ETF Research Center

KBW Capital Markets ETF is an exchange-traded fund incorporated in the USA. The Fund's objective is to replicate the performance of the KBW Capital Markets Index.

FUND BASICS
Category	US Equities
Fund Sponsor	SSGA Funds Management Inc
Website	www.spdrs.com
Inception date	Nov 15, 2005
Assets (mns)	$40
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	59
Wgt avg mkt cap (mns)	$20,017
Large cap (>$10bn)	48.3%
Mid cap ($2-10bn)	32.4%
Small cap (<$2bn)	19.3%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	20.3 %
LAZARD LTD-CL A	2.1 %
BLACKSTONE GROUP LP/THE	2.0 %
GOLDMAN SACHS GROUP INC	2.0 %
ARTISAN PARTNERS ASSET MA -A	2.0 %
S&P GLOBAL, INC.	2.0 %
ARES MANAGEMENT LP	2.0 %
MOODY'S CORP	2.0 %
HOULIHAN LOKEY, INC. CLASS A	2.0 %
MORNINGSTAR INC	2.0 %
LPL FINANCIAL HOLDINGS INC	2.0 %

TOP COUNTRY EXPOSURE
	UNITED STATES	98.0 %
	BRITAIN	1.9 %

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.
27.2%	27.2%	5.6%	7.4%	2.9%

Market Correlations
versus...	Beta	R-squared
S&P500	1.04	65%
MSCI EAFE	0.96	46%
MSCI Emg. Mkts.	0.64	35%

Technical Indicators
Recent close	$61.45
30d moving avg.	$59.71
Annualized volatility	15.6%
Short interest (ETF)	2.0%
Short interest (Underlying)	4.5%
Relative strength (RSI)	66

Liquidity measures
Avg. volume (thou.)	4
Turnover	0.6%
Bid/Ask (% of price)	0.32%
ADV underlying (mns)	$4,096

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

KCE

Expense:

35 bp

ALTAR Score™:

7.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH KCE
Ticker	Fund Name	Overlap¹ vs KCE (%)	Expense ratio (bp)	Savings vs KCE (bp)	ALTAR Score™ (%)	ALTAR vs KCE (%)
IAI	iShares U.S. Broker Dealers	36.5	42	-7	6.4	-1.4
RYF	Invesco S&P Equal Weight Financials	32.3	40	-5	7.0	-0.9
IYG	iShares DJ US Financial Services	24.7	42	-7	6.1	-1.8
FNCL	Fidelity MSCI Financials	21.0	8	27	7.1	-0.8
VFH	Vanguard Financials	20.9	10	25	7.1	-0.8
XLF	Financials Select Sector SPDR	20.8	13	22	6.7	-1.2
JHMF	John Hancock Multifactor Financials	19.8	40	-5	6.4	-1.5
PFI	Invesco Dynamic Financial Sector	19.6	60	-25	5.1	-2.7
IEFN	iShares Evolved U.S. Financials	17.4	18	17	7.1	-0.7
FXO	First Trust Financial Alphadex	16.3	63	-28	7.6	-0.3
GFIN	Goldman Sachs Motif Finance Reimagined	16.1	50	-15	4.6	-3.3
IYF	iShares DJ US Financials	14.6	42	-7	5.8	-2.0
KBWD	Invesco KBW High Dividend Financial	13.5	242	-207	8.4	+0.5
LEAD	Reality Shares DIVCON Leaders Dividend	12.6	43	-8	4.7	-3.2
GARD	Reality Shares DIVCON Dividend Guard	12.6	129	-94	3.8	-4.0
RWW	Invesco S&P Financials Revenue	12.2	45	-10	7.0	-0.9
PLAT	WisdomTree Modern Tech Platforms	11.2	45	-10	2.7	-5.2
IXG	iShares S&P Global Financial Sector	10.5	46	-11	8.1	+0.2
OUSM	O'Shares FTSE Russell Small Cap Quality Dividend	10.4	48	-13	6.3	-1.5
RDVY	First Trust Nasdaq Rising Dividend Achievers	9.8	50	-15	6.8	-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:	SPDR KBW Capital Markets
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	16.6	%
Divided by: Fwd. P/BV	2.0	x
Less: Expense ratio	35	bp
Equals: ALTAR Score	7.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.67	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.