ETF Research Center

The�KBW Bank ETF, before expenses, seeks to closely match the returns and characteristics of the KBW Bank Index. The index is a float adjusted modified-market capitalization weighted index of geographically diverse companies representing national money center banks and regional banking institutions listed on U.S. stock markets.

FUND BASICS
Category	US Equities
Fund Sponsor	State Street Global Advisors
Website	www.ssgafunds.com
Inception date	Nov 15, 2005
Assets (mns)	$1,785
Currency	USD
Expense ratio	35 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	State Street Bank & Trust
Weighting	Equal
Index replication	Full
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	91
Wgt avg mkt cap (mns)	$35,700
Large cap (>$10bn)	37.1%
Mid cap ($2-10bn)	56.8%
Small cap (<$2bn)	6.2%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	18.4 %
VOYA FINANCIAL INC	1.9 %
CITIGROUP INC	1.9 %
AXA EQUITABLE HOLDINGS, INC.	1.9 %
FIRST HORIZON NATIONAL CORP	1.9 %
SVB FINANCIAL GROUP	1.8 %
SIGNATURE BANK	1.8 %
SYNOVUS FINANCIAL CORP.	1.8 %
FIRST REPUBLIC BANK/CA	1.8 %
CITIZENS FINANCIAL GROUP, INC.	1.8 %
NORTHERN TRUST CORP	1.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	96.7 %
	PUERTO RICO	2.0 %
	BERMUDA	1.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
29.8%	29.8%	9.1%	10.2%	1.6%

Market Correlations
versus...	Beta	R-squared
S&P500	1.42	69%
MSCI EAFE	1.25	44%
MSCI Emg. Mkts.	0.81	32%

Technical Indicators
Recent close	$46.30
30d moving avg.	$46.98
Annualized volatility	20.7%
Short interest (ETF)	9.0%
Short interest (Underlying)	4.4%
Relative strength (RSI)	56

Liquidity measures
Avg. volume (thou.)	1,280
Turnover	3.3%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$5,592

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the KBW Bank ETF ETF based on the alternatives' overlap in portfolio holdings with KBE. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

KBE

Expense:

35 bp

ALTAR Score™:

8.1%

ALTERNATIVE ETFs BASED ON OVERLAP WITH KBE
Ticker	Fund Name	Overlap¹ vs KBE (%)	Expense ratio (bp)	Savings vs KBE (bp)	ALTAR Score™ (%)	ALTAR vs KBE (%)
KRE	SPDR KBW Regional Banking	74.8	35	0	8.0	-0.1
IAT	iShares DJ US Regional Banks	54.0	42	-7	7.4	-0.7
FTXO	First Trust Nasdaq Bank	49.0	60	-25	7.6	-0.5
KBWR	Invesco KBW Regional Bank	44.3	35	0	8.4	+0.3
KBWB	Invesco KBW Bank Portfolio	36.5	35	0	7.5	-0.6
FXO	First Trust Financial Alphadex	29.5	63	-28	7.6	-0.5
RYF	Invesco S&P Equal Weight Financials	29.3	40	-5	7.0	-1.1
QABA	First Trust NASDAQ ABA Community Bank	27.3	60	-25	7.9	-0.2
IEFN	iShares Evolved U.S. Financials	26.2	18	17	7.2	-0.9
JHMF	John Hancock Multifactor Financials	26.1	40	-5	6.3	-1.8
IYG	iShares DJ US Financial Services	24.9	42	-7	6.1	-2.0
FNCL	Fidelity MSCI Financials	23.8	8	27	7.1	-1.0
VFH	Vanguard Financials	23.0	10	25	7.1	-1.0
FOVL	iShares Focused Value Factor	20.2	25	10	8.6	+0.5
XLF	Financials Select Sector SPDR	18.8	13	22	6.7	-1.4
CLRG	IQ Chaikin U.S. Large Cap	18.5	25	10	7.7	-0.4
IYF	iShares DJ US Financials	18.3	42	-7	5.8	-2.3
CVY	Invesco Multi-Asset Income	16.2	97	-62	7.9	-0.2
PY	Principal Shareholder Yield	15.8	29	6	7.7	-0.4
RWW	Invesco S&P Financials Revenue	15.8	45	-10	7.0	-1.1

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	KBW Bank ETF
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	9.8	%
Divided by: Fwd. P/BV	1.2	x
Less: Expense ratio	35	bp
Equals: ALTAR Score	8.1	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.61	CATEGORY AVERAGE	1.55

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.