejoined in 2010.
Kathleen Morgan,
CFA, is a Vice President of the Adviser and a Senior Portfolio Manager in the
Global Equity Beta Solutions Group. She joined the Adviser in 2017.
Mark Krivitsky is a
Vice President of the Adviser and a Senior Portfolio Manager in the Global
Equity Beta Solutions Group and the Tax-Efficient Market Capture Group. He
joined the Adviser in 1996.
Purchase and Sale
Information
The Fund will issue
(or redeem) Fund Shares to certain institutional investors (typically market
makers or other broker-dealers) only in large blocks of Fund Shares known as
“Creation Units.” Creation Unit transactions are conducted in exchange for the
deposit or delivery of a designated portfolio of in-kind securities and/or
cash.
Individual Fund
Shares may only be purchased and sold on the NYSE Arca, Inc., other national
securities exchanges, electronic crossing networks and other alternative trading
systems through your broker-dealer at market prices. Because Fund Shares trade
at market prices rather than at net asset value (“NAV”), Fund Shares may trade
at a price
greater
than NAV (premium) or less than NAV (discount). When buying or selling Fund
Shares in the secondary market, you may incur costs attributable to the
difference between the highest price a buyer is willing to pay to purchase Fund
Shares (bid) and the lowest price a seller is willing to accept for Fund Shares
(ask) (the “bid-ask spread”). Recent information regarding the Fund's NAV,
market price, premiums and discounts, and bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Kensho Final Frontiers ETF (the “Fund”)
seeks to provide investment results that, before fees and expenses,
correspond generally to the total return performance of the S&P Kensho
Final Frontiers Index. |
Fees and
Expenses of the Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.45% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.45% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$46 |
$144 |
$252 |
$567 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 39% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In seeking to track
the performance of the S&P Kensho Final Frontiers Index (the “Index”),
the Fund employs a sampling strategy, which means that the Fund is not required
to purchase all of the securities represented in the Index. Instead, the Fund
may purchase a subset of the securities in the Index in an effort to hold a
portfolio of securities with generally the same risk and return characteristics
of the Index. The quantity of holdings in the Fund will be based on a number of
factors, including asset size of the Fund. Based on its analysis of these
factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track the Index, the
Fund's assets will generally be concentrated in an industry or group of
industries to the extent that the Index concentrates in a particular industry or
group of industries. Futures contracts (a type of
derivative
instrument)
may be used by the Fund in seeking performance that corresponds to the Index and
in managing cash flows.
The
Index is comprised of U.S.-listed equity securities (including depositary
receipts) of companies domiciled across developed and emerging markets worldwide
which are included in the Final Frontiers sector as determined by a
classification standard produced by S&P Dow Jones Indices LLC (the “Index
Provider”). The Index is designed to capture companies whose products and
services are driving innovation behind the exploration of deep space and deep
sea. In particular, the Index comprises the components of the S&P Kensho
Space Index and the deep sea exploration components of the S&P Kensho Drones
Index (the “Underlying Indexes”) as of the Index's semi-annual selection date,
on the first Friday in June and December, subject to the following liquidity
thresholds for each component: (i) must be issued by a company with a minimum
float market capitalization of at least $100 million and (ii) must have a
minimum three-month average daily traded value of at least $1 million. The
S&P Kensho Space Index seeks to track companies that produce products and
services that enable space travel and exploration, or are a necessary component
of the supply chain for such products and services. The S&P Kensho Drones
Index seeks to track companies that produce products and services related to the
remotely-operated or unmanned aerial, underwater and surface-level drones
market, or are a necessary component of the supply chain for such products and
services.
To
determine the constituents of the Underlying Indexes, the Index Provider's
classification standard utilizes an automated scan of companies' most recent
annual reports filed with the U.S. Securities and Exchange Commission on Form
10-K, Form 20-F, Form 40-F, or S-1 filing and prospectus, as applicable, to
identify specific search terms and phrases that describe a company as producing
products and services related to the particular segment targeted by the
Underlying Index. The resulting list of eligible securities for each Underlying
Index is then filtered by eliminating companies that do not include in their
annual reports a reference to a product or service that (i) is related to a
search term or phrase and (ii) is used in a manner that is within the scope of
the Underlying Index's objective. Each Underlying Index then screens the
remaining securities to remove securities that are not listed on NYSE, NASDAQ,
IEX, or CBOE exchanges (or an affiliate of one of those exchanges) or do not
meet certain minimum liquidity thresholds. The Index Provider's Index Committee
then reviews each remaining eligible constituent to verify the rules of the
automated scan were implemented correctly.
Underlying
Index constituents are then categorized as either “Core” or “Non-Core.” A
company is categorized as Core if its products and services related to the
Underlying Index's objective are identified in its annual report as principal
components of the company's strategy. Products and services are deemed to be
principal components of a company's strategy if the company's annual report
disclosures regarding such products and services are determined to be
sufficiently prominent according to a proprietary algorithm of the Index
Provider which calculates prominence based on the frequency and position of such
disclosures within an annual report. All other companies are categorized as
Non-Core, including companies whose products and services are identified as
forming a necessary component of the supply chain of the segment targeted by the
Underlying Index. An Index constituent categorized as Core by at least one of
the Underlying Indexes will be categorized as Core for purposes of the Index. At
the time of each rebalance, to tilt the Index's exposure toward Core Index
Constituents, the Core Index Constituents are systematically overweighted
relative to the Non-Core Index Constituents. Each Core Index Constituent and
Non-Core Index Constituent is then equally weighted within the group of Core
Index Constituents and Non-Core Index Constituents, respectively, subject to
liquidity adjustments.
The
Index is rebalanced semi-annually on the third Friday of June and December. As
of July 31, 2020, the Index comprised 29 securities.
The
Index Provider is not affiliated with the Fund or the Adviser. The Index
Provider establishes and maintains rules which are used to determine the
composition of the Index and relative weightings of the securities in the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Aerospace
and Defense Companies Risk:
Aerospace
and defense companies can be significantly affected by government aerospace and
defense regulation and spending policies because companies involved in this
industry rely to a significant extent on U.S. (and other) government demand for
their products and services. Thus, the financial condition of, and investor
interest in, aerospace and defense companies are heavily influenced by
governmental defense spending policies which are typically under pressure from
efforts to control the U.S. (and other) government budgets.
Drone
Companies Risk:
Drone
companies may have limited product lines, markets, financial resources or
personnel and are subject to the risks of changes in business cycles, world
economic growth, technological progress, and government regulation. Securities
of drone companies, especially smaller, start-up companies, tend to be more
volatile than securities of companies that do not rely heavily on technology.
These companies may face intense competition and potentially rapid product
obsolescence. In addition, drone companies may be dependent on the U.S.
government and its agencies for a significant portion of their sales, and their
success and growth may be dependent on their ability to win future government
contracts. As a result, such companies may be negatively affected by budgetary
constraints, spending reductions, congressional appropriations, and
administrative allocations of funds that affect the U.S. government and its
agencies. Drone companies may rely on a combination of patents, copyrights,
trademarks and trade secret laws to establish and protect their proprietary
rights in their products and technologies, and may be adversely affected by loss
or impairment of those rights. Legal and regulatory changes may have an impact
on a drone company's products or services. In addition, drone companies may also
be subject to increasing regulatory constraints that may limit the sale or use
of a company's products, including the need to obtain regulatory approvals from
certain government agencies. Drone companies typically engage in significant
amounts of spending on research and development, and there is no guarantee that
the products or services produced by these companies will be
successful.
Cybersecurity-Related
Risk:
The
companies included in the Index rely on technologies such as the Internet and
depend on computer systems to perform business and operational functions, and
therefore may be prone to operational and information security risks resulting
from cyber-attacks and/or technological malfunctions. Cyber-attacks include,
among others, stealing or corrupting data maintained online or digitally,
preventing legitimate users from accessing information or services on a website,
releasing confidential information without authorization, and causing
operational disruption. In general, cyber-attacks are deliberate, but
unintentional events may have similar effects. Successful cyber-attacks against,
or security breakdowns of, a company included in the Index may result in
material adverse consequences for such company, as well as other companies
included in the Index, and may cause the Fund's investments to lose
value.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Depositary
Receipts Risk:
Investments
in depositary receipts may be less liquid and more volatile than the underlying
securities in their primary trading market. If a depositary receipt is
denominated in a different currency than its underlying securities, the Fund
will be subject to the currency risk of both the investment in the depositary
receipt and the
underlying security. Holders of depositary receipts may have limited or no
rights to take action with
respect to the
underlying securities or to compel the issuer of the receipts to take action.
The prices of depositary receipts may differ from the prices of securities upon
which they are based. To the extent the Fund invests in depositary receipts
based on securities included in the Index, such differences in prices may
increase index tracking risk.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Emerging
Markets Risk:
Risks
of investing in emerging markets include, among others, greater political and
economic instability, greater volatility in currency exchange rates, less
developed securities markets, possible trade barriers, currency transfer
restrictions, a more limited number of potential buyers and issuers, an emerging
market country's dependence on revenue from particular commodities or
international aid, less governmental supervision and regulation, unavailability
of currency hedging techniques, differences in auditing and financial reporting
standards, and less developed legal systems. There is also the potential for
unfavorable action such as expropriation, nationalization, embargo, and acts of
war. The securities of emerging market companies may trade less frequently and
in smaller volumes than more widely held securities. Market disruptions or
substantial market corrections may limit very significantly the liquidity of
securities of certain companies in a particular country or geographic region, or
of all companies in the country or region. The Fund may be unable to liquidate
its positions in such securities at any time, or at a favorable price, in order
to meet the Fund's obligations. These risks are generally greater for
investments in frontier market countries, which typically have smaller economies
or less developed capital markets than traditional emerging market
countries.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Industrial
Sector Risk:
Industrial
companies are affected by supply and demand both for their specific product or
service and for industrial sector products in general. Government regulation,
world events, exchange rates and economic conditions, technological developments
and liabilities for environmental damage and general civil liabilities will
likewise affect the performance of these companies. Aerospace and defense
companies, a component of the industrial sector, can be significantly affected
by government spending policies because companies involved in this industry
rely, to a significant extent, on U.S. and foreign government demand for their
products and services. Thus, the financial condition of, and investor interest
in, aerospace and defense companies are heavily influenced by governmental
defense spending policies which are typically under pressure from efforts to
control the U.S. (and other) government budgets. Transportation securities, a
component of the industrial sector, are cyclical and have occasional sharp price
movements which may result from changes in the economy, fuel prices, labor
agreements and insurance costs.
Large-Capitalization
Securities Risk:
Returns
on investments in securities of large companies could trail the returns on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as smaller and mid-sized companies to
competitive challenges or to changes in business,
product,
financial, or other market conditions. Larger companies may not be able to
maintain growth at the high rates that may be achieved by well-managed smaller
and mid-sized companies.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Mid-Capitalization
Securities Risk:
The
securities of mid-capitalization companies may be more volatile and may involve
more risk than the securities of larger companies. These companies may have
limited product lines, markets or financial resources, may lack the competitive
strength of larger companies, and may depend on a few key employees. In
addition, these companies may have been recently organized and may have little
or no track record of success. The securities of mid-sized companies may trade
less frequently and in smaller volumes than more widely held securities. Some
securities of mid-sized issuers may be illiquid or may be restricted as to
resale, and their values may be volatile.
Non-Diversification
Risk:
As a
“non-diversified” fund, the Fund may hold a smaller number of portfolio
securities than many other funds. To the extent the Fund invests in a relatively
small number of issuers, a decline in the market value of a particular security
held by the Fund may affect its value more than if it invested in a larger
number of issuers. The value of Fund Shares may be more volatile than the values
of shares of more diversified funds. The Fund may become diversified for periods
of time solely as a result of changes in the composition of the Index (e.g.,
changes in weightings of one or more component
securities).
Non-U.S.
Securities Risk:
Non-U.S.
securities (including depositary receipts) are subject to political,
regulatory, and economic risks not present in domestic investments. There may be
less information publicly available about a non-U.S. entity than about a U.S.
entity, and many non-U.S. entities are not subject to accounting, auditing,
legal and financial report standards comparable to those in the United States.
Further, such entities and/or their securities may be subject to risks
associated with currency controls; expropriation; changes in tax policy; greater
market volatility; differing securities market structures; higher transaction
costs; and various administrative difficulties, such as delays in clearing and
settling portfolio transactions or in receiving payment of dividends. To the
extent underlying securities held by the Fund trade on foreign exchanges that
are closed when the exchange on which the Fund's shares trade is open, there may
be deviations between the current price of an underlying security and the last
quoted price for the underlying security on the closed foreign market. These
deviations could result in the Fund experiencing premiums or discounts greater
than those of ETFs that invest in domestic securities. Securities traded on
foreign markets may be less liquid (harder to sell) than securities traded
domestically. Foreign governments may impose restrictions on the repatriation of
capital to the U.S. In addition, to the extent that the Fund buys
securities denominated in a foreign currency, there are special risks such as
changes in currency exchange rates and the risk that a foreign government could
regulate foreign exchange transactions. In addition, to the extent investments
are made in a limited number of countries, events in those countries will have a
more significant impact on the Fund. Investments in depositary receipts may be
less liquid and more volatile than the underlying shares in their primary
trading market.
Small-Capitalization
Securities Risk:
The
securities of small-capitalization companies may be more volatile and may
involve more risk than the securities of larger companies. These companies may
have limited product lines, markets or financial resources, may lack the
competitive strength of larger companies, and may depend on a few key employees.
In addition, these companies may have been recently organized and may have
little or no track record of success. The securities of smaller companies may
trade less frequently and in smaller volumes than more widely held securities.
Some securities of smaller issuers may be illiquid or may be restricted as to
resale, and their values may have significant volatility. The Fund may be unable
to liquidate its positions in such securities at any time, or at a favorable
price, in order to meet the Fund's obligations. Returns on investments in
securities of small-capitalization companies could trail the returns on
investments in securities of larger companies.
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily
dependent
on patent and intellectual property rights, the loss or impairment of which may
adversely affect profitability. Additionally, companies in the technology sector
may face dramatic and often unpredictable changes in growth rates and
competition for the services of qualified personnel.
Valuation
Risk:
Some
portfolio holdings, potentially a large portion of the Fund's investment
portfolio, may be valued on the basis of factors other than market quotations.
This may occur more often in times of market turmoil or reduced liquidity. There
are multiple methods that can be used to value a portfolio holding when market
quotations are not readily available. The value established for any portfolio
holding at a point in time might differ from what would be produced using a
different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued using techniques other than market
quotations, including “fair valued” securities, may be subject to greater
fluctuation in their valuations from one day to the next than if market
quotations were used. In addition, there is no assurance that the Fund could
sell or close out a portfolio position for the value established for it at any
time, and it is possible that the Fund would incur a loss because a portfolio
position is sold or closed out at a discount to the valuation established by the
Fund at that time.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(year
ended 12/31)*
Highest
Quarterly Return: 16.34% (Q1, 2019)
Lowest
Quarterly Return: 1.25% (Q4, 2019)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -12.29%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Since
Inception (10/22/18)
|
Return
Before Taxes |
39.66% |
17.04% |
Return
After Taxes on Distributions |
39.39% |
16.82% |
Return
After Taxes on Distributions and Sale of Fund Shares |
23.64% |
13.00% |
S&P
Kensho Final Frontiers Index (reflects no deduction for fees, expenses or
taxes) |
40.38% |
17.58% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
16.63% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Kala O'Donnell and Kathleen Morgan.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Kala
O'Donnell is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. She joined the Adviser in
1995.
Kathleen Morgan,
CFA, is a Vice President of the Adviser and a Senior Portfolio Manager in the
Global Equity Beta Solutions Group. She joined the Adviser in 2017.
Purchase and Sale
Information
The Fund will issue
(or redeem) Fund Shares to certain institutional investors (typically market
makers or other broker-dealers) only in large blocks of Fund Shares known as
“Creation Units.” Creation Unit transactions are conducted in exchange for the
deposit or delivery of a designated portfolio of in-kind securities and/or
cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Kensho Future Security ETF (the “Fund”)
seeks to provide investment results that, before fees and expenses,
correspond generally to the total return performance of the S&P Kensho
Future Security Index. |
Fees and
Expenses of the Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.45% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.45% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$46 |
$144 |
$252 |
$567 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 25% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In
seeking to track the performance of the S&P Kensho Future Security
Index (the “Index”), the Fund employs a sampling strategy, which means that
the Fund is not required to purchase all of the securities represented in the
Index. Instead, the Fund may purchase a subset of the securities in the Index in
an effort to hold a portfolio of securities with generally the same risk and
return characteristics of the Index. The quantity of holdings in the Fund will
be based on a number of factors, including asset size of the Fund. Based on its
analysis of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the
“Adviser”), the investment adviser to the Fund, either may invest the Fund's
assets in a subset of securities in the Index or may invest the Fund's assets in
substantially all of the securities represented in the Index in approximately
the same proportions as the Index, as determined by the Adviser to be in the
best interest of the Fund in pursuing its objective.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track the Index, the
Fund's assets will generally be concentrated in an industry or group of
industries to the extent that the Index concentrates in a particular industry or
group of industries. Futures contracts (a type of
derivative
instrument)
may be used by the Fund in seeking performance that corresponds to the Index and
in managing cash flows.
The Index is
comprised of U.S.-listed equity securities (including depositary receipts) of
companies domiciled across developed and emerging markets worldwide which are
included in the Future Security sector as determined by a classification
standard produced by S&P Dow Jones Indices LLC (the “Index Provider”). The
Index is designed to capture companies whose products and services are driving
innovation behind future security. In particular, the Index comprises the
components of the S&P Kensho Cyber Security Index and the S&P Kensho
Smart Borders Index, and the military components of the S&P Kensho Robotics
Index, the S&P Kensho Drones Index, the S&P Kensho Space Index, the
S&P Kensho Wearables Index and the S&P Kensho Virtual Reality Index (the
“Underlying Indexes”) as of the Index's semi-annual selection date, on the first
Friday in June and December, subject to the following liquidity thresholds for
each component: (i) must be issued by a company with a minimum float market
capitalization of at least $100 million and (ii) must have a minimum three-month
average daily traded value of at least $1 million. The S&P Kensho Cyber
Security Index seeks to track companies that focus on protecting enterprises and
devices from unauthorized access via electronic means and, produce products and
services that protect enterprises, homes and portable devices from unauthorized
access via electronic means, or are a necessary component of the supply chain
for such products and services. The S&P Kensho Smart Borders Index seeks to
track companies that produce products and services that secure borders and
critical infrastructure, or are a necessary component of the supply chain for
such products and services. The S&P Kensho Robotics Index seeks to track
companies that produce products and services to build robotic products and their
subsystems, or are a necessary component of the supply chain for such products
and services. The S&P Kensho Drones Index seeks to track companies that
produce products and services related to the remotely-operated or unmanned
aerial, underwater and surface-level drones market and related subsystems, or
are a necessary component of the supply chain for such products and services.
The S&P Kensho Space Index seeks to track companies that produce products
and services that enable space travel and exploration, or are a necessary
component of the supply chain for such products and services. The S&P Kensho
Wearables Index seeks to track companies that produce products and services
related to wearable technologies for consumer, military or medical uses, or are
a necessary component of the supply chain for such products and services. The
S&P Kensho Virtual Reality Index seeks to track companies that produce
products and services related to virtual or augmented reality activities, or are
a necessary component of the supply chain for such products and
services.
To determine the
constituents of the Underlying Indexes, the Index Provider's classification
standard utilizes an automated scan of companies' most recent annual reports
filed with the U.S. Securities and Exchange Commission on Form 10-K, Form 20-F,
Form 40-F, or S-1 filing and prospectus, as applicable, to identify specific
search terms and phrases that describe a company as producing products and
services related to the particular segment targeted by the Underlying Index. The
resulting list of eligible securities for each Underlying Index is then filtered
by eliminating companies that do not include in their annual reports a reference
to a product or service that (i) is related to a search term or phrase and (ii)
is used in a manner that is within the scope of the Underlying Index's
objective. Each Underlying Index then screens the remaining securities to remove
securities that are not listed on NYSE, NASDAQ, IEX, or CBOE exchanges (or an
affiliate of one of those exchanges) or do not meet certain minimum liquidity
thresholds. The Index Provider's Index Committee then reviews each remaining
eligible constituent to verify the rules of the automated scan were implemented
correctly.
Underlying Index
constituents are then categorized as either “Core” or “Non-Core.” A company is
categorized as Core if its products and services related to the Underlying
Index's objective are identified in its annual report as principal components of
the company's strategy. Products and services are deemed to be principal
components of a company's strategy if the company's annual report disclosures
regarding such products and services are determined to be sufficiently prominent
according to a proprietary algorithm of the Index Provider which calculates
prominence based on the frequency and position of such disclosures within an
annual report. All other companies are categorized as Non-Core, including
companies whose products and services are identified as forming a necessary
component of the supply chain of the segment targeted by the Underlying Index.
An Index constituent categorized as Core by at least one of the Underlying
Indexes will be categorized as Core for purposes of the Index. To tilt the
Index's exposure toward Core Index Constituents, at the time of each rebalance
the aggregate weighting of Core Index Constituents is based on the proportion of
the number of Core Index Constituents, plus an overweight factor of up to 20%.
At the time of each rebalance, each Core Index Constituent and Non-Core Index
Constituent is equally weighted within the group of Core Index Constituents and
Non-Core Index Constituents, respectively, subject to liquidity
adjustments.
The Index is
rebalanced semi-annually on the third Friday of June and December. As of July
31, 2020, the Index comprised 66 securities.
The Index Provider
is not affiliated with the Fund or the Adviser. The Index Provider establishes
and maintains rules which are used to determine the composition of the Index and
relative weightings of the securities in the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Aerospace
and Defense Companies Risk:
Aerospace
and defense companies can be significantly affected by government aerospace and
defense regulation and spending policies because companies involved in this
industry rely to a significant extent on U.S. (and other) government demand for
their products and services. Thus, the financial condition of, and investor
interest in, aerospace and defense companies are heavily influenced by
governmental defense spending policies which are typically under pressure from
efforts to control the U.S. (and other) government budgets.
Cybersecurity
Companies Risk:
Companies
in the cybersecurity field face intense competition, both domestically and
internationally, which may have an adverse effect on profit margins.
Cybersecurity companies may have limited product lines, markets, financial
resources or personnel. The products of cybersecurity companies may face
obsolescence due to rapid technological developments and frequent new product
introduction, and such companies may face unpredictable changes in growth rates,
competition for the services of qualified personnel and competition from foreign
competitors with lower production costs. Companies in the cybersecurity field
are heavily dependent on patent and intellectual property rights. The loss or
impairment of these rights may adversely affect the profitability of these
companies.
Cybersecurity-Related
Risk:
The
companies included in the Index rely on technologies such as the Internet and
depend on computer systems to perform business and operational functions, and
therefore may be prone to operational and information security risks resulting
from cyber-attacks and/or technological malfunctions. Cyber-attacks include,
among others, stealing or corrupting data maintained online or digitally,
preventing legitimate users from accessing information or services on a website,
releasing confidential information without authorization, and causing
operational disruption. In general, cyber-attacks are deliberate, but
unintentional events may have similar effects. Successful cyber-attacks against,
or security breakdowns of, a company included in the Index may result in
material adverse consequences for such company, as well as other companies
included in the Index, and may cause the Fund's investments to lose
value.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the
Fund.
If the Fund holds
collateral posted by its counterparty, it may be delayed or prevented from
realizing on the collateral in the event of a bankruptcy or insolvency
proceeding relating to the counterparty.
Depositary
Receipts Risk:
Investments
in depositary receipts may be less liquid and more volatile than the underlying
securities in their primary trading market. If a depositary receipt is
denominated in a different currency than its underlying securities, the Fund
will be subject to the currency risk of both the investment in the depositary
receipt and the underlying security. Holders of depositary receipts may have
limited or no rights to take action with respect to the underlying securities or
to compel the issuer of the receipts to take action. The prices of depositary
receipts may differ from the prices of securities upon which they are based. To
the extent the Fund invests in depositary receipts based on securities included
in the Index, such differences in prices may increase index tracking
risk.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Emerging
Markets Risk:
Risks
of investing in emerging markets include, among others, greater political and
economic instability, greater volatility in currency exchange rates, less
developed securities markets, possible trade barriers, currency transfer
restrictions, a more limited number of potential buyers and issuers, an emerging
market country's dependence on revenue from particular commodities or
international aid, less governmental supervision and regulation, unavailability
of currency hedging techniques, differences in auditing and financial reporting
standards, and less developed legal systems. There is also the potential for
unfavorable action such as expropriation, nationalization, embargo, and acts of
war. The securities of emerging market companies may trade less frequently and
in smaller volumes than more widely held securities. Market disruptions or
substantial market corrections may limit very significantly the liquidity of
securities of certain companies in a particular country or geographic region, or
of all companies in the country or region. The Fund may be unable to liquidate
its positions in such securities at any time, or at a favorable price, in order
to meet the Fund's obligations. These risks are generally greater for
investments in frontier market countries, which typically have smaller economies
or less developed capital markets than traditional emerging market
countries.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Industrial
Sector Risk:
Industrial
companies are affected by supply and demand both for their specific product or
service and for industrial sector products in general. Government regulation,
world events, exchange rates and economic conditions, technological developments
and liabilities for environmental damage and general civil liabilities will
likewise affect the performance of these companies. Aerospace and defense
companies, a component of the industrial sector, can be significantly affected
by government spending policies because companies involved in this industry
rely, to a significant extent, on U.S. and foreign government demand for their
products and services. Thus, the financial condition of, and investor interest
in, aerospace and defense companies are heavily influenced by governmental
defense spending policies which are typically under pressure from efforts
to
control the U.S. (and other) government budgets. Transportation securities, a
component of the industrial sector, are cyclical and have occasional sharp price
movements which may result from changes in the economy, fuel prices, labor
agreements and insurance costs.
Large-Capitalization
Securities Risk:
Returns
on investments in securities of large companies could trail the returns on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as smaller and mid-sized companies to
competitive challenges or to changes in business, product, financial,
or other market conditions. Larger companies may not be able to maintain
growth at the high rates that may be achieved by well-managed smaller and
mid-sized companies.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Mid-Capitalization
Securities Risk:
The
securities of mid-capitalization companies may be more volatile and may involve
more risk than the securities of larger companies. These companies may have
limited product lines, markets or financial resources, may lack the competitive
strength of larger companies, and may depend on a few key employees. In
addition, these companies may have been recently organized and may have little
or no track record of success. The securities of mid-sized companies may trade
less frequently and in smaller volumes than more widely held securities. Some
securities of mid-sized issuers may be illiquid or may be restricted as to
resale, and their values may be volatile.
Non-Diversification
Risk:
As a
“non-diversified” fund, the Fund may hold a smaller number of portfolio
securities than many other funds. To the extent the Fund invests in a relatively
small number of issuers, a decline in the market value of a particular security
held by the Fund may affect its value more than if it invested in a larger
number of issuers. The value of Fund Shares may be more volatile than the values
of shares of more diversified funds. The Fund may become diversified for periods
of time solely as a result of changes in the composition of the Index (e.g.,
changes in weightings of one or more component
securities).
Non-U.S.
Securities Risk:
Non-U.S.
securities (including depositary receipts) are subject to political,
regulatory, and economic risks not present in domestic investments. There may be
less information publicly available about a non-U.S. entity than about a U.S.
entity, and many non-U.S. entities are not subject to accounting, auditing,
legal and financial report standards comparable to those in the United States.
Further, such entities and/or their securities may be subject to risks
associated with currency controls; expropriation; changes in tax policy; greater
market volatility; differing securities market structures; higher transaction
costs; and various administrative difficulties, such as delays in clearing and
settling portfolio transactions or in receiving payment of dividends. To the
extent underlying securities held by the Fund trade on foreign exchanges that
are closed when the exchange on which the Fund's shares trade is open, there may
be deviations between the current price of an underlying security and the last
quoted price for the underlying security on the closed foreign market. These
deviations could result in the Fund experiencing premiums or discounts greater
than those of ETFs that invest in domestic securities. Securities traded on
foreign markets may be less liquid (harder to sell) than securities traded
domestically. Foreign governments may impose restrictions on the repatriation of
capital to the U.S. In addition, to the extent that the Fund buys
securities denominated in a foreign currency, there are special risks such as
changes in currency exchange rates and the risk that a foreign government could
regulate foreign exchange transactions. In addition, to the extent investments
are made in a limited number of countries, events in those countries will have a
more significant impact on the Fund. Investments in depositary receipts may be
less liquid and more volatile than the underlying shares in their primary
trading market.
Small-Capitalization
Securities Risk:
The
securities of small-capitalization companies may be more volatile and may
involve more risk than the securities of larger companies. These companies may
have limited product lines, markets or financial resources, may lack the
competitive strength of larger companies, and may depend on a few key employees.
In addition, these companies may have been recently organized and may have
little or no track record of success. The securities of smaller companies may
trade less frequently and in smaller volumes than more widely held securities.
Some securities of smaller issuers may be illiquid or may be restricted as to
resale, and their values may have significant volatility. The Fund may be unable
to liquidate its positions in such securities at any time, or at a favorable
price, in order to meet the Fund's obligations. Returns on investments in
securities of small-capitalization companies could trail the returns on
investments in securities of larger
companies.
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily dependent on patent and intellectual property
rights, the loss or impairment of which may adversely affect profitability.
Additionally, companies in the technology sector may face dramatic and often
unpredictable changes in growth rates and competition for the services of
qualified personnel.
Valuation
Risk:
Some
portfolio holdings, potentially a large portion of the Fund's investment
portfolio, may be valued on the basis of factors other than market quotations.
This may occur more often in times of market turmoil or reduced liquidity. There
are multiple methods that can be used to value a portfolio holding when market
quotations are not readily available. The value established for any portfolio
holding at a point in time might differ from what would be produced using a
different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued using techniques other than market
quotations, including “fair valued” securities,
may be subject to
greater fluctuation in their valuations from one day to the next than if market
quotations were used. In addition, there is no assurance that the Fund could
sell or close out a portfolio position for the value established for it at any
time, and it is possible that the Fund would incur a loss because a portfolio
position is sold or closed out at a discount to the valuation established by the
Fund at that time.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 19.62% (Q1, 2019)
Lowest
Quarterly Return: -17.20% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -4.29%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Since
Inception (12/26/17)
|
Return
Before Taxes |
33.55% |
15.28% |
Return
After Taxes on Distributions |
33.40% |
14.84% |
Return
After Taxes on Distributions and Sale of Fund Shares |
19.96% |
11.65% |
S&P
Kensho Future Security Index (reflects no deduction for fees, expenses or
taxes other than withholding taxes on reinvested dividends) |
33.88% |
15.53% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.91% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Kathleen Morgan and Kala O'Donnell.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Kathleen
Morgan, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager
in the Global Equity Beta Solutions Group. She joined the Adviser in 2017.
Kala
O'Donnell is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. She joined the Adviser in 1995.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Kensho Intelligent Structures ETF (the
“Fund”) seeks to provide investment results that, before fees and
expenses, correspond generally to the total return performance of the
S&P Kensho Intelligent Infrastructure
Index. |
Fees and
Expenses of the Fund
The table below describes the fees and expenses that you may pay
if you buy, hold and sell shares of the Fund (“Fund Shares”). You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.45% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.45% |
This Example is
intended to help you compare the cost of investing in the Fund with the cost of
investing in other mutual funds. The Example assumes that you invest $10,000 in
the Fund for the time periods indicated, and then sell all of your Fund Shares
at the end of those periods. The Example also assumes that your investment has a
5% return each year and that the Fund's operating expenses remain the same.
Although your actual costs may be higher or lower, based on these assumptions
your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$46 |
$144 |
$252 |
$567 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 26% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In seeking to track
the performance of the S&P Kensho Intelligent Infrastructure Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track the Index, the
Fund's assets will generally be concentrated in an industry or group of
industries to the extent that the Index concentrates in a particular industry or
group of industries. Futures contracts (a type of derivative instrument)
may be used by the Fund in seeking performance that corresponds to the Index and
in managing cash
The Index is
comprised of U.S.-listed equity securities (including depositary receipts) of
companies domiciled across developed and emerging markets worldwide which are
included in the Intelligent Infrastructure sector as determined by a
classification standard produced by S&P Dow Jones Indices LLC (the “Index
Provider”). The Index is designed to capture companies whose products and
services are driving innovation behind intelligent infrastructure. In
particular, the Index comprises the components of the S&P Kensho Smart Grids
Index and the S&P Kensho Smart Buildings Index (the “Underlying Indexes”) as
of the Index's semi-annual selection date, on the first Friday in June and
December, subject to the following liquidity thresholds for each component: (i)
must be issued by a company with a minimum float market capitalization of at
least $100 million and (ii) must have a minimum three-month average daily traded
value of at least $1 million. The S&P Kensho Smart Grids Index seeks to
track companies that provide next generation products and services related to
power, water and transportation infrastructures, or are a necessary component of
the supply chain for such products and services. The S&P Kensho Smart
Buildings Index seeks to track companies that produce products and services that
enable buildings to become more connected, intelligent and adaptive, or are a
necessary component of the supply chain for such products and
services.
To determine the
constituents of the Underlying Indexes, the Index Provider's classification
standard utilizes an automated scan of companies' most recent annual reports
filed with the U.S. Securities and Exchange Commission on Form 10-K, Form 20-F,
Form 40-F, or S-1 filing and prospectus, as applicable, to identify specific
search terms and phrases that describe a company as producing products and
services related to the particular segment targeted by the Underlying Index. The
resulting list of eligible securities for each Underlying Index is then filtered
by eliminating companies that do not include in their annual reports a reference
to a product or service that (i) is related to a search term or phrase and (ii)
is used in a manner that is within the scope of the Underlying Index's
objective. Each Underlying Index then screens the remaining securities to remove
securities that are not listed on NYSE, NASDAQ, IEX, or CBOE exchanges (or an
affiliate of one of those exchanges) or do not meet certain minimum liquidity
thresholds. The Index Provider's Index Committee then reviews each remaining
eligible constituent to verify the rules of the automated scan were implemented
correctly.
Underlying Index
constituents are then categorized as either “Core” or “Non-Core.” A company is
categorized as Core if its products and services related to the Underlying
Index's objective are identified in its annual report as principal components of
the company's strategy. Products and services are deemed to be principal
components of a company's strategy if the company's annual report disclosures
regarding such products and services are determined to be sufficiently prominent
according to a proprietary algorithm of the Index Provider which calculates
prominence based on the frequency and position of such disclosures within an
annual report. All other companies are categorized as Non-Core, including
companies whose products and services are identified as forming a necessary
component of the supply chain of the segment targeted by the Underlying Index.
An Index constituent categorized as Core by at least one of the Underlying
Indexes will be categorized as Core for purposes of the Index. To tilt the
Index's exposure toward Core Index Constituents, at the time of each rebalance
the aggregate weighting of Core Index Constituents is based on the proportion of
the number of Core Index Constituents, plus an overweight factor of up to 20%.
At the time of each rebalance, each Core Index Constituent and Non-Core Index
Constituent is equally weighted within the group of Core Index Constituents and
Non-Core Index Constituents, respectively, subject to liquidity
adjustments.
The Index is
rebalanced semi-annually on the third Friday of June and December. As of July
31, 2020, the Index comprised 45 securities.
The Index Provider
is not affiliated with the Fund or the Adviser. The Index Provider establishes
and maintains rules which are used to determine the composition of the Index and
relative weightings of the securities in the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Infrastructure-Related
Companies Risk:
Infrastructure-related
companies include companies that primarily own, manage, develop and/or operate
infrastructure assets, including transportation, utility, energy and/or
telecommunications assets. Investment in infrastructure-related securities
entails exposure to adverse economic, regulatory, political, legal, and other
conditions or events affecting the issuers of such securities. Certain
infrastructure-related entities, particularly telecommunications and utilities
companies, are subject to extensive regulation by various governmental
authorities. The costs of complying with governmental regulations, delays or
failure to receive required regulatory approvals or the enactment of new adverse
regulatory requirements may adversely affect infrastructure-related companies.
Infrastructure-related companies may also be affected by service interruption
and/or legal challenges due to environmental, operational or other conditions or
events, and the imposition of special tariffs and changes in tax laws,
regulatory policies and accounting standards.
Cybersecurity-Related
Risk:
The
companies included in the Index rely on technologies such as the Internet and
depend on computer systems to perform business and operational functions, and
therefore may be prone to operational and information security risks resulting
from cyber-attacks and/or technological malfunctions. Cyber-attacks include,
among others, stealing or corrupting data maintained online or digitally,
preventing legitimate users from accessing information or services on a website,
releasing confidential information without authorization, and causing
operational disruption. In general, cyber-attacks are deliberate, but
unintentional events may have similar effects. Successful cyber-attacks against,
or security breakdowns of, a company included in the Index may result in
material adverse consequences for such company, as well as other companies
included in the Index, and may cause the Fund's investments to lose
value.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Depositary
Receipts Risk:
Investments
in depositary receipts may be less liquid and more volatile than the underlying
securities in their primary trading market. If a depositary receipt is
denominated in a different currency than its underlying securities, the Fund
will be subject to the currency risk of both the investment in the depositary
receipt and the underlying security. Holders of depositary receipts may have
limited or no rights to take action with respect to the underlying securities or
to compel the issuer of the receipts to take action. The prices of depositary
receipts may differ from the prices of securities upon which they are based. To
the extent the Fund invests in depositary receipts based on securities included
in the Index, such differences in prices may increase index tracking
risk.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Emerging
Markets Risk:
Risks
of investing in emerging markets include, among others, greater political and
economic instability, greater volatility in currency exchange rates, less
developed securities markets, possible trade barriers, currency transfer
restrictions, a more limited number of potential buyers and issuers, an emerging
market country's dependence on revenue from particular commodities or
international aid, less governmental supervision and regulation, unavailability
of currency hedging techniques, differences in auditing and financial reporting
standards, and less developed legal systems. There is also the potential for
unfavorable action such as expropriation, nationalization, embargo, and acts of
war. The securities of emerging market companies may trade less frequently and
in smaller volumes than more widely held securities. Market disruptions or
substantial market corrections may limit very significantly the liquidity of
securities of certain companies in a particular country or geographic region, or
of all companies in the country or region. The Fund may be unable to liquidate
its positions in such securities at any time, or at a favorable price, in order
to meet the Fund's obligations. These risks are generally greater for
investments in frontier market countries, which typically have smaller economies
or less developed capital markets than traditional emerging market
countries.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Industrial
Sector Risk:
Industrial
companies are affected by supply and demand both for their specific product or
service and for industrial sector products in general. Government regulation,
world events, exchange rates and economic conditions, technological developments
and liabilities for environmental damage and general civil liabilities will
likewise affect the performance of these companies. Aerospace and defense
companies, a component of the industrial sector, can be significantly affected
by government spending policies because companies involved in this industry
rely, to a significant extent, on U.S. and foreign government demand for their
products and services. Thus, the financial condition of, and investor interest
in, aerospace and defense companies are heavily influenced by governmental
defense spending policies which are typically under pressure from efforts to
control the U.S. (and other) government budgets. Transportation securities, a
component of the industrial sector, are cyclical and have occasional sharp price
movements which may result from changes in the economy, fuel prices, labor
agreements and insurance costs.
Large-Capitalization
Securities Risk:
Returns
on investments in securities of large companies could trail the returns on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as smaller and mid-sized companies to
competitive challenges or to changes in business, product, financial,
or other market conditions. Larger companies may not be able to maintain
growth at the high rates that may be achieved by well-managed smaller and
mid-sized companies.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Mid-Capitalization
Securities Risk:
The
securities of mid-capitalization companies may be more volatile and may involve
more risk than the securities of larger companies. These companies may have
limited product lines, markets or financial resources, may lack the competitive
strength of larger companies, and may depend on a
few
key
employees. In addition, these companies may have been recently organized and may
have little or no track record of success. The securities of mid-sized companies
may trade less frequently and in smaller volumes than more widely held
securities. Some securities of mid-sized issuers may be illiquid or may be
restricted as to resale, and their values may be volatile.
Non-Diversification
Risk:
As a
“non-diversified” fund, the Fund may hold a smaller number of portfolio
securities than many other funds. To the extent the Fund invests in a relatively
small number of issuers, a decline in the market value of a particular security
held by the Fund may affect its value more than if it invested in a larger
number of issuers. The value of Fund Shares may be more volatile than the values
of shares of more diversified funds. The Fund may become diversified for periods
of time solely as a result of changes in the composition of the Index (e.g.,
changes in weightings of one or more component
securities).
Non-U.S.
Securities Risk:
Non-U.S.
securities (including depositary receipts) are subject to political,
regulatory, and economic risks not present in domestic investments. There may be
less information publicly available about a non-U.S. entity than about a U.S.
entity, and many non-U.S. entities are not subject to accounting, auditing,
legal and financial report standards comparable to those in the United States.
Further, such entities and/or their securities may be subject to risks
associated with currency controls; expropriation; changes in tax policy; greater
market volatility; differing securities market structures; higher transaction
costs; and various administrative difficulties, such as delays in clearing and
settling portfolio transactions or in receiving payment of dividends. To the
extent underlying securities held by the Fund trade on foreign exchanges that
are closed when the exchange on which the Fund's shares trade is open, there may
be deviations between the current price of an underlying security and the last
quoted price for the underlying security on the closed foreign market. These
deviations could result in the Fund experiencing premiums or discounts greater
than those of ETFs that invest in domestic securities. Securities traded on
foreign markets may be less liquid (harder to sell) than securities traded
domestically. Foreign governments may impose restrictions on the repatriation of
capital to the U.S. In addition, to the extent that the Fund buys
securities denominated in a foreign currency, there are special risks such as
changes in currency exchange rates and the risk that a foreign government could
regulate foreign exchange transactions. In addition, to the extent investments
are made in a limited number of countries, events in those countries will have a
more significant impact on the Fund. Investments in depositary receipts may be
less liquid and more volatile than the underlying shares in their primary
trading market.
Small-Capitalization
Securities Risk:
The
securities of small-capitalization companies may be more volatile and may
involve more risk than the securities of larger companies. These companies may
have limited product lines, markets or financial resources, may lack the
competitive strength of larger companies, and may depend on a few key employees.
In addition, these companies may have been recently organized and may have
little or no track record of success. The securities of smaller companies may
trade less frequently and in smaller volumes than more widely held securities.
Some securities of smaller issuers may be illiquid or may be restricted as to
resale, and their values may have significant volatility. The Fund may be unable
to liquidate its positions in such securities at any time, or at a favorable
price, in order to meet the Fund's obligations. Returns on investments in
securities of small-capitalization companies could trail the returns on
investments in securities of larger companies.
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily dependent on patent and intellectual property
rights, the loss or impairment of which may adversely affect profitability.
Additionally, companies in the technology sector may face dramatic and often
unpredictable changes in growth rates and competition for the services of
qualified personnel.
Valuation
Risk:
Some
portfolio holdings, potentially a large portion of the Fund's investment
portfolio, may be valued on the basis of factors other than market quotations.
This may occur more often in times of market turmoil or reduced liquidity. There
are multiple methods that can be used to value a portfolio holding when market
quotations are not readily available. The value established for any portfolio
holding at a point in time might differ from what would be produced using a
different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued using techniques other than market
quotations, including “fair valued” securities, may be subject to greater
fluctuation in their valuations from one day to the next than if market
quotations were used. In addition, there is no assurance that the Fund could
sell or close out a portfolio position for the value
198
established for it
at any time, and it is possible that the Fund would incur a loss because a
portfolio position is sold or closed out at a discount to the valuation
established by the Fund at that
time.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 13.79% (Q1, 2019)
Lowest
Quarterly Return: -20.05% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -0.66%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Since
Inception (12/26/17)
|
Return
Before Taxes |
35.11% |
5.54% |
Return
After Taxes on Distributions |
34.70% |
5.28% |
Return
After Taxes on Distributions and Sale of Fund Shares |
21.06% |
4.23% |
S&P
Kensho Intelligent Infrastructure Index (reflects no deduction for fees,
expenses or taxes other than withholding taxes on reinvested dividends) |
35.30% |
5.75% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.91% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Mark Krivitsky and Kala O'Donnell.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Mark
Krivitsky is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group and the Tax-Efficient Market Capture
Group. He joined the Adviser in 1996.
Kala
O'Donnell is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. She joined the Adviser in 1995.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price
greater than NAV
(premium) or less than NAV (discount). When buying or selling Fund Shares in the
secondary
market,
you may incur costs attributable to the difference between the highest price a
buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a
seller is willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Kensho New Economies Composite ETF (the
“Fund”) seeks to provide investment results that, before fees and
expenses, correspond generally to the total return performance of the
S&P Kensho New Economies Composite
Index. |
Fees and
Expenses of the Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”). You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.20% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.20% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$20 |
$64 |
$113 |
$255 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 91% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In seeking to track
the performance of the S&P Kensho New Economies Composite Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track the Index, the
Fund's assets will generally be concentrated in an industry or group of
industries to the extent that the Index concentrates in a particular industry or
group of industries. Futures contracts (a type of
derivative
instrument)
may be used by the Fund in seeking performance that corresponds to the Index and
in managing cash flows.
The Index is
comprised of U.S.-listed equity securities (including depositary receipts) of
companies domiciled across developed and emerging markets worldwide. The Index
is designed to capture companies whose products and services are driving
innovation and transforming the global economy through the use of existing and
emerging technologies, and rapid developments in robotics, automation,
artificial intelligence, connectedness and processing power (“New Economies
companies”). In particular, the Index comprises the components included in the
New Economy Subsector Indexes (each, an “Underlying Index”) developed by S&P
Dow Jones Indices LLC (the “Index Provider”). Each Underlying Index is comprised
of securities of New Economies companies in a specific sector. As of July 31,
2020, the Index was comprised of 22 Underlying Indexes.
The constituents of
each Underlying Index are determined by a classification standard produced by
the Index Provider. The classification standard utilizes an automated scan of
companies' most recent annual reports filed with the U.S. Securities and
Exchange Commission on Form 10-K, Form 20-F, Form 40-F, or S-1 filing and
prospectus, as applicable, to identify specific search terms and phrases that
describe a company as producing products and services related to the particular
segment targeted by the Underlying Index. The resulting list of eligible
securities for each Underlying Index is then filtered by eliminating companies
that do not include in their annual reports a reference to a product or service
that (i) is related to a search term or phrase and (ii) is used in a manner that
is within the scope of the Underlying Index's objective. Each Underlying Index
then screens the remaining securities to remove securities that are not listed
on NYSE, NASDAQ, IEX, or CBOE exchanges (or an affiliate of one of those
exchanges) or do not meet certain minimum liquidity thresholds. The Index
Provider's Index Committee then reviews each remaining eligible constituent to
verify the rules of the automated scan were implemented correctly.
Underlying Index
constituents are then categorized as either “Core” or “Non-Core.” A company is
categorized as Core if its products and services related to the Underlying
Index's objective are identified in its annual report as principal components of
the company's strategy. Products and services are deemed to be principal
components of a company's strategy if the company's annual report disclosures
regarding such products and services are determined to be sufficiently prominent
according to a proprietary algorithm of the Index Provider which calculates
prominence based on the frequency and position of such disclosures within an
annual report. All other companies are categorized as Non-Core, including
companies whose products and services are identified as forming a necessary
component of the supply chain of the segment targeted by the Underlying Index.
Each Underlying Index's exposure is then tilted towards Core Index
Constituents.
The weight of each
security in the Index is based on the relative weight given to each Underlying
Index in the Index. The relative weight of each Underlying Index is determined
by a proprietary process comparing the ratio of the average daily returns
divided by the standard deviation of daily returns among the Underlying Indexes.
Underlying Indexes with larger ratios are weighted more heavily than Underlying
Indexes with smaller ratios. The weight of each security in each Underlying
Index is then multiplied by the relative weight of the respective Underlying
Index in the Index to determine the security's final weight in the Index. The
Index is rebalanced semi-annually on the third Friday of June and December. As
of July 31, 2020, the Index comprised 396 securities.
The Index Provider
is not affiliated with the Fund or the Adviser. The Index Provider establishes
and maintains rules which are used to determine the composition of the Index and
relative weightings of the securities in the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
New
Economies Companies Risk:
The
companies included in the Index are engaged in emerging industries and new
technologies that may be unproven. Such industries and technologies may be
adversely affected by technological advances, competition, rapid product or
service obsolescence, and new and evolving regulations. Companies included in
the Index may rely on a combination of patents, copyrights, trademarks and trade
secret laws to establish and protect their proprietary rights in their products
and technologies, and may be adversely affected by loss or impairment of those
rights. In addition, companies in the Index may have limited product lines,
markets, financial resources or personnel. The Index may include stocks of
smaller, less-seasoned companies that may be more volatile than the overall
market.
Cybersecurity-Related
Risk:
The
companies included in the Index rely on technologies such as the Internet and
depend on computer systems to perform business and operational functions, and
therefore may be prone to operational and information security risks resulting
from cyber-attacks and/or technological malfunctions. Cyber-attacks include,
among others, stealing or corrupting data maintained online or digitally,
preventing legitimate users from accessing information or services on a website,
releasing confidential information without authorization, and causing
operational disruption. In general, cyber-attacks are deliberate, but
unintentional events may have similar effects. Successful cyber-attacks against,
or security breakdowns of, a company included in the Index may result in
material adverse consequences for such company, as well as other companies
included in the Index, and may cause the Fund's investments to lose
value.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Depositary
Receipts Risk:
Investments
in depositary receipts may be less liquid and more volatile than the underlying
securities in their primary trading market. If a depositary receipt is
denominated in a different currency than its underlying securities, the Fund
will be subject to the currency risk of both the investment in the depositary
receipt and the underlying security. Holders of depositary receipts may have
limited or no rights to take action with respect to the underlying securities or
to compel the issuer of the receipts to take action. The prices of depositary
receipts may differ from the prices of securities upon which they are based. To
the extent the Fund invests in depositary receipts based on securities included
in the Index, such differences in prices may increase index tracking
risk.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Emerging
Markets Risk:
Risks
of investing in emerging markets include, among others, greater political and
economic instability, greater volatility in currency exchange rates, less
developed securities markets, possible trade barriers, currency transfer
restrictions, a more limited number of potential buyers and issuers, an emerging
market country's dependence on revenue from particular commodities or
international aid, less governmental supervision and regulation, unavailability
of currency hedging techniques, differences in auditing and financial reporting
standards, and less developed legal systems. There is also the potential for
unfavorable action such as expropriation, nationalization, embargo, and acts of
war. The securities of emerging market companies may trade less frequently and
in smaller volumes than more widely held securities. Market disruptions or
substantial market corrections may limit very significantly the liquidity of
securities of certain companies in a particular country
or
geographic
region, or of all companies in the country or region. The Fund may be unable to
liquidate its positions in such securities at any time, or at a favorable price,
in order to meet the Fund's obligations. These risks are generally greater for
investments in frontier market countries, which typically have smaller economies
or less developed capital markets than traditional emerging market
countries.
Health
Care Sector Risk:
Companies
in the health care sector are subject to extensive government regulation and
their profitability can be significantly affected by restrictions on government
reimbursement for medical expenses, rising costs of medical products and
services, pricing pressure (including price discounting), limited product lines
and an increased emphasis on the delivery of healthcare through outpatient
services. Companies in the health care sector are heavily dependent on obtaining
and defending patents, which may be time consuming and costly, and the
expiration of patents may also adversely affect the profitability of these
companies. Health care companies are also subject to extensive litigation based
on product liability and similar claims. In addition, their products can become
obsolete due to industry innovation, changes in technologies or other market
developments. Many new products in the health care sector require significant
research and development and may be subject to regulatory approvals, all of
which may be time consuming and costly with no guarantee that any product will
come to market.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Industrial
Sector Risk:
Industrial
companies are affected by supply and demand both for their specific product or
service and for industrial sector products in general. Government regulation,
world events, exchange rates and economic conditions, technological developments
and liabilities for environmental damage and general civil liabilities will
likewise affect the performance of these companies. Aerospace and defense
companies, a component of the industrial sector, can be significantly affected
by government spending policies because companies involved in this industry
rely, to a significant extent, on U.S. and foreign government demand for their
products and services. Thus, the financial condition of, and investor interest
in, aerospace and defense companies are heavily influenced by governmental
defense spending policies which are typically under pressure from efforts to
control the U.S. (and other) government budgets. Transportation securities, a
component of the industrial sector, are cyclical and have occasional sharp price
movements which may result from changes in the economy, fuel prices, labor
agreements and insurance costs.
Large-Capitalization
Securities Risk:
Returns
on investments in securities of large companies could trail the returns on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as smaller and mid-sized companies to
competitive challenges or to changes in business, product, financial,
or other market conditions. Larger companies may not be able to maintain
growth at the high rates that may be achieved by well-managed smaller and
mid-sized companies.
Liquidity Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Mid-Capitalization
Securities Risk:
The
securities of mid-capitalization companies may be more volatile and may involve
more risk than the securities of larger companies. These companies may have
limited product lines, markets or financial resources, may lack the competitive
strength of larger companies, and may depend on a few key employees. In
addition, these companies may have been recently organized and may have little
or no track record of success. The securities of mid-sized companies may trade
less frequently and in smaller volumes than more widely held securities. Some
securities of mid-sized issuers may be illiquid or may be restricted as to
resale, and their values may be volatile.
Non-Diversification
Risk:
As a
“non-diversified” fund, the Fund may hold a smaller number of portfolio
securities than many other funds. To the extent the Fund invests in a relatively
small number of issuers, a decline in the market value of a particular security
held by the Fund may affect its value more than if it invested in a larger
number of issuers. The value of Fund Shares may be more volatile than the values
of shares of more diversified funds. The Fund may become diversified for periods
of time solely as a result of changes in the composition of the Index (e.g.,
changes in weightings of one or more component
securities).
Non-U.S.
Securities Risk:
Non-U.S.
securities (including depositary receipts) are subject to political,
regulatory, and economic risks not present in domestic investments. There may be
less information publicly available about a non-U.S. entity than about a U.S.
entity, and many non-U.S. entities are not subject to accounting, auditing,
legal and financial report standards comparable to those in the United States.
Further, such entities and/or their securities may be subject to risks
associated with currency controls; expropriation; changes in tax policy; greater
market volatility; differing securities market structures; higher transaction
costs; and various administrative difficulties, such as delays in clearing and
settling portfolio transactions or in receiving payment of dividends. To the
extent underlying securities held by the Fund trade on foreign exchanges that
are closed when the exchange on which the Fund's shares trade is open, there may
be deviations between the current price of an underlying security and the last
quoted price for the underlying security on the closed foreign market. These
deviations could result in the Fund experiencing premiums or discounts greater
than those of ETFs that invest in domestic securities. Securities traded on
foreign markets may be less liquid (harder to sell) than securities traded
domestically. Foreign governments may impose restrictions on the repatriation of
capital to the U.S. In addition, to the extent that the Fund buys
securities denominated in a foreign currency, there are special risks such as
changes in currency exchange rates and the risk that a foreign government could
regulate foreign exchange transactions. In addition, to the extent investments
are made in a limited number of countries, events in those countries will have a
more significant impact on the Fund. Investments in depositary receipts may be
less liquid and more volatile than the underlying shares in their primary
trading market.
Small-Capitalization
Securities Risk:
The
securities of small-capitalization companies may be more volatile and may
involve more risk than the securities of larger companies. These companies may
have limited product lines, markets or financial resources, may lack the
competitive strength of larger companies, and may depend on a few key employees.
In addition, these companies may have been recently organized and may have
little or no track record of success. The securities of smaller companies may
trade less frequently and in smaller volumes than more widely held securities.
Some securities of smaller issuers may be illiquid or may be restricted as to
resale, and their values may have significant volatility. The Fund may be unable
to liquidate its positions in such securities at any time, or at a favorable
price, in order to meet the Fund's obligations. Returns on investments in
securities of small-capitalization companies could trail the returns on
investments in securities of larger companies.
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily dependent on patent and intellectual property
rights, the loss or impairment of which may adversely affect profitability.
Additionally, companies in the technology sector may face dramatic and often
unpredictable changes in growth rates and competition for the services of
qualified personnel.
Valuation
Risk:
Some
portfolio holdings, potentially a large portion of the Fund's investment
portfolio, may be valued on the basis of factors other than market quotations.
This may occur more often in times of market turmoil or reduced liquidity. There
are multiple methods that can be used to value a portfolio holding when market
quotations are not readily available. The value established for any portfolio
holding at a point in time might differ from what would be produced using a
different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued using techniques other than market
quotations, including “fair valued”
securities,
may be subject to
greater fluctuation in their valuations from one day to the next than if market
quotations were used. In addition, there is no assurance that the Fund could
sell or close out a portfolio position for the value established for it at any
time, and it is possible that the Fund would incur a loss because a portfolio
position is sold or closed out at a discount to the valuation established by the
Fund at that time.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(year
ended 12/31)*
Highest
Quarterly Return: 18.02% (Q1, 2019)
Lowest
Quarterly Return: -0.39% (Q3, 2019)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was 19.13%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Since
Inception (10/22/18)
|
Return
Before Taxes |
36.90% |
17.25% |
Return
After Taxes on Distributions |
36.54% |
16.97% |
Return
After Taxes on Distributions and Sale of Fund Shares |
21.94% |
13.12% |
S&P
Kensho New Economies Composite Index (reflects no deduction for fees,
expenses or taxes) |
37.29% |
17.54% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
16.63% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Mark Krivitsky and Kala O'Donnell.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Mark
Krivitsky is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group and the Tax-Efficient Market Capture
Group. He joined the Adviser in 1996.
Kala
O'Donnell is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. She joined the Adviser in 1995.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual Fund
Shares may only be purchased and sold on the NYSE Arca, Inc., other national
securities exchanges, electronic crossing networks and other alternative trading
systems through your broker-dealer at market prices. Because Fund Shares trade
at market prices rather than at net asset value (“NAV”), Fund Shares may trade
at a price greater than NAV (premium) or less than NAV (discount). When buying
or selling Fund Shares in the secondary
market,
you may incur costs attributable to the difference between the highest price a
buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a
seller is willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Kensho Smart Mobility ETF (the “Fund”)
seeks to provide investment results that, before fees and expenses,
correspond generally to the total return performance of the S&P Kensho
Smart Transportation Index. |
Fees and
Expenses of the Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”). You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.45% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.45% |
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell all of your Fund Shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the Fund's
operating expenses remain the same. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$46 |
$144 |
$252 |
$567 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 29% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In seeking to track
the performance of the S&P Kensho Smart Transportation Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track the Index, the
Fund's assets will generally be concentrated in an industry or group of
industries to the extent that the Index concentrates in a particular industry or
group of industries. Futures contracts (a type of
derivative
instrument)
may be used by the Fund in seeking performance that corresponds to the Index and
in managing cash flows.
The Index is
comprised of U.S.-listed equity securities (including depositary receipts) of
companies domiciled across developed and emerging markets worldwide which are
included in the Smart Transportation sector as determined by a classification
standard produced by S&P Dow Jones Indices LLC (the “Index Provider”). The
Index is designed to capture companies whose products and services are driving
innovation behind smart transportation. In particular, the Index comprises the
components of the S&P Kensho Autonomous Vehicles Index, the S&P Kensho
Advanced Transport Systems Index, the S&P Kensho Electric Vehicles Index and
the civilian/commercially focused components of the S&P Kensho Drones Index
(the “Underlying Indexes”) as of the Index's semi-annual selection date, on the
first Friday in June and December, subject to the following liquidity thresholds
for each component: (i) must be issued by a company with a minimum float market
capitalization of at least $100 million and (ii) must have a minimum three-month
average daily traded value of at least $1 million. The S&P Kensho Autonomous
Vehicles Index seeks to track companies that build autonomous and connected
vehicles and that provide the products and services that enable these vehicles
to become more efficient and intelligent, or are a necessary component of the
supply chain for such products and services. The S&P Kensho Advanced
Transport Systems Index seeks to track companies that produce products and
services that optimize the efficiency of managing large fleets of vehicles,
cargo transportation, and mass transit, or are a necessary component of the
supply chain for such products and services. The S&P Kensho Electric
Vehicles Index seeks to track companies that produce products and services
related to the development of electric vehicles, clean fuel systems, and related
systems, or are a necessary component of the supply chain for such products and
services. The S&P Kensho Drones Index seeks to track companies that produce
products and services related to the remotely-operated or unmanned aerial,
underwater and surface-level drones market and related subsystems, or are a
necessary component of the supply chain for such products and
services.
To determine the
constituents of the Underlying Indexes, the Index Provider's classification
standard utilizes an automated scan of companies' most recent annual reports
filed with the U.S. Securities and Exchange Commission on Form 10-K, Form 20-F,
Form 40-F, or S-1 filing and prospectus, as applicable, to identify specific
search terms and phrases that describe a company as producing products and
services related to the particular segment targeted by the Underlying Index. The
resulting list of eligible securities for each Underlying Index is then filtered
by eliminating companies that do not include in their annual reports a reference
to a product or service that (i) is related to a search term or phrase and (ii)
is used in a manner that is within the scope of the Underlying Index's
objective. Each Underlying Index then screens the remaining securities to remove
securities that are not listed on NYSE, NASDAQ, IEX, or CBOE exchanges (or an
affiliate of one of those exchanges) or do not meet certain minimum liquidity
thresholds. The Index Provider's Index Committee then reviews each remaining
eligible constituent to verify the rules of the automated scan were implemented
correctly.
Underlying Index
constituents are then categorized as either “Core” or “Non-Core.” A company is
categorized as Core if its products and services related to the Underlying
Index's objective are identified in its annual report as principal components of
the company's strategy. Products and services are deemed to be principal
components of a company's strategy if the company's annual report disclosures
regarding such products and services are determined to be sufficiently prominent
according to a proprietary algorithm of the Index Provider which calculates
prominence based on the frequency and position of such disclosures within an
annual report. All other companies are categorized as Non-Core, including
companies whose products and services are identified as forming a necessary
component of the supply chain of the segment targeted by the Underlying Index.
An Index constituent categorized as Core by at least one of the Underlying
Indexes will be categorized as Core for purposes of the Index. To tilt the
Index's exposure toward Core Index Constituents, at the time of each rebalance
the aggregate weighting of Core Index Constituents is based on the proportion of
the number of Core Index Constituents, plus an overweight factor of up to 20%.
At the time of each rebalance, each Core Index Constituent and Non-Core Index
Constituent is equally weighted within the group of Core Index Constituents and
Non-Core Index Constituents, respectively, subject to liquidity
adjustments.
The Index is
rebalanced semi-annually on the third Friday of June and December. As of July
31, 2020, the Index comprised 58 securities.
The Index Provider
is not affiliated with the Fund or the Adviser. The Index Provider establishes
and maintains rules which are used to determine the composition of the Index and
relative weightings of the securities in the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth
or
recession, changes in interest rates, changes in the actual or perceived
creditworthiness of issuers, and general market liquidity. The Fund is subject
to the risk that geopolitical events will disrupt securities markets and
adversely affect
global
economies and markets. Local, regional or global events such as war, acts of
terrorism, the spread of infectious illness or other public health issues, or
other events could have a significant impact on the Fund and its
investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Transportation
Companies Risk:
Transportation
companies can be significantly affected by changes in the economy, fuel prices,
labor relations, technology developments, exchange rates, insurance costs,
industry competition and government regulation.
Cybersecurity-Related
Risk:
The
companies included in the Index rely on technologies such as the Internet and
depend on computer systems to perform business and operational functions, and
therefore may be prone to operational and information security risks resulting
from cyber-attacks and/or technological malfunctions. Cyber-attacks include,
among others, stealing or corrupting data maintained online or digitally,
preventing legitimate users from accessing information or services on a website,
releasing confidential information without authorization, and causing
operational disruption. In general, cyber-attacks are deliberate, but
unintentional events may have similar effects. Successful cyber-attacks against,
or security breakdowns of, a company included in the Index may result in
material adverse consequences for such company, as well as other companies
included in the Index, and may cause the Fund's investments to lose
value.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Consumer
Discretionary Sector Risk:
The
success of consumer product manufacturers and retailers is tied closely to the
performance of the overall global economy, interest rates, competition and
consumer confidence. Success depends heavily on disposable household income and
consumer spending. Also, companies in the consumer discretionary sector may be
subject to severe competition, which may have an adverse impact on their
respective profitability. Changes in demographics and consumer tastes can also
affect the demand for, and success of, consumer products and services in the
marketplace.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Depositary
Receipts Risk:
Investments
in depositary receipts may be less liquid and more volatile than the underlying
securities in their primary trading market. If a depositary receipt is
denominated in a different currency than its underlying securities, the Fund
will be subject to the currency risk of both the investment in the depositary
receipt and the underlying security. Holders of depositary receipts may have
limited or no rights to take action with respect to the underlying securities or
to compel the issuer of the receipts to take action. The prices of depositary
receipts may differ from the prices of securities upon which they are based. To
the extent the Fund invests in depositary receipts based on securities included
in the Index, such differences in prices may increase index tracking
risk.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to
a
derivatives
contract may be unable or unwilling to make timely settlement payments, return
the Fund's margin, or otherwise honor its obligations. A derivatives transaction
may not behave in the manner anticipated by the Adviser or may not have the
effect on the Fund anticipated by the Adviser.
Emerging
Markets Risk:
Risks
of investing in emerging markets include, among others, greater political and
economic instability, greater volatility in currency exchange rates, less
developed securities markets, possible trade barriers, currency transfer
restrictions, a more limited number of potential buyers and issuers, an emerging
market country's dependence on revenue from particular commodities or
international aid, less governmental supervision and regulation, unavailability
of currency hedging techniques, differences in auditing and financial reporting
standards, and less developed legal systems. There is also the potential for
unfavorable action such as expropriation, nationalization, embargo, and acts of
war. The securities of emerging market companies may trade less frequently and
in smaller volumes than more widely held securities. Market disruptions or
substantial market corrections may limit very significantly the liquidity of
securities of certain companies in a particular country or geographic region, or
of all companies in the country or region. The Fund may be unable to liquidate
its positions in such securities at any time, or at a favorable price, in order
to meet the Fund's obligations. These risks are generally greater for
investments in frontier market countries, which typically have smaller economies
or less developed capital markets than traditional emerging market
countries.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Industrial
Sector Risk:
Industrial
companies are affected by supply and demand both for their specific product or
service and for industrial sector products in general. Government regulation,
world events, exchange rates and economic conditions, technological developments
and liabilities for environmental damage and general civil liabilities will
likewise affect the performance of these companies. Aerospace and defense
companies, a component of the industrial sector, can be significantly affected
by government spending policies because companies involved in this industry
rely, to a significant extent, on U.S. and foreign government demand for their
products and services. Thus, the financial condition of, and investor interest
in, aerospace and defense companies are heavily influenced by governmental
defense spending policies which are typically under pressure from efforts to
control the U.S. (and other) government budgets. Transportation securities, a
component of the industrial sector, are cyclical and have occasional sharp price
movements which may result from changes in the economy, fuel prices, labor
agreements and insurance costs.
Large-Capitalization
Securities Risk:
Returns
on investments in securities of large companies could trail the returns on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as smaller and mid-sized companies to
competitive challenges or to changes in business, product, financial,
or other market conditions. Larger companies may not be able to maintain
growth at the high rates that may be achieved by well-managed smaller and
mid-sized companies.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Mid-Capitalization
Securities Risk:
The
securities of mid-capitalization companies may be more volatile and may involve
more risk than the securities of larger companies. These companies may have
limited product lines, markets or financial resources, may lack the competitive
strength of larger companies, and may depend on a few key employees. In
addition, these companies may have been recently organized and may have little
or no track record of success. The securities of mid-sized companies may trade
less frequently and in smaller volumes than more widely held securities. Some
securities of mid-sized issuers may be illiquid or may be restricted as to
resale, and their values may be volatile.
Non-Diversification
Risk:
As
a “non-diversified” fund, the Fund may hold a smaller number of portfolio
securities than many other funds. To the extent the Fund invests in a relatively
small number of issuers, a decline in the market value of a particular security
held by the Fund may affect its value more than if it invested in a larger
number of issuers. The value of Fund Shares may be more volatile than the values
of shares of more diversified
funds.
The Fund may become diversified for periods of time solely as a result of
changes in the composition of the Index (e.g., changes in weightings of one or
more component securities).
Non-U.S. Securities
Risk:
Non-U.S.
securities (including depositary receipts) are subject to political,
regulatory, and economic risks not present in domestic investments. There may be
less information publicly available about a non-U.S. entity than about a U.S.
entity, and many non-U.S. entities are not subject to accounting, auditing,
legal and financial report standards comparable to those in the United States.
Further, such entities and/or their securities may be subject to risks
associated with currency controls; expropriation; changes in tax policy; greater
market volatility; differing securities market structures; higher transaction
costs; and various administrative difficulties, such as delays in clearing and
settling portfolio transactions or in receiving payment of dividends. To the
extent underlying securities held by the Fund trade on foreign exchanges that
are closed when the exchange on which the Fund's shares trade is open, there may
be deviations between the current price of an underlying security and the last
quoted price for the underlying security on the closed foreign market. These
deviations could result in the Fund experiencing premiums or discounts greater
than those of ETFs that invest in domestic securities. Securities traded on
foreign markets may be less liquid (harder to sell) than securities traded
domestically. Foreign governments may impose restrictions on the repatriation of
capital to the U.S. In addition, to the extent that the Fund buys
securities denominated in a foreign currency, there are special risks such as
changes in currency exchange rates and the risk that a foreign government could
regulate foreign exchange transactions. In addition, to the extent investments
are made in a limited number of countries, events in those countries will have a
more significant impact on the Fund. Investments in depositary receipts may be
less liquid and more volatile than the underlying shares in their primary
trading market.
Small-Capitalization
Securities Risk:
The
securities of small-capitalization companies may be more volatile and may
involve more risk than the securities of larger companies. These companies may
have limited product lines, markets or financial resources, may lack the
competitive strength of larger companies, and may depend on a few key employees.
In addition, these companies may have been recently organized and may have
little or no track record of success. The securities of smaller companies may
trade less frequently and in smaller volumes than more widely held securities.
Some securities of smaller issuers may be illiquid or may be restricted as to
resale, and their values may have significant volatility. The Fund may be unable
to liquidate its positions in such securities at any time, or at a favorable
price, in order to meet the Fund's obligations. Returns on investments in
securities of small-capitalization companies could trail the returns on
investments in securities of larger companies.
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily dependent on patent and intellectual property
rights, the loss or impairment of which may adversely affect profitability.
Additionally, companies in the technology sector may face dramatic and often
unpredictable changes in growth rates and competition for the services of
qualified personnel.
Valuation
Risk:
Some
portfolio holdings, potentially a large portion of the Fund's investment
portfolio, may be valued on the basis of factors other than market quotations.
This may occur more often in times of market turmoil or reduced liquidity. There
are multiple methods that can be used to value a portfolio holding when market
quotations are not readily available. The value established for any portfolio
holding at a point in time might differ from what would be produced using a
different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued using techniques other than market
quotations, including “fair valued”
securities,
may be subject to
greater fluctuation in their valuations from one day to the next than if market
quotations were used. In addition, there is no assurance that the Fund could
sell or close out a portfolio position for the value established for it at any
time, and it is possible that the Fund would incur a loss because a portfolio
position is sold or closed out at a discount to the valuation established by the
Fund at that time.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 16.99% (Q1, 2019)
Lowest
Quarterly Return: -21.27% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was 25.40%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Since
Inception (12/26/17)
|
Return
Before Taxes |
30.34% |
2.10% |
Return
After Taxes on Distributions |
29.89% |
1.50% |
Return
After Taxes on Distributions and Sale of Fund Shares |
18.14% |
1.39% |
S&P
Kensho Smart Transportation Index (reflects no deduction for fees,
expenses or taxes other than withholding taxes on reinvested dividends) |
30.19% |
2.26% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.91% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Mark Krivitsky and Kathleen Morgan.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Mark
Krivitsky is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group and the Tax-Efficient Market Capture
Group. He joined the Adviser in 1996.
Kathleen
Morgan, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager
in the Global Equity Beta Solutions Group. She joined the Adviser in 2017.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual Fund
Shares may only be purchased and sold on the NYSE Arca, Inc., other national
securities exchanges, electronic crossing networks and other alternative trading
systems through your broker-dealer at market prices. Because Fund Shares trade
at market prices rather than at net asset value (“NAV”), Fund Shares may trade
at a price greater than NAV (premium) or less than NAV (discount). When buying
or selling Fund Shares in the
market,
you may incur costs attributable to the difference between the highest price a
buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a
seller is willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Metals & Mining ETF (the “Fund”) seeks
to provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index derived from the
metals and mining segment of a U.S. total market composite
index. |
Fees and
Expenses of the Fund
The table below describes the fees and expenses that you may pay
if you buy, hold and sell shares of the Fund (“Fund Shares”). You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell all of your Fund Shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the Fund's
operating expenses remain the same. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund Shares are held in a taxable account. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio turnover
rate was 41% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In seeking to track
the performance of the S&P Metals & Mining Select Industry Index
(the “Index”), the Fund employs a sampling strategy, which means that the
Fund is not required to purchase all of the securities represented in the Index.
Instead, the Fund may purchase a subset of the securities in the Index in an
effort to hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of
derivative
instrument)
may be used by the Fund in seeking performance that corresponds to the Index and
in managing cash flows.
215
The
Index represents the metals and mining segment of the S&P Total Market Index
(“S&P TMI”). The S&P TMI is designed to track the broad U.S. equity
market. The metals & mining segment of the S&P TMI comprises the
following sub-industries: Aluminum, Coal & Consumable Fuels, Copper,
Diversified Metals & Mining, Gold, Precious Metals & Minerals, Silver,
and Steel. The Index is one of twenty-one (21) of the S&P Select Industry
Indices (the “Select Industry Indices”), each designed to measure the
performance of a narrow sub-industry or group of sub-industries determined based
on the Global Industry Classification Standard (“GICS”). Membership in the
Select Industry Indices is based on the GICS classification, as well as
liquidity and market cap requirements. Companies in the Select Industry Indices
are classified according to GICS which determines classifications primarily
based on revenues; however, earnings and market perception are also considered.
The Index consists of the S&P TMI constituents belonging to the Aluminum,
Coal & Consumable Fuels, Copper, Diversified Metals & Mining, Gold,
Precious Metals & Minerals, Silver, and Steel sub-industries that satisfy
the following criteria: (i) have a float-adjusted market capitalization greater
than or equal to $500 million with a float-adjusted liquidity ratio (defined by
dollar value traded over the previous 12 months divided by the float-adjusted
market capitalization as of the index rebalancing reference date) greater than
or equal to 90% or have a float-adjusted market capitalization greater than or
equal to $400 million with a float-adjusted liquidity ratio (as defined above)
greater than or equal to 150%; and (ii) are U.S. based companies. The length of
time to evaluate liquidity is reduced to the available trading period for
initial public offerings or spin-offs that do not have 12 months of trading
history. The market capitalization threshold may be relaxed to ensure that there
are at least 22 stocks in the Index as of the rebalancing effective date.
Existing Index constituents are removed at the quarterly rebalancing effective
date if either their float-adjusted market capitalization falls below $300
million or their float-adjusted liquidity ratio falls below 50%. The market
capitalization threshold and the liquidity threshold are each reviewed from time
to time based on market conditions. Rebalancing occurs on the third Friday of
the quarter ending month. The S&P TMI tracks all eligible U.S. common
equities listed on the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select
Market, NASDAQ Select Market, Investors Exchange (IEX), NASDAQ Capital Market,
Cboe BZX, Cboe BYX, Cboe EDGA, or Cboe EDGX exchanges. The Index is modified
equal weighted. As of July 31, 2020, the Index comprised 22 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Metals
and Mining Companies Risk:
Metals
and mining companies can be significantly affected by events relating to
international political and economic developments, energy conservation, the
success of exploration projects, commodity prices, and tax and other government
regulations. Investments in metals and mining companies may be speculative and
may be subject to greater price volatility than investments in other types of
companies. Risks of metals and mining investments include: changes in
international monetary policies or economic and political conditions that can
affect the supply of precious metals and consequently the value of metals and
mining company investments; the United States or foreign governments may pass
laws or regulations limiting metals investments for strategic or other policy
reasons; and increased environmental or labor costs may depress the value of
metals and mining investments.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
track
the Index
return by investing in fewer than all of the securities in the Index, or in some
securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Materials
Sector Risk:
Many
materials companies are significantly affected by the level and volatility of
commodity prices, exchange rates, import controls, worldwide competition,
environmental policies and consumer demand. At times, worldwide production of
industrial materials has exceeded demand as a result of over-building or
economic downturns, leading to poor investment returns or losses. Other risks
may include liabilities for environmental damage and general civil liabilities,
depletion of resources, and mandated expenditures for safety and pollution
control. The materials sector may also be affected by economic cycles, technical
progress, labor relations, and government regulations.
Non-Diversification
Risk:
As a
“non-diversified” fund, the Fund may hold a smaller number of portfolio
securities than many other funds. To the extent the Fund invests in a relatively
small number of issuers, a decline in the market value of a particular security
held by the Fund may affect its value more than if it invested in a
larger
number
of issuers. The value of Fund Shares may be more volatile than the values of
shares of more diversified funds. The Fund may become diversified for periods of
time solely as a result of changes in the composition of the Index (e.g.,
changes in weightings of one or more component
securities).
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index. The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 37.40% (Q1, 2016)
Lowest
Quarterly Return: -35.34% (Q3, 2011)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -19.62%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
14.42% |
0.70% |
-4.08% |
Return
After Taxes on Distributions |
13.64% |
0.17% |
-4.48% |
Return
After Taxes on Distributions and Sale of Fund Shares |
8.89% |
0.40% |
-2.99% |
S&P
Metals & Mining Select Industry Index (reflects no deduction for fees,
expenses or taxes) |
14.83% |
0.68% |
-4.07% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Raymond Donofrio.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Raymond
Donofrio is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. He joined the Adviser in 2008.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price
greater
than NAV (premium) or less than NAV (discount). When buying or selling Fund
Shares in the secondary market, you may incur costs attributable to the
difference between the highest price a buyer is willing to pay to purchase Fund
Shares (bid) and the lowest price a seller is willing to accept for Fund Shares
(ask) (the “bid-ask spread”). Recent information regarding the Fund's NAV,
market price, premiums and discounts, and bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Oil & Gas Equipment & Services ETF
(the “Fund”) seeks to provide investment results that, before fees and
expenses, correspond generally to the total return performance of an index
derived from the oil and gas equipment and services segment of a U.S.
total market composite index. |
Fees and
Expenses of the Fund
The table below describes the fees and expenses that you may pay
if you buy, hold and sell shares of the Fund (“Fund Shares”). You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell all of your Fund Shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the Fund's
operating expenses remain the same. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 51% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In seeking to track
the performance of the S&P Oil & Gas Equipment & Services Select
Industry Index (the “Index”), the Fund employs a sampling strategy, which
means that the Fund is not required to purchase all of the securities
represented in the Index. Instead, the Fund may purchase a subset of the
securities in the Index in an effort to hold a portfolio of securities with
generally the same risk and return characteristics of the Index. The quantity of
holdings in the Fund will be based on a number of factors, including asset size
of the Fund. Based on its analysis of these factors, SSGA Funds Management, Inc.
(“SSGA FM” or the “Adviser”), the investment adviser to the Fund, either may
invest the Fund's assets in a subset of securities in the Index or may invest
the Fund's assets in substantially all of the securities represented in the
Index in approximately the same proportions as the Index, as determined by the
Adviser to be in the best interest of the Fund in pursuing its
objective. The Fund is classified as “diversified” under the Investment
Company Act of 1940, as amended; however, the Fund may become “non-diversified”
solely as a result of tracking the Index (e.g., changes in weightings of one or
more component securities). When the Fund is non-diversified, it may invest a
relatively high percentage of its assets in a limited number of
issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
220
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of
derivative
instrument)
may be used by the Fund in seeking performance that corresponds to the Index and
in managing cash flows.
The
Index represents the oil and gas equipment and services segment of the S&P
Total Market Index (“S&P TMI”). The S&P TMI is designed to track the
broad U.S. equity market. The oil and gas equipment and services segment of the
S&P TMI comprises the Oil & Gas Drilling sub-industry and the Oil &
Gas Equipment & Services sub-industry. The Index is one of twenty-one (21)
of the S&P Select Industry Indices (the “Select Industry Indices”), each
designed to measure the performance of a narrow sub-industry or group of
sub-industries determined based on the Global Industry Classification Standard
(“GICS”). Membership in the Select Industry Indices is based on the GICS
classification, as well as liquidity and market cap requirements. Companies in
the Select Industry Indices are classified according to GICS which determines
classifications primarily based on revenues; however, earnings and market
perception are also considered. The Index consists of the S&P TMI
constituents belonging to the Oil & Gas Drilling sub-industry and the Oil
& Gas Equipment & Services sub-industry that satisfy the following
criteria: (i) have a float-adjusted market capitalization greater than or equal
to $500 million with a float-adjusted liquidity ratio (defined by dollar value
traded over the previous 12 months divided by the float-adjusted market
capitalization as of the index rebalancing reference date) greater than or equal
to 90% or have a float-adjusted market capitalization greater than or equal to
$400 million with a float-adjusted liquidity ratio (as defined above) greater
than or equal to 150%; and (ii) are U.S. based companies. The length of time to
evaluate liquidity is reduced to the available trading period for initial public
offerings or spin-offs that do not have 12 months of trading history. The market
capitalization threshold may be relaxed to ensure that there are at least 22
stocks in the Index as of the rebalancing effective date. Existing Index
constituents are removed at the quarterly rebalancing effective date if either
their float-adjusted market capitalization falls below $300 million or their
float-adjusted liquidity ratio falls below 50%. The market capitalization
threshold and the liquidity threshold are each reviewed from time to time based
on market conditions. Rebalancing occurs on the third Friday of the quarter
ending month. The S&P TMI tracks all eligible U.S. common equities listed on
the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select Market, NASDAQ Select
Market, Investors Exchange (IEX), NASDAQ Capital Market, Cboe BZX, Cboe BYX,
Cboe EDGA, or Cboe EDGX exchanges. The Index is modified equal weighted. As of
July 31, 2020, the Index comprised 22 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Oil
and Gas Companies Risk:
Oil
and gas companies develop and produce crude oil and natural gas and provide
drilling and other energy resources production and distribution related
services. Stock prices for these types of companies are affected by supply and
demand both for their specific product or service and for energy products in
general. The price of oil and gas, exploration and production spending,
government regulation, world events and economic conditions will likewise affect
the performance of these companies. Correspondingly, securities of companies in
the energy field are subject to swift price and supply fluctuations caused by
events relating to international politics, energy conservation, the success of
exploration projects, and tax and other governmental regulatory policies. Weak
demand for the companies' products or services or for energy products and
services in
general,
as well as negative developments in these other areas, would adversely impact
the Fund's performance. Oil and gas equipment and services can be significantly
affected by natural disasters as well as changes in exchange rates, interest
rates, government regulation, world events and economic conditions. These
companies may be at risk for environmental damage
claims.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Energy
Sector Risk:
Issuers
in energy-related industries can be significantly affected by fluctuations in
energy prices and supply and demand of energy fuels. Markets for various
energy-related commodities can have significant volatility, and are subject to
control or manipulation by large producers or purchasers. Companies in the
energy sector may need to make substantial expenditures, and to incur
significant amounts of debt, in order to maintain or expand their reserves. Oil
and gas exploration and production can be significantly affected by natural
disasters as well as changes in exchange rates, interest rates, government
regulation, world events and economic conditions. These companies may be at risk
for environmental damage claims.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to
limitations
on
investments in any illiquid securities and/or the difficulty in purchasing and
selling such investments, may be unable to achieve its desired level of exposure
to a certain market or sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index. The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 28.36% (Q1, 2019)
Lowest
Quarterly Return: -45.98% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -64.82%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
-8.85% |
-21.06% |
-10.88% |
Return
After Taxes on Distributions |
-9.16% |
-21.36% |
-11.12% |
Return
After Taxes on Distributions and Sale of Fund Shares |
-5.03% |
-13.88% |
-6.92% |
S&P
Oil & Gas Equipment & Services Select Industry Index (reflects no
deduction for fees, expenses or taxes) |
-8.64% |
-20.96% |
-10.73% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Melissa Kapitulik.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Melissa
Kapitulik is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. She joined the Adviser in
2006.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Oil & Gas Exploration & Production
ETF (the “Fund”) seeks to provide investment results that, before fees and
expenses, correspond generally to the total return performance of an index
derived from the oil and gas exploration and production segment of a U.S.
total market composite index. |
Fees and
Expenses of the Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”). You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund Shares are held in a taxable account. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio turnover
rate was 41% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In seeking to track
the performance of the S&P Oil & Gas Exploration & Production Select
Industry Index (the “Index”), the Fund employs a sampling strategy, which
means that the Fund is not required to purchase all of the securities
represented in the Index. Instead, the Fund may purchase a subset of the
securities in the Index in an effort to hold a portfolio of securities with
generally the same risk and return characteristics of the Index. The quantity of
holdings in the Fund will be based on a number of factors, including asset size
of the Fund. Based on its analysis of these factors, SSGA Funds Management, Inc.
(“SSGA FM” or the “Adviser”), the investment adviser to the Fund, either may
invest the Fund's assets in a subset of securities in the Index or may invest
the Fund's assets in substantially all of the securities represented in the
Index in approximately the same proportions as the Index, as determined by the
Adviser to be in the best interest of the Fund in pursuing its
objective. The Fund is classified as “diversified” under the Investment
Company Act of 1940, as amended; however, the Fund may become “non-diversified”
solely as a result of tracking the Index (e.g., changes in weightings of one or
more component securities). When the Fund is non-diversified, it may invest a
relatively high percentage of its assets in a limited number of
issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
225
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of
derivative
instrument)
may be used by the Fund in seeking performance that corresponds to the Index and
in managing cash
flows.
The
Index represents the oil and gas exploration and production segment of the
S&P Total Market Index (“S&P TMI”). The S&P TMI is designed to track
the broad U.S. equity market. The oil and gas exploration and production segment
of the S&P TMI comprises the following sub-industries: Integrated Oil &
Gas, Oil & Gas Exploration & Production, and Oil & Gas Refining
& Marketing. The Index is one of twenty-one (21) of the S&P Select
Industry Indices (the “Select Industry Indices”), each designed to measure the
performance of a narrow sub-industry or group of sub-industries determined based
on the Global Industry Classification Standard (“GICS”). Membership in the
Select Industry Indices is based on the GICS classification, as well as
liquidity and market cap requirements. Companies in the Select Industry Indices
are classified according to GICS which determines classifications primarily
based on revenues; however, earnings and market perception are also considered.
The Index consists of the S&P TMI constituents belonging to the Integrated
Oil & Gas, Oil & Gas Exploration & Production, and Oil & Gas
Refining & Marketing sub-industries that satisfy the following criteria: (i)
have a float-adjusted market capitalization greater than or equal to $500
million with a float-adjusted liquidity ratio (defined by dollar value traded
over the previous 12 months divided by the float-adjusted market capitalization
as of the index rebalancing reference date) greater than or equal to 90% or have
a float-adjusted market capitalization greater than or equal to $400 million
with a float-adjusted liquidity ratio (as defined above) greater than or equal
to 150%; and (ii) are U.S. based companies. The length of time to evaluate
liquidity is reduced to the available trading period for initial public
offerings or spin-offs that do not have 12 months of trading history. The market
capitalization threshold may be relaxed to ensure that there are at least 22
stocks in the Index as of the rebalancing effective date. Existing Index
constituents are removed at the quarterly rebalancing effective date if either
their float-adjusted market capitalization falls below $300 million or their
float-adjusted liquidity ratio falls below 50%. The market capitalization
threshold and the liquidity threshold are each reviewed from time to time based
on market conditions. Rebalancing occurs on the third Friday of the quarter
ending month. The S&P TMI tracks all eligible U.S. common equities listed on
the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select Market, NASDAQ Select
Market, Investors Exchange (IEX), NASDAQ Capital Market, Cboe BZX, Cboe BYX,
Cboe EDGA, or Cboe EDGX exchanges. The Index is modified equal weighted. As of
July 31, 2020, the Index comprised 41 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Oil
and Gas Companies Risk:
Oil and gas
companies develop and produce crude oil and natural gas and provide drilling and
other energy resources production and distribution related services. Stock
prices for these types of companies are affected by supply and demand both for
their specific product or service and for energy products in general. The price
of oil and gas, exploration and production spending, government regulation,
world events and economic conditions will likewise affect the performance of
these companies. Correspondingly, securities of companies in the energy field
are subject to swift price and supply fluctuations caused by events relating to
international politics, energy conservation, the success of exploration
projects, and tax and other governmental regulatory policies. Weak demand for
the companies' products or services or for energy products and services
in
general,
as well as negative developments in these other areas, would adversely impact
the Fund's performance. Oil and gas exploration and production can be
significantly affected by natural disasters as well as changes in exchange
rates, interest rates, government regulation, world events and economic
conditions. These companies may be at risk for environmental damage
claims.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Energy
Sector Risk:
Issuers
in energy-related industries can be significantly affected by fluctuations in
energy prices and supply and demand of energy fuels. Markets for various
energy-related commodities can have significant volatility, and are subject to
control or manipulation by large producers or purchasers. Companies in the
energy sector may need to make substantial expenditures, and to incur
significant amounts of debt, in order to maintain or expand their reserves. Oil
and gas exploration and production can be significantly affected by natural
disasters as well as changes in exchange rates, interest rates, government
regulation, world events and economic conditions. These companies may be at risk
for environmental damage claims.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to
limitations
on
investments in any illiquid securities and/or the difficulty in purchasing and
selling such investments, may be unable to achieve its desired level of exposure
to a certain market or sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index. The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 24.94% (Q4, 2010)
Lowest
Quarterly Return: -38.55% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -54.54%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
-9.32% |
-12.10% |
-4.39% |
Return
After Taxes on Distributions |
-9.63% |
-12.37% |
-4.65% |
Return
After Taxes on Distributions and Sale of Fund Shares |
-5.30% |
-8.58% |
-3.08% |
S&P
Oil & Gas Exploration & Production Select Industry Index (reflects
no deduction for fees, expenses or taxes) |
-9.15% |
-11.99% |
-4.25% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Olga Winner.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Olga
Winner, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager
in the Global Equity Beta Solutions Group. She joined the Adviser in
2007.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Pharmaceuticals ETF (the “Fund”) seeks to
provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index derived from the
pharmaceuticals segment of a U.S. total market composite
index. |
Fees and
Expenses of the Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”). You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell all of your Fund Shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the Fund's
operating expenses remain the same. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund Shares are held in a taxable account. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio turnover
rate was 31% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In seeking to track
the performance of the S&P Pharmaceuticals Select Industry Index
(the “Index”), the Fund employs a sampling strategy, which means that the
Fund is not required to purchase all of the securities represented in the Index.
Instead, the Fund may purchase a subset of the securities in the Index in an
effort to hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of
instrument) may be
used by the Fund in seeking performance that corresponds to the Index and in
managing cash flows.
The Index represents the
pharmaceuticals segment of the S&P Total Market Index (“S&P TMI”). The
S&P TMI is designed to track the broad U.S. equity market. The
pharmaceuticals segment of the S&P TMI comprises the Pharmaceuticals
sub-industry. The Index is one of twenty-one (21) of the S&P Select Industry
Indices (the “Select Industry Indices”), each designed to measure the
performance of a narrow sub-industry or group of sub-industries determined based
on the Global Industry Classification Standard (“GICS”). Membership in the
Select Industry Indices is based on the GICS classification, as well as
liquidity and market cap requirements. Compa
nies in the
Select Industry Indices are classified according to GICS which determines
classifications primarily based on revenues; however, earnings and market
perception are also considered. The Index consists of the S&P TMI
constituents belonging to the Pharmaceuticals sub-industry that satisfy the
following criteria: (i) have a float-adjusted market capitalization greater than
or equal to $500 million with a float-adjusted liquidity ratio (defined by
dollar value traded over the previous 12 months divided by the float-adjusted
market capitalization as of the index rebalancing reference date) greater than
or equal to 90% or have a float-adjusted market capitalization greater than or
equal to $400 million with a float-adjusted liquidity ratio (as defined above)
greater than or equal to 150%; and (ii) are U.S. based companies. The length of
time to evaluate liquidity is reduced to the available trading period for
initial public offerings or spin-offs that do not have 12 months of trading
history. The market capitalization threshold may be relaxed to ensure that there
are at least 22 stocks in the Index as of the rebalancing effective date.
Existing Index constituents are removed at the quarterly rebalancing effective
date if either their float-adjusted market capitalization falls below $300
million or their float-adjusted liquidity ratio falls below 50%. The market
capitalization threshold and the liquidity threshold are each reviewed from time
to time based on market conditions. Rebalancing occurs on the third Friday of
the quarter ending month. The S&P TMI tracks all eligible U.S. common
equities listed on the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select
Market, NASDAQ Select Market, Investors Exchange (IEX), NASDAQ Capital Market,
Cboe BZX, Cboe BYX, Cboe EDGA, or Cboe EDGX exchanges. The Index is modified
equal weighted. As of July 31, 2020, the Index comprised 40
stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Pharmaceuticals
Companies Risk:
Pharmaceutical
companies are heavily dependent on patent protection. The expiration of patents
may adversely affect the profitability of the companies. Pharmaceutical
companies are also subject to extensive litigation based on product liability
and other similar claims. Many new products are subject to approval of the U.S.
Food and Drug Administration (“FDA”). The process of obtaining FDA approval can
be long and costly and approved products are susceptible to obsolescence.
Pharmaceutical companies are also subject to heavy competitive forces that may
make it difficult to raise prices and, in fact, may result in price
discounting.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Health
Care Sector Risk:
Companies
in the health care sector are subject to extensive government regulation and
their profitability can be significantly affected by restrictions on government
reimbursement for medical expenses, rising costs of medical products and
services, pricing pressure (including price discounting), limited product lines
and an increased emphasis on the delivery of healthcare through outpatient
services. Companies in the health care sector are heavily dependent on obtaining
and defending patents, which may be time consuming and costly, and the
expiration of patents may also adversely affect the profitability of these
companies. Health care companies are also subject to extensive litigation based
on product liability and similar claims. In addition, their products can become
obsolete due to industry innovation, changes in technologies or other market
developments. Many new products in the health care sector require significant
research and development and may be subject to regulatory approvals, all of
which may be time consuming and costly with no guarantee that any product will
come to market.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the
Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to
limitations
on investments in
any illiquid securities and/or the difficulty in purchasing and selling such
investments, may be unable to achieve its desired level of exposure to a certain
market or sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index. The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 28.59% (Q4, 2019)
Lowest
Quarterly Return: -24.56% (Q3, 2015)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -4.54%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The after-tax
returns presented in the table below are calculated using highest historical
individual federal marginal income tax rates and do not reflect the impact of
state and local taxes.
Your actual
after-tax returns will depend on your specific tax situation and may differ from
those shown below. After-tax returns are not relevant to investors who hold Fund
Shares through tax-advantaged arrangements, such as 401(k) plans or individual
retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
25.65% |
-1.44% |
11.49% |
Return
After Taxes on Distributions |
25.44% |
-2.10% |
10.77% |
Return
After Taxes on Distributions and Sale of Fund Shares |
15.31% |
-1.30% |
9.34% |
S&P
Pharmaceuticals Select Industry Index (reflects no deduction for fees,
expenses or taxes) |
25.84% |
-1.27% |
11.70% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Keith Richardson.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Keith
Richardson is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. He joined the Adviser in
1999.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary
market,
you may incur costs attributable to the difference between the highest price a
buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a
seller is willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Regional Banking ETF (the “Fund”) seeks to
provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index derived from the
regional banking segment of the U.S. banking
industry. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”). You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 35% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P Regional Banks Select Industry Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
235
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of
derivative
instrument)
may be used by the Fund in seeking performance that corresponds to the Index and
in managing cash
flows.
The
Index represents the regional banks segment of the S&P Total Market Index
(“S&P TMI”). The S&P TMI is designed to track the broad U.S. equity
market. The regional banks segment of the S&P TMI comprises the Regional
Banks sub-industry. The Index is one of twenty-one (21) of the S&P Select
Industry Indices (the “Select Industry Indices”), each designed to measure the
performance of a narrow sub-industry or group of sub-industries determined based
on the Global Industry Classification Standard (“GICS”). Membership in the
Select Industry Indices is based on the GICS classification, as well as
liquidity and market cap requirements. Companies in the Select Industry Indices
are classified according to GICS which determines classifications primarily
based on revenues; however, earnings and market perception are also considered.
The Index consists of the S&P TMI constituents belonging to the Regional
Banks sub-industry that satisfy the following criteria: (i) have a
float-adjusted market capitalization greater than or equal to $500 million with
a float-adjusted liquidity ratio (defined by dollar value traded over the
previous 12 months divided by the float-adjusted market capitalization as of the
index rebalancing reference date) greater than or equal to 90% or have a
float-adjusted market capitalization greater than or equal to $400 million with
a float-adjusted liquidity ratio (as defined above) greater than or equal to
150%; and (ii) are U.S. based companies. The length of time to evaluate
liquidity is reduced to the available trading period for initial public
offerings or spin-offs that do not have 12 months of trading history. The market
capitalization threshold may be relaxed to ensure that there are at least 22
stocks in the Index as of the rebalancing effective date. Existing Index
constituents are removed at the quarterly rebalancing effective date if either
their float-adjusted market capitalization falls below $300 million or their
float-adjusted liquidity ratio falls below 50%. The market capitalization
threshold and the liquidity threshold are each reviewed from time to time based
on market conditions. Rebalancing occurs on the third Friday of the quarter
ending month. The S&P TMI tracks all eligible U.S. common equities listed on
the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select Market, NASDAQ Select
Market, Investors Exchange (IEX), NASDAQ Capital Market, Cboe BZX, Cboe BYX,
Cboe EDGA, or Cboe EDGX exchanges. The Index is modified equal weighted. As of
July 31, 2020, the Index comprised 130 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Banking
Companies Risk:
The
performance of bank stocks may be affected by extensive governmental regulation
which may limit both the amounts and types of loans and other financial
commitments they can make, and the interest rates and fees they can charge and
the amount of capital they must maintain. Profitability is largely dependent on
the availability and cost of capital funds, and can fluctuate significantly when
interest rates change. Credit losses resulting from financial difficulties of
borrowers can negatively impact banking companies.
Banks may also be
subject to severe price competition. Competition is high among banking companies
and failure to maintain or increase market share may result in lost market
value.
Financial
Institutions Risk:
Changes
in the creditworthiness of financial institutions (such as banks and
broker-dealers) may adversely affect the values of instruments of issuers in
financial industries. Adverse developments in banking and other financial
industries may cause the Fund to underperform relative to other funds that
invest more broadly across different industries or have a smaller exposure to
financial institutions. Changes in governmental regulation and oversight of
financial institutions may have an adverse effect on the financial condition of
a financial institution.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts, repurchase agreements, reverse
repurchase agreements, and other transactions. If a counterparty fails to meet
its contractual obligations, the Fund may be unable to terminate or realize any
gain on the investment or transaction, or to recover collateral posted to the
counterparty, resulting in a loss to the Fund. If the Fund holds collateral
posted by its counterparty, it may be delayed or prevented from realizing on the
collateral in the event of a bankruptcy or insolvency proceeding relating to the
counterparty.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The counterparty to a
derivatives contract may be unable or unwilling to make timely settlement
payments, return the Fund's margin, or otherwise honor its obligations. A
derivatives transaction may not behave in the manner anticipated by the Adviser
or may not have the effect on the Fund anticipated by the
Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of
more
diversified funds.
The Fund may become non-diversified for periods of time solely as a result of
changes in the composition of the Index (e.g., changes in weightings of one or
more component
securities).
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 32.01% (Q4, 2016)
Lowest
Quarterly Return: -23.65% (Q3, 2011)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -36.84%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares. Effective October 24, 2011 (the “Benchmark Index Change
Date”), the Fund's benchmark index changed from the KBW Regional Banking Index
(the “Previous Benchmark Index”) to the S&P Regional Banks Select Industry
Index, consistent with a change in the Fund's principal investment strategy to
track the performance of the current index. Performance of the Fund prior
to the Benchmark Index Change Date is therefore based on the Fund's investment
strategy to track the Previous Benchmark Index.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
27.44% |
9.45% |
12.06% |
Return
After Taxes on Distributions |
26.73% |
8.95% |
11.61% |
Return
After Taxes on Distributions and Sale of Fund Shares |
16.68% |
7.40% |
9.97% |
S&P
Regional Banks Select Industry Index/KBW Regional Banking Index
1 (reflects
no deduction for fees, expenses or taxes) |
27.64% |
9.83% |
12.45% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
1 |
Returns
shown are reflective of the Index for periods beginning on the Benchmark
Index Change Date and the Previous Benchmark Index for periods prior to
the Benchmark Index Change Date. |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Kala O'Donnell.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Kala
O'Donnell is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. She joined the Adviser in
1995.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Retail ETF (the “Fund”) seeks to provide
investment results that, before fees and expenses, correspond generally to
the total return performance of an index derived from the retail segment
of a U.S. total market composite
index. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”). You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 43% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P Retail Select Industry Index (the “Index”),
the Fund employs a sampling strategy, which means that the Fund is not required
to purchase all of the securities represented in the Index. Instead, the Fund
may purchase a subset of the securities in the Index in an effort to hold a
portfolio of securities with generally the same risk and return characteristics
of the Index. The quantity of holdings in the Fund will be based on a number of
factors, including asset size of the Fund. Based on its analysis of these
factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of
instrument) may be
used by the Fund in seeking performance that corresponds to the Index and in
managing cash flows.
The
Index represents the retail segment of the S&P Total Market Index (“S&P
TMI”). The S&P TMI is designed to track the broad U.S. equity market. The
retail segment of the S&P TMI comprises the following sub-industries:
Apparel Retail, Automotive Retail, Computer & Electronic Retail, Department
Stores, Drug Retail, Food Retailers, General Merchandise Stores, Hypermarkets
& Super Centers, Internet & Direct Marketing Retail, and Specialty
Stores. The Index is one of twenty-one (21) of the S&P Select Industry
Indices (the “Select Industry Indices”), each designed to measure the
performance of a narrow sub-industry or group of sub-industries determined based
on the Global Industry Classification Standard (“GICS”). Membership in the
Select Industry Indices is based on the GICS classification, as well as
liquidity and market cap requirements. Companies in the Select Industry Indices
are classified according to GICS which determines classifications primarily
based on revenues; however, earnings and market perception are also considered.
The Index consists of the S&P TMI constituents belonging to the Apparel
Retail, Automotive Retail, Computer & Electronic Retail, Department Stores,
Drug Retail, Food Retailers, General Merchandise Stores, Hypermarkets &
Super Centers, Internet & Direct Marketing Retail, and Specialty Stores
sub-industries that satisfy the following criteria: (i) have a float-adjusted
market capitalization greater than or equal to $500 million with a
float-adjusted liquidity ratio (defined by dollar value traded over the previous
12 months divided by the float-adjusted market capitalization as of the index
rebalancing reference date) greater than or equal to 90% or have a
float-adjusted market capitalization greater than or equal to $400 million with
a float-adjusted liquidity ratio (as defined above) greater than or equal to
150%; and (ii) are U.S. based companies. The length of time to evaluate
liquidity is reduced to the available trading period for initial public
offerings or spin-offs that do not have 12 months of trading history. The market
capitalization threshold may be relaxed to ensure that there are at least 22
stocks in the Index as of the rebalancing effective date. Existing Index
constituents are removed at the quarterly rebalancing effective date if either
their float-adjusted market capitalization falls below $300 million or their
float-adjusted liquidity ratio falls below 50%. The market capitalization
threshold and the liquidity threshold are each reviewed from time to time based
on market conditions. Rebalancing occurs on the third Friday of the quarter
ending month. The S&P TMI tracks all eligible U.S. common equities listed on
the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select Market, NASDAQ Select
Market, Investors Exchange (IEX), NASDAQ Capital Market, Cboe BZX, Cboe BYX,
Cboe EDGA, or Cboe EDGX exchanges. The Index is modified equal weighted. As of
July 31, 2020, the Index comprised 82 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Retail
Companies Risk:
Retail
companies can be significantly affected by the performance of the domestic and
international economy, consumer confidence and spending, intense competition,
changes in demographics, and changing consumer tastes and
preferences.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector,
financial
,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Consumer
Discretionary Sector Risk:
The
success of consumer product manufacturers and retailers is tied closely to the
performance of the overall global economy, interest rates, competition and
consumer confidence. Success depends heavily on disposable household income and
consumer spending. Also, companies in the consumer discretionary sector may be
subject to severe competition, which may have an adverse impact on their
respective profitability. Changes in demographics and consumer tastes can also
affect the demand for, and success of, consumer products and services in the
marketplace.
Consumer
Staples Sector Risk:
Consumer
staples companies are subject to government regulation affecting their products
which may negatively impact such companies' performance. For instance,
government regulations may affect the permissibility of using various food
additives and production methods of companies that make food products, which
could affect company profitability. Tobacco companies may be adversely affected
by the adoption of proposed legislation and/or by litigation. Also, the success
of food, beverage, household and personal product companies may be strongly
affected by consumer interest, marketing campaigns and other factors affecting
supply and demand, including performance of the overall domestic and global
economy, interest rates, competition and consumer confidence and
spending.
Counterparty
Risk:
The Fund will be
subject to credit risk with respect to the
counterparties
with which the Fund
enters into derivatives contracts, repurchase agreements, reverse repurchase
agreements, and other transactions. If a
counterparty
fails to meet its
contractual obligations, the Fund may be unable to terminate or realize any gain
on the investment or transaction, or to recover collateral posted to the
counterparty
, resulting in a
loss to the Fund. If the Fund holds collateral posted by its
counterparty
, it may be delayed
or prevented from realizing on the collateral in the event of a bankruptcy or
insolvency proceeding relating to the
counterparty
.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The
counterparty
to a derivatives
contract may be unable or unwilling to make timely settlement payments, return
the Fund's margin, or otherwise honor its obligations. A derivatives transaction
may not behave in the manner anticipated by the Adviser or may not have the
effect on the Fund anticipated by the Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the
Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 17.48% (Q3, 2010)
Lowest
Quarterly Return: -19.38% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was 8.97%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
14.13% |
0.59% |
11.32% |
Return
After Taxes on Distributions |
13.47% |
0.14% |
10.90% |
Return
After Taxes on Distributions and Sale of Fund Shares |
8.44% |
0.32% |
9.28% |
S&P
Retail Select Industry Index (reflects no deduction for fees, expenses or
taxes) |
13.97% |
0.64% |
11.47% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Ted Janowsky.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in
1997.
Ted
Janowsky, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager
in the Global Equity Beta Solutions Group. He joined the Adviser in 2005.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary
market,
you may incur costs attributable to the difference between the highest price a
buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a
seller is willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Semiconductor ETF (the “Fund”) seeks to
provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index derived from the
semiconductor segment of a U.S. total market composite
index. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 21% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P Semiconductor Select Industry Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of
derivative
instrument)
may be used by the Fund in seeking performance that corresponds to the Index and
in managing cash
flows.
The
Index represents the semiconductors segment of the S&P Total Market Index
(“S&P TMI”). The S&P TMI is designed to track the broad U.S. equity
market. The semiconductors segment of the S&P TMI comprises the
Semiconductors sub-industry. The Index is one of twenty-one (21) of the S&P
Select Industry Indices (the “Select Industry Indices”), each designed to
measure the performance of a narrow sub-industry or group of sub-industries
determined based on the Global Industry Classification Standard (“GICS”).
Membership in the Select Industry Indices is based on the GICS classification,
as well as liquidity and market cap requirements. Companies in the Select
Industry Indices are classified according to GICS which determines
classifications primarily based on revenues; however, earnings and market
perception are also considered. The Index consists of the S&P TMI
constituents belonging to the Semiconductors sub-industry that satisfy the
following criteria: (i) have a float-adjusted market capitalization greater than
or equal to $500 million with a float-adjusted liquidity ratio (defined by
dollar value traded over the previous 12 months divided by the float-adjusted
market capitalization as of the index rebalancing reference date) greater than
or equal to 90% or have a float-adjusted market capitalization greater than or
equal to $400 million with a float-adjusted liquidity ratio (as defined above)
greater than or equal to 150%; and (ii) are U.S. based companies. The length of
time to evaluate liquidity is reduced to the available trading period for
initial public offerings or spin-offs that do not have 12 months of trading
history. If there are fewer than 35 stocks, stocks from the Semiconductor
Equipment sub-industry that meet the market capitalization and liquidity
thresholds are included in order of their float-adjusted market capitalization.
The market capitalization threshold may be relaxed to ensure that there are at
least 22 stocks in the Index as of the rebalancing effective date. Existing
Index constituents are removed at the quarterly rebalancing effective date if
either their float-adjusted market capitalization falls below $300 million or
their float-adjusted liquidity ratio falls below 50%. The market capitalization
threshold and the liquidity threshold are each reviewed from time to time based
on market conditions. Rebalancing occurs on the third Friday of the quarter
ending month. The S&P TMI tracks all eligible U.S. common equities listed on
the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select Market, NASDAQ Select
Market, Investors Exchange (IEX), NASDAQ Capital Market, Cboe BZX, Cboe BYX,
Cboe EDGA, or Cboe EDGX exchanges. The Index is modified equal weighted. As of
July 31, 2020, the Index comprised 36 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Semiconductor
Companies Risk:
The
Fund is subject to the risk that market or economic factors impacting
semiconductor companies and companies that rely heavily on technological
advances could have a major effect on the value of the Fund's investments. The
value of stocks of semiconductor companies and companies that rely heavily on
technology is particularly vulnerable to rapid changes in product cycles, rapid
product obsolescence, government regulation and competition, both domestically
and internationally, including competition from foreign competitors with lower
production costs. Semiconductor companies and companies that rely heavily on
technology,
especially
those of smaller, less-seasoned companies, tend to be more volatile than the
overall market. Additionally, semiconductor companies may face dramatic and
often unpredictable changes in growth rates and competition for the services of
qualified personnel.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When the Fund
focuses its investments in a particular industry or sector, financial, economic,
business, and other developments affecting issuers in that industry, market, or
economic sector will have a greater effect on the Fund than if it had not done
so.
Counterparty
Risk:
The Fund will be
subject to credit risk with respect to the
counterparties
with which the Fund
enters into derivatives contracts, repurchase agreements, reverse repurchase
agreements, and other transactions. If a
counterparty
fails to meet its
contractual obligations, the Fund may be unable to terminate or realize any gain
on the investment or transaction, or to recover collateral posted to the
counterparty
, resulting in a
loss to the Fund. If the Fund holds collateral posted by its
counterparty
, it may be delayed
or prevented from realizing on the collateral in the event of a bankruptcy or
insolvency proceeding relating to the
counterparty
.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The
counterparty
to a derivatives
contract may be unable or unwilling to make timely settlement payments, return
the Fund's margin, or otherwise honor its obligations. A derivatives transaction
may not behave in the manner anticipated by the Adviser or may not have the
effect on the Fund anticipated by the Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily dependent on patent and intellectual property
rights, the loss or impairment of which may adversely affect profitability.
Additionally, companies in the technology sector may face dramatic and often
unpredictable changes in growth rates and competition for the services of
qualified personnel.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling 1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest Quarterly
Return
:
21.41
% (
Q1, 2019)
L
owest Quarterly
Return
:
-
24.13% (
Q3, 2011)
* |
As
of
9/30/2020 , the Fund's
Calendar
Year-To-Date
return was
19.01 %. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
64.59% |
22.47% |
16.93% |
Return
After Taxes on Distributions |
64.36% |
22.25% |
16.75% |
Return
After Taxes on Distributions and Sale of Fund Shares |
38.36% |
18.42% |
14.43% |
S&P
Semiconductor Select Industry Index (reflects no deduction for fees,
expenses or taxes) |
65.23% |
22.72% |
17.18% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Kala O'Donnell.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Kala
O'Donnell is a Vice President of the Adviser and a Senior Portfolio Manager in
the Global Equity Beta Solutions Group. She joined the Adviser in
1995.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary
market,
you may incur costs attributable to the difference between the highest price a
buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a
seller is willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Software & Services ETF (the “Fund”)
seeks to provide investment results that, before fees and expenses,
correspond generally to the total return performance of an index derived
from the computer software segment of a U.S. total market composite
index. |
Fees and
Expenses of the Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell all of your Fund Shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the Fund's
operating expenses remain the same. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 31% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In seeking to track
the performance of the S&P Software & Services Select Industry Index
(the “Index”), the Fund employs a sampling strategy, which means that the
Fund is not required to purchase all of the securities represented in the Index.
Instead, the Fund may purchase a subset of the securities in the Index in an
effort to hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
250
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of
instrument) may be
used by the Fund in seeking performance that corresponds to the Index and in
managing cash
flows.
The
Index represents the software and services segment of the S&P Total Market
Index (“S&P TMI”). The S&P TMI is designed to track the broad U.S.
equity market. The software and services segment of the S&P TMI comprises
the following sub-industries: Application Software, Data Processing &
Outsourced Services, Interactive Home Entertainment, IT Consulting & Other
Services, and Systems Software. The Index is one of twenty-one (21) of the
S&P Select Industry Indices (the “Select Industry Indices”), each designed
to measure the performance of a narrow sub-industry or group of sub-industries
determined based on the Global Industry Classification Standard (“GICS”).
Membership in the Select Industry Indices is based on the GICS classification,
as well as liquidity and market cap requirements. Companies in the Select
Industry Indices are classified according to GICS which determines
classifications primarily based on revenues; however, earnings and market
perception are also considered. The Index consists of the S&P TMI
constituents belonging to the Application Software, Data Processing &
Outsourced Services, Interactive Home Entertainment, IT Consulting & Other
Services, and Systems Software sub-industries that satisfy the following
criteria: (i) have a float-adjusted market capitalization greater than or equal
to $500 million with a float-adjusted liquidity ratio (defined by dollar value
traded over the previous 12 months divided by the float-adjusted market
capitalization as of the index rebalancing reference date) greater than or equal
to 90% or have a float-adjusted market capitalization greater than or equal to
$400 million with a float-adjusted liquidity ratio (as defined above) greater
than or equal to 150%; and (ii) are U.S. based companies. The length of time to
evaluate liquidity is reduced to the available trading period for initial public
offerings or spin-offs that do not have 12 months of trading history. The market
capitalization threshold may be relaxed to ensure that there are at least 22
stocks in the Index as of the rebalancing effective date. Existing Index
constituents are removed at the quarterly rebalancing effective date if either
their float-adjusted market capitalization falls below $300 million or their
float-adjusted liquidity ratio falls below 50%. The market capitalization
threshold and the liquidity threshold are each reviewed from time to time based
on market conditions. Rebalancing occurs on the third Friday of the quarter
ending month. The S&P TMI tracks all eligible U.S. common equities listed on
the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select Market, NASDAQ Select
Market, Investors Exchange (IEX), NASDAQ Capital Market, Cboe BZX, Cboe BYX,
Cboe EDGA, or Cboe EDGX exchanges. The Index is modified equal weighted. As of
July 31, 2020, the Index comprised 167 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Computer
Software/Services Companies Risk:
Computer
software/services companies can be significantly affected by competitive
pressures, aggressive pricing, technological developments, changing domestic
demand, the ability to attract and retain skilled employees and availability and
price of components. The market for products produced by computer
software/services companies is characterized by rapidly changing technology,
rapid product obsolescence, cyclical market patterns, evolving industry
standards and frequent new product introductions. The success of computer
software/services companies depends in substantial part on the timely and
successful introduction of new products and the ability to service such
products. An unexpected change in one or more of
the
technologies
affecting an issuer's products or in the market for products based on a
particular technology could have a material adverse effect on a participant's
operating results.
Many
computer software/services companies rely on a combination of patents,
copyrights, trademarks and trade secret laws to establish and protect their
proprietary rights in their products and technologies. There can be no assurance
that the steps taken by computer software/services companies to protect their
proprietary rights will be adequate to prevent misappropriation of their
technology or that competitors will not independently develop technologies that
are substantially equivalent or superior to such companies' technology.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market
volatility
or
periods of steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The Fund will be
subject to credit risk with respect to the
counterparties
with which the Fund
enters into derivatives contracts, repurchase agreements, reverse repurchase
agreements, and other transactions. If a
counterparty
fails to meet its
contractual obligations, the Fund may be unable to terminate or realize any gain
on the investment or transaction, or to recover collateral posted to the
counterparty
, resulting in a
loss to the Fund. If the Fund holds collateral posted by its
counterparty
, it may be delayed
or prevented from realizing on the collateral in the event of a bankruptcy or
insolvency proceeding relating to the
counterparty
.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The
counterparty
to a derivatives
contract may be unable or unwilling to make timely settlement payments, return
the Fund's margin, or otherwise honor its obligations. A derivatives transaction
may not behave in the manner anticipated by the Adviser or may not have the
effect on the Fund anticipated by the Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the
Fund's
return
may not match the return of the Index. The Fund incurs a number of operating
expenses not applicable to the Index, and incurs costs in buying and selling
securities. In addition, the Fund may not be fully invested at times, generally
as a result of cash flows into or out of the Fund or reserves of cash held by
the Fund to meet redemptions. The Adviser may attempt to
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity Risk:
Lack of
a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
Technology
Sector Risk:
Market
or economic factors impacting technology companies and companies that rely
heavily on technological advances could have a major effect on the value of the
Fund's investments. The value of stocks of technology companies and companies
that rely heavily on technology is particularly vulnerable to rapid changes in
technology product cycles, rapid product obsolescence, government regulation and
competition, both domestically and internationally, including competition from
foreign competitors with lower production costs. Stocks of technology companies
and companies that rely heavily on technology, especially those of smaller,
less-seasoned companies, tend to be more volatile than the overall market.
Technology companies are heavily dependent on patent and intellectual property
rights, the loss or impairment of which may adversely affect profitability.
Additionally, companies in the technology sector may face dramatic and often
unpredictable changes in growth rates and competition for the services of
qualified
personnel.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling 1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 25.62% (Q1, 2019)
Lowest
Quarterly Return: -17.08% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was 17.90%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Since
Inception (9/28/11)
|
Return
Before Taxes |
35.54% |
17.21% |
19.74% |
Return
After Taxes on Distributions |
35.50% |
17.07% |
19.38% |
Return
After Taxes on Distributions and Sale of Fund Shares |
21.06% |
13.92% |
16.60% |
S&P
Software & Services Select Industry Index (reflects no deduction for
fees, expenses or taxes) |
35.93% |
17.49% |
20.07% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
15.71% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Melissa Kapitulik.
Michael Feehily,
CFA, is a Senior Managing Director of the Adviser and the Head of Global Equity
Beta Solutions in the Americas. He worked at the Adviser from 1997 to 2006 and
rejoined in 2010.
Karl Schneider,
CAIA, is a Managing Director of the Adviser and Deputy Head of Global Equity
Beta Solutions in the Americas. He joined the Adviser in 1997.
Melissa Kapitulik is
a Vice President of the Adviser and a Senior Portfolio Manager in the Global
Equity Beta Solutions Group. She joined the Adviser in 2006.
Purchase and Sale
Information
The Fund will issue
(or redeem) Fund Shares to certain institutional investors (typically market
makers or other broker-dealers) only in large blocks of Fund Shares known as
“Creation Units.” Creation Unit transactions are conducted in exchange for the
deposit or delivery of a designated portfolio of in-kind securities and/or
cash.
Individual Fund
Shares may only be purchased and sold on the NYSE Arca, Inc., other national
securities exchanges, electronic crossing networks and other alternative trading
systems through your broker-dealer at market prices. Because Fund Shares trade
at market prices rather than at net asset value (“NAV”), Fund Shares may trade
at a price greater than NAV (premium) or less than NAV (discount). When buying
or selling Fund Shares in the secondary market,
you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Telecom ETF (the “Fund”) seeks to provide
investment results that, before fees and expenses, correspond generally to
the total return performance of an index derived from the
telecommunications segment of a U.S. total market composite
index. |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 44% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of the S&P Telecom Select Industry Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of
derivative
instrument)
may be used by the Fund in seeking performance that corresponds to the Index and
in managing cash
flows.
The
Index represents the telecommunications segment of the S&P Total Market
Index (“S&P TMI”). The S&P TMI is designed to track the broad U.S.
equity market. The telecommunications segment of the S&P TMI comprises the
following sub-industries: Alternative Carriers, Communications Equipment,
Integrated Telecommunication Services, and Wireless Telecommunication Services.
The Index is one of twenty-one (21) of the S&P Select Industry Indices (the
“Select Industry Indices”), each designed to measure the performance of a narrow
sub-industry or group of sub-industries determined based on the Global Industry
Classification Standard (“GICS”). Membership in the Select Industry Indices is
based on the GICS classification, as well as liquidity and market cap
requirements. Companies in the Select Industry Indices are classified according
to GICS which determines classifications primarily based on revenues; however,
earnings and market perception are also considered. The Index consists of the
S&P TMI constituents belonging to the Alternative Carriers, Communications
Equipment, Integrated Telecommunication Services, and Wireless Telecommunication
Services sub-industries that satisfy the following criteria: (i) have a
float-adjusted market capitalization greater than or equal to $500 million with
a float-adjusted liquidity ratio (defined by dollar value traded over the
previous 12 months divided by the float-adjusted market capitalization as of the
index rebalancing reference date) greater than or equal to 90% or have a
float-adjusted market capitalization greater than or equal to $400 million with
a float-adjusted liquidity ratio (as defined above) greater than or equal to
150%; and (ii) are U.S. based companies. The length of time to evaluate
liquidity is reduced to the available trading period for initial public
offerings or spin-offs that do not have 12 months of trading history. The market
capitalization threshold may be relaxed to ensure that there are at least 22
stocks in the Index as of the rebalancing effective date. Existing Index
constituents are removed at the quarterly rebalancing effective date if either
their float-adjusted market capitalization falls below $300 million or their
float-adjusted liquidity ratio falls below 50%. The market capitalization
threshold and the liquidity threshold are each reviewed from time to time based
on market conditions. Rebalancing occurs on the third Friday of the quarter
ending month. The S&P TMI tracks all eligible U.S. common equities listed on
the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select Market, NASDAQ Select
Market, Investors Exchange (IEX), NASDAQ Capital Market, Cboe BZX, Cboe BYX,
Cboe EDGA, or Cboe EDGX exchanges. The Index is modified equal weighted. As of
July 31, 2020, the Index comprised 43 stocks.
Should
the Index not contain the required minimum of 35 qualifying companies, it may
contain members of the Communications Equipment sub-industry.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Telecommunications
Sector Risk:
The
telecommunications industry is subject to extensive government regulation. The
costs of complying with governmental regulations, delays or failure to receive
required regulatory approvals or the enactment of new adverse regulatory
requirements may adversely affect the business of the telecommunications
companies. The telecommunications industry can also be significantly affected by
intense
competition,
including competition with alternative technologies such as wireless
communications, product compatibility, consumer preferences, rapid product
obsolescence and research and development of new products. Technological
innovations may make the products and services of telecommunications companies
obsolete. Other risks include uncertainties resulting from such companies'
diversification into new domestic and international businesses, as well as
agreements by any such companies linking future rate increases to inflation or
other factors not directly related to the actual operating profits of the
enterprise.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The Fund will be
subject to credit risk with respect to the
counterparties
with which the Fund
enters into derivatives contracts, repurchase agreements, reverse repurchase
agreements, and other transactions. If a
counterparty
fails to meet its
contractual obligations, the Fund may be unable to terminate or realize any gain
on the investment or transaction, or to recover collateral posted to the
counterparty
, resulting in a
loss to the Fund. If the Fund holds collateral posted by its
counterparty
, it may be delayed
or prevented from realizing on the collateral in the event of a bankruptcy or
insolvency proceeding relating to the
counterparty
.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The
counterparty
to a derivatives
contract may be unable or unwilling to make timely settlement payments, return
the Fund's margin, or otherwise honor its obligations. A derivatives transaction
may not behave in the manner anticipated by the Adviser or may not have the
effect on the Fund anticipated by the Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity
Risk:
Lack of a ready
market or restrictions on resale may limit the ability of the Fund to sell a
security at an advantageous time or price or at all. Illiquid securities may
trade at a discount from comparable, more liquid investments and may be subject
to wide fluctuations in market value.
Illiquidity
of the Fund's
holdings may limit the ability of the Fund to obtain cash to meet
redemptions
on a timely basis.
In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of
more
diversified funds.
The Fund may become non-diversified for periods of time solely as a result of
changes in the composition of the Index (e.g., changes in weightings of one or
more component securities).
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 12.81% (Q3, 2016)
Lowest
Quarterly Return: -17.11% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -2.86%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Since
Inception (1/26/11)
|
Return
Before Taxes |
12.05% |
5.47% |
5.08% |
Return
After Taxes on Distributions |
11.80% |
5.02% |
4.68% |
Return
After Taxes on Distributions and Sale of Fund Shares |
7.30% |
4.16% |
3.93% |
S&P
Telecom Select Industry Index (reflects no deduction for fees, expenses or
taxes) |
12.39% |
5.43% |
5.21% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.11% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Michael Finocchi.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Michael
Finocchi is a Principal of the Adviser and a Portfolio Manager in the Global
Equity Beta Solutions Group. He joined the Adviser in 2005.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary
market,
you may incur costs attributable to the difference between the highest price a
buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a
seller is willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR S&P Transportation ETF (the “Fund”) seeks to
provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index derived from the
transportation segment of a U.S. total market composite
index. |
Fees and
Expenses of the Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.35% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.35% |
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell all of your Fund Shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the Fund's
operating expenses remain the same. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$36 |
$113 |
$197 |
$443 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 29% of the average value of its
portfolio.
The
Fund's Principal Investment Strategy
In seeking to track
the performance of the S&P Transportation Select Industry Index (the
“Index”), the Fund employs a sampling strategy, which means that the Fund is not
required to purchase all of the securities represented in the Index. Instead,
the Fund may purchase a subset of the securities in the Index in an effort to
hold a portfolio of securities with generally the same risk and return
characteristics of the Index. The quantity of holdings in the Fund will be based
on a number of factors, including asset size of the Fund. Based on its analysis
of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the “Adviser”), the
investment adviser to the Fund, either may invest the Fund's assets in a subset
of securities in the Index or may invest the Fund's assets in substantially all
of the securities represented in the Index in approximately the same proportions
as the Index, as determined by the Adviser to be in the best interest of the
Fund in pursuing its objective. The Fund is classified as “diversified”
under the Investment Company Act of 1940, as amended; however, the Fund may
become “non-diversified” solely as a result of tracking the Index (e.g., changes
in weightings of one or more component securities). When the Fund is
non-diversified, it may invest a relatively high percentage of its assets in a
limited number of issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of
derivative
instrument)
may be used by the Fund in seeking performance that corresponds to the Index and
in managing cash
flows.
The
Index represents the transportation segment of the S&P Total Market Index
(“S&P TMI”). The S&P TMI is designed to track the broad U.S. equity
market. The transportation segment of the S&P TMI comprises the following
sub-industries: Air Freight & Logistics, Airlines, Airport Services,
Highways & Rail Tracks, Marine, Marine Ports & Services, Railroads, and
Trucking. The Index is one of twenty-one (21) of the S&P Select Industry
Indices (the “Select Industry Indices”), each designed to measure the
performance of a narrow sub-industry or group of sub-industries determined based
on the Global Industry Classification Standard (“GICS”). Membership in the
Select Industry Indices is based on the GICS classification, as well as
liquidity and market cap requirements. Companies in the Select Industry Indices
are classified according to GICS which determines classifications primarily
based on revenues; however, earnings and market perception are also considered.
The Index consists of the S&P TMI constituents belonging to the Air Freight
& Logistics, Airlines, Airport Services, Highways & Rail Tracks, Marine,
Marine Ports & Services, Railroads, and Trucking sub-industries that satisfy
the following criteria: (i) have a float-adjusted market capitalization greater
than or equal to $500 million with a float-adjusted liquidity ratio (defined by
dollar value traded over the previous 12 months divided by the float-adjusted
market capitalization as of the index rebalancing reference date) greater than
or equal to 90% or have a float-adjusted market capitalization greater than or
equal to $400 million with a float-adjusted liquidity ratio (as defined above)
greater than or equal to 150%; and (ii) are U.S. based companies. The length of
time to evaluate liquidity is reduced to the available trading period for
initial public offerings or spin-offs that do not have 12 months of trading
history. The market capitalization threshold may be relaxed to ensure that there
are at least 22 stocks in the Index as of the rebalancing effective date.
Existing Index constituents are removed at the quarterly rebalancing effective
date if either their float-adjusted market capitalization falls below $300
million or their float-adjusted liquidity ratio falls below 50%. The market
capitalization threshold and the liquidity threshold are each reviewed from time
to time based on market conditions. Rebalancing occurs on the third Friday of
the quarter ending month. The S&P TMI tracks all eligible U.S. common
equities listed on the NYSE, NYSE Arca, NYSE American, NASDAQ Global Select
Market, NASDAQ Select Market, Investors Exchange (IEX), NASDAQ Capital Market,
Cboe BZX, Cboe BYX, Cboe EDGA, or Cboe EDGX exchanges. The Index is modified
equal weighted. As of July 31, 2020, the Index comprised 42 stocks.
The
Index is sponsored by S&P Dow Jones Indices LLC (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal
Risks of Investing in the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund.
An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Transportation
Companies Risk:
Transportation
companies can be significantly affected by changes in the economy, fuel prices,
labor relations, technology developments, exchange rates, insurance costs,
industry competition and government regulation.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times
when
the market price of the shares is more than the net asset value per share
(premium) or less than the net asset value per share (discount). This risk is
heightened in times of market volatility or periods of steep market
declines.
Concentration
Risk:
When
the Fund focuses its investments in a particular industry or sector, financial,
economic, business, and other developments affecting issuers in that industry,
market, or economic sector will have a greater effect on the Fund than if it had
not done so.
Counterparty
Risk:
The Fund will be
subject to credit risk with respect to the
counterparties
with which the Fund
enters into derivatives contracts, repurchase agreements, reverse repurchase
agreements, and other transactions. If a
counterparty
fails to meet its
contractual obligations, the Fund may be unable to terminate or realize any gain
on the investment or transaction, or to recover collateral posted to the
counterparty
, resulting in a
loss to the Fund. If the Fund holds collateral posted by its
counterparty
, it may be delayed
or prevented from realizing on the collateral in the event of a bankruptcy or
insolvency proceeding relating to the
counterparty
.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The
counterparty
to a derivatives
contract may be unable or unwilling to make timely settlement payments, return
the Fund's margin, or otherwise honor its obligations. A derivatives transaction
may not behave in the manner anticipated by the Adviser or may not have the
effect on the Fund anticipated by the Adviser.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may be required to distribute any such gains to its shareholders to avoid
adverse federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
,
achieve a high degree of correlation with the Index), the Fund's return may not
match the return of the Index. The Fund incurs a number of operating expenses
not applicable to the Index, and incurs costs in buying and selling securities.
In addition, the Fund may not be fully invested at times, generally as a result
of cash flows into or out of the Fund or reserves of cash held by the Fund to
meet redemptions. The Adviser may attempt to
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Industrial
Sector Risk:
Industrial
companies are affected by supply and demand both for their specific product or
service and for industrial sector products in general. Government regulation,
world events, exchange rates and economic conditions, technological developments
and liabilities for environmental damage and general civil liabilities will
likewise affect the performance of these companies. Aerospace and defense
companies, a component of the industrial sector, can be significantly affected
by government spending policies because companies involved in this industry
rely, to a significant extent, on U.S. and foreign government demand for their
products and services. Thus, the financial condition of, and investor interest
in, aerospace and defense companies are heavily influenced by governmental
defense spending policies which are typically under pressure from efforts to
control the U.S. (and other) government budgets. Transportation securities, a
component of the industrial sector, are cyclical and have occasional sharp price
movements which may result from changes in the economy, fuel prices, labor
agreements and insurance costs.
Liquidity
Risk:
Lack of a ready
market or restrictions on resale may limit the ability of the Fund to sell a
security at an advantageous time or price or at all. Illiquid securities may
trade at a discount from comparable, more liquid investments and may be subject
to wide fluctuations in market value.
Illiquidity
of the Fund's
holdings may limit the ability of the Fund to obtain cash to meet
redemptions
on a timely basis.
In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more diversified funds. The Fund may
become non-diversified for periods of time solely as a result of changes in the
composition of the Index (e.g., changes in weightings of one or more component
securities).
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 21.72% (Q1, 2013)
Lowest
Quarterly Return: -19.88% (Q4, 2018)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was -9.22%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes.
Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts.
The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Since
Inception (1/26/11)
|
Return
Before Taxes |
21.61% |
4.46% |
11.81% |
Return
After Taxes on Distributions |
21.25% |
4.23% |
11.62% |
Return
After Taxes on Distributions and Sale of Fund Shares |
13.02% |
3.43% |
9.75% |
S&P
Transportation Select Industry Index (reflects no deduction for fees,
expenses or taxes) |
22.05% |
4.80% |
12.20% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.11% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Michael Finocchi.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Michael
Finocchi is a Principal of the Adviser and a Portfolio Manager in the Global
Equity Beta Solutions Group. He joined the Adviser in 2005.
Purchase and Sale
Information
The
Fund will issue (or redeem) Fund Shares to certain institutional investors
(typically market makers or other broker-dealers) only in large blocks of Fund
Shares known as “Creation Units.” Creation Unit transactions are conducted in
exchange for the deposit or delivery of a designated portfolio of in-kind
securities and/or cash.
Individual Fund
Shares may only be purchased and sold on the NYSE Arca, Inc., other national
securities exchanges, electronic crossing networks and other alternative trading
systems through your broker-dealer at market prices. Because Fund Shares trade
at market prices rather than at net asset value (“NAV”), Fund Shares may trade
at a price greater than NAV (premium) or less than NAV (discount). When buying
or selling Fund Shares in the secondary
market,
you may incur costs attributable to the difference between the highest price a
buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a
seller is willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Investment
Objective |
The SPDR Wells Fargo Preferred Stock ETF (the “Fund”) seeks
to provide investment results that, before fees and expenses, correspond
generally to the total return performance of an index based upon Preferred
Securities (as defined
below). |
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you may pay if you buy, hold
and sell shares of the Fund (“Fund Shares”).
You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and Example
below.
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
Management
fees |
0.45% |
Distribution
and service (12b-1) fees |
None |
Other
expenses |
0.00% |
Total
annual Fund operating expenses |
0.45% |
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then sell all of your
Fund Shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Year 1 |
Year 3 |
Year 5 |
Year 10 |
$46 |
$144 |
$252 |
$567 |
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
Shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 36% of the average value of its
portfolio.
The Fund's Principal Investment
Strategy
In seeking to track
the performance of Wells Fargo Hybrid and Preferred Securities Aggregate
Index (the “Index”), the Fund employs a sampling strategy, which means that
the Fund is not required to purchase all of the securities represented in the
Index. Instead, the Fund may purchase a subset of the securities in the Index in
an effort to hold a portfolio of securities with generally the same risk and
return characteristics of the Index. The quantity of holdings in the Fund will
be based on a number of factors, including asset size of the Fund. Based on its
analysis of these factors, SSGA Funds Management, Inc. (“SSGA FM” or the
“Adviser”) either may invest the Fund's assets in a subset of securities in the
Index or may invest the Fund's assets in substantially all of the securities
represented in the Index in approximately the same proportions as the Index, as
determined by the Adviser to be in the best interest of the Fund in pursuing its
objective. The Fund is classified as “diversified” under the Investment
Company Act of 1940, as amended; however, the Fund may become “non-diversified”
solely as a result of tracking the Index (e.g., changes in weightings of one or
more component securities). When the Fund is non-diversified, it may invest a
relatively high percentage of its assets in a limited number of
issuers.
Under normal market
conditions, the Fund generally invests substantially all, but at least 80%, of
its total assets in the securities comprising the Index. In addition, in
seeking to track the Index, the Fund may invest in equity securities that are
not included in the Index, cash and cash equivalents or money market
instruments, such as repurchase agreements and money market funds (including
money market funds advised by the Adviser). In seeking to track
the
265
Index, the Fund's
assets will generally be concentrated in an industry or group of industries to
the extent that the Index concentrates in a particular industry or group of
industries. Futures contracts (a type of
derivative
instrument)
may be used by the Fund in seeking performance that corresponds to the Index and
in managing cash
flows.
The
Index is a modified market capitalization weighted index designed to measure the
performance of non-convertible preferred stock and securities that are
functionally equivalent to preferred stock, including, but not limited to,
depositary preferred securities, perpetual subordinated debt and certain
securities issued by banks and other financial institutions that are eligible
for capital treatment with respect to such instruments akin to that received for
issuance of straight preferred stock (collectively, “Preferred Securities”).
Preferred Securities generally pay fixed rate distributions and typically have
“preference” over common stock in the payment of distributions and the
liquidation of a company's assets — preference means that a company must pay
distributions on its Preferred Securities before paying dividends on its common
stock, and the claims of Preferred Securities holders are ahead of common
stockholders' claims on assets in a corporate liquidation. The Index includes
Preferred Securities that meet the following criteria: (i) are non-convertible;
(ii) have a par amount of $25; (iii) are listed on the New York Stock Exchange
or NYSE Arca, Inc. (“NYSE Arca”); (iv) maintain a minimum par value of $250
million; (v) are U.S. dollar denominated; (vi) are rated investment grade by one
of Moody's Investors Service, Inc. or Standard & Poor's Financial Services,
LLC ratings services; (vii) are publicly registered or exempt from registration
under the Securities Act of 1933; and (viii) have a minimum monthly trading
volume during each of the last six months of at least 250,000 trading units. The
Index does not include auction rate preferred securities, convertible preferred
shares, securities subject to sinking fund provisions, shares in closed-end
funds, municipal securities, or repackaged securities linked to a security, a
basket of securities or an index. The Index is rebalanced monthly, on the final
NYSE Arca trading day of each month. Issuers of Preferred Securities may be
either U.S. based or foreign. As of July 31, 2020, a significant portion of the
Fund comprised companies in the financial and utilities sectors, although
this may change from time to time. As of July 31, 2020, the Index comprised 163
Preferred Securities.
The
Index is sponsored by Wells Fargo & Company (the “Index Provider”),
which is not affiliated with the Fund or the Adviser. The Index Provider
determines the composition of the Index, relative weightings of the securities
in the Index and publishes information regarding the market value of the
Index.
Principal Risks of Investing in
the Fund
As with
all investments, there are certain risks of investing in the Fund. Fund Shares
will change in value, and you could lose money by investing in the
Fund. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Market
Risk:
The
Fund's investments are subject to changes in general economic conditions,
general market fluctuations and the risks inherent in investment in securities
markets. Investment markets can be volatile and prices of investments can change
substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or
perceived creditworthiness of issuers, and general market liquidity. The Fund is
subject to the risk that geopolitical events will disrupt securities markets and
adversely affect global economies and markets. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on the Fund and
its investments.
Equity
Investing Risk:
The
market prices of equity securities owned by the Fund may go up or down,
sometimes rapidly or unpredictably. The value of a security may decline for a
number of reasons that may directly relate to the issuer and also may decline
due to general industry or market conditions that are not specifically related
to a particular company. In addition, equity markets tend to move in cycles,
which may cause stock prices to fall over short or extended periods of
time.
Preferred
Securities Risk:
Generally,
Preferred Security holders have no or limited voting rights with respect to the
issuing company. In addition, Preferred Securities are subordinated to bonds and
other debt instruments in a company's capital structure and therefore will be
subject to greater credit risk than those debt instruments. Dividend payments on
a Preferred Security typically must be declared by the issuer's board of
directors. In the event an issuer of Preferred Securities experiences economic
difficulties, the issuer's Preferred Securities may lose substantial value due
to the reduced likelihood that the issuer's board of directors will declare a
dividend and the fact that the Preferred Security may be subordinated to other
securities of the same issuer. Further, because many Preferred Securities pay
dividends at a fixed rate, their market price can be sensitive to changes in
interest rates in a manner similar to bonds — that is, as interest rates rise,
the value of the Preferred Securities held by the Fund are likely to decline. In
addition, because many Preferred Securities allow holders to convert the
Preferred Securities into common stock of the issuer, their market price can be
sensitive to changes in the value of the issuer's common stock and, therefore,
declining common stock values may also cause the value of the
Fund's
investments
to decline. Preferred securities often have call features which allow the issuer
to redeem the security at its discretion. The redemption of a Preferred Security
having a higher than average yield may cause a decrease in the Fund's
yield.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk:
As
with all exchange-traded funds, Fund Shares may be bought and sold in the
secondary market at market prices. The trading prices of Fund Shares in the
secondary market may differ from the Fund's daily net asset value per share and
there may be times when the market price of the shares is more than the net
asset value per share (premium) or less than the net asset value per share
(discount). This risk is heightened in times of market volatility or periods of
steep market declines.
Counterparty
Risk:
The Fund will be
subject to credit risk with respect to the
counterparties
with which the Fund
enters into derivatives contracts, repurchase agreements, reverse repurchase
agreements, and other transactions. If a
counterparty
fails to meet its
contractual obligations, the Fund may be unable to terminate or realize any gain
on the investment or transaction, or to recover collateral posted to the
counterparty
, resulting in a
loss to the Fund. If the Fund holds collateral posted by its
counterparty
, it may be delayed
or prevented from realizing on the collateral in the event of a bankruptcy or
insolvency proceeding relating to the
counterparty
.
Depositary
Receipts Risk:
Investments
in depositary receipts may be less liquid and more volatile than the underlying
securities in their primary trading market. If a depositary receipt is
denominated in a different currency than its underlying securities, the Fund
will be subject to the currency risk of both the investment in the depositary
receipt and the underlying security. Holders of depositary receipts may have
limited or no rights to take action with respect to the underlying securities or
to compel the issuer of the receipts to take action. The prices of depositary
receipts may differ from the prices of securities upon which they are based. To
the extent the Fund invests in depositary receipts based on securities included
in the Index, such differences in prices may increase index tracking
risk.
Derivatives
Risk:
Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a derivative transaction will result in a much greater loss
than the principal amount invested, and the Fund may not be able to close out a
derivative transaction at a favorable time or price. The
counterparty
to a derivatives
contract may be unable or unwilling to make timely settlement payments, return
the Fund's margin, or otherwise honor its obligations. A derivatives transaction
may not behave in the manner anticipated by the Adviser or may not have the
effect on the Fund anticipated by the Adviser.
Financial
Sector Risk:
Financial
services companies are subject to extensive governmental regulation which may
limit both the amounts and types of loans and other financial commitments they
can make, the interest rates and fees they can charge, the scope of their
activities, the prices they can charge and the amount of capital they must
maintain. Profitability is largely dependent on the availability and cost of
capital funds and can fluctuate significantly when interest rates change or due
to increased competition. In addition, deterioration of the credit markets
generally may cause an adverse impact in a broad range of markets, including
U.S. and international credit and interbank money markets generally, thereby
affecting a wide range of financial institutions and markets. Certain events in
the financial sector may cause an unusually high degree of volatility in the
financial markets, both domestic and foreign, and cause certain financial
services companies to incur large losses. Securities of financial services
companies may experience a dramatic decline in value when such companies
experience substantial declines in the valuations of their assets, take action
to raise capital (such as the issuance of debt or equity securities), or cease
operations. Credit losses resulting from financial difficulties of borrowers and
financial losses associated with investment activities can negatively impact the
sector. Insurance companies may be subject to severe price competition. Adverse
economic, business or political developments could adversely affect financial
institutions engaged in mortgage finance or other lending or investing
activities directly or indirectly connected to the value of real
estate.
Indexing
Strategy/Index Tracking Risk:
The
Fund is managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of the actual securities comprising the
Index. This differs from an actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed using an active investment strategy.
The structure and composition of the Index will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. When there are changes made to the component
securities of the Index and the Fund in turn makes similar changes to its
portfolio, any transaction costs and market exposure arising from such portfolio
changes will be borne directly by the Fund and its shareholders. The Fund may
recognize gains as a result of rebalancing or reconstituting its securities
holdings to reflect changes in the securities included in the Index. The Fund
also may
be
required to distribute any such gains to its shareholders to avoid adverse
federal income tax consequences. While the Adviser seeks to track the
performance of the Index (
, achieve a
high degree of correlation with the Index), the Fund's return may not match the
return of the Index. The Fund incurs a number of operating expenses not
applicable to the Index, and incurs costs in buying and selling securities. In
addition, the Fund may not be fully invested at times, generally as a result of
cash flows into or out of the Fund or reserves of cash held by the Fund to meet
redemptions. The Adviser may attempt to
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return and that of the Index.
Liquidity
Risk:
Lack
of a ready market or restrictions on resale may limit the ability of the Fund to
sell a security at an advantageous time or price or at all. Illiquid securities
may trade at a discount from comparable, more liquid investments and may be
subject to wide fluctuations in market value. Illiquidity of the Fund's holdings
may limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to limitations on investments in any illiquid
securities and/or the difficulty in purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Non-Diversification
Risk:
To
the extent the Fund becomes “non-diversified,” the Fund may hold a smaller
number of portfolio securities than many other funds. To the extent the Fund
invests in a relatively small number of issuers, a decline in the market value
of a particular security held by the Fund may affect its value more than if it
invested in a larger number of issuers. The value of Fund Shares may be more
volatile than the values of shares of more
diversified
funds. The Fund may become non-diversified for periods of time solely as a
result of changes in the composition of the Index (e.g., changes in weightings
of one or more component securities).
Non-U.S.
Securities Risk:
Non-U.S.
securities (including depositary receipts) are subject to political,
regulatory, and economic risks not present in domestic investments. There may be
less information publicly available about a non-U.S. entity than about a U.S.
entity, and many non-U.S. entities are not subject to accounting, auditing,
legal and financial report standards comparable to those in the United States.
Further, such entities and/or their securities may be subject to risks
associated with currency controls; expropriation; changes in tax policy; greater
market volatility; differing securities market structures; higher transaction
costs; and various administrative difficulties, such as delays in clearing and
settling portfolio transactions or in receiving payment of dividends. To the
extent underlying securities held by the Fund trade on foreign exchanges that
are closed when the exchange on which the Fund's shares trade is open, there may
be deviations between the current price of an underlying security and the last
quoted price for the underlying security on the closed foreign market. These
deviations could result in the Fund experiencing premiums or discounts greater
than those of ETFs that invest in domestic securities. Securities traded on
foreign markets may be less liquid (harder to sell) than securities traded
domestically. Foreign governments may impose restrictions on the repatriation of
capital to the U.S. In addition, to the extent that the Fund buys
securities denominated in a foreign currency, there are special risks such as
changes in currency exchange rates and the risk that a foreign government could
regulate foreign exchange transactions. In addition, to the extent investments
are made in a limited number of countries, events in those countries will have a
more significant impact on the Fund. Investments in depositary receipts may be
less liquid and more volatile than the underlying shares in their primary
trading market.
Unconstrained
Sector Risk:
The
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. Greater investment
focus on one or more sectors or industries increases the potential for
volatility and the risk that events negatively affecting such sectors or
industries could reduce returns, potentially causing the value of the Fund's
Shares to decrease, perhaps significantly.
Utilities
Sector Risk:
Utility
companies are affected by supply and demand, operating costs, government
regulation, environmental factors, liabilities for environmental damage and
general civil liabilities, and rate caps or rate changes. Although rate changes
of a utility usually fluctuate in approximate correlation with financing costs,
due to political and regulatory factors rate changes ordinarily occur only
following a delay after the changes in financing costs. This factor will tend to
favorably affect a regulated utility company's earnings and dividends in times
of decreasing costs, but conversely, will tend to adversely affect earnings and
dividends when costs are rising. The value of regulated utility debt securities
(and, to a lesser extent, equity securities) may tend to have an inverse
relationship to the movement of interest rates. Certain utility companies have
experienced full or partial deregulation in recent years. These utility
companies are frequently more similar to industrial companies in that they are
subject to greater competition and have been permitted by regulators to
diversify outside of their original geographic regions and their traditional
lines of business. These opportunities may permit certain utility companies to
earn more than their traditional regulated rates of return. Some companies,
however, may be forced to defend
their
core business and may be less profitable. In addition, natural disasters,
terrorist attacks, government intervention or other factors may render a utility
company's equipment unusable or obsolete and negatively impact
profitability.
Among
the risks that may affect utility companies are the following: risks of
increases in fuel and other operating costs; the high cost of borrowing to
finance capital construction during inflationary periods; restrictions on
operations and increased costs and delays associated with compliance with
environmental and nuclear safety regulations; and the difficulties involved in
obtaining natural gas for resale or fuel for generating electricity at
reasonable prices. Other risks include those related to the construction and
operation of nuclear power plants, the effects of energy conservation and the
effects of regulatory
changes.
The
following bar chart and table provide an indication of the risks of investing in
the Fund by showing changes in the Fund's performance from year to year and by
showing how the Fund's average annual returns for certain time periods compare
with the average annual returns of the Index and of a relevant broad-based
securities index.
The
Fund's past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated
performance information is available by calling
1-866-787-2257
or visiting our website at
https://www.ssga.com/spdrs
.
Annual
Total Returns
(years
ended 12/31)*
Highest
Quarterly Return: 10.56% (Q3, 2010)
Lowest
Quarterly Return: -5.63% (Q4, 2016)
* |
As
of 9/30/2020, the Fund's
Calendar Year-To-Date
return was 1.98%. |
Average
Annual Total Returns
(for
periods ended 12/31/19)
The
after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Your
actual after-tax returns will depend on your specific tax situation and may
differ from those shown below. After-tax returns are not relevant to investors
who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans
or individual retirement accounts. The
returns after taxes can exceed the returns before taxes due to an assumed tax
benefit for a shareholder from realizing a capital loss on a sale of Fund
Shares.
|
One Year |
Five Years |
Ten Years |
Return
Before Taxes |
17.36% |
5.89% |
6.75% |
Return
After Taxes on Distributions |
15.26% |
3.95% |
4.67% |
Return
After Taxes on Distributions and Sale of Fund Shares |
10.73% |
3.90% |
4.57% |
Wells
Fargo Hybrid and Preferred Securities Aggregate Index (reflects no
deduction for fees, expenses or taxes) |
17.74% |
6.25% |
7.02% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
31.49% |
11.70% |
13.56% |
SSGA
FM serves as the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Michael Feehily, Karl Schneider and Amy Scofield.
Michael
Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of
Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997
to 2006 and rejoined in 2010.
Karl
Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global
Equity Beta Solutions in the Americas. He joined the Adviser in 1997.
Amy
Scofield is a Principal of the Adviser and a Portfolio Manager in the Global
Equity Beta Solutions Group. She joined the Adviser in 2010.
Purchase and Sale
Information
The Fund will issue
(or redeem) Fund Shares to certain institutional investors (typically market
makers or other broker-dealers) only in large blocks of Fund Shares known as
“Creation Units.” Creation Unit transactions are conducted in exchange for the
deposit or delivery of a designated portfolio of in-kind securities and/or
cash.
Individual
Fund Shares may only be purchased and sold on the NYSE Arca, Inc., other
national securities exchanges, electronic crossing networks and other
alternative trading systems through your broker-dealer at market prices. Because
Fund Shares trade at market prices rather than at net asset value (“NAV”), Fund
Shares may trade at a price greater than NAV (premium) or less than NAV
(discount). When buying or selling Fund Shares in the secondary market, you may
incur costs attributable to the difference between the highest price a buyer is
willing to pay to purchase Fund Shares (bid) and the lowest price a seller is
willing to accept for Fund Shares (ask) (the “bid-ask spread”). Recent
information regarding the Fund's NAV, market price, premiums and discounts, and
bid-ask spreads is available at
https://www.ssga.com/spdrs
.
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are investing through a
tax-advantaged arrangement, such as a 401(k) plan or individual retirement
account. Any withdrawals made from such tax-advantaged arrangement may be
taxable to you.
Payments to Broker-Dealers and
Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other financial intermediary
(such as a bank), the Adviser or its affiliates may pay the financial
intermediary for certain activities related to the Fund, including educational
training programs, conferences, the development of technology platforms and
reporting systems, or other services related to the sale or promotion of the
Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
General
.
Please see each Fund's “The Fund's Principal Investment Strategy” section
under “Fund Summaries” above for a complete discussion of each Fund's principal
investment strategies. A Fund may invest in various types of securities and
engage in various investment techniques which are not the principal focus of the
Fund and therefore are not described in this Prospectus. These securities,
techniques and practices, together with their risks, are described in the
Statement of Additional Information (the “SAI”), which you may obtain free of
charge by contacting shareholder services (see the back cover of this Prospectus
for the address and phone number).
The
Adviser seeks to track the performance of each Fund's Index as closely as
possible
., obtain a
high degree of correlation with the Index). A number of factors may
affect a Fund's ability to achieve a high degree of correlation with its
Index, and there can be no guarantee that a Fund will achieve a high degree
of correlation. For example, a Fund may not be able to achieve a high
degree of correlation with its Index when there are practical difficulties or
substantial costs involved in compiling a portfolio of securities to follow the
Index, when a security in the Index becomes temporarily illiquid, unavailable or
less liquid, or legal restrictions exist that prohibit the Fund from investing
in a security in the Index.
The
Adviser will utilize a sampling strategy in managing the Funds. Sampling means
that the Adviser uses quantitative analysis to select securities, including
securities in the Index, outside of the Index and derivatives that have a
similar investment profile as the relevant Index in terms of key risk
factors, performance attributes and other economic characteristics. These
include industry weightings, market capitalization, and other financial
characteristics of securities. The quantity of holdings in a Fund will be based
on a number of factors, including asset size of the Fund. In addition, from time
to time, securities are added to or removed from each Index. The Adviser may
sell securities that are represented in an Index, or purchase securities that
are not yet represented in an Index, in anticipation of their removal from or
addition to an Index. Further, the Adviser may choose to overweight securities
in an Index, purchase or sell securities not in an Index, or utilize various
combinations of other available techniques, in seeking to track an Index.
Certain
of the Funds, as described in the SAI, have adopted a non-fundamental investment
policy to invest at least 80% of their respective net assets, plus the amount of
borrowings for investment purposes, in investments suggested by their respective
names, measured at the time of investment. A Fund will provide shareholders with
at least 60 days' notice prior to any change in this non-fundamental 80%
investment policy. The Board of Trustees of the Trust (the “Board”) may
change a Fund's investment strategy, Index and other policies without
shareholder approval, except as otherwise indicated in this Prospectus or in the
SAI. The Board may also change a Fund's investment objective without shareholder
approval.
Certain
Other Investments
.
Each Fund may invest in structured notes (notes on which the amount of principal
repayment and interest payments are based on the movement of one or more
specified factors such as the movement of a particular security or index),
swaps, options and futures contracts. Swaps, options and futures contracts and
structured notes may be used by a Fund in seeking performance that corresponds
to its Index and in managing cash flows.
Temporary
Defensive Positions
. In
certain situations or market conditions, a Fund may temporarily depart from its
normal investment policies and strategies, provided that the alternative is
consistent with the Fund's investment objective and is in the best interest of
the Fund. For example, a Fund may make larger than normal investments in
derivatives to maintain exposure to its Index if it is unable to invest directly
in a component security.
Borrowing
Money
.
Each Fund may borrow money from a bank as permitted by the Investment Company
Act of 1940, as amended (“1940 Act”), or other governing statute, by the Rules
thereunder, or by the U.S. Securities and Exchange Commission (“SEC”) or other
regulatory agency with authority over the Fund, but only for temporary or
emergency purposes. Each Fund may also invest in reverse repurchase
agreements, which are considered borrowings under the 1940 Act. Although the
1940 Act presently allows a Fund to borrow from any bank (including pledging,
mortgaging or
hypothecating
assets) in an amount up to 33
1
/
3
%
of its total assets (not including temporary borrowings not in excess of 5% of
its total assets), and there is no percentage limit on Fund assets that can be
used in connection with reverse repurchase agreements, under normal
circumstances any borrowings by a Fund will not exceed 10% of the Fund's total
assets.
Lending
of Securities
.
Each Fund may lend its portfolio securities in an amount not to exceed 40% of
the value of its net assets via a securities lending program through its
securities lending agent, State Street Bank and Trust Company (“State
Street” or the “Lending Agent”), to brokers, dealers and other financial
institutions desiring to borrow securities to complete transactions and for
other purposes. A securities lending program allows a Fund to receive a portion
of the income generated by lending its securities and investing the respective
collateral. A Fund will receive collateral for each loaned security which is at
least equal to the market value of that security, marked to market each trading
day. In the securities lending program, the borrower generally has the right to
vote the loaned securities; however, a Fund may call loans to vote proxies if a
material issue affecting the Fund's economic interest in the investment is to be
voted upon. Security loans may be terminated at any time by a Fund.
The
following section provides information regarding the principal risks identified
under “Principal Risks of Investing in the Fund” in each Fund Summary along with
additional risk information. Risk information is applicable to all Funds unless
otherwise noted.
The
tables below identify the principal risks of investing in each Fund.
|
|
SPDR
FactSet Innovative Technology ETF
|
|
SPDR
MSCI USA StrategicFactors ETF
|
|
SPDR
Portfolio S&P 1500 Composite Stock Market ETF
|
SPDR
Portfolio S&P 400 Mid Cap ETF
|
SPDR
Portfolio S&P 500 ETF
|
Aerospace and Defense
Companies Risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Biotechnology Companies
Risk |
|
|
|
|
|
|
|
|
Capital Markets Companies
Risk |
|
|
|
|
|
|
|
|
Clean Power Companies Risk
|
|
|
|
|
|
|
|
|
Communication Services
Sector Risk |
|
|
|
|
|
|
|
|
Computer Software/Services
Companies Risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Discretionary
Sector Risk |
|
|
|
|
|
|
|
|
Consumer Staples Sector
Risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPDR
FactSet Innovative Technology ETF
|
|
SPDR
MSCI USA StrategicFactors ETF
|
|
SPDR
Portfolio S&P 1500 Composite Stock Market ETF
|
SPDR
Portfolio S&P 400 Mid Cap ETF
|
SPDR
Portfolio S&P 500 ETF
|
Cybersecurity Companies
Risk |
|
|
|
|
|
|
|
|
Cybersecurity-Related Risk
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures Contract Risk;
Other Exchange-Traded Derivatives Risk |
|
|
|
|
|
|
|
|
Dividend Paying Securities
Risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronics Companies Risk
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Institutions
Risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluctuation of Net Asset
Value, Share Premiums and Discounts Risk |
|
|
|
|
|
|
|
|
Fossil Fuel Reserves Free
Ownership Risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Care Equipment
Companies Risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Care Services
Companies Risk |
|
|
|
|
|
|
|
|
Homebuilding Companies
Risk |
|
|
|
|
|
|
|
|
Indexing Strategy/Index
Tracking Risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infrastructure-Related
Companies Risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Large-Capitalization
Securities Risk |
|
|
|
|
|
|
|
|
Fund Name |
|
SPDR
FactSet Innovative Technology ETF
|
|
SPDR
MSCI USA StrategicFactors ETF
|
|
SPDR
Portfolio S&P 1500 Composite Stock Market ETF
|
SPDR
Portfolio S&P 400 Mid Cap ETF
|
SPDR
Portfolio S&P 500 ETF
|
Leveraging Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Liquidity Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Low Volatility Risk
|
|
|
|
x |
|
|
|
|
Market Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Materials Sector Risk
|
|
|
|
|
|
|
|
|
Metals and Mining
Companies Risk |
|
|
|
|
|
|
|
|
Mid-Capitalization
Securities Risk |
|
|
|
x |
|
|
x |
|
Momentum Risk |
|
|
|
|
|
|
|
|
New Economies Companies
Risk |
|
|
|
|
|
|
|
|
New Fund Risk |
|
|
|
|
|
|
|
|
Non-Diversification Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
Non-U.S. Securities Risk
|
|
|
x |
|
|
|
|
|
Oil and Gas Companies Risk
|
|
|
|
|
|
|
|
|
Pharmaceuticals Companies
Risk |
|
|
|
|
|
|
|
|
Preferred Securities Risk
|
|
|
|
|
|
|
|
|
Quality Risk |
|
|
|
x |
|
|
|
|
Real Estate Sector Risk
|
x |
|
|
|
|
|
|
|
REIT Risk |
x |
|
|
|
|
|
|
|
Retail Companies Risk
|
|
|
|
|
|
|
|
|
Semiconductor Companies
Risk |
|
|
|
|
|
|
|
|
Settlement Risk |
|
|
x |
|
|
|
|
|
Small-Capitalization
Securities Risk |
|
|
|
|
|
|
|
|
Technology Sector Risk
|
|
x |
|
x |
x |
x |
x |
x |
Electronic Media Companies
Risk |
|
x |
|
|
|
|
|
|
Telecommunications Sector
Risk |
|
|
|
|
|
|
|
|
Transportation Companies
Risk |
|
|
|
|
|
|
|
|
Unconstrained Sector Risk
|
|
|
x |
x |
|
x |
x |
x |
Utilities Sector Risk
|
|
|
|
|
|
|
|
|
Fund Name |
|
SPDR
FactSet Innovative Technology ETF
|
|
SPDR
MSCI USA StrategicFactors ETF
|
|
SPDR
Portfolio S&P 1500 Composite Stock Market ETF
|
SPDR
Portfolio S&P 400 Mid Cap ETF
|
SPDR
Portfolio S&P 500 ETF
|
Valuation Risk |
|
|
x |
x |
|
|
x |
|
Value Stock Risk |
|
|
|
x |
|
|
|
|
Fund Name |
SPDR
Portfolio S&P 500 Growth ETF
|
SPDR
Portfolio S&P 500 High Dividend ETF
|
SPDR
Portfolio S&P 500 Value ETF
|
SPDR
Portfolio S&P 600 Small Cap ETF
|
SPDR
Russell 1000 Low Volatility Focus ETF
|
SPDR
Russell 1000 Momentum Focus ETF
|
SPDR
Russell 1000 Yield Focus ETF
|
SPDR
S&P 1500 Momentum Tilt ETF
|
Aerospace and Defense
Companies Risk |
|
|
|
|
|
|
|
|
Banking Companies Risk
|
|
|
|
|
|
|
|
|
Biotechnology Companies
Risk |
|
|
|
|
|
|
|
|
Capital Markets Companies
Risk |
|
|
|
|
|
|
|
|
Clean Power Companies Risk
|
|
|
|
|
|
|
|
|
Communication Services
Sector Risk |
|
|
|
|
|
|
|
|
Computer Software/Services
Companies Risk |
|
|
|
|
|
|
|
|
Concentration Risk
|
|
|
|
|
|
|
|
|
Consumer Discretionary
Sector Risk |
x |
|
|
x |
x |
x |
x |
|
Consumer Staples Sector
Risk |
|
|
|
|
|
|
|
|
Counterparty Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
Currency Risk |
|
|
|
|
|
|
|
|
Cybersecurity Companies
Risk |
|
|
|
|
|
|
|
|
Cybersecurity-Related Risk
|
|
|
|
|
|
|
|
|
Depositary Receipts Risk
|
|
|
|
|
|
|
|
|
Derivatives Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Futures Contract Risk;
Other Exchange-Traded Derivatives Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Dividend Paying Securities
Risk |
|
x |
|
|
|
|
x |
|
Drone Companies Risk
|
|
|
|
|
|
|
|
|
Electronics Companies Risk
|
|
|
|
|
|
|
|
|
Emerging Markets Risk
|
|
|
|
|
|
|
|
|
Energy Sector Risk
|
|
|
|
|
|
|
|
|
Equity Investing Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
ESG Investing Risk
|
|
|
|
|
|
|
|
|
Financial Institutions
Risk |
|
|
|
|
|
|
|
|
Financial Sector Risk
|
|
x |
x |
x |
x |
|
|
|
Fluctuation of Net Asset
Value, Share Premiums and Discounts Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Fossil Fuel Reserves Free
Ownership Risk |
|
|
|
|
|
|
|
|
Growth Stock Risk
|
x |
|
|
|
|
|
|
|
Fund Name |
SPDR
Portfolio S&P 500 Growth ETF
|
SPDR
Portfolio S&P 500 High Dividend ETF
|
SPDR
Portfolio S&P 500 Value ETF
|
SPDR
Portfolio S&P 600 Small Cap ETF
|
SPDR
Russell 1000 Low Volatility Focus ETF
|
SPDR
Russell 1000 Momentum Focus ETF
|
SPDR
Russell 1000 Yield Focus ETF
|
SPDR
S&P 1500 Momentum Tilt ETF
|
Health Care Equipment
Companies Risk |
|
|
|
|
|
|
|
|
Health Care Sector Risk
|
|
|
x |
|
|
|
|
x |
Health Care Services
Companies Risk |
|
|
|
|
|
|
|
|
Homebuilding Companies
Risk |
|
|
|
|
|
|
|
|
Indexing Strategy/Index
Tracking Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Industrial Sector Risk
|
|
x |
|
x |
|
|
|
|
Infrastructure-Related
Companies Risk |
|
|
|
|
|
|
|
|
Insurance Companies Risk
|
|
|
|
|
|
|
|
|
Internet Segment Risk
|
|
|
|
|
|
|
|
|
Large-Capitalization
Securities Risk |
x |
x |
x |
|
x |
x |
x |
|
Leveraging Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Liquidity Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Low Volatility Risk
|
|
|
|
|
x |
|
|
|
Market Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Materials Sector Risk
|
|
|
|
|
|
|
|
|
Metals and Mining
Companies Risk |
|
|
|
|
|
|
|
|
Mid-Capitalization
Securities Risk |
|
|
|
|
|
|
|
|
Momentum Risk |
|
|
|
|
|
x |
|
x |
New Economies Companies
Risk |
|
|
|
|
|
|
|
|
New Fund Risk |
|
|
|
|
|
|
|
|
Non-Diversification Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
Non-U.S. Securities Risk
|
|
|
|
|
|
|
|
|
Oil and Gas Companies Risk
|
|
|
|
|
|
|
|
|
Pharmaceuticals Companies
Risk |
|
|
|
|
|
|
|
|
Preferred Securities Risk
|
|
|
|
|
|
|
|
|
Quality Risk |
|
|
|
|
x |
x |
x |
|
Real Estate Sector Risk
|
|
|
|
|
|
|
|
|
REIT Risk |
|
x |
|
|
|
|
|
|
Retail Companies Risk
|
|
|
|
|
|
|
|
|
Semiconductor Companies
Risk |
|
|
|
|
|
|
|
|
Fund Name |
SPDR
Portfolio S&P 500 Growth ETF
|
SPDR
Portfolio S&P 500 High Dividend ETF
|
SPDR
Portfolio S&P 500 Value ETF
|
SPDR
Portfolio S&P 600 Small Cap ETF
|
SPDR
Russell 1000 Low Volatility Focus ETF
|
SPDR
Russell 1000 Momentum Focus ETF
|
SPDR
Russell 1000 Yield Focus ETF
|
SPDR
S&P 1500 Momentum Tilt ETF
|
Settlement Risk |
|
|
|
|
|
|
|
|
Small-Capitalization
Securities Risk |
|
|
|
x |
|
|
|
|
Technology Sector Risk
|
x |
|
|
|
|
x |
|
x |
Electronic Media Companies
Risk |
|
|
|
|
|
|
|
|
Telecommunications Sector
Risk |
|
|
|
|
|
|
|
|
Transportation Companies
Risk |
|
|
|
|
|
|
|
|
Unconstrained Sector Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
Utilities Sector Risk
|
|
|
|
|
|
|
|
|
Valuation Risk |
|
|
|
x |
|
|
|
|
Value Stock Risk |
|
|
x |
|
x |
x |
x |
|
Fund Name |
SPDR
S&P 1500 Value Tilt ETF
|
SPDR
S&P 400 Mid Cap Growth ETF
|
SPDR
S&P 400 Mid Cap Value ETF
|
|
SPDR
S&P 500 Fossil Fuel Reserves Free ETF
|
SPDR
S&P 600 Small Cap ETF
|
SPDR
S&P 600 Small Cap Growth ETF
|
SPDR
S&P 600 Small Cap Value ETF
|
Aerospace and Defense
Companies Risk |
|
|
|
|
|
|
|
|
Banking Companies Risk
|
|
|
|
|
|
|
|
|
Biotechnology Companies
Risk |
|
|
|
|
|
|
|
|
Capital Markets Companies
Risk |
|
|
|
|
|
|
|
|
Clean Power Companies Risk
|
|
|
|
|
|
|
|
|
Communication Services
Sector Risk |
|
|
|
|
|
|
|
|
Computer Software/Services
Companies Risk |
|
|
|
|
|
|
|
|
Concentration Risk
|
|
|
|
|
|
|
|
|
Consumer Discretionary
Sector Risk |
|
x |
|
|
|
x |
x |
x |
Consumer Staples Sector
Risk |
|
|
|
|
|
|
|
|
Counterparty Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
Currency Risk |
|
|
|
|
|
|
|
|
Cybersecurity Companies
Risk |
|
|
|
|
|
|
|
|
Cybersecurity-Related Risk
|
|
|
|
|
|
|
|
|
Depositary Receipts Risk
|
|
|
|
|
|
|
|
|
Derivatives Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Futures Contract Risk;
Other Exchange-Traded Derivatives Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Dividend Paying Securities
Risk |
|
|
|
|
|
|
|
|
Drone Companies Risk
|
|
|
|
|
|
|
|
|
Electronics Companies Risk
|
|
|
|
|
|
|
|
|
Emerging Markets Risk
|
|
|
|
|
|
|
|
|
Energy Sector Risk
|
|
|
|
|
|
|
|
|
Equity Investing Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
ESG Investing Risk
|
|
|
|
x |
|
|
|
|
Financial Institutions
Risk |
|
|
|
|
|
|
|
|
Financial Sector Risk
|
x |
|
x |
|
|
x |
|
x |
Fluctuation of Net Asset
Value, Share Premiums and Discounts Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Fossil Fuel Reserves Free
Ownership Risk |
|
|
|
|
x |
|
|
|
Growth Stock Risk
|
|
x |
|
|
|
|
x |
|
Fund Name |
SPDR
S&P 1500 Value Tilt ETF
|
SPDR
S&P 400 Mid Cap Growth ETF
|
SPDR
S&P 400 Mid Cap Value ETF
|
|
SPDR
S&P 500 Fossil Fuel Reserves Free ETF
|
SPDR
S&P 600 Small Cap ETF
|
SPDR
S&P 600 Small Cap Growth ETF
|
SPDR
S&P 600 Small Cap Value ETF
|
Health Care Equipment
Companies Risk |
|
|
|
|
|
|
|
|
Health Care Sector Risk
|
|
x |
|
|
|
|
|
|
Health Care Services
Companies Risk |
|
|
|
|
|
|
|
|
Homebuilding Companies
Risk |
|
|
|
|
|
|
|
|
Indexing Strategy/Index
Tracking Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Industrial Sector Risk
|
|
x |
|
|
|
x |
x |
x |
Infrastructure-Related
Companies Risk |
|
|
|
|
|
|
|
|
Insurance Companies Risk
|
|
|
|
|
|
|
|
|
Internet Segment Risk
|
|
|
|
|
|
|
|
|
Large-Capitalization
Securities Risk |
|
|
|
x |
x |
|
|
|
Leveraging Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Liquidity Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Low Volatility Risk
|
|
|
|
|
|
|
|
|
Market Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Materials Sector Risk
|
|
|
|
|
|
|
|
|
Metals and Mining
Companies Risk |
|
|
|
|
|
|
|
|
Mid-Capitalization
Securities Risk |
|
x |
x |
|
|
|
|
|
Momentum Risk |
|
|
|
|
|
|
|
|
New Economies Companies
Risk |
|
|
|
|
|
|
|
|
New Fund Risk |
|
|
|
x |
|
|
|
|
Non-Diversification Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
Non-U.S. Securities Risk
|
|
|
|
|
|
|
|
|
Oil and Gas Companies Risk
|
|
|
|
|
|
|
|
|
Pharmaceuticals Companies
Risk |
|
|
|
|
|
|
|
|
Preferred Securities Risk
|
|
|
|
|
|
|
|
|
Quality Risk |
|
|
|
|
|
|
|
|
Real Estate Sector Risk
|
|
|
|
|
|
|
|
|
REIT Risk |
|
|
|
|
|
|
|
|
Retail Companies Risk
|
|
|
|
|
|
|
|
|
Semiconductor Companies
Risk |
|
|
|
|
|
|
|
|
Fund Name |
SPDR
S&P 1500 Value Tilt ETF
|
SPDR
S&P 400 Mid Cap Growth ETF
|
SPDR
S&P 400 Mid Cap Value ETF
|
|
SPDR
S&P 500 Fossil Fuel Reserves Free ETF
|
SPDR
S&P 600 Small Cap ETF
|
SPDR
S&P 600 Small Cap Growth ETF
|
SPDR
S&P 600 Small Cap Value ETF
|
Settlement Risk |
|
|
|
|
|
|
|
|
Small-Capitalization
Securities Risk |
|
|
|
|
|
x |
x |
x |
Technology Sector Risk
|
|
|
|
x |
x |
|
x |
|
Electronic Media Companies
Risk |
|
|
|
|
|
|
|
|
Telecommunications Sector
Risk |
|
|
|
|
|
|
|
|
Transportation Companies
Risk |
|
|
|
|
|
|
|
|
Unconstrained Sector Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
Utilities Sector Risk
|
|
|
|
|
|
|
|
|
Valuation Risk |
|
x |
x |
|
|
x |
x |
x |
Value Stock Risk |
x |
|
x |
|
|
|
|
x |
Fund Name |
SPDR
S&P Aerospace & Defense ETF
|
|
|
SPDR
S&P Capital Markets ETF
|
|
SPDR
S&P Health Care Equipment ETF
|
SPDR
S&P Health Care Services ETF
|
SPDR
S&P Homebuilders ETF
|
Aerospace and Defense
Companies Risk |
x |
|
|
|
|
|
|
|
Banking Companies Risk
|
|
x |
|
|
|
|
|
|
Biotechnology Companies
Risk |
|
|
x |
|
|
|
|
|
Capital Markets Companies
Risk |
|
|
|
x |
|
|
|
|
Clean Power Companies Risk
|
|
|
|
|
|
|
|
|
Communication Services
Sector Risk |
|
|
|
|
|
|
|
|
Computer Software/Services
Companies Risk |
|
|
|
|
|
|
|
|
Concentration Risk
|
x |
x |
x |
x |
|
x |
x |
x |
Consumer Discretionary
Sector Risk |
|
|
|
|
|
|
|
x |
Consumer Staples Sector
Risk |
|
|
|
|
|
|
|
|
Counterparty Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
Currency Risk |
|
|
|
|
|
|
|
|
Cybersecurity Companies
Risk |
|
|
|
|
|
|
|
|
Cybersecurity-Related Risk
|
|
|
|
|
|
|
|
|
Depositary Receipts Risk
|
|
|
|
|
|
|
|
|
Derivatives Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Futures Contract Risk;
Other Exchange-Traded Derivatives Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Dividend Paying Securities
Risk |
|
|
|
|
x |
|
|
|
Drone Companies Risk
|
|
|
|
|
|
|
|
|
Electronics Companies Risk
|
|
|
|
|
|
|
|
|
Emerging Markets Risk
|
|
|
|
|
|
|
|
|
Energy Sector Risk
|
|
|
|
|
x |
|
|
|
Equity Investing Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
ESG Investing Risk
|
|
|
|
|
|
|
|
|
Financial Institutions
Risk |
|
x |
|
|
|
|
|
|
Financial Sector Risk
|
|
|
|
x |
|
|
|
|
Fluctuation of Net Asset
Value, Share Premiums and Discounts Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Fossil Fuel Reserves Free
Ownership Risk |
|
|
|
|
|
|
|
|
Growth Stock Risk
|
|
|
|
|
|
|
|
|
Health Care Equipment
Companies Risk |
|
|
|
|
|
x |
|
|
Fund Name |
SPDR
S&P Aerospace & Defense ETF
|
|
|
SPDR
S&P Capital Markets ETF
|
|
SPDR
S&P Health Care Equipment ETF
|
SPDR
S&P Health Care Services ETF
|
SPDR
S&P Homebuilders ETF
|
Health Care Sector Risk
|
|
|
x |
|
|
x |
x |
|
Health Care Services
Companies Risk |
|
|
|
|
|
|
x |
|
Homebuilding Companies
Risk |
|
|
|
|
|
|
|
x |
Indexing Strategy/Index
Tracking Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Industrial Sector Risk
|
x |
|
|
|
x |
|
|
x |
Infrastructure-Related
Companies Risk |
|
|
|
|
|
|
|
|
Insurance Companies Risk
|
|
|
|
|
|
|
|
|
Internet Segment Risk
|
|
|
|
|
|
|
|
|
Large-Capitalization
Securities Risk |
|
|
|
|
|
|
|
|
Leveraging Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Liquidity Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Low Volatility Risk
|
|
|
|
|
|
|
|
|
Market Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Materials Sector Risk
|
|
|
|
|
|
|
|
|
Metals and Mining
Companies Risk |
|
|
|
|
|
|
|
|
Mid-Capitalization
Securities Risk |
|
|
|
|
|
|
|
|
Momentum Risk |
|
|
|
|
|
|
|
|
New Economies Companies
Risk |
|
|
|
|
|
|
|
|
New Fund Risk |
|
|
|
|
|
|
|
|
Non-Diversification Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
Non-U.S. Securities Risk
|
|
|
|
|
|
|
|
|
Oil and Gas Companies Risk
|
|
|
|
|
|
|
|
|
Pharmaceuticals Companies
Risk |
|
|
|
|
|
|
|
|
Preferred Securities Risk
|
|
|
|
|
|
|
|
|
Quality Risk |
|
|
|
|
|
|
|
|
Real Estate Sector Risk
|
|
|
|
|
|
|
|
|
REIT Risk |
|
|
|
|
|
|
|
|
Retail Companies Risk
|
|
|
|
|
|
|
|
x |
Semiconductor Companies
Risk |
|
|
|
|
|
|
|
|
Settlement Risk |
|
|
|
|
|
|
|
|
Small-Capitalization
Securities Risk |
|
|
|
|
|
|
|
|
Technology Sector Risk
|
|
|
|
|
|
|
|
|
Fund Name |
SPDR
S&P Aerospace & Defense ETF
|
|
|
SPDR
S&P Capital Markets ETF
|
|
SPDR
S&P Health Care Equipment ETF
|
SPDR
S&P Health Care Services ETF
|
SPDR
S&P Homebuilders ETF
|
Electronic Media Companies
Risk |
|
|
|
|
|
|
|
|
Telecommunications Sector
Risk |
|
|
|
|
|
|
|
|
Transportation Companies
Risk |
|
|
|
|
|
|
|
|
Unconstrained Sector Risk
|
|
|
|
|
x |
|
|
|
Utilities Sector Risk
|
|
|
|
|
|
|
|
|
Valuation Risk |
|
|
|
|
|
|
|
|
Value Stock Risk |
|
|
|
|
|
|
|
|
Fund Name |
|
|
SPDR
S&P Kensho Clean Power ETF
|
SPDR
S&P Kensho Final Frontiers ETF
|
SPDR
S&P Kensho Future Security ETF
|
SPDR
S&P Kensho Intelligent Structures ETF
|
SPDR
S&P Kensho New Economies Composite ETF
|
SPDR
S&P Kensho Smart Mobility ETF
|
Aerospace and Defense
Companies Risk |
|
|
|
x |
x |
|
|
|
Banking Companies Risk
|
|
|
|
|
|
|
|
|
Biotechnology Companies
Risk |
|
|
|
|
|
|
|
|
Capital Markets Companies
Risk |
|
|
|
|
|
|
|
|
Clean Power Companies Risk
|
|
|
x |
|
|
|
|
|
Communication Services
Sector Risk |
|
x |
|
|
|
|
|
|
Computer Software/Services
Companies Risk |
|
|
|
|
|
|
|
|
Concentration Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
Consumer Discretionary
Sector Risk |
|
x |
|
|
|
|
|
x |
Consumer Staples Sector
Risk |
|
|
|
|
|
|
|
|
Counterparty Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
Currency Risk |
|
|
|
|
|
|
|
|
Cybersecurity Companies
Risk |
|
|
|
|
x |
|
|
|
Cybersecurity-Related Risk
|
|
|
x |
x |
x |
x |
x |
x |
Depositary Receipts Risk
|
|
|
x |
x |
x |
x |
x |
x |
Derivatives Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Futures Contract Risk;
Other Exchange-Traded Derivatives Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Dividend Paying Securities
Risk |
|
|
|
|
|
|
|
|
Drone Companies Risk
|
|
|
|
x |
|
|
|
|
Electronics Companies Risk
|
|
|
|
|
|
|
|
|
Emerging Markets Risk
|
|
|
x |
x |
x |
x |
x |
x |
Energy Sector Risk
|
|
|
|
|
|
|
|
|
Equity Investing Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
ESG Investing Risk
|
|
|
|
|
|
|
|
|
Financial Institutions
Risk |
|
|
|
|
|
|
|
|
Financial Sector Risk
|
x |
|
|
|
|
|
|
|
Fluctuation of Net Asset
Value, Share Premiums and Discounts Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Fossil Fuel Reserves Free
Ownership Risk |
|
|
|
|
|
|
|
|
Fund Name |
|
|
SPDR
S&P Kensho Clean Power ETF
|
SPDR
S&P Kensho Final Frontiers ETF
|
SPDR
S&P Kensho Future Security ETF
|
SPDR
S&P Kensho Intelligent Structures ETF
|
SPDR
S&P Kensho New Economies Composite ETF
|
SPDR
S&P Kensho Smart Mobility ETF
|
Growth Stock Risk
|
|
|
|
|
|
|
|
|
Health Care Equipment
Companies Risk |
|
|
|
|
|
|
|
|
Health Care Sector Risk
|
|
|
|
|
|
|
x |
|
Health Care Services
Companies Risk |
|
|
|
|
|
|
|
|
Homebuilding Companies
Risk |
|
|
|
|
|
|
|
|
Indexing Strategy/Index
Tracking Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Industrial Sector Risk
|
|
|
x |
x |
x |
x |
x |
x |
Infrastructure-Related
Companies Risk |
|
|
|
|
|
x |
|
|
Insurance Companies Risk
|
x |
|
|
|
|
|
|
|
Internet Segment Risk
|
|
x |
|
|
|
|
|
|
Large-Capitalization
Securities Risk |
|
|
x |
x |
x |
x |
x |
x |
Leveraging Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Liquidity Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Low Volatility Risk
|
|
|
|
|
|
|
|
|
Market Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Materials Sector Risk
|
|
|
|
|
|
|
|
|
Metals and Mining
Companies Risk |
|
|
|
|
|
|
|
|
Mid-Capitalization
Securities Risk |
|
|
x |
x |
x |
x |
x |
x |
Momentum Risk |
|
|
|
|
|
|
|
|
New Economies Companies
Risk |
|
|
|
|
|
|
x |
|
New Fund Risk |
|
|
|
|
|
|
|
|
Non-Diversification Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
Non-U.S. Securities Risk
|
|
|
x |
x |
x |
x |
x |
x |
Oil and Gas Companies Risk
|
|
|
|
|
|
|
|
|
Pharmaceuticals Companies
Risk |
|
|
|
|
|
|
|
|
Preferred Securities Risk
|
|
|
|
|
|
|
|
|
Quality Risk |
|
|
|
|
|
|
|
|
Real Estate Sector Risk
|
|
|
|
|
|
|
|
|
REIT Risk |
|
|
|
|
|
|
|
|
Fund Name |
|
|
SPDR
S&P Kensho Clean Power ETF
|
SPDR
S&P Kensho Final Frontiers ETF
|
SPDR
S&P Kensho Future Security ETF
|
SPDR
S&P Kensho Intelligent Structures ETF
|
SPDR
S&P Kensho New Economies Composite ETF
|
SPDR
S&P Kensho Smart Mobility ETF
|
Retail Companies Risk
|
|
|
|
|
|
|
|
|
Semiconductor Companies
Risk |
|
|
|
|
|
|
|
|
Settlement Risk |
|
|
x |
x |
x |
x |
x |
x |
Small-Capitalization
Securities Risk |
|
|
x |
x |
x |
x |
x |
x |
Technology Sector Risk
|
|
x |
x |
x |
x |
x |
x |
x |
Electronic Media Companies
Risk |
|
|
|
|
|
|
|
|
Telecommunications Sector
Risk |
|
|
|
|
|
|
|
|
Transportation Companies
Risk |
|
|
|
|
|
|
|
x |
Unconstrained Sector Risk
|
|
|
|
|
|
|
|
|
Utilities Sector Risk
|
|
|
x |
|
|
|
|
|
Valuation Risk |
|
|
x |
x |
x |
x |
x |
x |
Value Stock Risk |
|
|
|
|
|
|
|
|
Fund Name |
SPDR
S&P Metals & Mining ETF
|
SPDR
S&P Oil & Gas Equipment & Services ETF
|
SPDR
S&P Oil & Gas Exploration & Production ETF
|
SPDR
S&P Pharmaceuticals ETF
|
SPDR
S&P Regional Banking ETF
|
|
SPDR
S&P Semiconductor ETF
|
SPDR
S&P Software & Services ETF
|
Aerospace and Defense
Companies Risk |
|
|
|
|
|
|
|
|
Banking Companies Risk
|
|
|
|
|
x |
|
|
|
Biotechnology Companies
Risk |
|
|
|
|
|
|
|
|
Capital Markets Companies
Risk |
|
|
|
|
|
|
|
|
Clean Power Companies Risk
|
|
|
|
|
|
|
|
|
Communication Services
Sector Risk |
|
|
|
|
|
|
|
|
Computer Software/Services
Companies Risk |
|
|
|
|
|
|
|
x |
Concentration Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
Consumer Discretionary
Sector Risk |
|
|
|
|
|
x |
|
|
Consumer Staples Sector
Risk |
|
|
|
|
|
x |
|
|
Counterparty Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
Currency Risk |
|
|
|
|
|
|
|
|
Cybersecurity Companies
Risk |
|
|
|
|
|
|
|
|
Cybersecurity-Related Risk
|
|
|
|
|
|
|
|
|
Depositary Receipts Risk
|
|
|
|
|
|
|
|
|
Derivatives Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Futures Contract Risk;
Other Exchange-Traded Derivatives Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Dividend Paying Securities
Risk |
|
|
|
|
|
|
|
|
Drone Companies Risk
|
|
|
|
|
|
|
|
|
Electronics Companies Risk
|
|
|
|
|
|
|
|
|
Emerging Markets Risk
|
|
|
|
|
|
|
|
|
Energy Sector Risk
|
|
x |
x |
|
|
|
|
|
Equity Investing Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
ESG Investing Risk
|
|
|
|
|
|
|
|
|
Financial Institutions
Risk |
|
|
|
|
x |
|
|
|
Financial Sector Risk
|
|
|
|
|
|
|
|
|
Fluctuation of Net Asset
Value, Share Premiums and Discounts Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Fossil Fuel Reserves Free
Ownership Risk |
|
|
|
|
|
|
|
|
Fund Name |
SPDR
S&P Metals & Mining ETF
|
SPDR
S&P Oil & Gas Equipment & Services ETF
|
SPDR
S&P Oil & Gas Exploration & Production ETF
|
SPDR
S&P Pharmaceuticals ETF
|
SPDR
S&P Regional Banking ETF
|
|
SPDR
S&P Semiconductor ETF
|
SPDR
S&P Software & Services ETF
|
Growth Stock Risk
|
|
|
|
|
|
|
|
|
Health Care Equipment
Companies Risk |
|
|
|
|
|
|
|
|
Health Care Sector Risk
|
|
|
|
x |
|
|
|
|
Health Care Services
Companies Risk |
|
|
|
|
|
|
|
|
Homebuilding Companies
Risk |
|
|
|
|
|
|
|
|
Indexing Strategy/Index
Tracking Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Industrial Sector Risk
|
|
|
|
|
|
|
|
|
Infrastructure-Related
Companies Risk |
|
|
|
|
|
|
|
|
Insurance Companies Risk
|
|
|
|
|
|
|
|
|
Internet Segment Risk
|
|
|
|
|
|
|
|
|
Large-Capitalization
Securities Risk |
|
|
|
|
|
|
|
|
Leveraging Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Liquidity Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Low Volatility Risk
|
|
|
|
|
|
|
|
|
Market Risk |
x |
x |
x |
x |
x |
x |
x |
x |
Materials Sector Risk
|
x |
|
|
|
|
|
|
|
Metals and Mining
Companies Risk |
x |
|
|
|
|
|
|
|
Mid-Capitalization
Securities Risk |
|
|
|
|
|
|
|
|
Momentum Risk |
|
|
|
|
|
|
|
|
New Economies Companies
Risk |
|
|
|
|
|
|
|
|
New Fund Risk |
|
|
|
|
|
|
|
|
Non-Diversification Risk
|
x |
x |
x |
x |
x |
x |
x |
x |
Non-U.S. Securities Risk
|
|
|
|
|
|
|
|
|
Oil and Gas Companies Risk
|
|
x |
x |
|
|
|
|
|
Pharmaceuticals Companies
Risk |
|
|
|
x |
|
|
|
|
Preferred Securities Risk
|
|
|
|
|
|
|
|
|
Quality Risk |
|
|
|
|
|
|
|
|
Real Estate Sector Risk
|
|
|
|
|
|
|
|
|
REIT Risk |
|
|
|
|
|
|
|
|
Fund Name |
SPDR
S&P Metals & Mining ETF
|
SPDR
S&P Oil & Gas Equipment & Services ETF
|
SPDR
S&P Oil & Gas Exploration & Production ETF
|
SPDR
S&P Pharmaceuticals ETF
|
SPDR
S&P Regional Banking ETF
|
|
SPDR
S&P Semiconductor ETF
|
SPDR
S&P Software & Services ETF
|
Retail Companies Risk
|
|
|
|
|
|
x |
|
|
Semiconductor Companies
Risk |
|
|
|
|
|
|
x |
|
Settlement Risk |
|
|
|
|
|
|
|
|
Small-Capitalization
Securities Risk |
|
|
|
|
|
|
|
|
Technology Sector Risk
|
|
|
|
|
|
|
x |
x |
Electronic Media Companies
Risk |
|
|
|
|
|
|
|
|
Telecommunications Sector
Risk |
|
|
|
|
|
|
|
|
Transportation Companies
Risk |
|
|
|
|
|
|
|
|
Unconstrained Sector Risk
|
|
|
|
|
|
|
|
|
Utilities Sector Risk
|
|
|
|
|
|
|
|
|
Valuation Risk |
|
|
|
|
|
|
|
|
Value Stock Risk |
|
|
|
|
|
|
|
|
Fund Name |
|
SPDR
S&P Transportation ETF
|
SPDR
Wells Fargo Preferred Stock ETF
|
Aerospace and Defense
Companies Risk |
|
|
|
Banking Companies Risk
|
|
|
|
Biotechnology Companies
Risk |
|
|
|
Capital Markets Companies
Risk |
|
|
|
Clean Power Companies Risk
|
|
|
|
Communication Services
Sector Risk |
|
|
|
Computer Software/Services
Companies Risk |
|
|
|
Concentration Risk
|
x |
x |
|
Consumer Discretionary
Sector Risk |
|
|
|
Consumer Staples Sector
Risk |
|
|
|
Counterparty Risk
|
x |
x |
x |
Currency Risk |
|
|
|
Cybersecurity Companies
Risk |
|
|
|
Cybersecurity-Related Risk
|
|
|
|
Depositary Receipts Risk
|
|
|
x |
Derivatives Risk |
x |
x |
x |
Futures Contract Risk;
Other Exchange-Traded Derivatives Risk |
x |
x |
x |
Dividend Paying Securities
Risk |
|
|
|
Drone Companies Risk
|
|
|
|
Electronics Companies Risk
|
|
|
|
Emerging Markets Risk
|
|
|
|
Energy Sector Risk
|
|
|
|
Equity Investing Risk
|
x |
x |
x |
ESG Investing Risk
|
|
|
|
Financial Institutions
Risk |
|
|
|
Financial Sector Risk
|
|
|
x |
Fluctuation of Net Asset
Value, Share Premiums and Discounts Risk |
x |
x |
x |
Fossil Fuel Reserves Free
Ownership Risk |
|
|
|
Growth Stock Risk
|
|
|
|
Health Care Equipment
Companies Risk |
|
|
|
Health Care Sector Risk
|
|
|
|
Health Care Services
Companies Risk |
|
|
|
291
Fund Name |
|
SPDR
S&P Transportation ETF
|
SPDR
Wells Fargo Preferred Stock ETF
|
Homebuilding Companies
Risk |
|
|
|
Indexing Strategy/Index
Tracking Risk |
x |
x |
x |
Industrial Sector Risk
|
|
x |
|
Infrastructure-Related
Companies Risk |
|
|
|
Insurance Companies Risk
|
|
|
|
Internet Segment Risk
|
|
|
|
Large-Capitalization
Securities Risk |
|
|
|
Leveraging Risk |
x |
x |
x |
Liquidity Risk |
x |
x |
x |
Low Volatility Risk
|
|
|
|
Market Risk |
x |
x |
x |
Materials Sector Risk
|
|
|
|
Metals and Mining
Companies Risk |
|
|
|
Mid-Capitalization
Securities Risk |
|
|
|
Momentum Risk |
|
|
|
New Economies Companies
Risk |
|
|
|
New Fund Risk |
|
|
|
Non-Diversification Risk
|
x |
x |
x |
Non-U.S. Securities Risk
|
|
|
x |
Oil and Gas Companies Risk
|
|
|
|
Pharmaceuticals Companies
Risk |
|
|
|
Preferred Securities Risk
|
|
|
x |
Quality Risk |
|
|
|
Real Estate Sector Risk
|
|
|
|
REIT Risk |
|
|
|
Retail Companies Risk
|
|
|
|
Semiconductor Companies
Risk |
|
|
|
Settlement Risk |
|
|
x |
Small-Capitalization
Securities Risk |
|
|
|
Technology Sector Risk
|
|
|
|
Electronic Media Companies
Risk |
|
|
|
Telecommunications Sector
Risk |
x |
|
|
Fund Name |
|
SPDR
S&P Transportation ETF
|
SPDR
Wells Fargo Preferred Stock ETF
|
Transportation Companies
Risk |
|
x |
|
Unconstrained Sector Risk
|
|
|
x |
Utilities Sector Risk
|
|
|
x |
Valuation Risk |
|
|
|
Value Stock Risk |
|
|
|
Aerospace
and Defense Companies Risk
.
Aerospace and defense companies can be significantly affected by government
aerospace and defense regulation and spending policies because companies
involved in this industry rely to a significant extent on U.S. (and other)
government demand for their products and services. Thus, the financial condition
of, and investor interest in, aerospace and defense companies are heavily
influenced by governmental defense spending policies which are typically under
pressure from efforts to control the U.S. (and other) government
budgets.
Banking
Companies Risk
. The
performance of bank stocks may be affected by extensive governmental regulation
which may limit both the amounts and types of loans and other financial
commitments they can make, and the interest rates and fees they can charge and
the amount of capital they must maintain. Profitability is largely dependent on
the availability and cost of capital funds, and can fluctuate significantly when
interest rates change. Credit losses resulting from financial difficulties of
borrowers can negatively impact the banking companies. Banks may also be subject
to severe price competition. Competition among banking companies is high and
failure to maintain or increase market share may result in lost market
value.
Biotechnology
Companies Risk
.
Biotech companies invest heavily in research and development which may not
necessarily lead to commercially successful products. These companies are also
subject to increased governmental regulation which may delay or inhibit the
release of new products. Many biotech companies are dependent upon their ability
to use and enforce intellectual property rights and patents. Any impairment of
such rights may have adverse financial consequences. Biotech stocks, especially
those of smaller, less-seasoned companies, tend to be more volatile than the
overall market. Biotech companies can be significantly affected by technological
change and obsolescence, product liability lawsuits and consequential high
insurance costs.
Capital
Markets Companies Risk
.
Companies within an Index can be significantly affected by stock and bank
trading activity, changes in governmental regulation, continuing increases in
price competition, decreases in fees or fee-related business, including
investment banking, brokerage, asset management and other servicing fees,
fluctuation in interest rates and other factors which could adversely affect
financial markets.
Clean
Power Companies Risk.
Clean
power companies may be highly dependent upon government subsidies, contracts
with government entities, and the successful development of new and proprietary
technologies. Clean power companies may be affected by competition from new and
existing market entrants, obsolescence of technology, short product cycles,
changes in exchange rates, imposition of import controls, and depletion of
resources. In addition, seasonal weather conditions, fluctuations in supply of
and demand for clean energy products or services, and international political
events may cause fluctuations in the performance of clean power companies and
the prices of their securities. Risks associated with fluctuations in energy
prices and supply and demand of alternative energy fuels, energy conservation,
the success of exploration projects and tax and other government regulations can
significantly affect clean power companies. The supply and demand for oil and
gas, the price of oil and gas, production spending, government regulation, world
events and economic conditions may also affect clean power
companies.
Communication
Services Sector Risk.
Communication
services companies are particularly vulnerable to the potential obsolescence of
products and services due to technological advancement and the innovation of
competitors. Companies in the communication services sector may also be affected
by other competitive pressures, such as pricing competition, as well as research
and development costs, substantial capital requirements and government
regulation. Additionally, fluctuating domestic and international demand,
shifting demographics and often unpredictable changes in consumer tastes can
drastically affect a communication services company's profitability. While all
companies may be susceptible to network security breaches, certain companies in
the communication services sector may be particular targets of hacking and
potential theft of proprietary or consumer information or disruptions in
service, which could have a material adverse effect on their
businesses.
Computer
Software/Services Companies Risk
.
Computer software/services companies can be significantly affected by
competitive pressures, aggressive pricing, technological developments, changing
domestic demand, the ability to attract and retain skilled employees and
availability and price of components. The market for products produced by
computer software/services companies is characterized by rapidly changing
technology, rapid product obsolescence, cyclical market patterns, evolving
industry standards and frequent new product introductions. The success of
computer
software/services
companies depends in substantial part on the timely and successful introduction
of new products and the ability to service such products. An unexpected change
in one or more of the technologies affecting an issuer's products or in the
market for products based on a particular technology could have a material
adverse effect on a participant's operating results.
Many
computer software/services companies rely on a combination of patents,
copyrights, trademarks and trade secret laws to establish and protect their
proprietary rights in their products and technologies. There can be no assurance
that the steps taken by computer software/services companies to protect their
proprietary rights will be adequate to prevent misappropriation of their
technology or that competitors will not independently develop technologies that
are substantially equivalent or superior to such companies' technology.
Concentration
Risk
. A
Fund's assets will generally be concentrated in an industry or group of
industries to the extent that the Fund's underlying Index concentrates in a
particular industry or group of industries. When a Fund focuses its investments
in a particular industry or sector, financial, economic, business, and other
developments affecting issuers in that industry, market, or economic sector will
have a greater effect on the Fund than if it had not focused its assets in that
industry, market, or economic sector, which may increase the volatility of the
Fund.
Consumer
Discretionary Sector Risk
. The
success of consumer product manufacturers and retailers is tied closely to the
performance of the overall global economy, interest rates, competition and
consumer confidence. Success depends heavily on disposable household income and
consumer spending. Also, companies in the consumer discretionary sector may be
subject to severe competition, which may have an adverse impact on their
respective profitability. Changes in demographics and consumer tastes can also
affect the demand for, and success of, consumer products and services in the
marketplace.
Consumer
Staples Sector Risk
.
Consumer staples companies are subject to government regulation affecting their
products which may negatively impact such companies' performance. For instance,
government regulations may affect the permissibility of using various food
additives and production methods of companies that make food products, which
could affect company profitability. Tobacco companies may be adversely affected
by the adoption of proposed legislation and/or by litigation. Also, the success
of food, beverage, household and personal products companies may be strongly
affected by consumer interest, marketing campaigns and other factors affecting
supply and demand, including performance of the overall domestic and
international economy, interest rates, competition and consumer confidence and
spending.
Counterparty
Risk
. A
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts and other transactions such as
repurchase agreements or reverse repurchase agreements. A Fund's ability to
profit from these types of investments and transactions will depend on the
willingness and ability of its counterparty to perform its obligations. If a
counterparty fails to meet its contractual obligations, a Fund may be unable to
terminate or realize any gain on the investment or transaction, resulting in a
loss to the Fund. A Fund may experience significant delays in obtaining any
recovery in an insolvency, bankruptcy, or other reorganization proceeding
involving its counterparty (including recovery of any collateral posted by it)
and may obtain only a limited recovery or may obtain no recovery in such
circumstances. If a Fund holds collateral posted by its counterparty, it may be
delayed or prevented from realizing on the collateral in the event of a
bankruptcy or insolvency proceeding relating to the counterparty. Under
applicable law or contractual provisions, including if a Fund enters into an
investment or transaction with a financial institution and such financial
institution (or an affiliate of the financial institution) experiences financial
difficulties, then the Fund may in certain situations be prevented or delayed
from exercising its rights to terminate the investment or transaction, or to
realize on any collateral and may result in the suspension of payment and
delivery obligations of the parties under such investment or transactions or in
another institution being substituted for that financial institution without the
consent of the Fund. Further, a Fund may be subject to “bail-in” risk under
applicable law whereby, if required by the financial institution's authority,
the financial institution's liabilities could be written down, eliminated or
converted into equity or an alternative instrument of ownership. A bail-in of a
financial institution may result in a reduction in value of some or all of its
securities and, if a Fund holds such securities or has entered into a
transaction with such a financial security when a bail-in occurs, such Fund may
also be similarly impacted.
Currency
Risk.
Investments
in issuers in different countries are often denominated in currencies other than
the U.S. dollar. Changes in the values of those currencies relative to the U.S.
dollar may have a positive or negative effect on the values of a Fund's
investments denominated in those currencies. The values of other currencies
relative to the
U.S.
dollar may fluctuate in response to, among other factors, interest rate changes,
intervention (or failure to intervene) by national governments, central banks,
or supranational entities such as the International Monetary Fund, the
imposition of currency controls, and other political or regulatory developments.
Currency values can decrease significantly both in the short term and over the
long term in response to these and other developments. Continuing uncertainty as
to the status of the Euro and the Economic and Monetary Union of the European
Union (the “EMU”) has created significant volatility in currency and financial
markets generally. Any partial or complete dissolution of the EMU, or any
continued uncertainty as to its status, could have significant adverse effects
on currency and financial markets, and on the values of a Fund's portfolio
investments.
Cybersecurity
Companies Risk
.
Companies in the cybersecurity field face intense competition, both domestically
and internationally, which may have an adverse effect on profit margins.
Cybersecurity companies may have limited product lines, markets, financial
resources or personnel. The products of cybersecurity companies may face
obsolescence due to rapid technological developments and frequent new product
introduction, and such companies may face unpredictable changes in growth rates,
competition for the services of qualified personnel and competition from foreign
competitors with lower production costs. Companies in the cybersecurity field
are heavily dependent on patent and intellectual property rights. The loss or
impairment of these rights may adversely affect the profitability of these
companies.
Cybersecurity-Related
Risk
. The
companies included in the Index rely on technologies such as the Internet and
depend on computer systems to perform business and operational functions, and
therefore may be prone to operational and information security risks resulting
from cyber-attacks and/or technological malfunctions. Cyber-attacks include,
among others, stealing or corrupting data maintained online or digitally,
preventing legitimate users from accessing information or services on a website,
releasing confidential information without authorization, and causing
operational disruption. In general, cyber-attacks are deliberate, but
unintentional events may have similar effects. Successful cyber-attacks against,
or security breakdowns of, a company included in the Index may result in
material adverse consequences for such company, as well as other companies
included in the Index, and may cause a Fund's investments to lose
value.
Depositary
Receipts Risk
.
American Depositary Receipts (“ADRs”) are typically trust receipts issued by a
U.S. bank or trust company that evidence an indirect interest in underlying
securities issued by a foreign entity. Global Depositary Receipts (“GDRs”),
European Depositary Receipts (“EDRs”), and other types of depositary receipts
are typically issued by non-U.S. banks or financial institutions to evidence an
interest in underlying securities issued by either a U.S. or a non-U.S. entity.
Investments in non-U.S. issuers through ADRs, GDRs, EDRs, and other types of
depositary receipts generally involve risks applicable to other types of
investments in non-U.S. issuers. Investments in depositary receipts may be less
liquid and more volatile than the underlying securities in their primary trading
market. If a depositary receipt is denominated in a different currency than its
underlying securities, a Fund will be subject to the currency risk of both the
investment in the depositary receipt and the underlying security. There may be
less publicly available information regarding the issuer of the securities
underlying a depositary receipt than if those securities were traded directly in
U.S. securities markets. Depositary receipts may or may not be sponsored by the
issuers of the underlying securities, and information regarding issuers of
securities underlying unsponsored depositary receipts may be more limited than
for sponsored depositary receipts. The values of depositary receipts may decline
for a number of reasons relating to the issuers or sponsors of the depositary
receipts, including, but not limited to, insolvency of the issuer or sponsor.
Holders of depositary receipts may have limited or no rights to take action with
respect to the underlying securities or to compel the issuer of the receipts to
take action. The prices of depositary receipts may differ from the prices of
securities upon which they are based. To the extent a Fund invests in
depositary receipts based on securities included in its Index, such
differences in prices may increase index tracking risk.
Derivatives
Risk.
A
derivative is a financial contract the value of which depends on, or is derived
from, the value of an underlying asset, interest rate, or index. Derivative
transactions typically involve leverage and may have significant volatility. It
is possible that a derivative transaction will result in a loss greater than the
principal amount invested, and a Fund may not be able to close out a derivative
transaction at a favorable time or price. Risks associated with derivative
instruments include potential changes in value in response to interest rate
changes or other market developments or as a result of the counterparty's credit
quality; the potential for the derivative transaction not to have the effect the
Adviser anticipated or a different or less favorable effect than the Adviser
anticipated; the failure of the counterparty to the derivative transaction to
perform its obligations under the transaction or to settle a trade; possible
mispricing or improper valuation of the derivative instrument; imperfect
correlation in the value of a derivative with the asset, rate,
or
index
underlying the derivative; the risk that a Fund may be required to post
collateral or margin with its counterparty, and will not be able to recover the
collateral or margin in the event of the counterparty's insolvency or
bankruptcy; the risk that a Fund will experience losses on its derivatives
investments and on its other portfolio investments, even when the derivatives
investments may be intended in part or entirely to hedge those portfolio
investments; the risks specific to the asset underlying the derivative
instrument; lack of liquidity for the derivative instrument, including without
limitation absence of a secondary trading market; the potential for reduced
returns to a Fund due to losses on the transaction and an increase in
volatility; the potential for the derivative transaction to have the effect of
accelerating the recognition of gain; and legal risks arising from the
documentation relating to the derivative transaction.
Futures
Contract Risk; Other Exchange-Traded Derivatives Risk
. The
risk of loss relating to the use of futures contracts and other exchange-traded
derivatives is potentially unlimited. The ability to establish and close out
positions in futures contracts and other exchange-traded derivatives will be
subject to the development and maintenance of a liquid secondary market. There
is no assurance that a liquid secondary market on an exchange will exist for any
particular futures contract or other exchange-traded derivative or at any
particular time. In the event no such market exists for a particular derivative,
it might not be possible to effect closing transactions, and the Fund will be
unable to terminate the derivative. In using futures contracts and other
exchange-traded derivatives, the Fund will be reliant on the ability of the
Adviser to predict market and price movements correctly; the skills needed to
use such derivatives successfully are different from those needed for
traditional portfolio management. If the Fund uses futures contracts or other
exchange-traded derivatives for hedging purposes, there is a risk of imperfect
correlation between movements in the prices of the derivatives and movements in
the securities or index underlying the derivatives or movements in the prices of
the Fund's investments that are the subject of such hedge. The prices of futures
and other exchange-traded derivatives, for a number of reasons, may not
correlate perfectly with movements in the securities or index underlying them.
For example, participants in the futures markets and in markets for other
exchange-traded derivatives are subject to margin deposit requirements. Such
requirements may cause investors to take actions with respect to their
derivatives positions that they would not otherwise take. The margin
requirements in the derivatives markets may be less onerous than margin
requirements in the securities markets in general, and as a result those markets
may attract more speculators than the securities markets do. Increased
participation by speculators in those markets may cause temporary price
distortions. Due to the possibility of price distortion, even a correct forecast
of general market trends by the Adviser still may not result in a successful
derivatives activity over a very short time period. The risk of a position in a
futures contract or other exchange-traded derivative may be very large compared
to the relatively low level of margin the Fund is required to deposit. In many
cases, a relatively small price movement in a futures contract may result in
immediate and substantial loss or gain to the investor relative to the size of a
required margin deposit. The Fund will incur brokerage fees in connection with
its exchange-traded derivatives transactions. The Fund will typically be
required to post margin with its futures commission merchant in connection with
its transactions in futures contracts and other exchange-traded derivatives. In
the event of an insolvency of the futures commission merchant or a clearing
house, the Fund may not be able to recover all (or any) of the margin it has
posted with the futures commission merchant, or to realize the value of any
increase in the price of its positions, or it may experience a significant delay
in doing so. The Fund also may be delayed or prevented from recovering margin or
other amounts deposited with a futures commission merchant or futures
clearinghouse. The Commodity Futures Trading Commission (the “CFTC”) and the
various exchanges have established limits referred to as “speculative position
limits” on the maximum net long or net short positions that any person and
certain affiliated entities may hold or control in a particular futures
contract. Trading limits are imposed on the number of contracts that any person
may trade on a particular trading day. An exchange may order the liquidation of
positions found to be in violation of these limits and it may impose sanctions
or restrictions. In addition, the Dodd-Frank Act requires the CFTC to establish
speculative position limits on certain commodity futures contracts and their
economically equivalent futures, options and swaps. Regulatory action taken by
the CFTC to establish these additional position limits may adversely affect the
market liquidity of the futures, options and economically equivalent derivatives
in which the Fund may invest. It is possible that, as a result of such limits,
the Fund's Adviser will be precluded from taking positions in certain futures
contracts or over-the-counter derivatives as a result of positions held by other
clients of the Adviser or by the Adviser or its affiliates
themselves.
Futures
contracts and other exchange-traded derivatives traded on markets outside the
U.S. are not generally subject to the same level of regulation by the CFTC or
other U.S. regulatory entities as contracts traded in the U.S., including
without limitation as to the execution, delivery, and clearing of transactions.
U.S. regulators neither
regulate
the activities of a foreign exchange, nor have the power to compel enforcement
of the rules of the foreign exchange or the laws of the foreign country in
question. Margin and other payments made by a Fund may not be afforded the same
protections as are afforded those payments in the U.S., including in connection
with the insolvency of an executing or clearing broker or a clearinghouse or
exchange. Certain foreign futures contracts and other exchange-traded
derivatives may be less liquid and more volatile than U.S. contracts.
Dividend
Paying Securities Risk
.
Securities that pay dividends, as a group, can fall out of favor with the
market, causing such companies to underperform companies that do not pay
dividends. In addition, changes in the dividend policies of the companies held
by a Fund or the capital resources available for such company's dividend
payments may adversely affect the Fund.
Drone
Companies Risk
.
Drone companies may have limited product lines, markets, financial resources or
personnel and are subject to the risks of changes in business cycles, world
economic growth, technological progress, and government regulation. Securities
of drone companies, especially smaller, start-up companies, tend to be more
volatile than securities of companies that do not rely heavily on technology.
These companies may face intense competition and potentially rapid product
obsolescence. In addition, drone companies may be dependent on the U.S.
government and its agencies for a significant portion of their sales, and their
success and growth may be dependent on their ability to win future government
contracts. As a result, such companies may be negatively affected by budgetary
constraints, spending reductions, congressional appropriations, and
administrative allocations of funds that affect the U.S. government and its
agencies. Drone companies may rely on a combination of patents, copyrights,
trademarks and trade secret laws to establish and protect their proprietary
rights in their products and technologies, and may be adversely affected by loss
or impairment of those rights. Legal and regulatory changes may have an impact
on a drone company's products or services. In addition, drone companies may also
be subject to increasing regulatory constraints that may limit the sale or use
of a company's products, including the need to obtain regulatory approvals from
certain government agencies. Drone companies typically engage in significant
amounts of spending on research and development, and there is no guarantee that
the products or services produced by these companies will be
successful.
Electronics
Companies Risk.
Electronics
companies can be significantly affected by competitive pressures, aggressive
pricing, technological developments, changing domestic demand, the ability to
attract and retain skilled employees and availability and price of components.
The market for products is characterized by rapidly changing technology, rapid
product obsolescence, cyclical market patterns, evolving industry standards and
frequent new product introductions. The success of electronics companies depends
in substantial part on the timely and successful introduction of new products.
An unexpected change in one or more of the technologies affecting an issuer's
products or in the market for products based on a particular technology could
have a material adverse effect on a participant's operating results. Electronic
companies may rely on a combination of patents, copyrights, trademarks and trade
secret laws to establish and protect their proprietary rights in their products
and technologies. There can be no assurance that the steps taken by such
companies to protect their proprietary rights will be adequate to prevent
misappropriation of their technology or that competitors will not independently
develop technologies that are substantially equivalent or superior to such
companies' technology.
Emerging
Markets Risk
.
Investments in emerging markets are generally subject to a greater risk of loss
than investments in developed markets. This may be due to, among other things,
the possibility of greater market volatility, lower trading volume and
liquidity, greater risk of expropriation, nationalization, and social, political
and economic instability, greater reliance on a few industries, international
trade or revenue from particular commodities, less developed accounting, legal
and regulatory systems, higher levels of inflation, deflation or currency
devaluation, greater risk of market shut down, and more significant governmental
limitations on investment policy as compared to those typically found in a
developed market. In addition, issuers (including governments) in emerging
market countries may have less financial stability than in other countries. The
securities of emerging market companies may trade less frequently and in smaller
volumes than more widely held securities. Market disruptions or substantial
market corrections may limit very significantly the liquidity of securities of
certain companies in a particular country or geographic region, or of all
companies in the country or region. A Fund may be unable to liquidate its
positions in such securities at any time, or at a favorable price, in order to
meet the Fund's obligations. There is also the potential for unfavorable action
such as embargo and acts of war. As a result, there will tend to be an increased
risk of price volatility in investments in emerging market countries, which may
be magnified by currency fluctuations relative to the U.S. dollar. Settlement
and asset custody practices for transactions in emerging markets may differ from
those in
developed
markets. Such differences may include possible delays in settlement and certain
settlement practices, such as delivery of securities prior to receipt of
payment, which increase the likelihood of a “failed settlement.” Failed
settlements can result in losses. For these and other reasons, investments in
emerging markets are often considered speculative.
Energy
Sector Risk
.
Issuers in energy-related industries can be significantly affected by
fluctuations in energy prices and supply and demand of energy fuels caused by
geopolitical events, energy conservation or use of alternative fuel sources, the
success of exploration projects, weather or meteorological events, taxes,
increased governmental or environmental regulation, resource depletion, rising
interest rates, declines in domestic or foreign production, accidents or
catastrophic events, or terrorist threats or attacks, among others. Markets for
various energy-related commodities can have significant volatility, and are
subject to control or manipulation by large producers or purchasers. Companies
in the energy sector may need to make substantial expenditures, and to incur
significant amounts of debt, in order to maintain or expand their reserves
through exploration of new sources of supply, through the development of
existing sources, through acquisitions, or through long-term contracts to
acquire reserves. Factors adversely affecting producers, refiners, distributors,
or others in the energy sector may affect adversely companies that service or
supply those entities, either because demand for those services or products is
curtailed, or those services or products come under price pressure.
Equity
Investing Risk
. The
market prices of equity securities owned by a Fund may go up or down, sometimes
rapidly or unpredictably. The value of a security may decline for a number of
reasons that may directly relate to the issuer, such as management performance,
financial leverage, non-compliance with regulatory requirements, and reduced
demand for the issuer's goods or services. The values of equity securities also
may decline due to general industry or market conditions that are not
specifically related to a particular company, such as real or perceived adverse
economic conditions, changes in the general outlook for corporate earnings,
changes in interest or currency rates, or adverse investor sentiment generally.
In addition, equity markets tend to move in cycles, which may cause stock prices
to fall over short or extended periods of time.
ESG
Investing Risk
. An
Index's incorporation of environmental, social and/or governance considerations
in its methodology may cause a Fund to make different investments than funds
that do not incorporate such considerations in their investment strategy or
processes. An Index's incorporation of ESG considerations may affect a Fund's
exposure to certain sectors and/or types of investments, and may adversely
impact a Fund's performance depending on whether such sectors or investments are
in or out of favor in the market. In addition, a Fund's investments in certain
companies may be susceptible to various factors that may impact their businesses
or operations, including costs associated with government budgetary constraints
that impact publicly funded projects and clean energy initiatives, the effects
of general economic conditions throughout the world, increased competition from
other providers of services, unfavorable tax laws or accounting policies and
high leverage. Each Index methodology incorporates data and scores provided by
third parties, which may be limited or only take into account one or a few of
many ESG related components of portfolio companies. In addition, ESG information
and scores across third party data providers, indexes and other funds may differ
and/or be incomparable. A Fund may invest in companies that do not reflect the
beliefs and values of any particular investor.
Financial
Institutions Risk
.
Some instruments are issued or guaranteed by financial institutions, such as
banks and brokers, or are collateralized by securities issued or guaranteed by
financial institutions. Changes in the creditworthiness of any of these
institutions may adversely affect the values of instruments of issuers in
financial industries. Financial institutions may be particularly sensitive to
certain economic factors such as interest rate changes, adverse developments in
the real estate market, fiscal and monetary policy and general economic cycles.
Adverse developments in banking and other financial industries may cause a Fund
to underperform relative to other funds that invest more broadly across
different industries or have a smaller exposure to financial institutions.
Changes in governmental regulation and oversight of financial institutions may
have an adverse effect on the financial condition or the earnings or operations
of a financial institution and on the types and amounts of businesses in which a
financial institution may engage. An investor may be delayed or prevented from
exercising certain remedies against a financial institution. The amount of a
Fund's assets that may be invested in any financial institution, or financial
institutions generally, may be limited by applicable law.
Financial
Sector Risk.
Financial
services companies are subject to extensive governmental regulation which may
limit both the amounts and types of loans and other financial commitments they
can make, the interest rates and fees they can charge, the scope of their
activities, the prices they can charge and the amount of capital they must
maintain. Profitability is largely dependent on the availability and cost of
capital funds and can fluctuate significantly when interest rates change or due
to increased competition. In addition, deterioration of the credit markets
generally may cause an adverse impact in a broad range of markets, including
U.S. and international credit and interbank money markets generally, thereby
affecting a wide range of financial institutions and markets. Certain events in
the financial sector may cause an unusually high degree of volatility in the
financial markets, both domestic and foreign, and cause certain financial
services companies to incur large losses. Securities of financial services
companies may experience a dramatic decline in value when such companies
experience substantial declines in the valuations of their assets, take action
to raise capital (such as the issuance of debt or equity securities), or cease
operations. Credit losses resulting from financial difficulties of borrowers and
financial losses associated with investment activities can negatively impact the
sector. Insurance companies may be subject to severe price competition. Adverse
economic, business or political developments could adversely affect financial
institutions engaged in mortgage finance or other lending or investing
activities directly or indirectly connected to the value of real
estate.
Fluctuation
of Net Asset Value, Share Premiums and Discounts Risk
. The
net asset value of Fund Shares will generally fluctuate with changes in the
market value of a Fund's securities holdings. The market prices of Fund Shares
will generally fluctuate in accordance with changes in a Fund's net asset value
and supply and demand of Fund Shares on the Exchange. It cannot be predicted
whether Fund Shares will trade below, at or above their net asset value. Price
differences may be due, in large part, to the fact that supply and demand forces
at work in the secondary trading market for Fund Shares will be closely related
to, but not identical to, the same forces influencing the prices of the
securities of an Index trading individually or in the aggregate at any
point in time. The market prices of Fund Shares may deviate significantly from
the net asset value of Fund Shares during periods of market volatility. However,
given that Fund Shares can be created and redeemed in Creation Units (unlike
shares of many closed-end funds, which frequently trade at appreciable discounts
from, and sometimes at premiums to, their net asset value), the Adviser believes
that large discounts or premiums to the net asset value of Fund Shares should
not be sustained over long periods. While the creation/redemption feature is
designed to make it likely that Fund Shares normally will trade close to a
Fund's net asset value, disruptions to creations and redemptions or market
volatility may result in trading prices that differ significantly from such
Fund's net asset value. If an investor purchases Fund Shares at a time when the
market price is at a premium to the net asset value of Fund Shares or sells at a
time when the market price is at a discount to the net asset value of Fund
Shares, then the investor may sustain losses.
Fossil
Fuel Reserves Free Ownership Risk.
The
lack of ownership of fossil fuel reserves may potentially have an adverse effect
on a company's profitability. The returns on a portfolio of securities that
seeks to exclude companies that own fossil fuel reserves may trail the returns
on a portfolio of securities that includes companies that own fossil fuel
reserves. Investing in a portfolio of securities of companies that do not own
fossil fuel reserves may affect a Fund's exposure to certain types of
investments and may impact the Fund's relative investment performance depending
on whether such investments are in or out of favor in the market.
Growth
Stock Risk.
The
prices of growth stocks may be based largely on expectations of future earnings,
and their prices can decline rapidly and significantly in reaction to negative
news about such factors as earnings, revenues, the economy, political
developments, or other news. Growth stocks may underperform value stocks and
stocks in other broad style categories (and the stock market as a whole) over
any period of time and may shift in and out of favor with investors generally,
sometimes rapidly, depending on changes in market, economic, and other factors.
As a result, at times when it holds substantial investments in growth stocks, a
Fund may underperform other investment funds that invest more broadly or that
favor different investment styles. Because growth companies typically reinvest
their earnings, growth stocks typically do not pay dividends at levels
associated with other types of stocks, if at all.
Health
Care Equipment Companies Risk
:
Health care equipment companies are affected by rising costs of medical
products, devices and services and the increased emphasis on the delivery of
health care through outpatient services. Competition is high among health care
equipment companies and can be significantly affected by extensive government
regulation or government reimbursement for medical expenses. The equipment may
be subject to extensive litigation based on malpractice claims, product
liability claims or other litigation. Medical equipment
manufacturers
are heavily dependent on patent protection and the expiration of patents may
adversely affect their profitability. Many new health care products are subject
to the approval of the U.S. Food and Drug Administration (“FDA”). The process of
obtaining FDA approval is often long and expensive.
Health
Care Sector Risk
.
Companies in the health care sector are subject to extensive government
regulation and their profitability can be significantly affected by restrictions
on government reimbursement for medical expenses, rising costs of medical
products and services, pricing pressure (including price discounting), limited
product lines and an increased emphasis on the delivery of healthcare through
outpatient services. Companies in the health care sector are heavily dependent
on obtaining and defending patents, which may be time consuming and costly, and
the expiration of patents may also adversely affect the profitability of these
companies. Health care companies are also subject to extensive litigation based
on product liability and similar claims. In addition, their products can become
obsolete due to industry innovation, changes in technologies or other market
developments. Many new products in the health care sector require significant
research and development and may be subject to regulatory approvals, all of
which may be time consuming and costly with no guarantee that any product will
come to market.
Health
Care Services Companies Risk
.
Health care services companies are affected by rising costs of medical products,
devices and services and the increased emphasis on the delivery of health care
through outpatient services. Competition is high among health care services
companies and can be significantly affected by extensive government regulation
or government reimbursement for medical expenses. The equipment may be subject
to extensive litigation based on malpractice claims, product liability claims or
other litigation. Medical equipment manufacturers are heavily dependent on
patent protection and the expiration of patents may adversely affect their
profitability. Many new health care products are subject to the approval of the
U.S. Food and Drug Administration (“FDA”). The process of obtaining FDA approval
is often long and expensive.
Homebuilding
Companies Risk
.
Homebuilding companies can be significantly affected by the national, regional
and local real estate markets. Homebuilding companies are also sensitive to
interest rate fluctuations which can cause changes in the availability of
mortgage capital and directly affect the purchasing power of potential
homebuyers. Homebuilding companies can be significantly affected by changes in
government spending, consumer confidence, demographic patterns and the level of
new and existing home sales.
Indexing
Strategy/Index Tracking Risk
.
Each Fund is managed with an indexing investment strategy, attempting to track
the performance of an unmanaged index of securities. Each Fund will seek to
replicate Index returns, regardless of the current or projected performance of
the Index or of the actual securities comprising the Index. This differs from an
actively-managed fund, which typically seeks to outperform a benchmark index.
Each Fund generally will buy and will not sell a security included in the Index
as long as the security is part of the Index regardless of any sudden or
material decline in value or foreseeable material decline in value of the
security, even though the Adviser may make a different investment decision for
other actively managed accounts or portfolios that hold the security. As a
result, a Fund's performance may be less favorable than that of a portfolio
managed using an active investment strategy. The structure and composition of
the Index will affect the performance, volatility, and risk of the Index (in
absolute terms and by comparison with other indices) and, consequently, the
performance, volatility, and risk of a Fund. Errors in index data, index
computations or the construction of the Index in accordance with its methodology
may occur from time to time and may not be identified and corrected by the Index
Provider for a period of time or at all, which may have an adverse impact on a
Fund and its shareholders. While the Adviser seeks to track the performance of
the Index (i.e., achieve a high degree of correlation with the Index), a Fund's
return may not match the return of the Index for a number of reasons. For
example, the return on the sample of securities purchased by a Fund (or the
return on securities not included in the Index) to replicate the performance of
the Index may not correlate precisely with the return of the Index. Each Fund
incurs a number of operating expenses not applicable to the Index, and incurs
costs in buying and selling securities. In addition, a Fund may not be fully
invested at times, either as a result of cash flows into or out of the Fund or
reserves of cash held by the Fund to meet redemptions. The Adviser may attempt
to
the
Index return by investing in fewer than all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between a Fund's return and that of the Index. Changes in the
composition of the Index and regulatory requirements also may impact a Fund's
ability to match the return of the Index. The Adviser may apply one or more
“screens” or investment techniques to refine or limit the number or types of
issuers included in the Index in which a Fund may invest. Application of such
screens or techniques may result in investment performance below that of the
Index and may not produce results expected by the Adviser. Index tracking risk
may be heightened during times of increased market volatility or other unusual
market conditions.
Pursuant
to each Index methodology, a security may be removed from an Index in the event
that it does not comply with the eligibility requirements of the Index. As a
result, a Fund may be forced to sell securities at inopportune times and/or
unfavorable prices due to these changes in the Index components. When there are
changes made to the component securities of an Index and the corresponding Fund
in turn makes similar changes to its portfolio to attempt to increase the
correlation between the Fund's portfolio and the Index, any transaction costs
and market exposure arising from such portfolio changes will be borne directly
by the Fund and its shareholders. Unscheduled changes to an Index may expose the
corresponding Fund to additional tracking error risk. A Fund may recognize gains
as a result of rebalancing or reconstituting its securities holdings to reflect
changes in the securities included in the corresponding Index. A Fund also may
be required to distribute any such gains to its shareholders to avoid adverse
federal income tax consequences.
Industrial
Sector Risk
.
Industrial companies are affected by supply and demand both for their specific
product or service and for industrial sector products in general. Government
regulation, world events, exchange rates and economic conditions, technological
developments and liabilities for environmental damage and general civil
liabilities will likewise affect the performance of these companies. Aerospace
and defense companies, a component of the industrial sector, can be
significantly affected by government spending policies because companies
involved in this industry rely, to a significant extent, on U.S. and foreign
government demand for their products and services. Thus, the financial condition
of, and investor interest in, aerospace and defense companies are heavily
influenced by governmental defense spending policies which are typically under
pressure from efforts to control the U.S. (and other) government budgets.
Transportation securities, a component of the industrial sector, are cyclical
and have occasional sharp price movements which may result from changes in the
economy, fuel prices, labor agreements and insurance costs.
Infrastructure-Related
Companies Risk
.
Infrastructure-related companies include companies that primarily own, manage,
develop and/or operate infrastructure assets, including transportation, utility,
energy and/or telecommunications assets. Infrastructure-related businesses are
subject to a variety of factors that may adversely affect their business or
operations, including high interest costs in connection with capital
construction programs, insurance costs, costs associated with environmental and
other regulations, the effects of an economic slowdown, surplus capacity or
technological obsolescence, industry competition, labor relations, rate caps or
rate changes, uncertainties concerning availability of fuel at reasonable
prices, the effects of energy conservation policies, natural disasters,
terrorist attacks and other factors. Certain infrastructure-related entities,
particularly telecommunications and utilities companies, are subject to
extensive regulation by various governmental authorities. The costs of complying
with governmental regulations, delays or failures to receive required regulatory
approvals or the enactment of new adverse regulatory requirements may adversely
affect infrastructure-related companies. Infrastructure-related companies may
also be affected by service interruption and/or legal challenges due to
environmental, operational or other conditions or events, and the imposition of
special tariffs and changes in tax laws, regulatory policies and accounting
standards. There is also the risk that corruption may negatively affect
publicly-funded infrastructure projects, especially in non-U.S. markets,
resulting in work stoppage, delays and cost overruns. Other risks associated
with infrastructure-related companies include uncertainties resulting from such
companies' diversification into new domestic and international businesses, as
well as agreements by any such companies linking future rate increases to
inflation or other factors not directly related to the actual operating profits
of the enterprise.
Insurance
Companies Risk
.
Insurance companies' profits are affected by many factors, including interest
rate movements, the imposition of premium rate caps, competition and pressure to
compete globally. Certain types of insurance companies may also be affected by
weather catastrophes and other disasters and mortality rates. In addition,
although insurance companies are currently subject to extensive regulation, such
companies may be adversely affected by increased governmental regulations or tax
law changes in the future.
Internet
Segment Risk
.
Internet companies are subject to rapid changes in technology, worldwide
competition, rapid obsolescence of products and services, loss of patent
protections, cyclical market patterns, evolving industry standards and frequent
new product introductions. Competitive pressures, such as technological
developments, fixed-rate pricing and the ability to attract and retain skilled
employees, can significantly affect internet companies, and changing domestic
and international demand, research and development costs, availability and price
components and product obsolescence also can affect their
profitability.
Large-Capitalization
Securities Risk.
Securities
issued by large-capitalization companies may present risks not present in
smaller companies. For example, larger companies may be unable to respond as
quickly as smaller and mid-sized companies to competitive challenges or to
changes in business, product, financial, or other market conditions. Larger
companies may not be able to maintain growth at the high rates that may be
achieved by well-managed smaller and mid-sized companies, especially during
strong economic periods. Returns on investments in securities of large companies
could trail the returns on investments in securities of smaller and mid-sized
companies.
Leveraging
Risk
.
Borrowing transactions, reverse repurchase agreements, certain derivatives
transactions, securities lending transactions and other investment transactions
such as when-issued, delayed-delivery, or forward commitment transactions may
create investment leverage. If a Fund engages in transactions that have a
leveraging effect on the Fund's investment portfolio, the value of the Fund will
be potentially more volatile and all other risks will tend to be compounded.
This is because leverage generally creates investment risk with respect to a
larger base of assets than a Fund would otherwise have and so magnifies the
effect of any increase or decrease in the value of the Fund's underlying assets.
The use of leverage is considered to be a speculative investment practice and
may result in losses to a Fund. Certain derivatives have the potential for
unlimited loss, regardless of the size of the initial investment. The use of
leverage may cause a Fund to liquidate positions when it may not be advantageous
to do so to satisfy repayment, interest payment, or margin obligations or to
meet asset segregation or coverage requirements.
Liquidity
Risk
.
Liquidity risk is the risk that a Fund may not be able to dispose of securities
or close out derivatives transactions readily at a favorable time or prices (or
at all) or at prices approximating those at which a Fund currently values them.
For example, certain investments may be subject to restrictions on resale, may
trade in the over-the-counter market or in limited volume, or may not have an
active trading market. Illiquid securities may trade at a discount from
comparable, more liquid investments and may be subject to wide fluctuations in
market value. It may be difficult for a Fund to value illiquid securities
accurately. The market for certain investments may become illiquid under adverse
market or economic conditions independent of any specific adverse changes in the
conditions of a particular issuer. Disposal of illiquid securities may entail
registration expenses and other transaction costs that are higher than those for
liquid securities. A Fund may seek to borrow money to meet its obligations
(including among other things redemption obligations) if it is unable to dispose
of illiquid investments, resulting in borrowing expenses and possible leveraging
of the Fund.
Low
Volatility Risk.
Although
subject to the risks of common stocks, low volatility stocks are seen as having
a lower risk profile than the overall markets. However, a portfolio comprised of
low volatility stocks may not produce investment exposure that has lower
variability to changes in such stocks' price levels. Low volatility stocks are
likely to underperform the broader market during periods of rapidly rising stock
prices.
Market
Risk
.
Market prices of investments held by a Fund will go up or down, sometimes
rapidly or unpredictably. A Fund's investments are subject to changes in general
economic conditions, general market fluctuations and the risks inherent in
investment in securities markets. Investment markets can be volatile, and prices
of investments can change substantially due to various factors including, but
not limited to, economic growth or recession, changes in interest rates, changes
in actual or perceived creditworthiness of issuers and general market liquidity.
Even if general economic conditions do not change, the value of an investment in
a Fund could decline if the particular industries, sectors or companies in which
the Fund invests do not perform well or are adversely affected by events.
Further, legal, political, regulatory and tax changes also may cause
fluctuations in markets and securities prices. Local, regional or global events
such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on a Fund and its
investments.
An
outbreak of a respiratory disease caused by a novel coronavirus (known as
COVID-19) first detected in China in December 2019 has resulted in a global
pandemic and major disruptions to economies and markets around the world,
including the United States. Financial markets have experienced extreme
volatility and severe losses, and trading in many instruments has been
disrupted. Liquidity for many instruments has been greatly reduced for periods
of time. Some interest rates are very low and in some cases yields are negative.
Governments and central banks, including the Federal Reserve in the United
States, have taken extraordinary and unprecedented actions to support local and
global economies and the financial markets. The impact of these measures, and
whether they will be effective to mitigate the economic and market disruption,
will not be known for some time. In addition, the outbreak of COVID-19, and
measures taken to mitigate its effects, could result in disruptions to the
services provided to a Fund by its service providers.
Materials
Sector Risk.
Many
materials companies are significantly affected by the level and volatility of
commodity prices, exchange rates, import controls, worldwide competition,
environmental policies and consumer demand. At times, worldwide production of
industrial materials has exceeded demand as a result of over-building or
economic downturns, leading to poor investment returns or losses. Other risks
may include liabilities for environmental damage and general civil liabilities,
depletion of resources, and mandated expenditures for safety and pollution
control. The materials sector may also be affected by economic cycles, technical
progress, labor relations, and government regulations.
Metals
and Mining Companies Risk.
Metals
and mining companies can be significantly affected by events relating to
international political and economic developments, energy conservation, the
success of exploration projects, commodity prices, and tax and other government
regulations. Investments in metals and mining companies may be speculative and
may be subject to greater price volatility than investments in other types of
companies. Risks of metals and mining investments include: changes in
international monetary policies or economic and political conditions that can
affect the supply of precious metals and consequently the value of metals and
mining company investments; the United States or foreign governments may pass
laws or regulations limiting metals investments for strategic or other policy
reasons; and increased environmental or labor costs may depress the value of
metals and mining investments.
Mid-Capitalization
Securities Risk
. The
securities of mid-capitalization companies may be more volatile and may involve
more risk than the securities of larger companies. These companies may have
limited product lines, markets or financial resources, may lack the competitive
strength of larger companies, and may depend on a few key employees. In
addition, these companies may have been recently organized and may have little
or no track record of success. The securities of mid-sized companies may trade
less frequently and in smaller volumes than more widely held securities. The
prices of these securities may fluctuate more sharply than those of other
securities, and a Fund may experience some difficulty in establishing or closing
out positions in these securities at prevailing market prices. There may be less
publicly available information about the issuers of these securities or less
market interest in these securities than in the case of larger companies, both
of which can cause significant price volatility. Some securities of mid-sized
issuers may be illiquid or may be restricted as to resale. Returns on
investments in securities of mid-capitalization companies could trail the
returns on investments in securities of larger or smaller companies.
Momentum
Risk
. The
Fund employs a “momentum” style of investing that emphasizes investing in
securities that have had higher recent price performance compared to other
securities. This style of investing is subject to the risk that these securities
may be more volatile than a broad cross-section of securities or that the
returns on securities that have previously exhibited price momentum are less
than returns on other styles of investing or the overall stock market. Momentum
can turn quickly and cause significant variation from other types of
investments.
New
Economies Companies Risk
. The
companies included in the Index are engaged in emerging industries and new
technologies that may be unproven. Such industries and technologies may be
adversely affected by technological advances, competition, rapid product or
service obsolescence, and new and evolving regulations. Companies included in
the Index may rely on a combination of patents, copyrights, trademarks and trade
secret laws to establish and protect their proprietary rights in their products
and technologies, and may be adversely affected by loss or impairment of those
rights. In addition, companies in the Index may have limited product lines,
markets, financial resources or personnel. The Index may include stocks of
smaller, less-seasoned companies that may be more volatile than the overall
market.
New
Fund Risk
. The
Fund is new and there is no assurance that the Fund will grow quickly. When the
Fund's size is small, the Fund may experience low trading volume, which could
lead to wider bid/ask spreads. In addition, the Fund may face the risk of being
delisted if the Fund does not meet certain conditions of the listing exchange.
Any resulting liquidation of the Fund could cause elevated transaction costs for
the Fund and negative tax consequences for its shareholders.
Non-Diversification
Risk
.
Funds classified as “non-diversified” may hold a smaller number of portfolio
securities than many other funds. To the extent a Fund invests in a relatively
small number of issuers, a decline in the market value of a particular security
held by the Fund may affect its value more than if it invested in a larger
number of issuers. The value of Fund Shares may be more volatile than the values
of shares of more diversified funds. A diversified Fund may become
non-diversified (or vice versa) for periods of time solely as a result of
changes in the composition of the Index (e.g., changes in weightings of one or
more component securities).
Non-U.S.
Securities Risk
.
Investments in securities of non-U.S. issuers (including depositary
receipts) entail risks not typically associated with investing in securities of
U.S. issuers. Similar risks may apply to securities traded on a U.S. securities
exchange that are issued by entities with significant exposure to non-U.S.
countries. In certain countries, legal remedies available to investors may be
more limited than those available with regard to U.S. investments. Because
non-U.S. securities are typically denominated and traded in currencies other
than the U.S. dollar, the value of the Fund's assets, to the extent they are
non-U.S. dollar denominated, may be affected favorably or unfavorably by
currency exchange rates, exchange control regulations, and restrictions or
prohibitions on the repatriation of non-U.S. currencies. To the extent
underlying securities held by the Fund trade on foreign exchanges that are
closed when the exchange on which the Fund's shares trade is open, there may be
deviations between the current price of an underlying security and the last
quoted price for the underlying security on the closed foreign market. These
deviations could result in the Fund experiencing premiums or discounts greater
than those of ETFs that invest in domestic securities. Income and gains with
respect to investments in certain countries may be subject to withholding and
other taxes. There may be less information publicly available about a non-U.S.
entity than about a U.S. entity, and many non-U.S. entities are not subject to
accounting, auditing, and financial reporting standards, regulatory framework
and practices comparable to those in the United States. The securities of some
non-U.S. entities are less liquid and at times more volatile than securities of
comparable U.S. entities, and could become subject to sanctions or embargoes
that adversely affect a Fund's investment. Non-U.S. transaction costs, such as
brokerage commissions and custody costs may be higher than in the U.S. In
addition, there may be a possibility of nationalization or expropriation of
assets, imposition of currency exchange controls, confiscatory taxation, and
diplomatic developments that could adversely affect the values of a Fund's
investments in certain non-U.S. countries. Investments in securities of non-U.S.
issuers also are subject to foreign political and economic risk not associated
with U.S. investments, meaning that political events (civil unrest, national
elections, changes in political conditions and foreign relations, imposition of
exchange controls and repatriation restrictions), social and economic events
(labor strikes, rising inflation) and natural disasters occurring in a country
where a Fund invests could cause the Fund's investments in that country to
experience gains or losses.
Oil
and Gas Companies Risk
. Oil
and gas companies develop and produce crude oil and natural gas and provide
drilling and other energy resources production and distribution related
services. Stock prices for these types of companies are affected by supply and
demand both for their specific product or service and for energy products in
general. The price of oil and gas, exploration and production spending,
government regulation, world events and economic conditions will likewise affect
the performance of these companies. Correspondingly, securities of companies in
the energy field are subject to swift price and supply fluctuations caused by
events relating to international politics, energy conservation, the success of
exploration projects, and tax and other governmental regulatory policies. Weak
demand for the companies' products or services or for energy products and
services in general, as well as negative developments in these other areas,
would adversely impact the Fund's performance. Oil and gas equipment and
services can be significantly affected by natural disasters as well as changes
in exchange rates, interest rates, government regulation, world events and
economic conditions. These companies may be at risk for environmental damage
claims.
Pharmaceuticals
Companies Risk
.
Pharmaceutical companies are heavily dependent on patent protection. The
expiration of patents may adversely affect the profitability of the companies.
Pharmaceutical companies are also subject to extensive litigation based on
product liability and other similar claims. Many new products are subject to
approval of the U.S. Food and Drug Administration (“FDA”). The process of
obtaining FDA approval can be long and costly and approved products are
susceptible to obsolescence. Pharmaceutical companies are also subject to heavy
competitive forces that may make it difficult to raise prices and, in fact, may
result in price discounting.
Preferred
Securities Risk
.
Generally, preferred security holders have no or limited voting rights with
respect to the issuing company. In addition, preferred securities are
subordinated to bonds and other debt instruments in a company's capital
structure and therefore will be subject to greater credit risk than those debt
instruments. Unlike debt securities, dividend payments on a preferred security
typically must be declared by the issuer's board of directors. An issuer's board
of directors is generally not under any obligation to pay a dividend (even if
such dividends have accrued), and may suspend payment of dividends on preferred
securities at any time. Therefore, in the event an issuer of preferred
securities experiences economic difficulties, the issuer's preferred securities
may lose substantial value due to the reduced likelihood that the issuer's board
of directors will declare a dividend and the fact that the preferred security
may be subordinated to other securities of the same issuer. Further, because
many preferred securities pay
dividends
at a fixed rate, their market price can be sensitive to changes in interest
rates in a manner similar to bonds - that is, as interest rates rise, the value
of the preferred securities held by a Fund are likely to decline. Therefore, to
the extent that a Fund invests a substantial portion of its assets in fixed rate
preferred securities, rising interest rates may cause the value of the Fund's
investments to decline significantly. In addition, because many preferred
securities allow holders to convert the preferred securities into common stock
of the issuer, their market price can be sensitive to changes in the value of
the issuer's common stock and, therefore, declining common stock values may also
cause the value of a Fund's investments to decline. Preferred securities often
have call features which allow the issuer to redeem the security at its
discretion. The redemption of a preferred security having a higher than average
yield may cause a decrease in a Fund's yield.
Quality
Risk
. A
“quality” style of investing emphasizes companies with high returns on equity,
stable earnings per share growth, and low financial leverage. This style of
investing is subject to the risk that the past performance of these companies
does not continue or that the returns on “quality” equity securities are less
than returns on other styles of investing or the overall stock
market.
Real
Estate Sector Risk
.
There are special risks associated with investment in securities of companies
engaged in real property markets, including without limitation real estate
investment trusts (“REITs”) and real estate operating companies. An investment
in a real property company may be subject to risks similar to those associated
with direct ownership of real estate, including, by way of example, the
possibility of declines in the value of real estate, losses from casualty or
condemnation, and changes in local and general economic conditions, supply and
demand, interest rates, environmental liability, zoning laws, regulatory
limitations on rents, property taxes, and operating expenses. An investment in a
real property company is subject to additional risks, such as poor performance
by the manager of the real property company, adverse changes in tax laws,
difficulties in valuing and disposing of real estate, and the effect of general
declines in stock prices. Some real property companies have limited
diversification because they invest in a limited number of properties, a narrow
geographic area, or a single type of property. Also, the organizational
documents of a real property company may contain provisions that make changes in
control of the company difficult and time-consuming. As a shareholder in a real
property company, a Fund, and indirectly a Fund's shareholders, would bear their
ratable shares of the real property company's expenses and would at the same
time continue to pay their own fees and expenses.
REIT
Risk
.
REITs are subject to the risks associated with investing in the real estate
sector in general. In particular, a REIT may be affected by changes in the
values of the properties that the REIT owns or operates or that underlie the
mortgages or similar real estate interests in which the REIT invests. In
addition, REITs may be affected by changes to interest rates or property taxes.
Further, REITs are dependent upon specialized management skills, and their
investments may be concentrated in relatively few properties, or in a small
geographic area or a single property type. REITs are also subject to heavy cash
flow dependency and, as a result, are particularly reliant on the proper
functioning of capital markets. In the event of a default by a borrower or
lessee, the REIT may experience delays in enforcing its rights as a mortgagee or
lessor and may incur substantial costs associated with protecting its
investments. Investments in REITs are also subject to the risks affecting equity
markets generally. In addition, a REIT could fail to qualify for favorable tax
or regulatory treatment, which could have adverse consequences for a Fund.
Smaller capitalization REITs may be more volatile and may involve more risk than
larger capitalization REITs. Equity REITs earn income from leasing properties
and realize gains and losses from the sale of properties. Equity REITs may be
affected by conditions in the real estate rental market and by changes in the
value of the properties they own. A decline in rental income may occur because
of extended vacancies, limitations on rents, failure to collect rents or
increased competition from other rental properties. In addition, rising interest
rates may increase the costs of obtaining financing for real estate projects,
which may cause the value of an equity REIT to decline. Mortgage REITs receive
principal and interest payments from the owners of mortgage properties.
Accordingly, mortgage REITs are subject to the credit risk of the borrowers,
which refers to the possibility that the borrower will be unable and/or
unwilling to make timely interest payments and/or repay the principal on the
loan to the mortgage REIT when due. If a mortgage REIT is required to foreclose
on a borrower, the amount recovered in connection with the foreclosure may be
less than the amount owed to the mortgage REIT. In addition, if a borrower
refinances or prepays a mortgage, a mortgage REIT's yield may
decline.
Retail
Companies Risk
.
Retail companies can be significantly affected by the performance of the
domestic and international economy, consumer confidence and spending, intense
competition, changes in demographics, and changing consumer tastes and
preferences.
Semiconductor
Companies Risk.
A
Fund is subject to the risk that market or economic factors impacting
semiconductor companies and companies that rely heavily on technological
advances could have a major effect on the value of the Fund's investments. The
value of stocks of semiconductor companies and companies that rely heavily on
technology is particularly vulnerable to rapid changes in product cycles, rapid
product obsolescence, government regulation and competition, both domestically
and internationally, including competition from foreign competitors with lower
production costs. Semiconductor companies and companies that rely heavily on
technology, especially those of smaller, less-seasoned companies, tend to be
more volatile than the overall market. Additionally, semiconductor companies may
face dramatic and often unpredictable changes in growth rates and competition
for the services of qualified personnel.
Settlement
Risk
.
Markets in different countries have different clearance and settlement
procedures and in certain markets there have been times when settlements have
been unable to keep pace with the volume of transactions. Delays in settlement
may increase credit risk to a Fund, limit the ability of a Fund to reinvest the
proceeds of a sale of securities, hinder the ability of a Fund to lend its
portfolio securities, and potentially subject a Fund to penalties for its
failure to deliver to on-purchasers of securities whose delivery to a Fund was
delayed. Delays in the settlement of securities purchased by a Fund may limit
the ability of a Fund to sell those securities at times and prices it considers
desirable, and may subject a Fund to losses and costs due to its own inability
to settle with subsequent purchasers of the securities from it. A Fund may be
required to borrow monies it had otherwise expected to receive in connection
with the settlement of securities sold by it, in order to meet its obligations
to others. Limits on the ability of a Fund to purchase or sell securities due to
settlement delays could increase any variance between a Fund's performance
and that of its benchmark index.
Small-Capitalization
Securities Risk
. The
securities of small-capitalization companies may be more volatile and may
involve more risk than the securities of larger companies. These companies may
have limited product lines, markets or financial resources, may lack the
competitive strength of larger companies, and may depend on a few key employees.
In addition, these companies may have been recently organized and may have
little or no track record of success. The securities of smaller companies may
trade less frequently and in smaller volumes than more widely held securities.
The prices of these securities may fluctuate more sharply than those of other
securities, and a Fund may experience some difficulty in establishing or closing
out positions in these securities at prevailing market prices. There may be less
publicly available information about the issuers of these securities or less
market interest in these securities than in the case of larger companies, both
of which can cause significant price volatility. Some securities of smaller
issuers may be illiquid or may be restricted as to resale. A Fund may be unable
to liquidate its positions in such securities at any time, or at a favorable
price, in order to meet a Fund's obligations. Returns on investments in
securities of small-capitalization companies could trail the returns on
investments in securities of larger companies.
Technology
Sector Risk
.
Market or economic factors impacting technology companies and companies that
rely heavily on technological advances could have a major effect on the value of
the Fund's investments. The value of stocks of technology companies and
companies that rely heavily on technology is particularly vulnerable to rapid
changes in technology product cycles, rapid product obsolescence, government
regulation and competition, both domestically and internationally, including
competition from foreign competitors with lower production costs. Technology
companies may have limited product lines, markets, financial resources or
personnel. Stocks of technology companies and companies that rely heavily on
technology, especially those of smaller, less-seasoned companies, tend to be
more volatile than the overall market. Technology companies are heavily
dependent on patent and intellectual property rights, the loss or impairment of
which may adversely affect profitability. Additionally, companies in the
technology sector may face dramatic and often unpredictable changes in growth
rates and competition for the services of qualified personnel.
Electronic
Media Companies Risk:
Electronic
media companies create, own, and distribute various forms of technology-based
visual, audio, and interactive content, as well as information databases that
they sell or lease to others. Electronic media companies can be adversely
affected by, among other things, changes in government regulation, intense
competition, dependency on patent protection, and rapid obsolescence of products
and services due to product compatibility or changing consumer
preferences.
Telecommunications
Sector Risk.
The
telecommunications industry is subject to extensive government regulation. The
costs of complying with governmental regulations, delays or failure to receive
required regulatory approvals or the enactment of new adverse regulatory
requirements may adversely affect the business of the telecommunications
companies. The telecommunications industry can also be significantly affected by
intense competition, including
competition
with alternative technologies such as wireless communications, product
compatibility, consumer preferences, rapid product obsolescence and research and
development of new products. Technological innovations may make the products and
services of telecommunications companies obsolete. Other risks include
uncertainties resulting from such companies' diversification into new domestic
and international businesses, as well as agreements by any such companies
linking future rate increases to inflation or other factors not directly related
to the actual operating profits of the enterprise.
Transportation
Companies Risk.
Transportation
companies can be significantly affected by changes in the economy, fuel prices,
labor relations, technology developments, exchange rates, insurance costs,
industry competition and government regulation.
Unconstrained
Sector Risk
. A
Fund may invest a substantial portion of its assets within one or more economic
sectors or industries, which may change from time to time. When a Fund focuses
its investments in a particular industry or sector, financial, economic,
business, and other developments affecting issuers in that industry, market, or
economic sector will have a greater effect on the Fund than if it had not
focused its assets in that industry, market, or economic sector, which may
increase the volatility of the Fund.
Utilities
Sector Risk.
Utility
companies are affected by supply and demand, operating costs, government
regulation, environmental factors, liabilities for environmental damage and
general civil liabilities, and rate caps or rate changes. Although rate changes
of a utility usually fluctuate in approximate correlation with financing costs,
due to political and regulatory factors, rate changes ordinarily occur only
following a delay after the changes in financing costs. This factor will tend to
favorably affect a regulated utility company's earnings and dividends in times
of decreasing costs, but conversely, will tend to adversely affect earnings and
dividends when costs are rising. The value of regulated utility debt securities
(and, to a lesser extent, equity securities) may tend to have an inverse
relationship to the movement of interest rates. Certain utility companies have
experienced full or partial deregulation in recent years. These utility
companies are frequently more similar to industrial companies in that they are
subject to greater competition and have been permitted by regulators to
diversify outside of their original geographic regions and their traditional
lines of business. These opportunities may permit certain utility companies to
earn more than their traditional regulated rates of return. Some companies,
however, may be forced to defend their core business and may be less profitable.
In addition, natural disasters, terrorist attacks, government intervention or
other factors may render a utility company's equipment unusable or obsolete and
negatively impact profitability.
Among
the risks that may affect utility companies are the following: risks of
increases in fuel and other operating costs; the high cost of borrowing to
finance capital construction during inflationary periods; restrictions on
operations and increased costs and delays associated with compliance with
environmental and nuclear safety regulations; and the difficulties involved in
obtaining natural gas for resale or fuel for generating electricity at
reasonable prices. Other risks include those related to the construction and
operation of nuclear power plants, the effects of energy conservation and the
effects of regulatory changes.
Valuation
Risk
.
Some portfolio holdings, potentially a large portion of a Fund's investment
portfolio, may be valued on the basis of factors other than market quotations.
This may occur more often in times of market turmoil or reduced liquidity. There
are multiple methods that can be used to value a portfolio holding when market
quotations are not readily available. The value established for any portfolio
holding at a point in time might differ from what would be produced using a
different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued using techniques other than market
quotations, including “fair valued” securities, may be subject to greater
fluctuation in their valuations from one day to the next than if market
quotations were used. Technological issues or other service disruption issues
involving third-party service providers may cause a Fund to value its
investments incorrectly. In addition, there is no assurance that a Fund could
sell or close out a portfolio position for the value established for it at any
time, and it is possible that a Fund would incur a loss because a portfolio
position is sold or closed out at a discount to the valuation established by a
Fund at that time.
Value
Stock Risk.
Value
stocks present the risk that they may decline in price or never reach their
expected full market value because the market fails to recognize the stock's
intrinsic worth. Value stocks may underperform growth stocks and stocks in other
broad style categories (and the stock market as a whole) over any period of time
and may shift in and out of favor with investors generally, sometimes rapidly,
depending on changes in market, economic, and other factors. As a result, at
times when it holds substantial investments in value stocks a Fund may
underperform other investment portfolios that invest more broadly or that favor
different investment styles.
Each
risk discussed below is a non-principal risk of a Fund to the extent it is not
identified as a principal risk for such Fund in the preceding “ADDITIONAL RISK
INFORMATION - PRINCIPAL RISKS” section.
Authorized
Participants, Market Makers and Liquidity Providers Concentration Risk.
A
Fund has a limited number of financial institutions that may act as Authorized
Participants (“APs”), which are responsible for the creation and redemption
activity for a Fund. In addition, there may be a limited number of market makers
and/or liquidity providers in the marketplace. To the extent either of the
following events occur, Fund Shares may trade at a material discount to NAV and
possibly face delisting: (i) APs exit the business or otherwise become unable to
process creation and/or redemption orders and no other APs step forward to
perform these services, or (ii) market makers and/or liquidity providers exit
the business or significantly reduce their business activities and no other
entities step forward to perform their functions.
Cash
Transaction Risk
. To
the extent that a Fund sells portfolio securities to meet some or all of a
redemption request with cash, the Fund may incur taxable gains or losses that it
might not have incurred had it made redemptions entirely in-kind. As a result, a
Fund may pay out higher annual capital gain distributions than if the in-kind
redemption process was used.
Concentration
Risk.
A
Fund's assets will generally be concentrated in an industry or group of
industries to the extent that the Fund's underlying Index concentrates in a
particular industry or group of industries. When a Fund focuses its investments
in a particular industry or sector, financial, economic, business, and other
developments affecting issuers in that industry, market, or economic sector will
have a greater effect on the Fund than if it had not focused its assets in that
industry, market, or economic sector, which may increase the volatility of the
Fund.
Conflicts
of Interest Risk.
An
investment in a Fund will be subject to a number of actual or potential
conflicts of interest. For example, the Adviser or its affiliates may provide
services to a Fund, such as securities lending agency services, custodial,
administrative, bookkeeping, and accounting services, transfer agency and
shareholder servicing, securities brokerage services, and other services for
which the Fund would compensate the Adviser and/or such affiliates. The Funds
may invest in other pooled investment vehicles sponsored, managed, or otherwise
affiliated with the Adviser. There is no assurance that the rates at which a
Fund pays fees or expenses to the Adviser or its affiliates, or the terms on
which it enters into transactions with the Adviser or its affiliates will be the
most favorable available in the market generally or as favorable as the rates
the Adviser or its affiliates make available to other clients. Because of its
financial interest, the Adviser will have an incentive to enter into
transactions or arrangements on behalf of a Fund with itself or its affiliates
in circumstances where it might not have done so in the absence of that
interest, provided that the Adviser will comply with applicable regulatory
requirements.
The
Adviser and its affiliates serve as investment adviser to other clients and may
make investment decisions that may be different from those that will be made by
the Adviser on behalf of the Funds. For example, the Adviser may provide asset
allocation advice to some clients that may include a recommendation to invest in
or redeem from particular issuers while not providing that same recommendation
to all clients invested in the same or similar issuers. The Adviser may (subject
to applicable law) be simultaneously seeking to purchase (or sell) investments
for a Fund and to sell (or purchase) the same investment for accounts, funds, or
structured products for which it serves as asset manager, or for other clients
or affiliates. The Adviser and its affiliates may invest for clients in various
securities that are senior,
or junior
to, or have interests different from or adverse to, the securities that are
owned by a Fund. The Adviser or its affiliates, in connection with its other
business activities, may acquire material nonpublic confidential information
that may restrict the Adviser from purchasing securities or selling securities
for itself or its clients (including the Funds) or otherwise using such
information for the benefit of its clients or itself.
The
foregoing does not purport to be a comprehensive list or complete explanation of
all potential conflicts of interests which may affect a Fund. A Fund may
encounter circumstances, or enter into transactions, in which conflicts of
interest that are not listed or discussed above may arise.
Costs
of Buying and Selling Shares
.
Investors buying or selling Fund Shares in the secondary market will pay
brokerage commissions or other charges imposed by brokers, as determined by that
broker. Brokerage commissions are often a fixed amount and may be a significant
proportional cost for investors seeking to buy or sell relatively small amounts
of Fund Shares. In addition, secondary market investors will also incur the cost
of the difference between the price that an investor is willing to pay for Fund
Shares (the “bid” price) and the price at which an investor is willing to sell
Fund Shares (the “ask” price). This difference in bid and ask prices is often
referred to as the “spread” or “bid/ask
spread.”
The bid/ask spread varies over time for Fund Shares based on trading volume and
market liquidity, and is generally lower if Fund Shares have more trading volume
and market liquidity and higher if Fund Shares have little trading volume and
market liquidity. Further, increased market volatility may cause increased
bid/ask spreads. Due to the costs of buying or selling Fund Shares, including
bid/ask spreads, frequent trading of Fund Shares may significantly reduce
investment results and an investment in Fund Shares may not be advisable for
investors who anticipate regularly making small investments.
Counterparty
Risk
. A
Fund will be subject to credit risk with respect to the counterparties with
which the Fund enters into derivatives contracts and other transactions such as
repurchase agreements or reverse repurchase agreements. A Fund's ability to
profit from these types of investments and transactions will depend on the
willingness and ability of its counterparty to perform its obligations. If a
counterparty fails to meet its contractual obligations, a Fund may be unable to
terminate or realize any gain on the investment or transaction, resulting in a
loss to the Fund. A Fund may experience significant delays in obtaining any
recovery in an insolvency, bankruptcy, or other reorganization proceeding
involving its counterparty (including recovery of any collateral posted by it)
and may obtain only a limited recovery or may obtain no recovery in such
circumstances. If a Fund holds collateral posted by its counterparty, it may be
delayed or prevented from realizing on the collateral in the event of a
bankruptcy or insolvency proceeding relating to the counterparty. Under
applicable law or contractual provisions, including if a Fund enters into an
investment or transaction with a financial institution and such financial
institution (or an affiliate of the financial institution) experiences financial
difficulties, then the Fund may in certain situations be prevented or delayed
from exercising its rights to terminate the investment or transaction, or to
realize on any collateral and may result in the suspension of payment and
delivery obligations of the parties under such investment or transactions or in
another institution being substituted for that financial institution without the
consent of the Fund. Further, a Fund may be subject to “bail-in” risk under
applicable law whereby, if required by the financial institution's authority,
the financial institution's liabilities could be written down, eliminated or
converted into equity or an alternative instrument of ownership. A bail-in of a
financial institution may result in a reduction in value of some or all of its
securities and, if a Fund holds such securities or has entered into a
transaction with such a financial security when a bail-in occurs, such Fund may
also be similarly impacted.
Cybersecurity
Risk
.
With the increased use of technologies such as the Internet and the dependence
on computer systems to perform business and operational functions, funds (such
as the Funds) and their service providers (including the Adviser) may be prone
to operational and information security risks resulting from cyber-attacks
and/or technological malfunctions. In general, cyber-attacks are deliberate, but
unintentional events may have similar effects. Cyber-attacks include, among
others, stealing or corrupting data maintained online or digitally, preventing
legitimate users from accessing information or services on a website, releasing
confidential information without authorization, and causing operational
disruption. Successful cyber-attacks against, or security breakdowns of, a Fund,
the Adviser or a custodian, transfer agent, or other affiliated or third-party
service provider may adversely affect a Fund or its shareholders. For instance,
cyber-attacks or technical malfunctions may interfere with the processing of
shareholder or other transactions, affect a Fund's ability to calculate its NAV,
cause the release of private shareholder information or confidential Fund
information, impede trading, cause reputational damage, and subject a Fund to
regulatory fines, penalties or financial losses, reimbursement or other
compensation costs, and additional compliance costs. Cyber-attacks or technical
malfunctions may render records of Fund assets and transactions, shareholder
ownership of Fund Shares, and other data integral to the functioning of a Fund
inaccessible or inaccurate or incomplete. A Fund may also incur substantial
costs for cybersecurity risk management in order to prevent cyber incidents in
the future. A Fund and its shareholders could be negatively impacted as a
result. While the Adviser has established business continuity plans and systems
designed to minimize the risk of cyber-attacks through the use of technology,
processes and controls, there are inherent limitations in such plans and
systems, including the possibility that certain risks have not been identified,
given the evolving nature of this threat. Each Fund relies on third-party
service providers for many of its day-to-day operations, and will be subject to
the risk that the protections and protocols implemented by those service
providers will be ineffective to protect the Fund from cyber-attack. The Adviser
does not control the cybersecurity plans and systems put in place by third-party
service providers, and such third-party service providers may have limited
indemnification obligations to the Adviser or the Funds. Similar types of
cybersecurity risks or technical malfunctions also are present for issuers of
securities in which each Fund invests, which could result in material adverse
consequences for such issuers, and may cause a Fund's investment in such
securities to lose value.
Derivatives
Risk.
A
derivative is a financial contract the value of which depends on, or is derived
from, the value of an underlying asset, interest rate, or index. Derivative
transactions typically involve leverage and may have significant volatility. It
is possible that a derivative transaction will result in a loss greater than the
principal amount invested, and a Fund may not be able to close out a derivative
transaction at a favorable time or price. Risks associated with derivative
instruments include potential changes in value in response to interest rate
changes or other market developments or as a result of the counterparty's credit
quality; the potential for the derivative transaction not to have the effect the
Adviser anticipated or a different or less favorable effect than the Adviser
anticipated; the failure of the counterparty to the derivative transaction to
perform its obligations under the transaction or to settle a trade; possible
mispricing or improper valuation of the derivative instrument; imperfect
correlation in the value of a derivative with the asset, rate, or index
underlying the derivative; the risk that a Fund may be required to post
collateral or margin with its counterparty, and will not be able to recover the
collateral or margin in the event of the counterparty's insolvency or
bankruptcy; the risk that a Fund will experience losses on its derivatives
investments and on its other portfolio investments, even when the derivatives
investments may be intended in part or entirely to hedge those portfolio
investments; the risks specific to the asset underlying the derivative
instrument; lack of liquidity for the derivative instrument, including without
limitation absence of a secondary trading market; the potential for reduced
returns to a Fund due to losses on the transaction and an increase in
volatility; the potential for the derivative transaction to have the effect of
accelerating the recognition of gain; and legal risks arising from the
documentation relating to the derivative transaction.
Index
Construction Risk
. A
security included in an Index may not exhibit the characteristic or provide the
specific exposure for which it was selected and consequently a Fund's holdings
may not exhibit returns consistent with that characteristic or
exposure.
Index
Licensing Risk
. It
is possible that the license under which the Adviser or a Fund is permitted to
replicate or otherwise use an Index will be terminated or may be disputed,
impaired or cease to remain in effect. In such a case, the Adviser may be
required to replace the relevant Index with another index which it considers to
be appropriate in light of the investment strategy of a Fund. The use of any
such substitute index may have an adverse impact on a Fund's performance. In the
event that the Adviser is unable to identify a suitable replacement for the
relevant Index, it may determine to terminate a Fund.
Leveraging
Risk
.
Borrowing transactions, reverse repurchase agreements, certain derivatives
transactions, securities lending transactions and other investment transactions
such as when-issued, delayed-delivery, or forward commitment transactions may
create investment leverage. If a Fund engages in transactions that have a
leveraging effect on the Fund's investment portfolio, the value of the Fund will
be potentially more volatile and all other risks will tend to be compounded.
This is because leverage generally creates investment risk with respect to a
larger base of assets than a Fund would otherwise have and so magnifies the
effect of any increase or decrease in the value of the Fund's underlying assets.
The use of leverage is considered to be a speculative investment practice and
may result in losses to a Fund. Certain derivatives have the potential for
unlimited loss, regardless of the size of the initial investment. The use of
leverage may cause a Fund to liquidate positions when it may not be advantageous
to do so to satisfy repayment, interest payment, or margin obligations or to
meet asset segregation or coverage requirements.
Liquidity
Risk
.
Liquidity risk is the risk that a Fund may not be able to dispose of securities
or close out derivatives transactions readily at a favorable time or prices (or
at all) or at prices approximating those at which a Fund currently values them.
For example, certain investments may be subject to restrictions on resale, may
trade in the over-the-counter market or in limited volume, or may not have an
active trading market. Illiquid securities may trade at a discount from
comparable, more liquid investments and may be subject to wide fluctuations in
market value. It may be difficult for a Fund to value illiquid securities
accurately. The market for certain investments may become illiquid under adverse
market or economic conditions independent of any specific adverse changes in the
conditions of a particular issuer. Disposal of illiquid securities may entail
registration expenses and other transaction costs that are higher than those for
liquid securities. A Fund may seek to borrow money to meet its obligations
(including among other things redemption obligations) if it is unable to dispose
of illiquid investments, resulting in borrowing expenses and possible leveraging
of the Fund.
Money
Market Risk
. An
investment in a money market fund is not a deposit of any bank and is not
insured or guaranteed by the FDIC or any other government agency. Certain money
market funds seek to preserve the value of their shares at $1.00 per share,
although there can be no assurance that they will do so, and it is possible to
lose money by investing in such a money market fund. A major or unexpected
change in interest rates or a decline in the
credit
quality of an issuer or entity providing credit support, an inactive trading
market for money market instruments, or adverse market, economic, industry,
political, regulatory, geopolitical, and other conditions could cause the share
price of such a money market fund to fall below $1.00. It is possible that such
a money market fund will issue and redeem shares at $1.00 per share at times
when the fair value of the money market fund's portfolio per share is more or
less than $1.00. None of State Street Corporation, State Street, State Street
Global Advisors (“SSGA”), SSGA FM or their affiliates (“State Street Entities”)
guarantee the value of an investment in a money market fund at $1.00 per share.
Investors should have no expectation of capital support to a money market fund
from State Street Entities. Other money market funds price and transact at a
“floating” NAV that will fluctuate along with changes in the market-based value
of fund assets. Shares sold utilizing a floating NAV may be worth more or less
than their original purchase price. Recent changes in the regulation of money
market funds may affect the operations and structures of money market funds. A
money market fund may be permitted or required to impose redemption fees or to
impose limitations on redemptions during periods of high illiquidity in the
markets for the investments held by it.
Portfolio
Turnover Risk
. A
Fund may engage in frequent trading of its portfolio securities. Fund turnover
generally involves a number of direct and indirect costs and expenses to a Fund,
including, for example, brokerage commissions, dealer mark-ups and bid/asked
spreads, and transaction costs on the sale of securities and reinvestment in
other securities. The costs related to increased portfolio turnover have the
effect of reducing a Fund's investment return, and the sale of securities by the
Fund may result in the realization of taxable capital gains, including
short-term capital gains. A Fund may engage in frequent trading of its portfolio
securities in connection with Index rebalancing. Frequent trading may cause a
Fund to incur additional transaction costs and experience different tax
consequences in comparison to an ETF that does not engage in frequent
trading.
Securities
Lending Risk.
Each
Fund may lend portfolio securities in an amount not to exceed 40% of the value
of its net assets. For these purposes, net assets shall exclude the value of all
assets received as collateral for the loan. Such loans may be terminated at any
time. Any such loans must be continuously secured by collateral maintained on a
current basis in an amount at least equal to the market value of the securities
loaned by a Fund, marked to market each trading day. In a loan transaction, as
compensation for lending its securities, a Fund will receive a portion of the
dividends or interest accrued on the securities held as collateral or, in the
case of cash collateral, a portion of the income from the investment of such
cash. In addition, a Fund will receive the amount of all dividends, interest and
other distributions on the loaned securities. However, the borrower has the
right to vote the loaned securities. A Fund will call loans to vote proxies if a
material issue affecting the investment is to be voted upon. Efforts to recall
such securities promptly may be unsuccessful, especially for foreign securities
or thinly traded securities, and may involve expenses to a Fund. Securities
lending involves the risk that the Fund may lose money because the borrower of
the loaned securities fails to return the securities in a timely manner or at
all. Should the borrower of the securities fail financially, a Fund may
experience delays in recovering the securities or exercising its rights in the
collateral. Loans are made only to borrowers that are deemed by the securities
lending agent to be of good financial standing. In a loan transaction, a Fund
will also bear the risk of any decline in value of securities provided as
collateral or acquired with cash collateral. Each Fund will attempt to minimize
this risk by limiting the investment of cash collateral to high quality
instruments of short maturity either directly on behalf of the lending Fund or
through one or more joint accounts or funds, which may include those managed by
the Adviser. To the extent the collateral provided or investments made with
cash collateral differ from securities included in an Index, such collateral or
investments may have a greater risk of loss than the securities included in the
Index. In addition, a Fund will be subject to the risk that any income generated
by lending its securities or reinvesting cash collateral is lower than any fees
the Fund has agreed to pay a borrower. The Adviser will take into account the
tax impact to shareholders of substitute payments for dividends when overseeing
a Fund's securities lending activity.
Trading
Issues
.
Although Fund Shares are listed for trading on the Exchange and may be listed or
traded on U.S. and non-U.S. stock exchanges other than the Exchange, there can
be no assurance that an active trading market for such Fund Shares will develop
or be maintained. Trading in Fund Shares on the Exchange may be halted due to
market conditions or for reasons that, in the view of the Exchange, make trading
in Fund Shares inadvisable. In addition, trading in Fund Shares on the Exchange
is subject to trading halts caused by extraordinary market volatility pursuant
to Exchange “circuit breaker” rules. Similar to the shares of operating
companies listed on a stock exchange, Fund Shares may be sold short and are
therefore subject to the risk of increased volatility in the trading price of
the Fund's shares. While each Fund expects that the ability of Authorized
Participants to create and redeem Fund Shares at net
asset
value should be effective in reducing any such volatility, there is no guarantee
that it will eliminate the volatility associated with such short sales. There
can be no assurance that the requirements of the Exchange necessary to maintain
the listing of a Fund will continue to be met or will remain unchanged or that
Fund Shares will trade with any volume, or at all, on any stock
exchange.
SSGA
FM serves as the investment adviser to each Fund and, subject to the oversight
of the Board, is responsible for the investment management of each Fund. The
Adviser provides an investment management program for each Fund and manages the
investment of each Fund's assets. The Adviser is a wholly-owned subsidiary of
State Street Global Advisors, Inc., which itself is a wholly-owned subsidiary of
State Street Corporation. The Adviser is registered with the SEC under the
Investment Advisers Act of 1940, as amended. The Adviser and certain other
affiliates of State Street Corporation make up SSGA. SSGA is one of the world's
largest institutional money managers and the investment management arm of State
Street Corporation. As of June 30, 2020, the Adviser managed approximately
$612.89 billion in assets and SSGA managed approximately $3.05 trillion in
assets. The Adviser's principal business address is One Iron Street, Boston,
Massachusetts 02210.
For
the services provided to each Fund under the Investment Advisory Agreement, for
the fiscal year ended June 30, 2020, each Fund paid the Adviser the annual fees
based on a percentage of each Fund's average daily net assets as set forth
below:
SPDR Dow Jones REIT ETF
|
0.25% |
SPDR FactSet Innovative Technology ETF
|
0.45% |
SPDR Global Dow ETF
|
0.50% |
SPDR MSCI USA StrategicFactors ETF
|
0.15% |
SPDR NYSE Technology ETF
|
0.35% |
SPDR Portfolio S&P 1500 Composite Stock
Market ETF
|
0.03% |
SPDR Portfolio S&P 400 Mid Cap ETF
|
0.05% |
SPDR Portfolio S&P 500 ETF
|
0.03% |
SPDR Portfolio S&P 500 Growth ETF
|
0.04% |
SPDR Portfolio S&P 500 High Dividend
ETF
|
0.07% |
SPDR Portfolio S&P 500 Value ETF
|
0.04% |
SPDR Portfolio S&P 600 Small Cap ETF
|
0.05% |
SPDR Russell 1000 Low Volatility Focus ETF
|
0.20% |
SPDR Russell 1000 Momentum Focus ETF
|
0.20% |
SPDR Russell 1000 Yield Focus ETF
|
0.20% |
SPDR S&P 1500 Momentum Tilt ETF
|
0.12% |
SPDR S&P 1500 Value Tilt ETF
|
0.12% |
SPDR S&P 400 Mid Cap Growth ETF
|
0.15% |
SPDR S&P 400 Mid Cap Value ETF
|
0.15% |
SPDR S&P 500 ESG ETF
|
0.10%
(1) |
SPDR S&P 500 Fossil Fuel Reserves Free
ETF
|
0.20%
(2) |
SPDR S&P 600 Small Cap ETF
|
0.11%
(3) |
SPDR S&P 600 Small Cap Growth ETF
|
0.15% |
SPDR S&P 600 Small Cap Value ETF
|
0.15% |
SPDR S&P Aerospace & Defense ETF
|
0.35% |
SPDR S&P Bank ETF
|
0.35% |
SPDR S&P Biotech ETF
|
0.35% |
SPDR S&P Capital Markets ETF
|
0.35% |
SPDR S&P Dividend ETF
|
0.35% |
SPDR S&P Health Care Equipment ETF
|
0.35% |
SPDR S&P Health Care Services ETF
|
0.35% |
SPDR S&P Homebuilders ETF
|
0.35% |
SPDR S&P Insurance ETF
|
0.35% |
SPDR S&P Internet ETF
|
0.35% |
SPDR S&P Kensho Clean Power ETF
|
0.45% |
SPDR S&P Kensho Final Frontiers ETF
|
0.45% |
SPDR S&P Kensho Future Security ETF
|
0.45% |
SPDR S&P Kensho Intelligent Structures
ETF
|
0.45% |
SPDR S&P Kensho New Economies Composite
ETF
|
0.20% |
SPDR S&P Kensho Smart Mobility ETF
|
0.45% |
SPDR S&P Metals & Mining ETF
|
0.35% |
SPDR S&P Oil & Gas Equipment &
Services ETF
|
0.35% |
SPDR S&P Oil & Gas Exploration &
Production ETF
|
0.35% |
SPDR S&P Pharmaceuticals ETF
|
0.35% |
SPDR S&P Regional Banking ETF
|
0.35% |
SPDR S&P Retail ETF
|
0.35% |
SPDR S&P Semiconductor ETF
|
0.35% |
SPDR S&P Software & Services ETF
|
0.35% |
SPDR S&P Telecom ETF
|
0.35% |
SPDR S&P Transportation ETF
|
0.35% |
SPDR Wells Fargo Preferred Stock ETF
|
0.45% |
(1) |
The
Fund had not commenced operations as of June 30, 2020. The Fund expects to
pay the Adviser the annual fee based on the percentage of the Fund's
average daily net assets. |
(2) |
The
Adviser has contractually agreed to waive a portion of its management fee
and/or reimburse certain expenses, until October 31, 2021, so that the net
annual Fund operating expenses, before application of any fees and
expenses not paid by the Adviser pursuant to the Investment Advisory
Agreement, if any, are limited to 0.20% of the Fund's average daily net
assets. 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 the
waiver and/or reimbursement may be cancelled or modified at any time after
October 31, 2021. This waiver and/or reimbursement may not be terminated
prior to October 31, 2021 except with the approval of the Fund's Board of
Trustees. |
(3) |
Effective
January 24, 2020, the Adviser has voluntarily agreed to waive a portion of
its management fee so that the total annual Fund operating expenses of the
Fund do not exceed 0.05% of its average daily net assets. The Adviser may,
in its sole discretion, discontinue this voluntary waiver at any time
without any prior notice. |
From
time to time, the Adviser may waive all or a portion of its management fee. The
Adviser has contractually agreed to waive a portion of its management fee and/or
reimburse expenses in an amount equal to any acquired fund fees and expenses
(excluding holdings in acquired funds for cash management purposes, if any) for
each Fund until October 31, 2021. This waiver and/or reimbursement does not
provide for the recoupment by the Adviser of any amounts waived or reimbursed.
This waiver and/or reimbursement may not be terminated prior to October 31, 2021
except with the approval of the Board. The Adviser pays all expenses of each
Fund other than the management fee, brokerage expenses, taxes, interest, fees
and expenses of the Independent Trustees (including any Trustee's counsel fees),
litigation expenses, acquired fund fees and expenses and other
extraordinary expenses.
A
discussion regarding the Board's consideration of the Investment Advisory
Agreement is provided in the Funds' Annual Report to Shareholders for the period
ended June 30, 2020.
SSGA
FM, as the investment adviser for the Funds, may hire one or more sub-advisers
to oversee the day-to-day investment activities of the Funds. The sub-advisers
are subject to oversight by the Adviser. The Adviser and SPDR Series Trust
(the “Trust”) have received an exemptive order from the SEC that permits the
Adviser, with the approval of the Independent Trustees of the Trust, to retain
and amend existing sub-advisory agreements with unaffiliated investment
sub-advisers for a Fund without submitting the sub-advisory agreement to a vote
of the Fund's shareholders. The Trust will notify shareholders in the event of
any change in the identity of such sub-adviser or sub-advisers. The Adviser has
ultimate responsibility for the investment performance of the Funds due to its
responsibility to oversee each sub-adviser and recommend their hiring,
termination and replacement. The Adviser is not required to disclose fees paid
to any unaffiliated sub-adviser retained pursuant to the order. Except with
respect to the SPDR FactSet Innovative Technology ETF, SPDR MSCI USA
StrategicFactors ETF, SPDR Portfolio S&P 500 High Dividend ETF, SPDR
Portfolio S&P 600 Small Cap ETF, SPDR Russell 1000 Low Volatility Focus
ETF, SPDR Russell 1000 Momentum Focus ETF, SPDR Russell 1000 Yield Focus ETF,
SPDR S&P 1500 Momentum Tilt ETF, SPDR S&P 1500 Value Tilt ETF, SPDR
S&P 500 ESG ETF, SPDR S&P 500 Fossil Fuel Reserves Free ETF, SPDR
S&P Kensho Clean Power ETF, SPDR S&P Kensho Final Frontiers ETF, SPDR
S&P Kensho Future Security ETF, SPDR S&P Kensho Intelligent Structures
ETF, SPDR S&P Kensho New Economies Composite ETF, SPDR S&P Kensho Smart
Mobility ETF and SPDR S&P Internet ETF, approval by Fund shareholders is
required before any authority granted under the exemptive order may be
exercised.
Portfolio
Managers.
The
Adviser manages the Funds using a team of investment professionals. The team
approach is used to create an environment that encourages the flow of investment
ideas. The portfolio managers within each team work together in a cohesive
manner to develop and enhance techniques that drive the investment process for
the respective investment strategy. This approach requires portfolio
managers to share a variety of responsibilities including investment strategy
and analysis while retaining responsibility for the implementation of the
strategy within any particular portfolio. The approach also enables the team to
draw upon the resources of other groups within SSGA. Each portfolio management
team is overseen by the SSGA Investment Committee.
The
professionals primarily responsible for the day-to-day management of each Fund
are:
Portfolio Management Team
|
Fund |
Michael Feehily, Karl Schneider and Juan
Acevedo
|
SPDR
S&P 400 Mid Cap Growth ETF, SPDR S&P 400 Mid Cap Value ETF |
Michael
Feehily, Karl Schneider and David Chin |
SPDR
S&P 600 Small Cap Growth ETF, SPDR S&P 600 Small Cap Value
ETF |
Michael
Feehily, Karl Schneider and Raymond Donofrio |
SPDR
S&P Biotech ETF, SPDR S&P Health Care Services ETF, SPDR S&P
Homebuilders ETF, SPDR S&P Insurance ETF, SPDR S&P Internet ETF,
SPDR S&P Metals & Mining ETF |
Michael
Feehily, Karl Schneider and Michael Finocchi |
SPDR
FactSet Innovative Technology ETF, SPDR S&P Telecom ETF, SPDR S&P
Transportation ETF |
Michael
Feehily, Karl Schneider and Ted Janowsky |
SPDR
S&P Retail ETF |
Michael
Feehily, Karl Schneider and Melissa Kapitulik |
SPDR
S&P Bank ETF, SPDR S&P Oil & Gas Equipment & Services ETF,
SPDR S&P Software & Services ETF |
Michael
Feehily, Karl Schneider and Mark Krivitsky |
SPDR
Portfolio S&P 400 Mid Cap ETF, SPDR Portfolio S&P 500 Growth ETF,
SPDR Portfolio S&P 500 Value ETF, SPDR S&P 600 Small Cap ETF |
Michael
Feehily, Karl Schneider and John Law |
SPDR
MSCI USA StrategicFactors ETF, SPDR Portfolio S&P 500 ETF, SPDR
Portfolio S&P 500 High Dividend ETF, SPDR Russell 1000 Yield Focus
ETF, SPDR S&P 1500 Momentum Tilt ETF, SPDR S&P 1500 Value Tilt
ETF, SPDR S&P 500 Fossil Fuel Reserves Free ETF |
Michael
Feehily, Karl Schneider and Kathleen Morgan |
SPDR
Global Dow ETF, SPDR NYSE Technology ETF, SPDR Portfolio S&P 1500
Composite Stock Market ETF |
Michael
Feehily, Karl Schneider and Kala O'Donnell |
SPDR
S&P Capital Markets ETF, SPDR S&P Health Care Equipment ETF, SPDR
S&P Regional Banking ETF, SPDR S&P Semiconductor ETF |
Michael
Feehily, Karl Schneider and Emiliano Rabinovich |
SPDR
Russell 1000 Low Volatility Focus ETF, SPDR Russell 1000 Momentum Focus
ETF, SPDR S&P Dividend ETF |
Michael
Feehily, Karl Schneider and Keith Richardson |
SPDR
S&P Aerospace & Defense ETF, SPDR S&P Pharmaceuticals
ETF |
Michael Feehily, Karl Schneider and Amy
Scofield
|
SPDR
Wells Fargo Preferred Stock ETF |
Michael
Feehily, Karl Schneider and Daniel TenPas |
SPDR
Dow Jones REIT ETF |
Michael
Feehily, Karl Schneider and Olga Winner |
SPDR
S&P Oil & Gas Exploration & Production ETF |
Michael Feehily, Karl Schneider and Teddy
Wong
|
SPDR
Portfolio S&P 600 Small Cap ETF |
Michael Feehily, Mark Krivitsky and Kathleen
Morgan
|
SPDR
S&P Kensho Clean Power ETF, SPDR S&P Kensho Smart Mobility
ETF |
Michael Feehily, Kathleen Morgan and Kala
O'Donnell
|
SPDR
S&P Kensho Final Frontiers ETF, SPDR S&P Kensho Future Security
ETF |
Michael Feehily, Mark Krivitsky and Kala
O'Donnell
|
SPDR
S&P Kensho Intelligent Structures ETF, SPDR S&P Kensho New
Economies Composite ETF |
Emiliano Rabinovich, Karl Schneider and Olga
Winner
|
SPDR
S&P 500 ESG ETF |
Juan
Acevedo is a Vice President of SSGA and the Adviser and a Senior Portfolio
Manager in the Global Equity Beta Solutions Group. He is responsible for
managing equity index, smart beta and tax-efficient quantitative strategies for
institutional clients and high net worth individuals. Prior to his current role,
Mr. Acevedo was a portfolio manager in SSGA's Implementation Group, where he was
responsible for the daily management of active and passive strategies, with an
additional focus of mass construction of separate managed accounts. Mr. Acevedo
received a Bachelor of Arts in International Business from Providence College.
Additionally, he received a Master of Science in Investment Management and a
Master of Business Administration with a Finance concentration from the Questrom
School of Business at Boston University.
David
Chin is a Vice President of SSGA and the Adviser and a Senior Portfolio Manager
in the Global Equity Beta Solutions Group. He is responsible for managing a full
range of equity index and tax-efficient products. Prior to joining SSGA in 1999,
Mr. Chin worked at Frank Russell Company, OneSource Information Systems, and
PanAgora Asset Management. Mr. Chin has been working in the investment
management field since 1992. Mr. Chin holds a Bachelor of Science in Management
Information Systems from the University of Massachusetts/Boston and a Master of
Business Administration from the University of Arizona.
Raymond
Donofrio is a Vice President of SSGA and the Adviser and a Senior Portfolio
Manager in the Global Equity Beta Solutions Group. Mr. Donofrio is currently
responsible for managing various equity index funds, with both domestic and
international strategies. Prior to his current role, Mr. Donofrio was an analyst
for SSGA's Strategy and Research Group within the Global ETF Group. He began his
career as an associate within the Investment Operations
team
at SSGA, where he supported the portfolio managers of the Global Equity Beta
Solutions Group, mainly focusing on international strategies. Mr. Donofrio
received his Bachelor of Science in Financial Services from Bryant University
and his Master of Business Administration with a concentration in Finance from
Boston University's Questrom School of Business.
Michael
Feehily, CFA, is a Senior Managing Director of SSGA and the Adviser and the Head
of Global Equity Beta Solutions in the Americas. He is also a member of the
Senior Leadership Team and is a voting member on the firm's Trade Management
Oversight Committee and the North America Product Committee. In his current
role, Mr. Feehily is responsible for overseeing the Global Equity Beta Solutions
portfolio management team in the Boston office and helping lead the strategic
direction of the business. In addition, he contributes to developing new
business opportunities, consulting with clients, and running day-to-day business
operations. Mr. Feehily rejoined SSGA in 2010 after spending four years in State
Street Global Markets, LLC, where he helped to build the Global Exposure
Solutions business. This group created and managed portfolios that were designed
to meet the short-term market exposure needs of institutional clients. Prior to
this, Mr. Feehily had been Head of the U.S. Passive Equity Team within SSGA,
which he originally joined in 1997. He began his career at State Street in 1993
within the Global Services division, where he was a member of the Performance
& Analytics team and was one of the founding members of the firm's Private
Edge business which helped to analyze clients' private market investments such
as venture capital, corporate finance, and real estate. Mr. Feehily received a
Bachelor of Science from Babson College in Finance, Investments, and Economics.
He received a Master of Business Administration in Finance from Bentley College
and also earned the Chartered Financial Analyst (CFA) designation. Mr. Feehily
is a member of the CFA Institute and CFA Society Boston, Inc. He is also a
former member of the FTSE/Russell Index Client Advisory Board and the S&P
Index Advisory Committee. He is registered as an Advising Representative with
all Canadian Provincial Securities Commissions under State Street Global Advisor
Limited's (Canada) Portfolio Manager registration category. He currently serves
as an Executive Sponsor for the Inclusion & Diversity Talent Acquisition
Pillar at SSGA.
Michael
Finocchi is a Principal of SSGA and the Adviser and a Portfolio Manager in the
Global Equity Beta Solutions Group. Prior to assuming his current role in March
2012, Mr. Finocchi was a senior manager in Portfolio Administration responsible
for the operations of funds managed by the Global Equity Beta Solutions Group.
Before joining SSGA in 2005, he worked for Investors Bank & Trust as a
senior tax analyst following his role in custody servicing BGI. Mr. Finocchi
holds a Master of Business Administration with a concentration in Finance from
Boston University's Questrom School of Business as well as a Bachelor of Arts in
History and Business Studies from Providence College.
Ted
Janowsky, CFA, is a Vice President of SSGA and the Adviser and a Senior
Portfolio Manager in the Global Equity Beta Solutions Group. In this capacity,
he manages a diverse group of equity and derivative-based index portfolios and
has played a significant role designing proprietary portfolio management
software. Additionally, Mr. Janowsky is head of the portfolio management team of
SSGA's Company Stock Group, which manages all fiduciary transactions and company
stock investments including employee stock ownership plans, 401(k) plans,
defined benefit plans and non-qualified plans. Prior to joining the Global
Equity Beta Solutions Group, he worked as an application developer in Investor
Technology Services within State Street Corporation. He also worked as a
business analyst in State Street's London and Sydney offices. Mr. Janowsky
joined SSGA in 2005. Mr. Janowsky holds a Bachelor of Science in Business
Administration from Bucknell University and a Master of Business Administration
from the Carroll School of Management at Boston College. He has also earned the
Chartered Financial Analyst (CFA) designation and is a member of the CFA
Institute and CFA Society Boston, Inc.
Melissa
Kapitulik is a Vice President of SSGA and the Adviser and a Senior Portfolio
Manager in the Global Equity Beta Solutions Group where she currently manages a
varied group of equity and derivative-based index portfolios across a diverse
set of fund types and regions. Before joining SSGA in 2006, Ms. Kapitulik was a
consultant specializing in accounting system implementations for major
investment management companies and was responsible for the design and
development of a wide variety of applications. She began her career at PIMCO,
where she worked for several years as a trading assistant in Global Fixed
Income. Ms. Kapitulik holds a Bachelor of Science in Finance from Villanova
University.
Mark
Krivitsky is a Vice President of SSGA and the Adviser and a Senior Portfolio
Manager in the Global Equity Beta Solutions Group and Tax-Efficient Market
Capture Group. He is responsible for managing both U.S. and international index
funds and taxable institutional accounts. His previous experience at SSGA
includes affiliation with the firm's U.S. Structured Products Operations Group.
Mr. Krivitsky began his tenure at State Street Corporation in the Mutual
Funds
Division
in 1992. He has been working in the investment management field since 1991. Mr.
Krivitsky holds a Bachelor of Arts in Humanities/Social Sciences from the
University of Massachusetts and a Master of Business Administration with a
specialization in Finance from the Sawyer School of Management at Suffolk
University.
John
Law, CFA, is a Vice President of SSGA and the Adviser and a Senior Portfolio
Manager in the Global Equity Beta Solutions (GEBS) Group, having joined SSGA in
2016. Previously, Mr. Law worked at Dimensional Fund Advisors as a portfolio
manager on the international equities desk, where he oversaw the international
small cap strategy and served as Global Process Lead for foreign exchange. Prior
experience also includes mortgage banking, having worked at IndyMac Bank issuing
mortgage backed securities, and investment banking, with Credit Suisse First
Boston. Mr. Law has a Master of Business Administration from the University of
Chicago Booth School of Business, where he was a Siebel Scholar, and Master's
and Bachelor's degrees from Cambridge University and Princeton University,
respectively. He also earned the Chartered Financial Analyst (CFA) designation
and is a member of CFA Society Boston, Inc.
Kathleen
Morgan, CFA, is a Vice President of SSGA and the Adviser and a Senior Portfolio
Manager in the Global Equity Beta Solutions Group. In this capacity, Ms. Morgan
is responsible for the management of various equity index funds that are
benchmarked to both domestic and international strategies. Prior to joining SSGA
in 2017, she worked in Equity Product Management at Wellington Management,
conducting independent risk oversight and developing investment product
marketing strategy. Prior experience also includes index equity portfolio
management at BlackRock. Ms. Morgan holds a Bachelor of Arts degree in Economics
from Wellesley College and a Master of Business Administration from The Wharton
School at the University of Pennsylvania. She has also earned the Chartered
Financial Analyst (CFA) designation.
Kala
O'Donnell is a Vice President of SSGA and the Adviser and a Senior Portfolio
Manager in the Global Equity Beta Solutions Group. She is responsible for
managing both domestic and international equity index portfolios, including a
variety of separate accounts, commingled funds, ETFs and alternative beta
strategies. Additionally, Ms. O'Donnell has been involved in various research
and process improvement projects, and has served as a hedging specialist within
the Group. Prior to joining SSGA, Ms. O'Donnell worked in State Street
Corporation's Mutual Funds division in the U.S., as well as in Canada and
Germany. She has been in the investment management field since she joined SSGA
in 1995. Ms. O'Donnell holds a Bachelor of Science in Accounting from Lehigh
University and a Master of Business Administration in International Business
from Bentley College. She is member of the Chartered Financial Analyst (CFA)
Institute and CFA Society Boston, Inc.
Emiliano
Rabinovich, CFA, is a Managing Director of SSGA and the Adviser and a Senior
Portfolio Manager in the Global Equity Beta Solutions Group. Within this group,
he is the strategy leader for their Tax Aware, Smart Beta and ESG products. Mr.
Rabinovich currently manages a varied mix of funds that include both traditional
indexing and a variety of alternative beta mandates. Also, he manages local and
global strategies and fund structures, which include separate accounts,
commingled funds, mutual funds and ETFs. Mr. Rabinovich joined SSGA in Montreal
in 2006, where he was the Head of the Global Equity Beta Solutions Group in
Canada. He has been working in the investment management field since 2003. Mr.
Rabinovich holds a Bachelor of Arts in Economics from the University of Buenos
Aires and a Master of Arts in Economics from the University of CEMA. He has also
earned the Chartered Financial Analyst (CFA) designation and is a member of CFA
Society Boston, Inc.
Keith
Richardson is a Vice President of SSGA and the Adviser and a Senior Portfolio
Manager in the Global Equity Beta Solutions Group. He currently manages a
variety of passive U.S. and international equity funds including an assortment
of ETFs, sub-advised mutual funds, and separately managed portfolios. Prior to
his current role, Mr. Richardson spent nine years as a portfolio manager in
SSGA's Direct Implementation Group where he managed both U.S. active
quantitative strategies and passive global REITs. During that time, he also
oversaw the mass construction of separately managed accounts (SMAs). He began
his time with SSGA in investment operations with a primary focus on
tax-efficient market capture. Mr. Richardson has been with SSGA since 1999 and
has been working in the investment management field since 1997. Mr. Richardson
holds a Bachelor of Science in Finance from Bentley University and a Master of
Business Administration with a Finance concentration from the Sawyer School of
Management at Suffolk University.
Karl
Schneider, CAIA, is a Managing Director of SSGA and the Adviser and Deputy Head
of Global Equity Beta Solutions (GEBS) in the Americas, where he also serves as
a Senior Portfolio Manager for a number of the group's passive equity
portfolios. Previously within GEBS, he served as a portfolio manager and product
specialist for U.S. equity strategies and synthetic beta strategies, including
commodities, buy/write, and hedge fund replication. He is also
a
member of the S&P Dow Jones U.S. Equities Index Advisory Panel. Prior to
joining the GEBS group, Mr. Schneider worked as a portfolio manager in SSGA's
Currency Management Group, managing both active currency selection and
traditional passive hedging overlay portfolios. He joined SSGA in 1997. Mr.
Schneider holds a Bachelor of Science in Finance and Investments from Babson
College and a Master of Science in Finance from the Carroll School of Management
at Boston College. He has earned the Chartered Alternative Investment Analyst
(CAIA) designation and is a member of the CAIA Association.
Amy
Scofield is a Principal of SSGA and the Adviser and a Portfolio Manager in the
Global Equity Beta Solutions Group. She is responsible for the management of
various equity index funds, with domestic and international strategies. Ms.
Scofield rejoined SSGA in November of 2010, after spending two years at Atlantic
Trust Company, a private wealth management firm. In her role at Atlantic Trust
Company, she specialized in asset allocation and performance analysis for high
net worth clients. Prior to Atlantic Trust Company, Ms. Scofield was a
compliance officer at SSGA, where she was responsible for ensuring equity
portfolios met specified guidelines. She also worked as an operations associate
in SSGA's International Structured Products Group. Ms. Scofield holds a Bachelor
of Arts in Economics from Boston College.
Daniel
TenPas, CFA, is a Principal of SSGA and the Adviser and a Portfolio Manager in
the Global Equity Beta Solutions Group. He is currently responsible for managing
various equity index funds, with both domestic and international strategies.
Prior to assuming his current role, Mr. TenPas supported passive equity products
as a liaison between the portfolio management team and the client-facing
functions at SSGA. Mr. TenPas holds a Bachelor of Arts in Economics from
Dartmouth College and a Juris Doctor from Harvard Law School. He has earned the
Chartered Financial Analyst (CFA) designation and is a member of the CFA
Institute and CFA Society Boston, Inc.
Olga
Winner, CFA, is a Vice President of SSGA and the Adviser and a Senior Portfolio
Manager in the Global Equity Beta Solutions Group. She is responsible for the
management of several domestic, international developed and emerging market
strategies, including separate accounts, commingled funds, mutual funds and
ETFs. Additionally, Ms. Winner manages hedged and futures overlay strategies.
Prior to joining SSGA, Ms. Winner worked as an acquisitions associate at Boston
Capital Partners, a real estate investment firm, analyzing investment
opportunities. She holds a Master of Business Administration and a Master of
Science in Finance from the Carroll School of Management at Boston College and a
Bachelor of Science in Finance from the University of Massachusetts. She also
earned the Chartered Financial Analyst (CFA) designation and is a member of CFA
Society Boston, Inc.
Teddy
Wong is a Vice President of SSGA and the Adviser and a Senior Portfolio Manager
in the Global Equity Beta Solutions Group. Within this team, he is responsible
for the management of several strategies, including developed and emerging
markets strategies benchmarked to MSCI and S&P indices as well as domestic
strategies benchmarked to Russell and Standard & Poor's indices. Prior to
assuming his current role in January 2006, Mr. Wong was a manager within SSGA's
International Structured Products Group Operations Team. Mr. Wong holds a
Bachelor of Arts in Economics from the University of Rochester.
Additional
information about the portfolio managers' compensation, other accounts managed
by the portfolio managers, and the portfolio managers' ownership of the Funds is
available in the SAI.
Administrator,
Sub-Administrator, Custodian and Transfer Agent.
The
Adviser serves as Administrator for each Fund. State Street, part of State
Street Corporation, is the Sub-Administrator for each Fund and the Custodian for
each Fund's assets, and serves as Transfer Agent to each Fund.
Lending
Agent.
State
Street is the securities lending agent for the Trust. For its services, the
lending agent would typically receive a portion of the net investment income, if
any, earned on the collateral for the securities loaned.
Distributor.
State
Street Global Advisors Funds Distributors, LLC serves as the Funds' distributor
(“SSGA FD” or the “Distributor”) pursuant to the Distribution Agreement between
SSGA FD and the Trust. The Distributor will not distribute Fund Shares in less
than Creation Units, and it does not maintain a secondary market in Fund Shares.
The Distributor may enter into selected dealer agreements with other
broker-dealers or other qualified financial institutions for the sale of
Creation Units of Fund Shares.
Additional
Information
. The
Board oversees generally the operations of the Funds and the Trust. The Trust
enters into contractual arrangements with various parties, including among
others the Funds' investment adviser, custodian, transfer agent, and
accountants, who provide services to the Funds. Shareholders are not parties to
any such
contractual
arrangements or intended beneficiaries of those contractual arrangements, and
those contractual arrangements are not intended to create in any shareholder any
right to enforce them directly against the service providers or to seek any
remedy under them directly against the service providers.
This
Prospectus provides information concerning the Trust and the Funds that you
should consider in determining whether to purchase Fund Shares. Neither this
Prospectus nor the related SAI is intended, or should be read, to be or give
rise to an agreement or contract between the Trust or the Funds and any
investor, or to give rise to any rights in any shareholder or other person other
than any rights under federal or state law that may not be waived.
The
Index Providers are not affiliated with the Trust, the Adviser, the Funds'
Administrator, Sub-Administrator, Custodian, Transfer Agent, SSGA FD or any of
their respective affiliates. The Adviser (“Licensee”) has entered into license
agreements with the Index Providers pursuant to which the Adviser pays a fee to
use their respective Indices. The Adviser is sub-licensing rights to the Indices
to the Funds at no charge.
The
SPDR FactSet Innovative Technology ETF (the “Fund”) is not sponsored, endorsed,
sold or promoted by FactSet. FactSet makes no representation or warranty,
express or implied, to the owners of the Fund or any member of the public
regarding the advisability of investing in securities generally or in the Fund
particularly or the ability of the FactSet Innovative Technology Index to track
general stock market performance. FactSet licenses to State Street Global
Advisors (“Licensee”) certain trademarks and trade names of FactSet and of the
FactSet Innovative Technology Index. The FactSet Innovative Technology Index is
determined, composed and calculated by FactSet without regard to the Licensee,
Adviser or the Fund. FactSet has no obligation to take the needs of the
Licensee, Adviser or the owners of the Fund into consideration in determining,
composing or calculating the Index. FactSet is not responsible for and has not
participated in the determination of the prices and amount of the Fund or the
timing of the issuance or sale of the Fund or in the determination or
calculation of the equation by which the Fund is to be converted into cash.
FactSet has no obligation or liability in connection with the administration,
marketing or trading of the Fund.
FACTSET
DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE FACTSET
INNOVATIVE TECHNOLOGY INDEX OR ANY DATA INCLUDED THEREIN AND FACTSET SHALL HAVE
NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. FACTSET MAKES
NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY LICENSEE,
ADVISER, OWNERS OF THE FUND, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE
FACTSET INNOVATIVE TECHNOLOGY INDEX OR ANY DATA INCLUDED THEREIN. FACTSET MAKES
NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE
FACTSET INNOVATIVE TECHNOLOGY INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT
LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL FACTSET HAVE ANY LIABILITY FOR
ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST
PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
KENSHO
©
is
a registered service mark of Kensho Technologies Inc. (“Kensho”), and all Kensho
financial indices in the Kensho New Economies
©
family
and such indices' corresponding service marks have been licensed by the Licensee
in connection with the SPDR S&P Kensho Clean Power ETF, SPDR S&P Kensho
Final Frontiers ETF, SPDR S&P Kensho Future Security ETF, SPDR S&P
Kensho Intelligent Structures ETF, SPDR S&P Kensho New Economies Composite
ETF and SPDR S&P Kensho Smart Mobility ETF (collectively, the “SPDR ETFs”).
The SPDR ETFs are not marketed, sold, or sponsored by Kensho, Kensho's
affiliates, or Kensho's third party licensors.
Kensho
is not an investment adviser or broker-dealer and Kensho makes no representation
regarding the advisability of investing in any investment fund, other investment
vehicle, security or other financial product regardless of whether or not it is
based on, derived from, or included as a constituent of any Kensho New Economies
©
family
index. Kensho bears no responsibility or liability for any business decision,
input, recommendation, or action taken based on Kensho indices or any products
based on, derived from, or included as a constituent of any such index. All
referenced names and trademarks are the property of their respective
owners.
THE
SPDR MSCI USA STRATEGICFACTORS ETF IS NOT SPONSORED, ENDORSED, SOLD OR
PROMOTED BY MSCI INC. (“MSCI”), MSCI'S PARENT COMPANY, ANY OF MSCI'S OR MSCI'S
PARENT COMPANY'S DIRECTLY OR INDIRECTLY HELD SUBSIDIARIES, ANY OF MSCI'S OR
MSCI'S PARENT COMPANY'S INFORMATION
PROVIDERS
OR ANY THIRD PARTY INVOLVED IN, OR RELATED TO, COMPILING, COMPUTING OR CREATING
ANY MSCI INDEX (COLLECTIVELY, THE “MSCI PARTIES”).THE MSCI INDICES ARE THE
EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES ARE SERVICE MARK(S) OF
MSCI OR ITS AFFILIATES AND HAVE BEEN LICENSED FOR USE FOR CERTAIN PURPOSES BY
THE LICENSEE. NONE OF THE MSCI PARTIES MAKES ANY REPRESENTATION OR WARRANTY,
EXPRESS OR IMPLIED, TO THE ISSUER OR OWNERS OF THE MSCI FUNDS OR ANY OTHER
PERSON OR ENTITY REGARDING THE ADVISABILITY OF INVESTING IN FUNDS GENERALLY OR
IN THE MSCI FUNDS PARTICULARLY OR THE ABILITY OF ANY MSCI INDEX TO TRACK
CORRESPONDING STOCK MARKET PERFORMANCE. MSCI OR ITS AFFILIATES ARE THE LICENSORS
OF CERTAIN TRADEMARKS, SERVICE MARKS AND TRADE NAMES AND OF THE MSCI INDICES
WHICH ARE DETERMINED, COMPOSED AND CALCULATED BY MSCI WITHOUT REGARD TO THE MSCI
FUNDS OR THE ISSUER OR OWNERS OF THE MSCI FUNDS OR ANY OTHER PERSON OR ENTITY.
NONE OF THE MSCI PARTIES HAS ANY OBLIGATION TO TAKE THE NEEDS OF THE ISSUER OR
OWNERS OF THE MSCI FUNDS OR ANY OTHER PERSON OR ENTITY INTO CONSIDERATION IN
DETERMINING, COMPOSING OR CALCULATING THE MSCI INDICES. NONE OF THE MSCI PARTIES
IS RESPONSIBLE FOR OR HAS PARTICIPATED IN THE DETERMINATION OF THE TIMING OF,
PRICES AT, OR QUANTITIES OF THE MSCI FUNDS TO BE ISSUED OR IN THE DETERMINATION
OR CALCULATION OF THE EQUATION BY OR THE CONSIDERATION INTO WHICH THE MSCI FUNDS
ARE REDEEMABLE. FURTHER, NONE OF THE MSCI PARTIES HAS ANY OBLIGATION OR
LIABILITY TO THE ISSUER OR OWNERS OF THE MSCI FUNDS OR ANY OTHER PERSON OR
ENTITY IN CONNECTION WITH THE ADMINISTRATION, MARKETING OR OFFERING OF THE MSCI
FUNDS.
ALTHOUGH
MSCI SHALL OBTAIN INFORMATION FOR INCLUSION IN OR FOR USE IN THE CALCULATION OF
THE MSCI INDICES FROM SOURCES THAT MSCI CONSIDERS RELIABLE, NONE OF THE MSCI
PARTIES WARRANTS OR GUARANTEES THE ORIGINALITY, ACCURACY AND/OR THE COMPLETENESS
OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. NONE OF THE MSCI PARTIES MAKES
ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE ISSUER OF
THE MSCI FUNDS, OWNERS OF THE FUNDS, OR ANY OTHER PERSON OR ENTITY, FROM THE USE
OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. NONE OF THE MSCI PARTIES SHALL
HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS OR INTERRUPTIONS OF OR IN
CONNECTION WITH ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. FURTHER, NONE OF
THE MSCI PARTIES MAKES ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, AND THE
MSCI PARTIES HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO EACH MSCI INDEX AND ANY DATA
INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL ANY
OF THE MSCI PARTIES HAVE ANY LIABILITY FOR ANY DIRECT, INDIRECT, SPECIAL,
PUNITIVE, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING LOST PROFITS) EVEN IF
NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
NO
PURCHASER, SELLER OR HOLDER OF THE MSCI FUNDS, OR ANY OTHER PERSON OR ENTITY,
SHOULD USE OR REFER TO ANY MSCI TRADE NAME, TRADEMARK OR SERVICE MARK TO
SPONSOR, ENDORSE, MARKET OR PROMOTE THESE FUNDS WITHOUT FIRST CONTACTING MSCI TO
DETERMINE WHETHER MSCI'S PERMISSION IS REQUIRED. UNDER NO CIRCUMSTANCES MAY ANY
PERSON OR ENTITY CLAIM ANY AFFILIATION WITH MSCI WITHOUT THE PRIOR WRITTEN
PERMISSION OF MSCI.
NYSE
Technology Index
.
NYSE
®
Technology
Index
SM
is
a registered trademark of NYSE Group, Inc., an affiliate of ICE Data Indices,
LLC and is used with permission and under a license. The trademark has been
licensed together with the NYSE Technology Index for use by State Street Global
Advisors Trust Company (“SSGA”) in connection with the SPDR NYSE Technology ETF.
Neither the Trust, SSGA, nor the SPDR NYSE Technology ETF are sponsored,
endorsed, sold or marketed by ICE Data Indices, LLC, its affiliates or its third
party suppliers (“ICE Data and its suppliers”). ICE Data and its suppliers make
no representation or warranty regarding the advisability of investing in
securities generally, in the SPDR NYSE Technology ETF particularly, or the
ability of the NYSE Technology Index to track general stock market
performance.
ICE
DATA AND ITS SUPPLIERS DISCLAIM ANY AND ALL WARRANTIES AND REPRESENTATIONS,
EXPRESS AND/OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE OR USE, INCLUDING THE INDICES, INDEX DATA AND ANY
INFORMATION INCLUDED IN, RELATED
TO,
OR DERIVED THEREFROM (“INDEX DATA”). ICE DATA AND ITS SUPPLIERS SHALL NOT BE
SUBJECT TO ANY DAMAGES OR LIABILITY WITH RESPECT TO THE ADEQUACY, ACCURACY,
TIMELINESS OR COMPLETENESS OF THE INDICES AND THE INDEX DATA, WHICH ARE PROVIDED
ON AN “AS IS” BASIS AND YOUR USE IS AT YOUR OWN RISK.
Russell
Indices
: The
SPDR Russell 1000 Low Volatility Focus ETF, SPDR Russell 1000 Momentum Focus ETF
and SPDR Russell 1000 Yield Focus ETF, (the “Products”) have been developed
solely by the Adviser. The Products are not in any way connected to or
sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and
its group undertakings (collectively, the “LSE Group”). FTSE Russell is a
trading name of certain of the LSE Group companies.
All
rights in the Russell 1000
®
Low
Volatility Focused Factor Index, Russell 1000
®
Momentum
Focused Factor Index and Russell 1000
®
Yield
Focused Factor Index (collectively, the “FTSE Russell Indices”) vest in the
relevant LSE Group company which owns the FTSE Russell Indices. “FTSE
®
”,
“Russell
®
”,
“FTSE Russell
®
”
are trademarks of the relevant LSE Group company and are used by any other LSE
Group company under license.
The
FTSE Russell Indices are calculated by or on behalf of FTSE International
Limited or its affiliate, agent or partner. The LSE Group does not accept any
liability whatsoever to any person arising out of (a) the use of, reliance on or
any error in the FTSE Russell Indices or (b) investment in or operation of the
Products. The LSE Group makes no claim, prediction, warranty or representation
either as to the results to be obtained from the Products or the suitability of
the FTSE Russell Indices for the purpose to which they are being put by the
Adviser.
S&P
Indices:
“S&P
500 Growth Index,” “S&P 500 Value Index,” “S&P 500 High
Dividend Index,” “S&P 500 Fossil Fuel Free Index,” “S&P MidCap
400 Growth Index,” “S&P MidCap 400 Value Index,” “S&P SmallCap
600 Index,” “S&P SmallCap 600 Growth Index,” “S&P SmallCap 600
Value Index,” “The Global Dow,” “Dow Jones U.S. Select REIT
Index,” “S&P Banks Select Industry Index,” “S&P Capital
Markets Select Industry Index,” “S&P Insurance Select Industry
Index,” “S&P Regional Banks Select Industry Index,” “S&P High
Yield Dividend Aristocrats Index,” “S&P Composite 1500
Index,” “S&P Aerospace & Defense Select Industry
Index,” “S&P Biotechnology Select Industry Index,” “S&P Health
Care Equipment Select Industry Index,” “S&P Health Care Services Select
Industry Index,” “S&P Homebuilders Select Industry
Index,” “S&P Internet Select Industry Index,” “S&P Metals
& Mining Select Industry Index,” “S&P Oil & Gas Equipment &
Services Select Industry Index,” “S&P Oil & Gas Exploration &
Production Select Industry Index,” “S&P Pharmaceuticals Select Industry
Index,” “S&P Retail Select Industry Index,” “S&P Semiconductor
Select Industry Index,” “S&P Software & Services Select Industry
Index,” “S&P Telecom Select Industry Index,” “S&P
Transportation Select Industry Index,” “S&P 1500 Low Valuation Tilt
Index,” “S&P 1500 Positive Momentum Tilt Index,” “S&P 500
Index,” “S&P MidCap 400 Index,” “S&P 500 ESG
Index,” “S&P Kensho Clean Power Index,” “S&P Kensho Final
Frontiers Index,” “S&P Kensho Future Security Index,” “S&P
Kensho Intelligent Infrastructure Index,” “S&P Kensho New Economies
Composite Index” and “S&P Kensho Smart Transportation Index” (together, the
“S&P Indices”) are products of S&P Dow Jones Indices LLC (“SPDJI”) or
its affiliates and have been licensed for use by the Adviser. “S&P”, “SPDR”,
“S&P 500”, “S&P MidCap 400”, “S&P SmallCap 600” and “S&P
Composite 1500” are registered trademarks of Standard & Poor's Financial
Services LLC (“S&P'); "Global Dow” and “Dow Jones” are registered trademarks
of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these marks, together
with the names identifying the S&P Indices, have been licensed for use by
SPDJI and sub-licensed for use by the
Adviser.
The
Funds are not sponsored, endorsed, sold or marketed by SPDJI, Dow Jones,
S&P, any of their respective affiliates (collectively, “S&P Dow Jones
Indices”). S&P Dow Jones Indices does not make any representation or
warranty, express or implied, to the owners of the Funds or any member of the
public regarding the advisability of investing in securities generally or in the
Funds particularly or the ability of the Indices to track general market
performance. S&P Dow Jones Indices licenses to Licensee the Index and
certain trademarks, service marks and/or trade names of S&P Dow Jones
Indices and/or its licensors. The Indices are determined, composed and
calculated by S&P Dow Jones Indices without regard to Licensee or the Funds.
S&P Dow Jones Indices have no obligation to take the needs of Licensee or
the owners of the Funds into consideration in determining, composing or
calculating the Indices. S&P Dow Jones Indices is not responsible for and
has not participated in the determination of the prices, and amount of the Funds
or the timing of the issuance or sale of the Funds or in the determination or
calculation of the equation by which the Funds are to be converted into cash,
surrendered or redeemed, as the case may be. S&P Dow Jones
Indices
has no obligation or liability in connection with the administration, marketing
or trading of the Funds. S&P Dow Jones Indices LLC is not an investment or
tax advisor. Inclusion of a security within an index is not a recommendation by
S&P Dow Jones Indices to buy, sell, or hold such security, nor is it
considered to be investment advice.
NEITHER
S&P DOW JONES INDICES NOR THIRD PARTY LICENSOR GUARANTEES THE ADEQUACY,
ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE INDICES OR ANY DATA RELATED
THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN
COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO.
S&P DOW JONES INDICES AND THIRD PARTY LICENSOR SHALL NOT BE SUBJECT TO ANY
DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW
JONES INDICES AND THIRD PARTY LICENSOR MAKES NO EXPRESS OR IMPLIED WARRANTIES,
AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY LICENSEE, OWNERS
OF THE FUNDS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDICES OR
WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING,
IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES OR THIRD PARTY LICENSOR
BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL
DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME
OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES,
WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD
PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES
INDICES AND LICENSEE, OTHER THAN THE LICENSORS OF S&P DOW JONES
INDICES.
Wells
Fargo
hybrid
and preferred securities aggregate index: SPDR Wells Fargo Preferred Stock ETF
(the “ETF”) is not sponsored, issued or advised by Wells Fargo & Company,
Wells Fargo Securities, LLC or their subsidiaries and affiliates (collectively,
“Wells Fargo”). Wells Fargo makes no representation or warranty, express or
implied, to the ETF's investors or any member of the public regarding the
performance of the Wells Fargo
SM
Hybrid
and Preferred Securities Aggregate Index or this ETF or the ability of any data
supplied by Wells Fargo or any index to track financial instruments comprising
the Wells Fargo
SM
Hybrid
and Preferred Securities Aggregate Index or any trading market. Wells Fargo
licenses to SSGA certain trademarks and trade names of Wells Fargo and of the
data supplied by Wells Fargo that is determined, composed and calculated by
Wells Fargo or a third party index calculator, without regard to this ETF or its
common shares. Wells Fargo has no obligation to take the needs of or the ETF
into consideration when determining, composing or calculating the data. Wells
Fargo may act as an Authorized Participant for the ETF and/or as an initial
purchaser of Shares of the ETF.
WELLS
FARGO DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF ANY DATA
SUPPLIED BY IT OR ANY DATA INCLUDED THEREIN. WELLS FARGO MAKES NO WARRANTY,
EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY SSGA AND THE ETF, OR ANY
OTHER PERSON OR ENTITY FROM THE USE OF THE DATA SUPPLIED BY WELLS FARGO OR ANY
DATA INCLUDED THEREIN. WELLS FARGO MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND
EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OR USE WITH RESPECT TO THE DATA SUPPLIED BY WELLS FARGO OR
ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT
SHALL WELLS FARGO HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR
CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE
POSSIBILITY OF SUCH DAMAGES.
NEW
YORK STOCK EXCHANGE ARCA INC. (“NYSE ARCA”) IS NOT AFFILIATED WITH SSGA OR WELLS
FARGO AND DOES NOT APPROVE, ENDORSE, REVIEW OR RECOMMEND WELLS FARGO, SSGA OR
SPDR WELLS FARGO PREFERRED STOCK ETF.
SPDR
Wells Fargo Preferred Stock ETF is based on the Wells Fargo
SM
Hybrid
and Preferred Securities Aggregate Index and the value of the Wells Fargo
SM
Hybrid
and Preferred Securities Aggregate Index is derived from sources deemed
reliable, but the NYSE ARCA and its suppliers do not guarantee the correctness
or completeness of Wells Fargo
SM
Hybrid
and Preferred Securities Aggregate Index, their values or other information
furnished in connection with Wells FargoSM Hybrid and Preferred Securities
Aggregate Index. THE NYSE ARCA MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE
RESULTS TO BE OBTAINED BY ANY PERSON OR ENTITY FROM THE USE OF THE WELLS FARGO
SM
HYBRID
AND PREFERRED SECURITIES AGGREGATE INDEX, TRADING BASED ON
THE
INDEX, OR ANY DATA INCLUDED THEREIN IN CONNECTION WITH THE TRADING OF SSGA's
PRODUCTS, OR FOR ANY OTHER USE. WELLS FARGO AND NYSE ARCA MAKE NO WARRANTIES,
EXPRESS OR IMPLIED, AND HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE
WELLS FARGO
sm
HYBRID
AND PREFERRED SECURITIES AGGREGATE INDEX OR ANY DATA INCLUDED THEREIN.
Fund
Shares are listed for secondary trading on the Exchange and individual Fund
Shares may only be purchased and sold in the secondary market through a
broker-dealer. The secondary markets are closed on weekends and also are
generally closed on the following holidays: New Year's Day, Dr. Martin Luther
King, Jr. Day, Presidents' Day, Good Friday, Memorial Day (observed),
Independence Day, Labor Day, Thanksgiving Day and Christmas Day. The Exchange
may close early on the business day before certain holidays and on the day after
Thanksgiving Day. Exchange holiday schedules are subject to change without
notice. If you buy or sell Fund Shares in the secondary market, you will pay the
secondary market price for Fund Shares. In addition, you may incur customary
brokerage commissions and charges and may pay some or all of the spread between
the bid and the offered price in the secondary market on each leg of a round
trip (purchase and sale) transaction.
The
trading prices of Fund Shares will fluctuate continuously throughout trading
hours based on market supply and demand rather than the relevant Fund's net
asset value, which is calculated at the end of each business day. Fund Shares
will trade on the Exchange at prices that may be above (
., at a premium)
or below (
., at a
discount), to varying degrees, the daily net asset value of Fund Shares. The
trading prices of Fund Shares may deviate significantly from the relevant
Fund's net asset value during periods of market volatility. Given, however, that
Fund Shares can be issued and redeemed daily in Creation Units, the Adviser
believes that large discounts and premiums to net asset value should not be
sustained over long periods.
The
Exchange will disseminate, every fifteen seconds during the regular trading day,
an indicative optimized portfolio value (“IOPV”) relating to each Fund. The IOPV
calculations are estimates of the value of each Fund's net asset value per Fund
Share. Premiums and discounts between the IOPV and the market price may occur.
This should not be viewed as a “real-time” update of the net asset value per
Fund Share. The IOPV is based on the current market value of the published
basket of portfolio securities and/or cash required to be deposited in exchange
for a Creation Unit and does not necessarily reflect the precise composition of
a Fund's actual portfolio at a particular point in time. Moreover, the IOPV is
generally determined by using current market quotations and/or price quotations
obtained from broker-dealers and other market intermediaries and valuations
based on current market rates. The IOPV may not be calculated in the same manner
as the NAV, which (i) is computed only once a day, (ii) unlike the calculation
of the IOPV, takes into account Fund expenses, and (iii) may be subject, in
accordance with the requirements of the 1940 Act, to fair valuation at different
prices than those used in the calculations of the IOPV. The IOPV price is based
on quotes and closing prices from the securities' local market converted into
U.S. dollars at the current currency rates and may not reflect events that occur
subsequent to the local market's close. Therefore, the IOPV may not reflect the
best possible valuation of a Fund's current portfolio. Neither the Funds nor the
Adviser or any of their affiliates are involved in, or responsible for, the
calculation or dissemination of such IOPVs and make no warranty as to their
accuracy.
The
Funds do not impose any restrictions on the frequency of purchases and
redemptions; however, the Funds reserve the right to reject or limit purchases
at any time as described in the SAI. When considering that no restriction or
policy was necessary, the Board evaluated the risks posed by market timing
activities, such as whether frequent purchases and redemptions would interfere
with the efficient implementation of a Fund's investment strategy, or whether
they would cause a Fund to experience increased transaction costs. The Board
considered that, unlike traditional mutual funds, Fund Shares are issued and
redeemed only in large quantities of shares known as Creation Units, available
only from a Fund directly, and that most trading in a Fund occurs on the
Exchange at prevailing market prices and does not involve the Fund directly.
Given this structure, the Board determined that it is unlikely that (a) market
timing would be attempted by a Fund's shareholders or (b) any attempts to market
time a Fund by shareholders would result in negative impact to the Fund or its
shareholders.
Dividends
and Capital Gains.
As a
Fund shareholder, you are entitled to your share of the applicable Fund's income
and net realized gains on its investments. Each Fund pays out substantially all
of its net earnings to its shareholders as “distributions.”
Each Fund may
earn income dividends from stocks, interest from debt securities and, if
participating, securities lending income. These amounts, net of expenses and
taxes (if applicable), are passed along to Fund shareholders as “income dividend
distributions.” Each Fund will generally realize short-term capital gains or
losses whenever it sells or exchanges assets held for one year or less. Net
short-term capital gains will generally be treated as ordinary income when
distributed to shareholders. Each Fund will generally realize long-term capital
gains or losses whenever it sells or exchanges assets held for more than one
year. Net capital gains (the excess of a Fund's net long-term capital gains over
its net short-term capital losses) are distributed to shareholders as “capital
gain distributions.”
Income
dividend distributions, if any, for the Funds (except the SPDR MSCI USA
StrategicFactors
SM
ETF
and SPDR Wells Fargo Preferred Stock ETF) are generally distributed to
shareholders quarterly, but may vary significantly from period to period. Income
dividend distributions, if any, for the SPDR MSCI USA StrategicFactors
SM
ETF
and SPDR Wells Fargo Preferred Stock ETF are generally distributed to
shareholders semi-annually and monthly, respectively, but may vary significantly
from period to period.
Net
capital gains for each Fund are distributed at least annually. Dividends may be
declared and paid more frequently or at any other time to improve Index tracking
or to comply with the distribution requirements of the Code. For the SPDR Dow
Jones REIT ETF, SPDR Portfolio S&P 500 High Dividend ETF, SPDR S&P
Dividend ETF, SPDR S&P Internet ETF and SPDR Wells Fargo Preferred
Stock ETF: the Funds intend to distribute at least annually amounts representing
the full dividend yield net of expenses on the underlying investment securities
as if the Fund owned the underlying investment securities for the entire
dividend period. As a result, some portion of each distribution may result in a
return of capital. You will be notified regarding the portion of the
distribution which represents a return of capital.
Distributions
in cash may be reinvested automatically in additional whole Fund Shares only if
the broker through whom you purchased Fund Shares makes such option available.
Distributions which are reinvested will nevertheless be taxable to the same
extent as if such distributions had not been reinvested.
The
Funds' portfolio holdings disclosure policy is described in the SAI. In
addition, the identities and quantities of the securities held by each Fund are
disclosed on the Funds' website.
The
following discussion is a summary of some important U.S. federal income tax
considerations generally applicable to an investment in a Fund. Your investment
in a Fund may have other tax implications. Please consult your tax advisor about
federal, state, local, foreign or other tax laws applicable to you. Investors,
including non-U.S. investors, may wish to consult the SAI tax section for
additional disclosure.
Taxes
on Distributions.
In
general, your distributions are subject to federal income tax when they are
paid, whether you take them in cash or reinvest them in a Fund. The income
dividends and short-term capital gains distributions you receive from a Fund
will be taxed as either ordinary income or qualified dividend income. Subject to
certain limitations, dividends that are reported by a Fund as qualified dividend
income are taxable to noncorporate shareholders at rates of up to 20%. Any
distributions of a Fund's net capital gains are taxable as long-term capital
gain regardless of how long you have owned Fund Shares. Long-term capital gains
are generally taxed to noncorporate shareholders at rates of up to 20%.
Distributions in excess of a Fund's current and accumulated earnings and profits
are treated as a tax-free return of capital to the extent of your basis in the
applicable Fund's shares, and, in general, as capital gain
thereafter.
In
general, dividends may be reported by a Fund as qualified dividend income if
they are attributable to qualified dividend income received by the Fund, which,
in general, includes dividend income from taxable U.S. corporations and certain
foreign corporations (
., certain
foreign corporations incorporated in a possession of the United States or in
certain countries with a comprehensive tax treaty with the United States, and
certain other foreign corporations if the stock with respect to which the
dividend is paid is readily tradable on an established securities market in the
United
States),
provided that the Fund satisfies certain holding period requirements in respect
of the stock of such corporations and has not hedged its position in the stock
in certain ways. A dividend generally will not be treated as qualified dividend
income if the dividend is received with respect to any share of stock held by a
Fund for fewer than 61 days during the 121-day period beginning at the date
which is 60 days before the date on which such share becomes ex-dividend with
respect to such dividend or, in the case of certain preferred stock, for
fewer than 91 days during the 181-day period beginning 90 days before such date.
These holding period requirements will also apply to your ownership of Fund
Shares. Holding periods may be suspended for these purposes for stock that is
hedged. Additionally, income derived in connection with a Fund's securities
lending activities will not be treated as qualified dividend income.
U.S.
individuals with income exceeding specified thresholds are subject to a 3.8%
Medicare contribution tax on all or a portion of their “net investment income,”
which includes taxable interest, dividends and certain capital gains (generally
including capital gain distributions and capital gains realized upon the sale of
Fund Shares). This 3.8% tax also applies to all or a portion of the
undistributed net investment income of certain shareholders that are estates and
trusts.
Certain
tax-exempt educational institutions will be subject to a 1.4% tax on net
investment income. For these purposes, certain dividends and capital gain
distributions, and certain gains from the disposition of Fund Shares (among
other categories of income), are generally taken into account in computing a
shareholder's net investment income.
If
you lend your Fund Shares pursuant to securities lending arrangements you may
lose the ability to treat Fund dividends (paid while the Fund Shares are held by
the borrower) as qualified dividend income. You should consult your financial
intermediary or tax advisor to discuss your particular circumstances.
Distributions
paid in January, but declared by a Fund in October, November or December of the
previous year, payable to shareholders of record in such a month, may be taxable
to you in the calendar year in which they were declared. The Funds will inform
you of the amount of your ordinary income dividends, qualified dividend income
and capital gain distributions shortly after the close of each calendar
year.
A
distribution will reduce a Fund's net asset value per Fund Share and may be
taxable to you as ordinary income or capital gain even though, from an
investment standpoint, the distribution may constitute a return of
capital.
Derivatives
and Other Complex Securities.
A
Fund may invest in complex securities. These investments may be subject to
numerous special and complex rules. These rules could affect whether gains and
losses recognized by a Fund are treated as ordinary income or capital gain,
accelerate the recognition of income to a Fund and/or defer a Fund's ability to
recognize losses. In turn, these rules may affect the amount, timing or
character of the income distributed to you by a Fund. You should consult your
personal tax advisor regarding the application of these rules.
Foreign
Currency Transactions.
A
Fund's transactions in foreign currencies, foreign currency denominated debt
obligations and certain foreign currency options, futures contracts and forward
contracts (and similar instruments) may give rise to ordinary income or loss to
the extent such income or loss results from fluctuations in the value of the
foreign currency concerned.
Foreign
Income Taxes.
Investment
income received by a Fund from sources within foreign countries may be subject
to foreign income taxes withheld at the source. The United States has entered
into tax treaties with many foreign countries which may entitle a Fund to a
reduced rate of such taxes or exemption from taxes on such income. It is
impossible to determine the effective rate of foreign tax for a Fund in advance
since the amount of the assets to be invested within various countries is not
known. If more than 50% of the total assets of a Fund at the close of its
taxable year consist of certain foreign stocks or securities, the Fund may elect
to “pass through” to you certain foreign income taxes (including withholding
taxes) paid by the Fund. If a Fund in which you hold Fund Shares makes such
an election, you will be considered to have received as an additional dividend
your share of such foreign taxes, but you may be entitled to either a
corresponding tax deduction in calculating your taxable income, or, subject to
certain limitations, a credit in calculating your federal income tax. No
deduction for such taxes will be permitted to individuals in computing their
alternative minimum tax liability. If a Fund does not so elect, the Fund will be
entitled to claim a deduction for certain foreign taxes incurred by the Fund.
Under certain circumstances, if a Fund receives a refund of foreign taxes paid
in respect of a prior year, the value of Fund Shares could be affected or any
foreign tax credits or deductions passed through to shareholders in respect of
the Fund's foreign taxes for the current year could be
reduced.
Real
Estate Investments.
Non-U.S.
persons are generally subject to U.S. tax on a disposition of a “United States
real property interest” (a “USRPI”). Gain on such a disposition is generally
referred to as “FIRPTA gain.” The Code provides a look-through rule for
distributions of so-called FIRPTA gain by a Fund if certain requirements are
met. If the look-through rule applies, certain distributions attributable to
income received by a Fund, e.g., from U.S. REITs, may be treated as gain from
the disposition of a USRPI, causing distributions to be subject to U.S.
withholding tax at rates of up to 21%, and requiring non-U.S. investors to file
nonresident U.S. income tax returns. Also, gain may be subject to a 30% branch
profits tax in the hands of a foreign stockholder that is treated as a
corporation for federal income tax purposes. Under certain circumstances, Shares
may qualify as USRPIs, which could result in 15% withholding on certain
distributions and gross redemption proceeds paid to certain non-U.S.
shareholders.
For
tax years beginning after December 31, 2017 and before January 1, 2026, a
noncorporate taxpayer is generally eligible for a deduction of up to 20% of the
taxpayer's “qualified REIT dividends.” If a Fund receives dividends (other
than capital gain dividends) in respect of REIT shares, the Fund may report its
own dividends as eligible for the 20% deduction, to the extent the Fund's income
is derived from such qualified REIT dividends, as reduced by allocable Fund
expenses. In order for a Fund's dividends to be eligible for this deduction when
received by a noncorporate shareholder, the Fund must meet certain holding
period requirements with respect to the REIT shares on which the Fund received
the eligible dividends, and the noncorporate shareholder must meet certain
holding period requirements with respect to the Fund Shares.
Taxes
on Exchange-Listed Share Sales.
Any
capital gain or loss realized upon a sale of Fund Shares is generally treated as
long-term capital gain or loss if Fund Shares have been held for more than one
year and as short-term capital gain or loss if Fund Shares have been held for
one year or less, except that any capital loss on the sale of Fund Shares held
for six months or less is treated as long-term capital loss to the extent that
capital gain dividends were paid with respect to such Fund Shares.
Taxes
on Creations and Redemptions of Creation Units.
A
person who exchanges securities for Creation Units generally will recognize a
gain or loss. The gain or loss will be equal to the difference between the
market value of the Creation Units at the time and the exchanger's aggregate
basis in the securities surrendered plus any cash paid for the Creation Units. A
person who exchanges Creation Units for securities will generally recognize a
gain or loss equal to the difference between the exchanger's basis in the
Creation Units and the aggregate market value of the securities and the amount
of cash received. The Internal Revenue Service (the “IRS”), however, may assert
that a loss realized upon an exchange of securities for Creation Units cannot be
deducted currently under the rules governing “wash sales,” or on the basis that
there has been no significant change in economic position. Persons exchanging
securities should consult their own tax advisor with respect to whether wash
sale rules apply and when a loss might be deductible.
Under
current federal tax laws, any capital gain or loss realized upon a redemption
(or creation) of Creation Units is generally treated as long-term capital gain
or loss if the applicable Fund Shares (or securities surrendered) have been held
for more than one year and as a short-term capital gain or loss if the
applicable Fund Shares (or securities surrendered) have been held for one year
or less.
If
you create or redeem Creation Units, you will be sent a confirmation statement
showing how many Fund Shares you purchased or sold and at what price.
The
Trust on behalf of each Fund has the right to reject an order for Creation Units
if the purchaser (or a group of purchasers) would, upon obtaining the Fund
Shares so ordered, own 80% or more of the outstanding shares of the applicable
Fund and if, pursuant to Section 351 of the Code, the applicable Fund would have
a basis in the securities different from the market value of the securities on
the date of deposit. The Trust also has the right to require information
necessary to determine beneficial share ownership for purposes of the 80%
determination. If the Trust does issue Creation Units to a purchaser (or a
group of purchasers) that would, upon obtaining the Fund Shares so ordered, own
80% or more of the outstanding shares of the applicable Fund, the purchaser (or
group of purchasers) will not recognize gain or loss upon the exchange of
securities for Creation Units.
If
a Fund redeems Creation Units in cash, it may bear additional costs and
recognize more capital gains than it would if it redeems Creation Units
in-kind.
Certain
Tax-Exempt Investors.
A
Fund, if investing in certain limited real estate investments and other publicly
traded partnerships, may be required to pass through certain “excess inclusion
income” and other income as “unrelated business taxable income” (“UBTI”). Prior
to investing in a Fund, tax-exempt investors sensitive to UBTI should consult
their tax advisors regarding this issue and IRS pronouncements addressing the
treatment of such income in the hands of such investors.
Investments
In Certain Foreign Corporations.
A
Fund may invest in foreign entities classified as passive foreign investment
companies or “PFICs” or controlled foreign corporations or “CFCs” under the
Code. PFIC and CFC investments are subject to complex rules that may under
certain circumstances adversely affect a Fund. Accordingly, investors should
consult their own tax advisors and carefully consider the tax consequences of
PFIC and CFC investments by a Fund before making an investment in such Fund.
Fund dividends attributable to dividends received from PFICs generally will not
be treated as qualified dividend income. Additional information pertaining to
the potential tax consequences to the Funds, and to the shareholders, from the
Funds' potential investment in PFICs and CFCs can be found in the
SAI.
Non-U.S.
Investors.
Ordinary
income dividends paid by a Fund to shareholders who are non-resident aliens or
foreign entities will generally be subject to a 30% U.S. withholding
tax (other than distributions reported by the Fund as interest-related
dividends and short-term capital gain dividends), unless a lower treaty rate
applies or unless such income is effectively connected with a U.S. trade or
business. In general, a Fund may report interest-related dividends to the extent
of its net income derived from U.S.-source interest, and a Fund may report
short-term capital gain dividends to the extent its net short-term capital gain
for the taxable year exceeds its net long-term capital loss. Gains on the
sale of Fund Shares and dividends that are, in each case, effectively connected
with the conduct of a trade or business within the U.S. will generally be
subject to U.S. federal net income taxation at regular income tax rates.
Non-U.S. shareholders that own, directly or indirectly, more than 5% of a Fund's
shares are urged to consult their own tax advisors concerning special tax rules
that may apply to their investment.
Unless
certain non-U.S. entities that hold Fund Shares comply with IRS requirements
that will generally require them to report information regarding U.S. persons
investing in, or holding accounts with, such entities, a 30% withholding tax may
apply to distributions payable to such entities. A non-U.S. shareholder may
be exempt from the withholding described in this paragraph under an applicable
intergovernmental agreement between the U.S. and a foreign government, provided
that the shareholder and the applicable foreign government comply with the terms
of such agreement.
Backup
Withholding.
A
Fund will be required in certain cases to withhold (as “backup withholding”) on
amounts payable to any shareholder who (1) has provided the Fund either an
incorrect tax identification number or no number at all, (2) is subject to
backup withholding by the IRS for failure to properly report payments of
interest or dividends, (3) has failed to certify to the Fund that such
shareholder is not subject to backup withholding, or (4) has not certified that
such shareholder is a U.S. person (including a U.S. resident alien). The backup
withholding rate is currently 24%. Backup withholding will not be applied to
payments that have been subject to the 30% withholding tax on shareholders who
are neither citizens nor permanent residents of the United States.
Other
Tax Issues.
A
Fund may be subject to tax in certain states where the Fund does
business (or is treated as doing business as a result of its investments).
Furthermore, in those states which have income tax laws, the tax treatment of
the Funds and of Fund shareholders with respect to distributions by the Funds
may differ from federal tax treatment.
The
foregoing discussion summarizes some of the consequences under current federal
income tax law of an investment in the Funds. It is not a substitute for
personal tax advice. Consult your personal tax advisor about the potential tax
consequences of an investment in the Funds under all applicable tax laws.
The
Trust was organized as a Massachusetts business trust on June 12, 1998. If
shareholders of any Fund are required to vote on any matters, shareholders are
entitled to one vote for each Fund Share they own. Annual meetings of
shareholders will not be held except as required by the 1940 Act and other
applicable law. See the SAI for more information concerning the Trust's form of
organization.
Management and
Organization
Each
Fund is a separate series of the Trust, which is an open-end registered
management investment company.
For
purposes of the 1940 Act, Fund Shares are issued by the respective series of the
Trust and the acquisition of Fund Shares by investment companies is subject to
the restrictions of Section 12(d)(1) of the 1940 Act.
The
Trust has received exemptive relief from Section 12(d)(1) to allow registered
investment companies to invest in the Funds beyond the limits set forth in
Section 12(d)(1), subject to certain terms and conditions as set forth in an SEC
exemptive order issued to the Trust, including that such investment companies
enter into an agreement with the Trust.
From
time to time, a Fund may advertise yield and total return figures. Yield is a
historical measure of dividend income, and total return is a measure of past
dividend income (assuming that it has been reinvested) plus capital
appreciation. Neither yield nor total return should be used to predict the
future performance of a Fund.
Morgan,
Lewis & Bockius LLP serves as counsel to the Trust, including the
Funds. Ernst & Young LLP serves as the independent registered public
accounting firm and will audit the Funds' financial statements annually.
These
financial highlight tables are intended to help you understand each Fund's
financial performance for the past five fiscal years or, if shorter, the
period since each Fund's inception. Certain information reflects the performance
results for a single Fund Share. The total returns in the table represent the
rate that an investor would have earned (or lost) on an investment in each Fund
(assuming reinvestment of all dividends and distributions). This information has
been audited by Ernst & Young LLP, the Trust's independent registered
public accounting firm, whose report, along with each Fund's financial
highlights and financial statements, is included in the annual report to
shareholders, which is available upon request. Any references to Notes in these
financial highlight tables refer to the “Notes to Financial Statements” section
of each Fund's financial statements, and the financial information included in
these tables should be read in conjunction with the financial statements
incorporated by reference in the SAI.
Selected data for a share
outstanding throughout each period
|
SPDR Dow Jones REIT ETF
|
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16
|
Net asset value, beginning
of period
|
$
98.82 |
|
$
93.80 |
|
$
92.99 |
|
$
99.44 |
|
$
84.38 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
2.50 |
|
2.74 |
|
2.47 |
|
1.62 |
|
2.83 |
Net realized and unrealized gain (loss) (b)
|
(19.84) |
|
5.92 |
|
1.20 |
|
(4.28) |
|
15.72 |
Total from investment operations
|
(17.34) |
|
8.66 |
|
3.67 |
|
(2.66) |
|
18.55 |
Net equalization credits and charges (a)
|
(0.10) |
|
0.01 |
|
(0.04) |
|
(0.09) |
|
0.03 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(3.31) |
|
(3.65) |
|
(2.82) |
|
(3.70) |
|
(3.52) |
Net asset value, end of
period
|
$
78.07 |
|
$
98.82 |
|
$
93.80 |
|
$
92.99 |
|
$
99.44 |
|
(18.04)% |
|
9.58% |
|
4.03% |
|
(2.73)% |
|
22.43% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$1,353,163 |
|
$2,532,796 |
|
$2,563,630 |
|
$3,015,901 |
|
$3,816,521 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.25% |
|
0.25% |
|
0.25% |
|
0.25% |
|
0.25% |
Net investment income (loss)
|
2.61% |
|
2.89% |
|
2.72% |
|
1.71% |
|
3.14% |
Portfolio turnover rate (d)
|
17% |
|
9% |
|
6% |
|
9% |
|
10% |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(d) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR FactSet Innovative
Technology ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
For
the Period 1/14/16*- 6/30/16 |
Net asset value, beginning
of period
|
$
105.68 |
|
$
95.29 |
|
$
69.83 |
|
$54.83 |
|
$50.00 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
(0.23) |
|
0.08 |
|
0.20 |
|
(0.04) |
|
(0.03) |
Net realized and unrealized gain (loss) (b)
|
40.41 |
|
11.66 |
|
27.36 |
|
15.99 |
|
4.86 |
Total from investment operations
|
40.18 |
|
11.74 |
|
27.56 |
|
15.95 |
|
4.83 |
Net equalization credits and charges (a)
|
(0.40) |
|
(0.11) |
|
(0.74) |
|
0.15 |
|
— |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.16) |
|
(0.10) |
|
(0.26) |
|
(0.29) |
|
— |
Net realized gains
|
— |
|
(1.14) |
|
(1.10) |
|
(0.81) |
|
— |
Total distributions
|
(0.16) |
|
(1.24) |
|
(1.36) |
|
(1.10) |
|
— |
Net asset value, end of
period
|
$
145.30 |
|
$105.68 |
|
$
95.29 |
|
$69.83 |
|
$54.83 |
|
37.68% |
|
12.58% |
|
38.83% |
|
29.69% |
|
9.67% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$148,207 |
|
$73,978 |
|
$38,114 |
|
$6,983 |
|
$5,483 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.45% |
|
0.45% |
|
0.45% |
|
0.45% |
|
0.46%(d) |
Net investment income (loss)
|
(0.20)% |
|
0.08% |
|
0.24% |
|
(0.06)% |
|
(0.12)%(d) |
Portfolio turnover rate (e)
|
35% |
|
43% |
|
34% |
|
78% |
|
11%(f) |
* |
Commencement
of operations. |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(d) |
Annualized. |
(e) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
(f) |
Not
annualized. |
Selected data for a share
outstanding throughout each period
|
SPDR Global Dow ETF
|
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16
|
Net asset value, beginning
of period
|
$
85.13 |
|
$
82.43 |
|
$
76.65 |
|
$
64.07 |
|
$
69.67 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
2.07 |
|
2.15 |
|
1.75 |
|
1.54 |
|
1.55 |
Net realized and unrealized gain (loss) (b)
|
(7.10) |
|
2.67 |
|
5.81 |
|
12.69 |
|
(5.53) |
Total from investment operations
|
(5.03) |
|
4.82 |
|
7.56 |
|
14.23 |
|
(3.98) |
Net equalization credits and charges (a)
|
(0.01) |
|
(0.02) |
|
0.00(c) |
|
(0.03) |
|
(0.03) |
Contribution from Affiliate
|
— |
|
0.02 |
|
— |
|
— |
|
— |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(2.09) |
|
(2.12) |
|
(1.78) |
|
(1.62) |
|
(1.59) |
Net asset value, end of
period
|
$
78.00 |
|
$
85.13 |
|
$
82.43 |
|
$
76.65 |
|
$
64.07 |
|
(5.97)% |
|
5.94%(e) |
|
9.86% |
|
22.34% |
|
(5.68)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$78,033 |
|
$91,550 |
|
$90,710 |
|
$88,185 |
|
$86,521 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.50% |
|
0.50% |
|
0.50% |
|
0.50% |
|
0.50% |
Net investment income (loss)
|
2.53% |
|
2.60% |
|
2.11% |
|
2.18% |
|
2.39% |
Portfolio turnover rate (f)
|
8% |
|
11% |
|
10% |
|
10% |
|
15% |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Amount
is less than $0.005 per share. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
If
an Affiliate had not made a contribution during the year ended June 30,
2019, the total return would have been 5.91%. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR MSCI USA
StrategicFactors
SM ETF
|
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16
|
Net asset value, beginning
of period
|
$
86.19 |
|
$
77.65 |
|
$
69.73 |
|
$
61.57 |
|
$58.58 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
1.79 |
|
1.67 |
|
1.44 |
|
1.38 |
|
1.27 |
Net realized and unrealized gain (loss) (b)
|
1.88 |
|
7.99 |
|
7.82 |
|
7.93 |
|
3.00 |
Total from investment operations
|
3.67 |
|
9.66 |
|
9.26 |
|
9.31 |
|
4.27 |
Net equalization credits and charges (a)
|
0.34 |
|
0.52 |
|
0.06 |
|
0.22 |
|
0.01 |
Contribution from Affiliate (a)
|
0.00(c) |
|
— |
|
— |
|
— |
|
— |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(1.77) |
|
(1.64) |
|
(1.36) |
|
(1.37) |
|
(1.28) |
Net realized gains
|
— |
|
— |
|
(0.04) |
|
— |
|
(0.01) |
Total distributions
|
(1.77) |
|
(1.64) |
|
(1.40) |
|
(1.37) |
|
(1.29) |
Net asset value, end of
period
|
$
88.43 |
|
$
86.19 |
|
$
77.65 |
|
$
69.73 |
|
$61.57 |
|
4.53%(e) |
|
13.35% |
|
13.41% |
|
15.61% |
|
7.45% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$771,956 |
|
$348,228 |
|
$93,180 |
|
$41,839 |
|
$6,157 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.15% |
|
0.15% |
|
0.15% |
|
0.15% |
|
0.15% |
Net investment income (loss)
|
2.02% |
|
2.04% |
|
1.90% |
|
2.06% |
|
2.16% |
Portfolio turnover rate (f)
|
21% |
|
18% |
|
18% |
|
23% |
|
17% |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Amount
is less than $0.005 per share. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
If
an Affiliate had not made a contribution during the year ended June 30,
2020, the total return would have remained 4.53%. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR NYSE Technology ETF
|
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
72.66 |
|
$
93.29 |
|
$
72.80 |
|
$
52.63 |
|
$
50.26 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
0.49 |
|
0.56 |
|
0.55 |
|
0.54 |
|
0.49 |
Net realized and unrealized gain (loss) (c)
|
26.90 |
|
(3.48) |
|
20.98 |
|
20.17 |
|
2.31 |
Total from investment operations
|
27.39 |
|
(2.92) |
|
21.53 |
|
20.71 |
|
2.80 |
Net equalization credits and charges (b)
|
(0.02) |
|
(0.07) |
|
0.00(d) |
|
0.00(d) |
|
0.00(d) |
Voluntary contribution from Adviser
|
— |
|
— |
|
— |
|
— |
|
0.06 |
Other capital
|
— |
|
0.00(d) |
|
— |
|
— |
|
— |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.54) |
|
(0.58) |
|
(0.48) |
|
(0.54) |
|
(0.49) |
Net realized gains
|
— |
|
(17.06) |
|
(0.56) |
|
— |
|
— |
Total distributions
|
(0.54) |
|
(17.64) |
|
(1.04) |
|
(0.54) |
|
(0.49) |
Net asset value, end of
period
|
$
99.49 |
|
$
72.66 |
|
$
93.29 |
|
$
72.80 |
|
$
52.63 |
|
37.85% |
|
1.04% |
|
29.71% |
|
39.46% |
|
5.73%(f) |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$402,953 |
|
$428,680 |
|
$974,885 |
|
$711,637 |
|
$489,477 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
0.62% |
|
0.68% |
|
0.64% |
|
0.85% |
|
0.94% |
Portfolio turnover rate (g)
|
20% |
|
10% |
|
36% |
|
14% |
|
32% |
(a) |
On
September 8, 2015, the SPDR NYSE Technology ETF underwent a 2-for-1 share
split. The per share data presented here have been retroactively adjusted
to reflect this split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Amount
is less than $0.005 per share. |
(e) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(f) |
If
the Adviser had not made a contribution during the year ended June 30,
2016, the total return would have remained 5.62%. |
(g) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR Portfolio S&P
1500 Composite Stock Market ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18(a)
|
|
Year Ended 6/30/17(a)
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
36.49 |
|
$
33.98 |
|
$
30.06 |
|
$
25.88 |
|
$
25.83 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
0.72 |
|
0.68 |
|
0.64 |
|
0.54 |
|
0.51 |
Net realized and unrealized gain (loss) (c)
|
1.35 |
|
2.43 |
|
3.72 |
|
4.19 |
|
0.07 |
Total from investment operations
|
2.07 |
|
3.11 |
|
4.36 |
|
4.73 |
|
0.58 |
Net equalization credits and charges (b)
|
(0.02) |
|
0.06 |
|
0.10 |
|
(0.01) |
|
(0.01) |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.73) |
|
(0.66) |
|
(0.54) |
|
(0.54) |
|
(0.52) |
Net asset value, end of
period
|
$
37.81 |
|
$
36.49 |
|
$
33.98 |
|
$
30.06 |
|
$
25.88 |
|
5.76% |
|
9.45% |
|
14.90% |
|
18.37% |
|
2.34% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$3,391,957 |
|
$3,497,222 |
|
$2,198,379 |
|
$414,853 |
|
$341,640 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.03% |
|
0.03% |
|
0.04% |
|
0.10% |
|
0.10% |
Net investment income (loss)
|
1.93% |
|
1.96% |
|
1.92% |
|
1.90% |
|
2.04% |
Portfolio turnover rate (e)
|
12% |
|
4% |
|
8% |
|
3% |
|
4% |
(a) |
On
October 16, 2017, the SPDR Portfolio Total Stock Market ETF underwent a
6-for-1 share split. The per share data presented here have been
retroactively adjusted to reflect this split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR Portfolio S&P 400
Mid Cap ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18(a)
|
|
Year Ended 6/30/17(a)
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
34.06 |
|
$
34.86 |
|
$
30.80 |
|
$
26.08 |
|
$
29.00 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
0.54 |
|
0.54 |
|
0.52 |
|
0.42 |
|
0.41 |
Net realized and unrealized gain (loss) (c)
|
(2.77) |
|
(0.82) |
|
4.16 |
|
4.93 |
|
(1.94) |
Total from investment operations
|
(2.23) |
|
(0.28) |
|
4.68 |
|
5.35 |
|
(1.53) |
Net equalization credits and charges (b)
|
0.01 |
|
0.04 |
|
0.07 |
|
— |
|
(0.01) |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.58) |
|
(0.56) |
|
(0.50) |
|
(0.46) |
|
(0.43) |
Net realized gains
|
— |
|
— |
|
(0.19) |
|
(0.17) |
|
(0.95) |
Total distributions
|
(0.58) |
|
(0.56) |
|
(0.69) |
|
(0.63) |
|
(1.38) |
Net asset value, end of
period
|
$
31.26 |
|
$
34.06 |
|
$
34.86 |
|
$
30.80 |
|
$
26.08 |
|
(6.53)% |
|
(0.60)% |
|
15.56% |
|
20.65% |
|
(5.20)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$2,341,048 |
|
$1,592,467 |
|
$780,885 |
|
$180,166 |
|
$62,580 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.05% |
|
0.05% |
|
0.06% |
|
0.10% |
|
0.10% |
Net investment income (loss)
|
1.66% |
|
1.61% |
|
1.56% |
|
1.44% |
|
1.57% |
Portfolio turnover rate (e)
|
30% |
|
8% |
|
11% |
|
37% |
|
16% |
(a) |
On
October 16, 2017, the SPDR Portfolio Mid Cap ETF underwent a 3-for-1 share
split. The per share data presented here have been retroactively adjusted
to reflect this split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR Portfolio S&P 500
ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18(a)
|
|
Year Ended 6/30/17(a)
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
34.53 |
|
$
31.87 |
|
$
28.36 |
|
$
24.53 |
|
$
24.35 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
0.69 |
|
0.65 |
|
0.61 |
|
0.52 |
|
0.50 |
Net realized and unrealized gain (loss) (c)
|
1.72 |
|
2.64 |
|
3.38 |
|
3.83 |
|
0.17 |
Total from investment operations
|
2.41 |
|
3.29 |
|
3.99 |
|
4.35 |
|
0.67 |
Net equalization credits and charges (b)
|
0.06 |
|
0.05 |
|
0.11 |
|
0.01 |
|
0.01 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.70) |
|
(0.68) |
|
(0.59) |
|
(0.53) |
|
(0.50) |
Net asset value, end of
period
|
$
36.30 |
|
$
34.53 |
|
$
31.87 |
|
$
28.36 |
|
$
24.53 |
|
7.26% |
|
10.65% |
|
14.50% |
|
17.94% |
|
2.90% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$5,516,028 |
|
$2,527,961 |
|
$1,362,496 |
|
$147,491 |
|
$93,191 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.03% |
|
0.03% |
|
0.04% |
|
0.10% |
|
0.10% |
Net investment income (loss)
|
1.97% |
|
2.00% |
|
1.94% |
|
1.94% |
|
2.08% |
Portfolio turnover rate (e)
|
11% |
|
5% |
|
7% |
|
4% |
|
5% |
(a) |
On
October 16, 2017, the SPDR Portfolio Large Cap ETF underwent a 4-for-1
share split. The per share data presented here have been retroactively
adjusted to reflect this split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR Portfolio S&P 500
Growth ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18(a)
|
|
Year Ended 6/30/17(a)
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
38.74 |
|
$
35.12 |
|
$
29.56 |
|
$
25.22 |
|
$
24.62 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
0.55 |
|
0.53 |
|
0.48 |
|
0.42 |
|
0.39 |
Net realized and unrealized gain (loss) (c)
|
6.24 |
|
3.60 |
|
5.50 |
|
4.36 |
|
0.60 |
Total from investment operations
|
6.79 |
|
4.13 |
|
5.98 |
|
4.78 |
|
0.99 |
Net equalization credits and charges (b)
|
(0.01) |
|
0.03 |
|
0.05 |
|
(0.00)(d) |
|
0.01 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.56) |
|
(0.54) |
|
(0.47) |
|
(0.44) |
|
(0.40) |
Net asset value, end of
period
|
$
44.96 |
|
$
38.74 |
|
$
35.12 |
|
$
29.56 |
|
$
25.22 |
|
17.67% |
|
11.96% |
|
20.51% |
|
19.07%(f) |
|
4.12% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$7,903,192 |
|
$5,390,890 |
|
$2,648,124 |
|
$839,515 |
|
$711,123 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.04% |
|
0.04% |
|
0.06% |
|
0.15% |
|
0.15% |
Net investment income (loss)
|
1.36% |
|
1.45% |
|
1.43% |
|
1.52% |
|
1.59% |
Portfolio turnover rate (g)
|
23% |
|
21% |
|
13% |
|
20% |
|
23% |
(a) |
On
October 16, 2017, the SPDR Portfolio S&P 500 Growth ETF underwent a
4-for-1 share split. The per share data presented here have been
retroactively adjusted to reflect this split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Amount
is less than $0.005 per share. |
(e) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of the Fund. Total return for periods of less than one year are not
annualized. Broker commission charges are not included in this
calculation. |
(f) |
Reflects
a non-recurring litigation payment received by the Fund from State Street
Corp., an affiliate, which amounted to less than $0.005 per share
outstanding as of March 20, 2017. This payment resulted in an increase to
total return of less than 0.005% for the period ended June 30, 2017. |
(g) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR Portfolio S&P 500
High Dividend ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
For
the Period 10/22/15*- 6/30/16 |
Net asset value, beginning
of period
|
$
38.01 |
|
$
37.27 |
|
$
35.27 |
|
$
33.54 |
|
$
30.00 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
1.58 |
|
1.64 |
|
1.52 |
|
1.40 |
|
0.98 |
Net realized and unrealized gain (loss) (b)
|
(10.08) |
|
0.61 |
|
2.15 |
|
1.72 |
|
3.26 |
Total from investment operations
|
(8.50) |
|
2.25 |
|
3.67 |
|
3.12 |
|
4.24 |
Net equalization credits and charges (a)
|
0.09 |
|
0.19 |
|
0.13 |
|
0.18 |
|
0.23 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(1.71) |
|
(1.70) |
|
(1.49) |
|
(1.41) |
|
(0.93) |
Net realized gains
|
— |
|
— |
|
(0.31) |
|
(0.16) |
|
— |
Total distributions
|
(1.71) |
|
(1.70) |
|
(1.80) |
|
(1.57) |
|
(0.93) |
Net asset value, end of
period
|
$
27.89 |
|
$
38.01 |
|
$
37.27 |
|
$
35.27 |
|
$
33.54 |
|
(22.55)% |
|
6.82% |
|
10.96% |
|
9.94% |
|
15.20% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$1,916,307 |
|
$1,704,761 |
|
$566,538 |
|
$167,523 |
|
$31,866 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.07% |
|
0.07% |
|
0.08% |
|
0.12% |
|
0.12%(d) |
Net investment income (loss)
|
4.64% |
|
4.41% |
|
4.17% |
|
4.00% |
|
4.50%(d) |
Portfolio turnover rate (e)
|
45% |
|
28% |
|
35% |
|
40% |
|
23%(f) |
* |
Commencement
of operations. |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total return for periods of less than one year
are not annualized. Broker commission charges are not included in this
calculation. |
(d) |
Annualized. |
(e) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
(f) |
Not
annualized. |
Selected data for a share
outstanding throughout each period
|
SPDR Portfolio S&P 500
Value ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18(a)
|
|
Year Ended 6/30/17(a)
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
31.28 |
|
$
29.60 |
|
$
28.38 |
|
$
25.13 |
|
$
24.98 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
0.84 |
|
0.79 |
|
0.75 |
|
0.65 |
|
0.63 |
Net realized and unrealized gain (loss) (c)
|
(2.31) |
|
1.68 |
|
1.25 |
|
3.27 |
|
0.14 |
Total from investment operations
|
(1.47) |
|
2.47 |
|
2.00 |
|
3.92 |
|
0.77 |
Net equalization credits and charges (b)
|
0.07 |
|
0.03 |
|
0.12 |
|
(0.01) |
|
0.01 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.84) |
|
(0.82) |
|
(0.73) |
|
(0.66) |
|
(0.63) |
Net realized gains
|
— |
|
— |
|
(0.17) |
|
— |
|
— |
Total distributions
|
(0.84) |
|
(0.82) |
|
(0.90) |
|
(0.66) |
|
(0.63) |
Net asset value, end of
period
|
$
29.04 |
|
$
31.28 |
|
$
29.60 |
|
$
28.38 |
|
$
25.13 |
|
(4.54)% |
|
8.59% |
|
7.49% |
|
15.70% |
|
3.29% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$4,753,481 |
|
$2,883,852 |
|
$1,355,967 |
|
$340,648 |
|
$246,308 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.04% |
|
0.04% |
|
0.06% |
|
0.15% |
|
0.15% |
Net investment income (loss)
|
2.67% |
|
2.63% |
|
2.49% |
|
2.40% |
|
2.61% |
Portfolio turnover rate (e)
|
34% |
|
30% |
|
16% |
|
21% |
|
24% |
(a) |
On
October 16, 2017, the SPDR Portfolio S&P 500 Value ETF underwent a
4-for-1 share split. The per share data presented here have been
retroactively adjusted to reflect this split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR Portfolio S&P 600
Small Cap ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18(a)
|
|
Year Ended 6/30/17(a)
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
30.65 |
|
$
32.26 |
|
$
27.69 |
|
$
22.56 |
|
$
24.66 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
0.44 |
|
0.48 |
|
0.50 |
|
0.38 |
|
0.37 |
Net realized and unrealized gain (loss) (c)
|
(4.07) |
|
(1.57) |
|
4.49 |
|
5.12 |
|
(2.00) |
Total from investment operations
|
(3.63) |
|
(1.09) |
|
4.99 |
|
5.50 |
|
(1.63) |
Net equalization credits and charges (b)
|
0.04 |
|
0.01 |
|
0.04 |
|
0.03 |
|
0.03 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.49) |
|
(0.53) |
|
(0.46) |
|
(0.40) |
|
(0.38) |
Net realized gains
|
— |
|
— |
|
— |
|
— |
|
(0.12) |
Total distributions
|
(0.49) |
|
(0.53) |
|
(0.46) |
|
(0.40) |
|
(0.50) |
Net asset value, end of
period
|
$
26.57 |
|
$
30.65 |
|
$
32.26 |
|
$
27.69 |
|
$
22.56 |
|
(11.78)% |
|
(3.24)% |
|
18.27% |
|
24.59% |
|
(6.45)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$2,168,502 |
|
$1,367,143 |
|
$1,188,787 |
|
$224,263 |
|
$87,992 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.05% |
|
0.05% |
|
0.06% |
|
0.10% |
|
0.12% |
Net investment income (loss)
|
1.55% |
|
1.57% |
|
1.63% |
|
1.47% |
|
1.68% |
Portfolio turnover rate (e)
|
80% |
|
14% |
|
28% |
|
20% |
|
18% |
(a) |
On
October 16, 2017, the SPDR Portfolio Small Cap ETF underwent a 3-for-1
share split. The per share data presented here have been retroactively
adjusted to reflect this split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR Russell 1000 Low
Volatility Focus ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
For
the Period 12/02/15*- 6/30/16 |
Net asset value, beginning
of period
|
$
80.17 |
|
$
72.91 |
|
$
70.31 |
|
$
63.78 |
|
$
60.00 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
1.58 |
|
1.45 |
|
1.36 |
|
1.26 |
|
0.79 |
Net realized and unrealized gain (loss) (b)
|
(6.42) |
|
7.34 |
|
6.31 |
|
7.69 |
|
3.73 |
Total from investment operations
|
(4.84) |
|
8.79 |
|
7.67 |
|
8.95 |
|
4.52 |
Net equalization credits and charges (a)
|
0.01 |
|
(0.01) |
|
0.00(c) |
|
0.00(c) |
|
0.01 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(1.84) |
|
(1.52) |
|
(1.41) |
|
(1.29) |
|
(0.75) |
Net realized gains
|
— |
|
— |
|
(3.66) |
|
(1.13) |
|
— |
Total distributions
|
(1.84) |
|
(1.52) |
|
(5.07) |
|
(2.42) |
|
(0.75) |
Net asset value, end of
period
|
$
73.50 |
|
$
80.17 |
|
$
72.91 |
|
$
70.31 |
|
$
63.78 |
|
(6.10)% |
|
12.23% |
|
11.03% |
|
14.27% |
|
7.60% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$474,842 |
|
$525,107 |
|
$455,698 |
|
$432,422 |
|
$385,862 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.20% |
|
0.20% |
|
0.20% |
|
0.20% |
|
0.20%(e) |
Net investment income (loss)
|
2.02% |
|
1.93% |
|
1.87% |
|
1.88% |
|
2.28%(e) |
Portfolio turnover rate (f)
|
28% |
|
33% |
|
31% |
|
37% |
|
68%(g) |
* |
Commencement
of operations. |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Amount
is less than $0.005 per share. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
Annualized. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
(g) |
Not
annualized. |
Selected data for a share
outstanding throughout each period
|
SPDR Russell 1000 Momentum
Focus ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
For
the Period 12/02/15*- 6/30/16 |
Net asset value, beginning
of period
|
$
73.00 |
|
$
72.92 |
|
$
68.99 |
|
$
61.23 |
|
$
60.00 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
1.20 |
|
1.08 |
|
1.16 |
|
1.11 |
|
0.65 |
Net realized and unrealized gain (loss) (b)
|
(4.46) |
|
0.17 |
|
8.38 |
|
7.80 |
|
1.19 |
Total from investment operations
|
(3.26) |
|
1.25 |
|
9.54 |
|
8.91 |
|
1.84 |
Net equalization credits and charges (a)
|
(0.08) |
|
(0.02) |
|
0.02 |
|
0.00(c) |
|
0.00(c) |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(1.28) |
|
(1.15) |
|
(1.19) |
|
(1.15) |
|
(0.61) |
Net realized gains
|
— |
|
— |
|
(4.44) |
|
— |
|
— |
Total distributions
|
(1.28) |
|
(1.15) |
|
(5.63) |
|
(1.15) |
|
(0.61) |
Net asset value, end of
period
|
$
68.38 |
|
$
73.00 |
|
$
72.92 |
|
$
68.99 |
|
$
61.23 |
|
(4.59)% |
|
1.78% |
|
13.97% |
|
14.66% |
|
3.10% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$311,807 |
|
$435,806 |
|
$601,571 |
|
$469,132 |
|
$345,946 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.20% |
|
0.20% |
|
0.20% |
|
0.20% |
|
0.20%(e) |
Net investment income (loss)
|
1.68% |
|
1.51% |
|
1.59% |
|
1.70% |
|
1.91%(e) |
Portfolio turnover rate (f)
|
42% |
|
40% |
|
112% |
|
101% |
|
55%(g) |
* |
Commencement
of operations. |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Amount
is less than $0.005 per share. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
Annualized. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
(g) |
Not
annualized. |
Selected data for a share
outstanding throughout each period
|
SPDR Russell 1000 Yield
Focus ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
For
the Period 12/02/15*- 6/30/16 |
Net asset value, beginning
of period
|
$
70.62 |
|
$
70.43 |
|
$
69.70 |
|
$
63.57 |
|
$
60.00 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
2.16 |
|
2.23 |
|
2.21 |
|
2.08 |
|
1.21 |
Net realized and unrealized gain (loss) (b)
|
(11.73) |
|
0.32 |
|
6.14 |
|
8.30 |
|
3.48 |
Total from investment operations
|
(9.57) |
|
2.55 |
|
8.35 |
|
10.38 |
|
4.69 |
Net equalization credits and charges (a)
|
0.01 |
|
(0.02) |
|
(0.00)(c) |
|
0.00(c) |
|
0.01 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(2.37) |
|
(2.34) |
|
(2.36) |
|
(2.15) |
|
(1.13) |
Net realized gains
|
— |
|
— |
|
(5.26) |
|
(2.10) |
|
— |
Total distributions
|
(2.37) |
|
(2.34) |
|
(7.62) |
|
(4.25) |
|
(1.13) |
Net asset value, end of
period
|
$
58.69 |
|
$
70.62 |
|
$
70.43 |
|
$
69.70 |
|
$
63.57 |
|
(13.74)% |
|
3.79% |
|
12.25% |
|
16.61% |
|
7.93% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$356,828 |
|
$426,550 |
|
$404,979 |
|
$397,306 |
|
$359,191 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.20% |
|
0.20% |
|
0.20% |
|
0.20% |
|
0.20%(e) |
Net investment income (loss)
|
3.27% |
|
3.22% |
|
3.15% |
|
3.06% |
|
3.50%(e) |
Portfolio turnover rate (f)
|
34% |
|
42% |
|
36% |
|
42% |
|
44%(g) |
* |
Commencement
of operations. |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Amount
is less than $0.005 per share. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
Annualized. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
(g) |
Not
annualized. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P 1500 Momentum
Tilt ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16
|
Net asset value, beginning
of period
|
$127.95 |
|
$118.95 |
|
$101.56 |
|
$
90.70 |
|
$
88.05 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
2.11 |
|
1.93 |
|
1.68 |
|
1.85 |
|
1.58 |
Net realized and unrealized gain (loss) (b)
|
6.32 |
|
8.87 |
|
17.44 |
|
10.81 |
|
2.72 |
Total from investment operations
|
8.43 |
|
10.80 |
|
19.12 |
|
12.66 |
|
4.30 |
Net equalization credits and charges (a)
|
(0.05) |
|
0.15 |
|
(0.01) |
|
0.10 |
|
(0.04) |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(2.16) |
|
(1.95) |
|
(1.72) |
|
(1.90) |
|
(1.61) |
Total distributions
|
(2.16) |
|
(1.95) |
|
(1.72) |
|
(1.90) |
|
(1.61) |
Net asset value, end of
period
|
$134.17 |
|
$127.95 |
|
$118.95 |
|
$101.56 |
|
$
90.70 |
|
6.64% |
|
9.31% |
|
18.91% |
|
14.20% |
|
4.93% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$67,085 |
|
$51,180 |
|
$29,737 |
|
$20,311 |
|
$18,139 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.12% |
|
0.12% |
|
0.12% |
|
0.12% |
|
0.12% |
Net investment income (loss)
|
1.62% |
|
1.60% |
|
1.48% |
|
1.95% |
|
1.82% |
Portfolio turnover rate (d)
|
65% |
|
58% |
|
55% |
|
75% |
|
62% |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(d) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P 1500 Value
Tilt ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16
|
Net asset value, beginning
of period
|
$103.92 |
|
$101.54 |
|
$
92.28 |
|
$78.89 |
|
$83.36 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
2.53 |
|
2.41 |
|
2.11 |
|
1.89 |
|
1.88 |
Net realized and unrealized gain (loss) (b)
|
(6.33) |
|
2.54 |
|
9.18 |
|
13.40 |
|
(1.28) |
Total from investment operations
|
(3.80) |
|
4.95 |
|
11.29 |
|
15.29 |
|
0.60 |
Net equalization credits and charges (a)
|
(0.01) |
|
(0.05) |
|
0.08 |
|
(0.01) |
|
(0.05) |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(2.57) |
|
(2.52) |
|
(2.11) |
|
(1.89) |
|
(1.92) |
Net realized gains
|
— |
|
— |
|
— |
|
— |
|
(3.10) |
Total distributions
|
(2.57) |
|
(2.52) |
|
(2.11) |
|
(1.89) |
|
(5.02) |
Net asset value, end of
period
|
$
97.54 |
|
$103.92 |
|
$101.54 |
|
$92.28 |
|
$78.89 |
|
(3.68)% |
|
4.93% |
|
12.38% |
|
19.51% |
|
0.87% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$20,483 |
|
$18,706 |
|
$15,231 |
|
$9,228 |
|
$3,944 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.12% |
|
0.12% |
|
0.13% |
|
0.12% |
|
0.13% |
Net investment income (loss)
|
2.46% |
|
2.37% |
|
2.11% |
|
2.14% |
|
2.37% |
Portfolio turnover rate (d)
|
16% |
|
13% |
|
14% |
|
18% |
|
12% |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(d) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P 400 Mid Cap
Growth ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18(a)
|
|
Year Ended 6/30/17(a)
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
54.22 |
|
$
53.98 |
|
$
47.77 |
|
$
41.10 |
|
$
41.68 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
0.55 |
|
0.65 |
|
0.56 |
|
0.51 |
|
0.45 |
Net realized and unrealized gain (loss) (c)
|
(0.38) |
|
0.26 |
|
6.74 |
|
6.72 |
|
(0.06) |
Total from investment operations
|
0.17 |
|
0.91 |
|
7.30 |
|
7.23 |
|
0.39 |
Net equalization credits and charges (b)
|
(0.00)(d) |
|
0.02 |
|
0.06 |
|
0.02 |
|
0.01 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.62) |
|
(0.69) |
|
(0.59) |
|
(0.58) |
|
(0.49) |
Net realized gains
|
— |
|
— |
|
(0.56) |
|
— |
|
(0.49) |
Total distributions
|
(0.62) |
|
(0.69) |
|
(1.15) |
|
(0.58) |
|
(0.98) |
Net asset value, end of
period
|
$
53.77 |
|
$
54.22 |
|
$
53.98 |
|
$
47.77 |
|
$
41.10 |
|
0.35% |
|
1.79% |
|
15.51% |
|
17.74% |
|
1.07% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$1,941,214 |
|
$1,680,730 |
|
$1,195,700 |
|
$573,287 |
|
$345,259 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.15% |
|
0.15% |
|
0.15% |
|
0.15% |
|
0.15% |
Net investment income (loss)
|
1.04% |
|
1.24% |
|
1.08% |
|
1.14% |
|
1.13% |
Portfolio turnover rate (f)
|
45% |
|
38% |
|
50% |
|
54% |
|
55% |
(a) |
After
the close of trading on June 12, 2018, the SPDR S&P 400 Mid Cap Growth
ETF underwent a 3-for-1 share split. The historical per share activity
presented here has been retroactively adjusted to reflect this
split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Amount
is less than $0.005 per share. |
(e) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Broker commission charges are not included in
this calculation. Total returns for periods of less than one year if any,
are not annualized. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P 400 Mid Cap
Value ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18(a)
|
|
Year Ended 6/30/17(a)
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
51.34 |
|
$
52.01 |
|
$
48.14 |
|
$
41.47 |
|
$
42.85 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
1.02 |
|
0.93 |
|
0.96 |
|
0.80 |
|
0.80 |
Net realized and unrealized gain (loss) (c)
|
(8.59) |
|
(0.69) |
|
4.18 |
|
6.72 |
|
(0.51) |
Total from investment operations
|
(7.57) |
|
0.24 |
|
5.14 |
|
7.52 |
|
0.29 |
Net equalization credits and charges (b)
|
0.00(d) |
|
0.06 |
|
0.10 |
|
0.03 |
|
0.06 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(1.11) |
|
(0.97) |
|
(0.95) |
|
(0.88) |
|
(0.81) |
Net realized gains
|
— |
|
— |
|
(0.42) |
|
— |
|
(0.92) |
Total distributions
|
(1.11) |
|
(0.97) |
|
(1.37) |
|
(0.88) |
|
(1.73) |
Net asset value, end of
period
|
$
42.66 |
|
$
51.34 |
|
$
52.01 |
|
$
48.14 |
|
$
41.47 |
|
(14.85)% |
|
0.68% |
|
10.98% |
|
18.31% |
|
1.13% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$893,653 |
|
$1,491,525 |
|
$767,185 |
|
$346,625 |
|
$207,342 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.15% |
|
0.15% |
|
0.15% |
|
0.15% |
|
0.15% |
Net investment income (loss)
|
2.13% |
|
1.83% |
|
1.90% |
|
1.73% |
|
2.02% |
Portfolio turnover rate (f)
|
45% |
|
35% |
|
45% |
|
51% |
|
40% |
(a) |
After
the close of trading on June 12, 2018, SPDR S&P 400 Mid Cap Value ET
underwent a 2-for-1 share split. The historical per share activity
presented here has been retroactively adjusted to reflect this
split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Amount
is less than $0.005 per share. |
(e) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Broker commission charges are not included in
this calculation. Total returns for periods of less than one year if any,
are not annualized. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P 500 Fossil
Fuel Reserves Free ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
For
the Period 11/30/15*- 6/30/16 |
Net asset value, beginning
of period
|
$
71.48 |
|
$
65.55 |
|
$
58.69 |
|
$
50.16 |
|
$
50.00 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
1.28 |
|
1.17 |
|
1.10 |
|
1.02 |
|
0.58 |
Net realized and unrealized gain (loss) (b)
|
4.85 |
|
5.96 |
|
6.84 |
|
8.52 |
|
0.11 |
Total from investment operations
|
6.13 |
|
7.13 |
|
7.94 |
|
9.54 |
|
0.69 |
Net equalization credits and charges (a)
|
0.07 |
|
0.03 |
|
0.04 |
|
0.03 |
|
0.03 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(1.29) |
|
(1.23) |
|
(1.10) |
|
(1.04) |
|
(0.56) |
Net realized gains
|
— |
|
— |
|
(0.02) |
|
0.00(c) |
|
— |
Total distributions
|
(1.29) |
|
(1.23) |
|
(1.12) |
|
(1.04) |
|
(0.56) |
Net asset value, end of
period
|
$
76.39 |
|
$
71.48 |
|
$
65.55 |
|
$
58.69 |
|
$
50.16 |
|
8.77% |
|
11.04% |
|
13.67% |
|
19.22% |
|
1.48% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$567,579 |
|
$365,271 |
|
$281,885 |
|
$152,600 |
|
$100,328 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.25% |
|
0.25% |
|
0.25% |
|
0.25% |
|
0.25%(e) |
Net expenses
|
0.20% |
|
0.20% |
|
0.20% |
|
0.20% |
|
0.20%(e) |
Net investment income (loss)
|
1.73% |
|
1.74% |
|
1.72% |
|
1.86% |
|
2.05%(e) |
Portfolio turnover rate (f)
|
4% |
|
6% |
|
5% |
|
4% |
|
6%(g) |
* |
Commencement
of operations. |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Amount
is less than $0.005 per share. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
Annualized. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
(g) |
Not
annualized. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P 600 Small Cap
ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18(a)
|
|
Year Ended 6/30/17(a)
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
67.66 |
|
$
72.24 |
|
$
61.60 |
|
$
52.17 |
|
$
54.13 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
0.91 |
|
0.94 |
|
0.87 |
|
0.79 |
|
0.73 |
Net realized and unrealized gain (loss) (c)
|
(8.47) |
|
(4.55) |
|
11.52 |
|
10.80 |
|
(0.89) |
Total from investment operations
|
(7.56) |
|
(3.61) |
|
12.39 |
|
11.59 |
|
(0.16) |
Net equalization credits and charges (b)
|
(0.02) |
|
0.01 |
|
0.01 |
|
0.02 |
|
0.02 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(1.01) |
|
(0.98) |
|
(0.89) |
|
(0.77) |
|
(0.74) |
Net realized gains
|
— |
|
— |
|
(0.87) |
|
(1.41) |
|
(1.08) |
Total distributions
|
(1.01) |
|
(0.98) |
|
(1.76) |
|
(2.18) |
|
(1.82) |
Net asset value, end of
period
|
$
59.07 |
|
$
67.66 |
|
$
72.24 |
|
$
61.60 |
|
$
52.17 |
|
(11.26)% |
|
(4.95)% |
|
20.38% |
|
22.35% |
|
(0.10)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$998,273 |
|
$1,288,927 |
|
$1,043,840 |
|
$751,493 |
|
$443,392 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.15% |
|
0.15% |
|
0.15% |
|
0.15% |
|
0.15% |
Net expenses
|
0.11% |
|
—% |
|
—% |
|
—% |
|
—% |
Net investment income (loss)
|
1.42% |
|
1.37% |
|
1.30% |
|
1.33% |
|
1.44% |
Portfolio turnover rate (e)
|
15% |
|
11% |
|
14% |
|
22% |
|
25% |
(a) |
After
the close of trading on June 12, 2018, the SPDR S&P 600 Small Cap ETF
underwent a 2-for-1 share split. The historical per share activity
presented here has been retroactively adjusted to reflect this
split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Broker commission charges are not included in
this calculation. Total returns for periods of less than one year if any,
are not annualized. |
(e) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P 600 Small Cap
Growth ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18(a)
|
|
Year Ended 6/30/17(a)
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
60.96 |
|
$
63.17 |
|
$
54.12 |
|
$
44.56 |
|
$
47.46 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
0.59 |
|
0.61 |
|
0.55 |
|
0.55 |
|
0.57 |
Net realized and unrealized gain (loss) (c)
|
(4.10) |
|
(2.20) |
|
11.19 |
|
9.53 |
|
(0.99) |
Total from investment operations
|
(3.51) |
|
(1.59) |
|
11.74 |
|
10.08 |
|
(0.42) |
Net equalization credits and charges (b)
|
(0.02) |
|
0.01 |
|
0.02 |
|
0.02 |
|
0.02 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.66) |
|
(0.63) |
|
(0.60) |
|
(0.54) |
|
(0.60) |
Net realized gains
|
— |
|
— |
|
(2.11) |
|
— |
|
(1.90) |
Total distributions
|
(0.66) |
|
(0.63) |
|
(2.71) |
|
(0.54) |
|
(2.50) |
Net asset value, end of
period
|
$
56.77 |
|
$
60.96 |
|
$
63.17 |
|
$
54.12 |
|
$
44.56 |
|
(5.80)% |
|
(2.47)% |
|
22.28% |
|
22.75% |
|
(0.73)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$1,541,359 |
|
$1,975,179 |
|
$1,989,969 |
|
$1,298,877 |
|
$686,130 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.15% |
|
0.15% |
|
0.15% |
|
0.15% |
|
0.15% |
Net investment income (loss)
|
1.01% |
|
0.99% |
|
0.95% |
|
1.08% |
|
1.29% |
Portfolio turnover rate (e)
|
50% |
|
37% |
|
44% |
|
59% |
|
57% |
(a) |
After
the close of trading on June 12, 2018, the SPDR S&P 600 Small Cap
Growth ETF underwent a 4-for-1 share split. The historical per share
activity presented here has been retroactively adjusted to reflect this
split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Broker commission charges are not included in
this calculation. Total returns for periods of less than one year if any,
are not annualized. |
(e) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P 600 Small Cap
Value ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18(a)
|
|
Year Ended 6/30/17(a)
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
60.70 |
|
$
66.75 |
|
$
59.60 |
|
$
50.13 |
|
$
53.04 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
1.13 |
|
1.10 |
|
1.04 |
|
0.93 |
|
0.79 |
Net realized and unrealized gain (loss) (c)
|
(11.53) |
|
(6.06) |
|
9.55 |
|
9.89 |
|
(0.72) |
Total from investment operations
|
(10.40) |
|
(4.96) |
|
10.590 |
|
10.82 |
|
0.07 |
Net equalization credits and charges (b)
|
(0.01) |
|
0.06 |
|
0.07 |
|
0.05 |
|
0.03 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(1.14) |
|
(1.15) |
|
(1.05) |
|
(0.91) |
|
(0.79) |
Net realized gains
|
— |
|
— |
|
(2.46) |
|
(0.49) |
|
(2.22) |
Total distributions
|
(1.14) |
|
(1.15) |
|
(3.51) |
|
(1.40) |
|
(3.01) |
Net asset value, end of
period
|
$
49.15 |
|
$
60.70 |
|
$
66.75 |
|
$
59.60 |
|
$
50.13 |
|
(17.29)% |
|
(7.30)% |
|
18.25% |
|
21.76% |
|
0.56% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$1,916,806 |
|
$2,133,800 |
|
$1,511,950 |
|
$1,001,379 |
|
$501,368 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.15% |
|
0.15% |
|
0.15% |
|
0.15% |
|
0.15% |
Net investment income (loss)
|
2.02% |
|
1.76% |
|
1.65% |
|
1.61% |
|
1.63% |
Portfolio turnover rate (e)
|
51% |
|
34% |
|
42% |
|
53% |
|
48% |
(a) |
After
the close of trading on June 12, 2018, the SPDR S&P 600 Small Cap
Value ETF underwent a 2-for-1 share split. The historical per share
activity presented here has been retroactively adjusted to reflect this
split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Broker commission charges are not included in
this calculation. Total returns for periods of less than one year if any,
are not annualized. |
(e) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Aerospace
& Defense ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
104.01 |
|
$
87.07 |
|
$
70.38 |
|
$
55.85 |
|
$
57.12 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
1.01 |
|
0.54 |
|
0.57 |
|
0.61 |
|
0.41 |
Net realized and unrealized gain (loss) (c)
|
(16.37) |
|
17.39 |
|
16.70 |
|
14.41 |
|
(0.54) |
Total from investment operations
|
(15.36) |
|
17.93 |
|
17.27 |
|
15.02 |
|
(0.13) |
Net equalization credits and charges (b)
|
0.00(d) |
|
0.03 |
|
0.04 |
|
0.21 |
|
0.00(d) |
Voluntary contribution from Custodian
|
— |
|
0.00(d) |
|
— |
|
— |
|
— |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(1.04) |
|
(1.02) |
|
(0.62) |
|
(0.70) |
|
(0.42) |
Net realized gains
|
— |
|
— |
|
— |
|
— |
|
(0.72) |
Total distributions
|
(1.04) |
|
(1.02) |
|
(0.62) |
|
(0.70) |
|
(1.14) |
Net asset value, end of
period
|
$
87.61 |
|
$
104.01 |
|
$
87.07 |
|
$
70.38 |
|
$
55.85 |
|
(14.83)% |
|
20.75% |
|
24.64% |
|
27.40% |
|
(0.11)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$1,368,843 |
|
$1,549,742 |
|
$1,279,944 |
|
$651,016 |
|
$181,497 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
1.01% |
|
0.58% |
|
0.68% |
|
0.94% |
|
0.78% |
Portfolio turnover rate (f)
|
28% |
|
22% |
|
32% |
|
36% |
|
30% |
(a) |
On
September 8, 2015, the SPDR S&P Aerospace & Defense ETF underwent
a 2-for-1 share split. The per share data presented here have been
retroactively adjusted to reflect this split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Amount
is less than $0.005 per share. |
(e) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Bank ETF
|
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16
|
Net asset value, beginning
of period
|
$
43.45 |
|
$
47.19 |
|
$
43.58 |
|
$
30.51 |
|
$
36.27 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
1.09 |
|
0.90 |
|
0.72 |
|
0.59 |
|
0.58 |
Net realized and unrealized gain (loss) (b)
|
(11.95) |
|
(3.62) |
|
3.60 |
|
13.05(c) |
|
(5.73) |
Total from investment operations
|
(10.86) |
|
(2.72) |
|
4.32 |
|
13.64 |
|
(5.15) |
Net equalization credits and charges (a)
|
0.02 |
|
(0.03) |
|
0.00(d) |
|
0.02 |
|
(0.02) |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(1.04) |
|
(0.99) |
|
(0.71) |
|
(0.59) |
|
(0.59) |
Net asset value, end of
period
|
$
31.57 |
|
$
43.45 |
|
$
47.19 |
|
$
43.58 |
|
$
30.51 |
|
(25.32)% |
|
(5.72)% |
|
9.91% |
|
44.97%(c) |
|
(14.30)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$1,307,007 |
|
$1,742,407 |
|
$3,633,782 |
|
$3,270,400 |
|
$2,041,171 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
2.74% |
|
2.02% |
|
1.54% |
|
1.50% |
|
1.76% |
Portfolio turnover rate (f)
|
30% |
|
24% |
|
29% |
|
35% |
|
40% |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Reflects
a non-recurring litigation payment received by the Fund from State Street
Corp., an affiliate, which amounted to $0.01 per share outstanding as of
March 20, 2017. This payment resulted in an increase to total return of
0.02% for the period ended June 30, 2017. |
(d) |
Amount
is less than $0.005 per share. |
(e) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Biotech ETF
|
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
87.82 |
|
$
95.23 |
|
$
77.15 |
|
$
54.16 |
|
$
84.11 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
0.01 |
|
0.04 |
|
0.20 |
|
0.20 |
|
0.29 |
Net realized and unrealized gain (loss) (c)
|
24.22 |
|
(7.37) |
|
18.06 |
|
22.97 |
|
(29.93) |
Total from investment operations
|
24.23 |
|
(7.33) |
|
18.26 |
|
23.17 |
|
(29.64) |
Net equalization credits and charges (b)
|
0.00(d) |
|
0.00(d) |
|
0.01 |
|
(0.00)(d) |
|
(0.01) |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.02) |
|
(0.08) |
|
(0.19) |
|
(0.18) |
|
(0.30) |
Net asset value, end of
period
|
$
112.03 |
|
$
87.82 |
|
$
95.23 |
|
$
77.15 |
|
$
54.16 |
|
27.59% |
|
(7.70)% |
|
23.69% |
|
42.80% |
|
(35.30)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$5,402,647 |
|
$4,412,868 |
|
$5,232,982 |
|
$3,548,969 |
|
$1,873,833 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
0.01% |
|
0.05% |
|
0.23% |
|
0.30% |
|
0.45% |
Portfolio turnover rate (f)
|
66% |
|
45% |
|
62% |
|
59% |
|
75% |
(a) |
On
September 8, 2015, the SPDR S&P Biotech ETF underwent a 3-for-1 share
split. The per share data presented here have been retroactively adjusted
to reflect this split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Amount
is less than $0.005 per share. |
(e) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Capital
Markets ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16
|
Net asset value, beginning
of period
|
$
55.47 |
|
$
57.92 |
|
$
49.10 |
|
$
36.17 |
|
$
50.69 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
1.11 |
|
0.97 |
|
1.21 |
|
1.08 |
|
0.94 |
Net realized and unrealized gain (loss) (b)
|
1.09 |
|
(1.91) |
|
8.83 |
|
12.90(c) |
|
(14.51) |
Total from investment operations
|
2.20 |
|
(0.94) |
|
10.04 |
|
13.98 |
|
(13.57) |
Net equalization credits and charges (a)
|
(0.10) |
|
(0.22) |
|
(0.02) |
|
0.03 |
|
0.09 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(1.42) |
|
(1.29) |
|
(1.20) |
|
(1.08) |
|
(1.04) |
Net asset value, end of
period
|
$
56.15 |
|
$
55.47 |
|
$
57.92 |
|
$
49.10 |
|
$
36.17 |
|
3.93% |
|
(1.86)% |
|
20.43% |
|
39.07%(c) |
|
(26.75)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$22,459 |
|
$38,829 |
|
$136,109 |
|
$103,116 |
|
$84,998 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
1.99% |
|
1.75% |
|
2.14% |
|
2.45% |
|
2.17% |
Portfolio turnover rate (e)
|
20% |
|
24% |
|
24% |
|
43% |
|
29% |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Reflects
a non-recurring litigation payment received by the Fund from State Street
Corp., an affiliate, which amounted to $0.06 per share outstanding as of
March 20, 2017. This payment resulted in an increase to total return of
0.18% for the period ended June 30, 2017. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Dividend ETF
|
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16
|
Net asset value, beginning
of period
|
$
100.96 |
|
$
92.65 |
|
$
88.93 |
|
$
83.91 |
|
$
76.23 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
2.84 |
|
2.41 |
|
2.31 |
|
1.81 |
|
2.01 |
Net realized and unrealized gain (loss) (b)
|
(9.68) |
|
8.30 |
|
6.10 |
|
6.01 |
|
10.29 |
Total from investment operations
|
(6.84) |
|
10.71 |
|
8.41 |
|
7.82 |
|
12.30 |
Net equalization credits and charges (a)
|
(0.04) |
|
0.02 |
|
(0.03) |
|
0.01 |
|
0.01 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(2.83) |
|
(2.42) |
|
(2.33) |
|
(2.22) |
|
(2.02) |
Net realized gains
|
— |
|
— |
|
(2.33) |
|
(0.59) |
|
(2.61) |
Total distributions
|
(2.83) |
|
(2.42) |
|
(4.66) |
|
(2.81) |
|
(4.63) |
Net asset value, end of
period
|
$
91.25 |
|
$
100.96 |
|
$
92.65 |
|
$
88.93 |
|
$
83.91 |
|
(6.82)% |
|
11.76% |
|
9.44% |
|
9.46% |
|
16.94% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$15,197,866 |
|
$18,698,029 |
|
$15,351,950 |
|
$15,478,187 |
|
$14,009,561 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
2.89% |
|
2.49% |
|
2.51% |
|
2.10% |
|
2.62% |
Portfolio turnover rate (d)
|
31% |
|
20% |
|
24% |
|
32% |
|
32% |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(d) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Health Care
Equipment ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
81.87 |
|
$
78.23 |
|
$
61.27 |
|
$
47.36 |
|
$
47.03 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
(0.05) |
|
0.11 |
|
0.02 |
|
0.05 |
|
0.13 |
Net realized and unrealized gain (loss) (c)
|
7.42 |
|
3.64 |
|
17.45 |
|
13.91 |
|
3.41 |
Total from investment operations
|
7.37 |
|
3.75 |
|
17.47 |
|
13.96 |
|
3.54 |
Net equalization credits and charges (b)
|
0.01 |
|
0.00(d) |
|
(0.02) |
|
(0.00)(d) |
|
(0.00)(d) |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.00)(d) |
|
(0.11) |
|
(0.01) |
|
(0.05) |
|
(0.13) |
Net realized gains
|
— |
|
— |
|
(0.48) |
|
— |
|
(3.08) |
Total distributions
|
(0.00)(d) |
|
(0.11) |
|
(0.49) |
|
(0.05) |
|
(3.21) |
Net asset value, end of
period
|
$
89.25 |
|
$
81.87 |
|
$
78.23 |
|
$
61.27 |
|
$
47.36 |
|
9.02% |
|
4.79% |
|
28.66% |
|
29.49% |
|
7.91% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$513,171 |
|
$609,918 |
|
$465,494 |
|
$140,927 |
|
$47,364 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
(0.06)% |
|
0.13% |
|
0.03% |
|
0.09% |
|
0.28% |
Portfolio turnover rate (f)
|
25% |
|
32% |
|
41% |
|
40% |
|
39% |
(a) |
On
September 8, 2015, the SPDR S&P Health Care Equipment ETF underwent a
2-for-1 share split. The per share data presented here have been
retroactively adjusted to reflect this split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Amount
is less than $0.005 per share. |
(e) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Health Care
Services ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
66.59 |
|
$
69.29 |
|
$
64.40 |
|
$
57.28 |
|
$
65.55 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
0.22 |
|
0.23 |
|
0.16 |
|
0.13 |
|
0.13 |
Net realized and unrealized gain (loss) (c)
|
2.83 |
|
(2.71) |
|
4.89 |
|
7.15 |
|
(7.83) |
Total from investment operations
|
3.05 |
|
(2.48) |
|
5.05 |
|
7.28 |
|
(7.70) |
Net equalization credits and charges (b)
|
0.15 |
|
0.00(d) |
|
(0.00)(d) |
|
(0.03) |
|
(0.00)(d) |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(1.74) |
|
(0.22) |
|
(0.16) |
|
(0.13) |
|
(0.11) |
Net realized gains
|
— |
|
— |
|
— |
|
— |
|
(0.46) |
Total distributions
|
(1.74) |
|
(0.22) |
|
(0.16) |
|
(0.13) |
|
(0.57) |
Net asset value, end of
period
|
$
68.05 |
|
$
66.59 |
|
$
69.29 |
|
$
64.40 |
|
$
57.28 |
|
4.68% |
|
(3.59)% |
|
7.87% |
|
12.69% |
|
(11.74)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$83,699 |
|
$90,561 |
|
$97,011 |
|
$115,913 |
|
$283,542 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
0.33% |
|
0.33% |
|
0.25% |
|
0.22% |
|
0.23% |
Portfolio turnover rate (f)
|
25% |
|
35% |
|
32% |
|
34% |
|
36% |
(a) |
On
September 8, 2015, the SPDR S&P Health Care Services ETF underwent a
2-for-1 share split. The per share data presented here have been
retroactively adjusted to reflect this split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Amount
is less than $0.005 per share. |
(e) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Homebuilders
ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16
|
Net asset value, beginning
of period
|
$
41.69 |
|
$
39.56 |
|
$
38.53 |
|
$
33.56 |
|
$
36.60 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
0.43 |
|
0.41 |
|
0.35 |
|
0.27 |
|
0.20 |
Net realized and unrealized gain (loss) (b)
|
2.20 |
|
2.17 |
|
1.03 |
|
4.97 |
|
(3.04) |
Total from investment operations
|
2.63 |
|
2.58 |
|
1.38 |
|
5.24 |
|
(2.84) |
Net equalization credits and charges (a)
|
0.03 |
|
(0.03) |
|
(0.00)(c) |
|
(0.00)(c) |
|
(0.00)(c) |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.43) |
|
(0.42) |
|
(0.35) |
|
(0.27) |
|
(0.20) |
Net asset value, end of
period
|
$
43.92 |
|
$
41.69 |
|
$
39.56 |
|
$
38.53 |
|
$
33.56 |
|
6.49% |
|
6.59% |
|
3.55% |
|
15.65% |
|
(7.77)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$799,294 |
|
$658,639 |
|
$828,757 |
|
$1,051,857 |
|
$1,240,151 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
1.01% |
|
1.09% |
|
0.86% |
|
0.76% |
|
0.57% |
Portfolio turnover rate (e)
|
27% |
|
32% |
|
35% |
|
26% |
|
44% |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Amount
is less than $0.005 per share. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Insurance ETF
|
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18(a)
|
|
Year Ended 6/30/17(a)
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
34.01 |
|
$
29.81 |
|
$
29.37 |
|
$
23.71 |
|
$
22.70 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
0.61 |
|
0.55 |
|
0.52 |
|
0.46 |
|
0.43 |
Net realized and unrealized gain (loss) (c)
|
(6.65) |
|
4.19 |
|
0.43 |
|
5.63 |
|
0.99 |
Total from investment operations
|
(6.04) |
|
4.74 |
|
0.95 |
|
6.09 |
|
1.42 |
Net equalization credits and charges (b)
|
(0.02) |
|
0.02 |
|
0.02 |
|
0.02 |
|
0.01 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.61) |
|
(0.56) |
|
(0.53) |
|
(0.45) |
|
(0.41) |
Net asset value, end of
period
|
$
27.34 |
|
$
34.01 |
|
$
29.81 |
|
$
29.37 |
|
$
23.71 |
|
(17.99)% |
|
16.16% |
|
3.28% |
|
25.92% |
|
6.37% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$564,510 |
|
$1,066,343 |
|
$708,100 |
|
$885,536 |
|
$594,003 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
1.87% |
|
1.77% |
|
1.71% |
|
1.68% |
|
1.87% |
Portfolio turnover rate (e)
|
19% |
|
21% |
|
24% |
|
26% |
|
32% |
(a) |
On
November 29, 2017, the SPDR S&P Insurance ETF underwent a 3-for-1
share split. The per share data presented here have been retroactively
adjusted to reflect this split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Internet ETF
|
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
For
the Period 6/28/16*- 6/30/16 |
Net asset value, beginning
of period
|
$
89.16 |
|
$
87.63 |
|
$
67.40 |
|
$52.65 |
|
$50.00 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
0.41 |
|
0.36 |
|
(0.06) |
|
(0.05) |
|
(0.00)(b) |
Net realized and unrealized gain (loss) (c)
|
12.39 |
|
2.84 |
|
27.23 |
|
15.85 |
|
2.65 |
Total from investment operations
|
12.80 |
|
3.20 |
|
27.17 |
|
15.80 |
|
2.65 |
Net equalization credits and charges (a)
|
(0.01) |
|
(0.03) |
|
(0.25) |
|
0.02 |
|
— |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.44) |
|
(0.37) |
|
— |
|
— |
|
— |
Net realized gains
|
— |
|
(1.27) |
|
(6.69) |
|
(1.07) |
|
— |
Total distributions
|
(0.44) |
|
(1.64) |
|
(6.69) |
|
(1.07) |
|
— |
Net asset value, end of
period
|
$101.51 |
|
$
89.16 |
|
$
87.63 |
|
$67.40 |
|
$52.65 |
|
14.46% |
|
3.90% |
|
42.73% |
|
30.34% |
|
5.31% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$24,363 |
|
$34,772 |
|
$35,051 |
|
$3,370 |
|
$5,265 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35%(e) |
Net investment income (loss)
|
0.49% |
|
0.41% |
|
(0.07)% |
|
(0.08)% |
|
(0.35)%(e) |
Portfolio turnover rate (f)
|
57% |
|
85% |
|
67% |
|
63% |
|
0%(g)(h) |
* |
Commencement
of operations. |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amount
is less than $0.005 per share. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
Annualized. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
(g) |
Amount
is less than 0.5%. |
(h) |
Not
annualized. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Kensho Clean
Power ETF |
|
Year Ended 6/30/20
|
|
For
the Period 10/23/18*- 6/30/19 |
Net asset value, beginning
of period
|
$
38.06 |
|
$29.92 |
Income (loss) from
investment operations: |
|
|
|
Net investment income (loss) (a)
|
1.04 |
|
0.48 |
Net realized and unrealized gain (loss) (b)
|
10.88 |
|
7.97 |
Total from investment operations
|
11.92 |
|
8.45 |
Net equalization credits and charges (a)
|
0.26 |
|
0.06 |
Distributions to
shareholders from: |
|
|
|
Net investment income
|
(0.80) |
|
(0.37) |
Net asset value, end of
period
|
$
49.44 |
|
$38.06 |
|
32.40% |
|
28.61% |
Ratios and Supplemental
Data: |
|
|
|
Net assets, end of period (in 000s)
|
$29,418 |
|
$6,279 |
Ratios to average net
assets: |
|
|
|
Total expenses
|
0.45% |
|
0.45%(d) |
Net investment income (loss)
|
2.42% |
|
2.08%(d) |
Portfolio turnover rate (e)
|
37% |
|
24%(f) |
* |
Commencement
of operations. |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(d) |
Annualized. |
(e) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
(f) |
Not
annualized. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Kensho Final
Frontiers ETF |
|
Year Ended 6/30/20
|
|
For
the Period 10/23/18*- 6/30/19 |
Net asset value, beginning
of period
|
$33.70 |
|
$
30.13 |
Income (loss) from
investment operations: |
|
|
|
Net investment income (loss) (a)
|
0.29 |
|
0.18 |
Net realized and unrealized gain (loss) (b)
|
(3.63) |
|
3.57 |
Total from investment operations
|
(3.34) |
|
3.75 |
Net equalization credits and charges (a)
|
0.21 |
|
0.00(c) |
Distributions to
shareholders from: |
|
|
|
Net investment income
|
(0.21) |
|
(0.18) |
Net asset value, end of
period
|
$30.36 |
|
$
33.70 |
|
(9.34)% |
|
12.52% |
Ratios and Supplemental
Data: |
|
|
|
Net assets, end of period (in 000s)
|
$8,804 |
|
$
3,370 |
Ratios to average net
assets: |
|
|
|
Total expenses
|
0.45% |
|
0.46%(e) |
Net investment income (loss)
|
0.87% |
|
0.89%(e) |
Portfolio turnover rate (f)
|
39% |
|
17%(g) |
* |
Commencement
of operations. |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Amount
is less than $0.005 per share. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
Annualized. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
(g) |
Not
annualized. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Kensho Future
Security ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
For
the Period 12/27/17* -
6/30/18 |
Net asset value, beginning
of period
|
$
37.52 |
|
$
32.83 |
|
$
30.00 |
Income (loss) from
investment operations: |
|
|
|
|
|
Net investment income (loss) (a)
|
0.46 |
|
0.09 |
|
0.03 |
Net realized and unrealized gain (loss) (b)
|
(0.96) |
|
5.44 |
|
2.84 |
Total from investment operations
|
(0.50) |
|
5.53 |
|
2.87 |
Net equalization credits and charges (a)
|
0.02 |
|
(0.30) |
|
0.00(c) |
Distributions to
shareholders from: |
|
|
|
|
|
Net investment income
|
(0.44) |
|
(0.54) |
|
(0.04) |
Net asset value, end of
period
|
$
36.60 |
|
$
37.52 |
|
$
32.83 |
|
(1.16)% |
|
16.36% |
|
9.56% |
Ratios and Supplemental
Data: |
|
|
|
|
|
Net assets, end of period (in 000s)
|
$19,397 |
|
$19,883 |
|
$
8,207 |
Ratios to average net
assets: |
|
|
|
|
|
Total expenses
|
0.45% |
|
0.45% |
|
0.46%(e) |
Net investment income (loss)
|
1.25% |
|
0.27% |
|
0.20%(e) |
Portfolio turnover rate (f)
|
25% |
|
28% |
|
32%(g) |
* |
Commencement
of operations. |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Amount
is less than $0.005 per share. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
Annualized. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
(g) |
Not
annualized. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Kensho
Intelligent Structures ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
For
the Period 12/27/17* -
6/30/18 |
Net asset value, beginning
of period
|
$30.22 |
|
$28.99 |
|
$
30.00 |
Income (loss) from
investment operations: |
|
|
|
|
|
Net investment income (loss) (a)
|
0.42 |
|
0.21 |
|
0.11 |
Net realized and unrealized gain (loss) (b)
|
(0.27) |
|
1.23 |
|
(1.03) |
Total from investment operations
|
0.15 |
|
1.44 |
|
(0.92) |
Net equalization credits and charges (a)
|
(0.01) |
|
(0.00)(c) |
|
0.00(c) |
Distributions to
shareholders from: |
|
|
|
|
|
Net investment income
|
(0.45) |
|
(0.21) |
|
(0.09) |
Net asset value, end of
period
|
$29.91 |
|
$30.22 |
|
$
28.99 |
|
0.45% |
|
5.01% |
|
(3.07)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
Net assets, end of period (in 000s)
|
$6,281 |
|
$9,067 |
|
$
4,349 |
Ratios to average net
assets: |
|
|
|
|
|
Total expenses
|
0.45% |
|
0.45% |
|
0.46%(e) |
Net investment income (loss)
|
1.43% |
|
0.73% |
|
0.67%(e) |
Portfolio turnover rate (f)
|
26% |
|
22% |
|
45%(g) |
* |
Commencement
of operations. |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Amount
is less than $0.005 per share. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
Annualized. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
(g) |
Not
annualized. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Kensho New
Economies Composite ETF |
|
Year Ended 6/30/20
|
|
For
the Period 10/23/18*- 6/30/19 |
Net asset value, beginning
of period
|
$
33.27 |
|
$
30.17 |
Income (loss) from
investment operations: |
|
|
|
Net investment income (loss) (a)
|
0.43 |
|
0.21 |
Net realized and unrealized gain (loss) (b)
|
3.43 |
|
2.56 |
Total from investment operations
|
3.86 |
|
2.77 |
Net equalization credits and charges (a)
|
0.48 |
|
0.44 |
Distributions to
shareholders from: |
|
|
|
Net investment income
|
(0.34) |
|
(0.11) |
Net asset value, end of
period
|
$
37.27 |
|
$
33.27 |
|
13.09% |
|
10.71% |
Ratios and Supplemental
Data: |
|
|
|
Net assets, end of period (in 000s)
|
$1,011,260 |
|
$41,760 |
Ratios to average net
assets: |
|
|
|
Total expenses
|
0.20% |
|
0.20%(d) |
Net investment income (loss)
|
1.27% |
|
0.99%(d) |
Portfolio turnover rate (e)
|
91% |
|
98%(f) |
* |
Commencement
of operations. |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(d) |
Annualized. |
(e) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
(f) |
Not
annualized. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Kensho Smart
Mobility ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
For
the Period 12/27/17* -
6/30/18 |
Net asset value, beginning
of period
|
$28.05 |
|
$29.77 |
|
$30.00 |
Income (loss) from
investment operations: |
|
|
|
|
|
Net investment income (loss) (a)
|
0.40 |
|
0.24 |
|
0.06 |
Net realized and unrealized gain (loss) (b)
|
3.41 |
|
(1.20) |
|
(0.24) |
Total from investment operations
|
3.81 |
|
(0.96) |
|
(0.18) |
Net equalization credits and charges (a)
|
0.16 |
|
(0.10) |
|
0.01 |
Distributions to
shareholders from: |
|
|
|
|
|
Net investment income
|
(0.45) |
|
(0.66) |
|
(0.06) |
Net asset value, end of
period
|
$31.57 |
|
$28.05 |
|
$29.77 |
|
14.48% |
|
(3.22)% |
|
(0.58)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
Net assets, end of period (in 000s)
|
$5,367 |
|
$7,011 |
|
$5,954 |
Ratios to average net
assets: |
|
|
|
|
|
Total expenses
|
0.45% |
|
0.45% |
|
0.46%(d) |
Net investment income (loss)
|
1.47% |
|
0.85% |
|
0.39%(d) |
Portfolio turnover rate (e)
|
29% |
|
36% |
|
63%(f) |
* |
Commencement
of operations. |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(d) |
Annualized. |
(e) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
(f) |
Not
annualized. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Metals &
Mining ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16
|
Net asset value, beginning
of period
|
$
28.38 |
|
$
35.52 |
|
$
29.96 |
|
$
24.37 |
|
$
24.34 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
0.39 |
|
0.59 |
|
0.73 |
|
0.23 |
|
0.39 |
Net realized and unrealized gain (loss) (b)
|
(7.21) |
|
(7.11) |
|
5.51 |
|
5.61 |
|
(0.04) |
Total from investment operations
|
(6.82) |
|
(6.52) |
|
6.24 |
|
5.84 |
|
0.35 |
Net equalization credits and charges (a)
|
0.04 |
|
0.04 |
|
0.07 |
|
(0.01) |
|
0.09 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.39) |
|
(0.66) |
|
(0.75) |
|
(0.24) |
|
(0.41) |
Net asset value, end of
period
|
$
21.21 |
|
$
28.38 |
|
$
35.52 |
|
$
29.96 |
|
$
24.37 |
|
(23.98)% |
|
(18.25)% |
|
21.01% |
|
23.93% |
|
2.53% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$395,524 |
|
$534,979 |
|
$852,506 |
|
$692,084 |
|
$665,428 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
1.58% |
|
1.90% |
|
2.12% |
|
0.77% |
|
2.03% |
Portfolio turnover rate (d)
|
41% |
|
28% |
|
32% |
|
51% |
|
57% |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(d) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Oil & Gas
Equipment & Services ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19(a)
|
|
Year Ended 6/30/18(a)
|
|
Year Ended 6/30/17(a)
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
96.20 |
|
$
169.70 |
|
$
155.00 |
|
$
187.40 |
|
$
260.50 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
1.15 |
|
0.90 |
|
2.60 |
|
1.00 |
|
2.70 |
Net realized and unrealized gain (loss) (c)
|
(63.13) |
|
(73.50) |
|
14.90 |
|
(32.40) |
|
(73.00) |
Total from investment operations
|
(61.98) |
|
(72.60) |
|
17.50 |
|
(31.40) |
|
(70.30) |
Net equalization credits and charges (b)
|
0.07 |
|
(0.00)(d) |
|
0.20 |
|
(0.00)(d) |
|
0.10 |
Contribution from Affiliate
|
— |
|
— |
|
0.00(d) |
|
— |
|
— |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(1.16) |
|
(0.90) |
|
(3.00) |
|
(1.00) |
|
(2.90) |
Net asset value, end of
period
|
$
33.13 |
|
$
96.20 |
|
$
169.70 |
|
$
155.00 |
|
$
187.40 |
|
(64.70)% |
|
(42.79)% |
|
11.48% |
|
(16.88)% |
|
(26.87)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$96,561 |
|
$186,698 |
|
$402,923 |
|
$258,000 |
|
$238,941 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
1.99% |
|
0.73% |
|
1.62% |
|
0.50% |
|
1.45% |
Portfolio turnover rate (f)
|
51% |
|
34% |
|
44% |
|
34% |
|
51% |
(a) |
On
March 30, 2020. SPDR S&P Oil & Gas Equipment & Services ETF
underwent 1-for-10 reverse stock split. The per share data presented here
have been retroactively adjusted to reflect this split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Amount
is less than $0.005 per share. |
(e) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Oil & Gas
Exploration & Production ETF |
|
Year Ended 6/30/20(a)
|
|
Year Ended 6/30/19(a)
|
|
Year Ended 6/30/18(a)
|
|
Year Ended 6/30/17(a)
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
108.92 |
|
$
172.16 |
|
$
127.60 |
|
$
139.16 |
|
$
186.92 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
1.46 |
|
1.12 |
|
1.08 |
|
1.20 |
|
1.76 |
Net realized and unrealized gain (loss) (c)
|
(56.76) |
|
(63.20) |
|
44.56 |
|
(11.64) |
|
(47.64) |
Total from investment operations
|
(55.30) |
|
(62.08) |
|
45.64 |
|
(10.44) |
|
(45.88) |
Net equalization credits and charges (b)
|
0.02 |
|
0.00(d) |
|
0.00(d) |
|
0.08 |
|
0.08 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(1.42) |
|
(1.16) |
|
(1.08) |
|
(1.20) |
|
(1.96) |
Net asset value, end of
period
|
$
52.22 |
|
$
108.92 |
|
$
172.16 |
|
$
127.60 |
|
$
139.16 |
|
(50.86)% |
|
(36.12)% |
|
35.90% |
|
(7.53)% |
|
(24.38)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$2,067,927 |
|
$1,884,277 |
|
$3,107,237 |
|
$2,319,165 |
|
$1,943,140 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
2.13% |
|
0.81% |
|
0.76% |
|
0.81% |
|
1.34% |
Portfolio turnover rate (f)
|
41% |
|
37% |
|
36% |
|
34% |
|
44% |
(a) |
After
the close of trading on March 30, 2020, the SPDR S&P Oil & Gas
Exploration & Production ETF underwent a 1-for-4 reverse share split.
The historical per share activity presented here has been retroactively
adjusted to reflect this split. See Note 10. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Amount
is less than $0.005 per share. |
(e) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P
Pharmaceuticals ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
39.76 |
|
$
42.99 |
|
$
43.04 |
|
$
41.84 |
|
$
62.34 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
0.27 |
|
0.24 |
|
0.25 |
|
0.25 |
|
0.26 |
Net realized and unrealized gain (loss) (c)
|
3.37 |
|
(3.17) |
|
(0.04) |
|
1.21 |
|
(17.20) |
Total from investment operations
|
3.64 |
|
(2.93) |
|
0.21 |
|
1.46 |
|
(16.94) |
Net equalization credits and charges (b)
|
(0.02) |
|
0.00(d) |
|
(0.00)(d) |
|
(0.00)(d) |
|
(0.00)(d) |
Voluntary contribution from Adviser
|
— |
|
— |
|
— |
|
— |
|
— |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.29) |
|
(0.30) |
|
(0.26) |
|
(0.26) |
|
(0.24) |
Net realized gains
|
— |
|
— |
|
— |
|
— |
|
(3.32) |
Total distributions
|
(0.29) |
|
(0.30) |
|
(0.26) |
|
(0.26) |
|
(3.56) |
Net asset value, end of
period
|
$
43.09 |
|
$
39.76 |
|
$
42.99 |
|
$
43.04 |
|
$
41.84 |
|
9.18% |
|
(6.83)% |
|
0.46% |
|
3.50% |
|
(28.21)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$243,443 |
|
$212,716 |
|
$335,310 |
|
$454,110 |
|
$508,393 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
0.67% |
|
0.57% |
|
0.60% |
|
0.58% |
|
0.51% |
Portfolio turnover rate (f)
|
31% |
|
42% |
|
46% |
|
41% |
|
69% |
(a) |
On
September 8, 2015, the SPDR S&P Pharmaceuticals ETF underwent a
2-for-1 share split. The per share data presented here have been
retroactively adjusted to reflect this split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Amount
is less than $0.005 per share. |
(e) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Regional
Banking ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16
|
Net asset value, beginning
of period
|
$
53.53 |
|
$
60.96 |
|
$
54.97 |
|
$
38.45 |
|
$
44.16 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
1.37 |
|
1.15 |
|
0.93 |
|
0.78 |
|
0.77 |
Net realized and unrealized gain (loss) (b)
|
(15.21) |
|
(7.32) |
|
5.91 |
|
16.48 |
|
(5.70) |
Total from investment operations
|
(13.84) |
|
(6.17) |
|
6.84 |
|
17.26 |
|
(4.93) |
Net equalization credits and charges (a)
|
0.11 |
|
(0.06) |
|
0.05 |
|
0.04 |
|
0.01 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(1.39) |
|
(1.20) |
|
(0.90) |
|
(0.78) |
|
(0.79) |
Net asset value, end of
period
|
$
38.41 |
|
$
53.53 |
|
$
60.96 |
|
$
54.97 |
|
$
38.45 |
|
(25.96)% |
|
(10.15)% |
|
12.56% |
|
45.19% |
|
(11.16)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$1,208,104 |
|
$2,237,599 |
|
$5,404,393 |
|
$3,850,902 |
|
$1,615,033 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
2.79% |
|
2.03% |
|
1.56% |
|
1.54% |
|
1.89% |
Portfolio turnover rate (d)
|
35% |
|
27% |
|
33% |
|
52% |
|
86% |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(d) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Retail ETF
|
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
42.42 |
|
$
48.57 |
|
$
40.72 |
|
$
41.97 |
|
$
49.33 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
0.68 |
|
0.69 |
|
0.73 |
|
0.61 |
|
0.53 |
Net realized and unrealized gain (loss) (c)
|
0.42 |
|
(6.18) |
|
7.85 |
|
(1.17) |
|
(7.36) |
Total from investment operations
|
1.10 |
|
(5.49) |
|
8.58 |
|
(0.56) |
|
(6.83) |
Net equalization credits and charges (b)
|
0.01 |
|
(0.00)(d) |
|
(0.06) |
|
(0.09) |
|
0.01 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.66) |
|
(0.66) |
|
(0.67) |
|
(0.60) |
|
(0.54) |
Net asset value, end of
period
|
$
42.87 |
|
$
42.42 |
|
$
48.57 |
|
$
40.72 |
|
$
41.97 |
|
2.74% |
|
(11.33)% |
|
21.07% |
|
(1.59)% |
|
(13.84)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$265,787 |
|
$263,038 |
|
$369,128 |
|
$443,807 |
|
$491,027 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
1.68% |
|
1.47% |
|
1.66% |
|
1.40% |
|
1.16% |
Portfolio turnover rate (f)
|
43% |
|
45% |
|
43% |
|
33% |
|
41% |
(a) |
On
September 8, 2015, the SPDR S&P Retail ETF underwent a 2-for-1 share
split. The per share data presented here have been retroactively adjusted
to reflect this split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Amount
is less than $0.005 per share. |
(e) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Semiconductor
ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
84.40 |
|
$
72.31 |
|
$
61.70 |
|
$
44.48 |
|
$
43.06 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
0.54 |
|
0.66 |
|
0.55 |
|
0.41 |
|
0.30 |
Net realized and unrealized gain (loss) (c)
|
27.60 |
|
12.18 |
|
10.59 |
|
17.21 |
|
1.41 |
Total from investment operations
|
28.14 |
|
12.84 |
|
11.14 |
|
17.62 |
|
1.71 |
Net equalization credits and charges (b)
|
(0.00) |
|
(0.03) |
|
(0.01) |
|
(0.01) |
|
0.01 |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.54) |
|
(0.72) |
|
(0.52) |
|
(0.39) |
|
(0.30) |
Net asset value, end of
period
|
$
112.00 |
|
$
84.40 |
|
$
72.31 |
|
$
61.70 |
|
$
44.48 |
|
33.43% |
|
17.86% |
|
18.04% |
|
39.67% |
|
4.03% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$498,412 |
|
$291,186 |
|
$318,166 |
|
$311,598 |
|
$195,692 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
0.55% |
|
0.88% |
|
0.79% |
|
0.72% |
|
0.72% |
Portfolio turnover rate (e)
|
21% |
|
32% |
|
29% |
|
37% |
|
50% |
(a) |
On
September 8, 2015, the SPDR S&P Semiconductor ETF underwent a 2-for-1
share split. The per share data presented here have been retroactively
adjusted to reflect this split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Software
& Services ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
96.24 |
|
$
80.89 |
|
$
62.58 |
|
$
50.60 |
|
$
51.17 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
0.37 |
|
0.19 |
|
0.14 |
|
0.42 |
|
0.24 |
Net realized and unrealized gain (loss) (c)
|
15.25 |
|
15.40 |
|
18.48 |
|
11.98 |
|
(0.49) |
Total from investment operations
|
15.62 |
|
15.59 |
|
18.62 |
|
12.40 |
|
(0.25) |
Net equalization credits and charges (b)
|
(0.01) |
|
(0.02) |
|
0.00(d) |
|
0.01 |
|
(0.00)(d) |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.41) |
|
(0.22) |
|
(0.13) |
|
(0.43) |
|
(0.23) |
Net realized gains
|
— |
|
— |
|
(0.18) |
|
— |
|
(0.09) |
Total distributions
|
(0.41) |
|
(0.22) |
|
(0.31) |
|
(0.43) |
|
(0.32) |
Net asset value, end of
period
|
$
111.44 |
|
$
96.24 |
|
$
80.89 |
|
$
62.58 |
|
$
50.60 |
|
16.34% |
|
19.30% |
|
29.83% |
|
24.62% |
|
(0.46)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$241,825 |
|
$249,261 |
|
$88,979 |
|
$59,450 |
|
$45,542 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
0.38% |
|
0.21% |
|
0.19% |
|
0.74% |
|
0.49% |
Portfolio turnover rate (f)
|
31% |
|
47% |
|
29% |
|
29% |
|
62% |
(a) |
On
September 8, 2015, the SPDR S&P Software & Services ETF underwent
a 2-for-1 share split. The per share data presented here have been
retroactively adjusted to reflect this split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Amount
is less than $0.005 per share. |
(e) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P Telecom ETF
|
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16
|
Net asset value, beginning
of period
|
$
67.70 |
|
$
72.20 |
|
$
70.47 |
|
$
58.39 |
|
$
57.47 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
0.53 |
|
0.80 |
|
1.56 |
|
1.02 |
|
0.76 |
Net realized and unrealized gain (loss) (b)
|
2.15 |
|
(4.43) |
|
1.75 |
|
11.92 |
|
1.05 |
Total from investment operations
|
2.68 |
|
(3.63) |
|
3.31 |
|
12.94 |
|
1.81 |
Net equalization credits and charges (a)
|
(0.02) |
|
(0.09) |
|
0.12 |
|
0.04 |
|
(0.10) |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.59) |
|
(0.78) |
|
(1.70) |
|
(0.90) |
|
(0.79) |
Net asset value, end of
period
|
$
69.77 |
|
$
67.70 |
|
$
72.20 |
|
$
70.47 |
|
$
58.39 |
|
3.98% |
|
(5.17)% |
|
4.97% |
|
22.25% |
|
3.04% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$48,842 |
|
$57,545 |
|
$162,460 |
|
$77,517 |
|
$23,355 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
0.78% |
|
1.12% |
|
2.21% |
|
1.47% |
|
1.37% |
Portfolio turnover rate (d)
|
44% |
|
35% |
|
33% |
|
46% |
|
33% |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of the Fund. Total return for periods of less than one year are not
annualized. Broker commission charges are not included in this
calculation. |
(d) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR S&P
Transportation ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16(a)
|
Net asset value, beginning
of period
|
$
61.22 |
|
$
63.09 |
|
$
55.40 |
|
$
43.63 |
|
$
48.48 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (b)
|
0.57 |
|
0.67 |
|
0.49 |
|
0.37 |
|
0.30 |
Net realized and unrealized gain (loss) (c)
|
(8.36) |
|
(1.82) |
|
7.68 |
|
11.76 |
|
(4.63) |
Total from investment operations
|
(7.79) |
|
(1.15) |
|
8.17 |
|
12.13 |
|
(4.33) |
Net equalization credits and charges (b)
|
0.01 |
|
(0.01) |
|
(0.00)(d) |
|
0.01 |
|
(0.01) |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(0.58) |
|
(0.71) |
|
(0.48) |
|
(0.37) |
|
(0.31) |
Net realized gains
|
— |
|
— |
|
— |
|
— |
|
(0.20) |
Total distributions
|
(0.58) |
|
(0.71) |
|
(0.48) |
|
(0.37) |
|
(0.51) |
Net asset value, end of
period
|
$
52.86 |
|
$
61.22 |
|
$
63.09 |
|
$
55.40 |
|
$
43.63 |
|
(12.74)% |
|
(1.80)% |
|
14.74% |
|
27.87% |
|
(8.92)% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$179,722 |
|
$148,155 |
|
$233,429 |
|
$182,818 |
|
$170,163 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
Net investment income (loss)
|
0.99% |
|
1.09% |
|
0.79% |
|
0.71% |
|
0.66% |
Portfolio turnover rate (f)
|
29% |
|
18% |
|
27% |
|
29% |
|
32% |
(a) |
On
September 8, 2015, the SPDR S&P Transportation ETF underwent a 2-for-1
share split. The per share data presented here have been retroactively
adjusted to reflect this split. |
(b) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(c) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(d) |
Amount
is less than $0.005 per share. |
(e) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
Selected data for a share
outstanding throughout each period
|
SPDR Wells Fargo
® Preferred
Stock ETF |
|
Year Ended 6/30/20
|
|
Year Ended 6/30/19
|
|
Year Ended 6/30/18
|
|
Year Ended 6/30/17
|
|
Year Ended 6/30/16
|
Net asset value, beginning
of period
|
$
43.11 |
|
$
43.29 |
|
$
45.00 |
|
$
45.98 |
|
$
43.32 |
Income (loss) from
investment operations: |
|
|
|
|
|
|
|
|
|
Net investment income (loss) (a)
|
2.31 |
|
2.41 |
|
2.46 |
|
2.41 |
|
2.51 |
Net realized and unrealized gain (loss) (b)
|
(1.53) |
|
(0.02) |
|
(1.93) |
|
(0.93) |
|
2.48 |
Total from investment operations
|
0.78 |
|
2.39 |
|
0.53 |
|
1.48 |
|
4.99 |
Net equalization credits and charges (a)
|
(0.03) |
|
(0.01) |
|
0.04 |
|
(0.01) |
|
0.12 |
Contribution from Affiliate
|
— |
|
0.00(c) |
|
— |
|
— |
|
— |
Distributions to
shareholders from: |
|
|
|
|
|
|
|
|
|
Net investment income
|
(2.32) |
|
(2.56) |
|
(2.28) |
|
(2.45) |
|
(2.45) |
Net asset value, end of
period
|
$
41.54 |
|
$
43.11 |
|
$
43.29 |
|
$
45.00 |
|
$
45.98 |
|
1.67% |
|
5.86%(e) |
|
1.34% |
|
3.45% |
|
12.11% |
Ratios and Supplemental
Data: |
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s)
|
$1,121,515 |
|
$829,813 |
|
$588,791 |
|
$537,704 |
|
$565,508 |
Ratios to average net
assets: |
|
|
|
|
|
|
|
|
|
Total expenses
|
0.45% |
|
0.45% |
|
0.45% |
|
0.45% |
|
0.45% |
Net investment income (loss)
|
5.39% |
|
5.72% |
|
5.60% |
|
5.41% |
|
5.61% |
Portfolio turnover rate (f)
|
36% |
|
35% |
|
52% |
|
31% |
|
31% |
(a) |
Per
share numbers have been calculated using average shares outstanding, which
more appropriately presents the per share data for the year. |
(b) |
Amounts
shown in this caption for a share outstanding may not accord with the
change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation
to fluctuating market values for the Fund. |
(c) |
Amount
is less than $0.005 per share. |
(d) |
Total
return is calculated assuming a purchase of shares at net asset value on
the first day and a sale at net asset value on the last day of each period
reported. Distributions are assumed, for the purpose of this calculation,
to be reinvested at net asset value per share on the respective payment
dates of each distribution. Total returns for periods of less than one
year are not annualized. Broker commission charges are not included in
this calculation. |
(e) |
If
an Affiliate had not made a contribution during the year ended June 30,
2019, the total return would have remained 5.86%. |
(f) |
Portfolio
turnover rate excludes securities received or delivered from in-kind
processing of creations or redemptions. |
This
Prospectus does not contain all the information included in the Registration
Statement filed with the SEC with respect to Fund Shares. An SAI and the annual
and semi-annual reports to shareholders, each of which has been or will be filed
with the SEC, provide more information about the Funds. The Prospectus and SAI
may be supplemented from time to time. In the annual report, you will find a
discussion of the market conditions and investment strategies that significantly
affected each Fund's performance during the Fund's last fiscal year, as
applicable. The SAI is incorporated herein by reference (
, it is legally
part of this Prospectus). These materials may be obtained without charge, upon
request, by writing to the Distributor, State Street Global Advisors Funds
Distributors, LLC, One Iron Street, Boston, Massachusetts 02210, by
visiting the Funds' website at
https://www.ssga.com/spdrs
or
by calling the following number:
Investor Information:
1-866-787-2257
The
Registration Statement, including this Prospectus, the SAI, and the exhibits as
well as any shareholder reports may be reviewed on the EDGAR Database on the
SEC's website (http://www.sec.gov). You may also obtain copies of this and other
information, after paying a duplicating fee, by electronic request at the
following E-mail address:
[email protected].
Shareholder
inquiries may be directed to the Funds in writing to State Street Global
Advisors Funds Distributors, LLC, One Iron Street, Boston, Massachusetts
02210, or by calling the Investor Information number listed above.
No person has been authorized to
give any information or to make any representations other than those contained
in this Prospectus in connection with the offer of Fund Shares, and, if given or
made, the information or representations must not be relied upon as having been
authorized by the Trust or the Funds. Neither the delivery of this Prospectus
nor any sale of Fund Shares shall under any circumstance imply that the
information contained herein is correct as of any date after the date of this
Prospectus.
Dealers effecting transactions
in Fund Shares, whether or not participating in this distribution, are generally
required to deliver a Prospectus. This is in addition to any obligation of
dealers to deliver a Prospectus when acting as underwriters.
SPDRSERTREQ |
The
Trust's Investment Company Act Number is
811-08839. |