ETF Research Center

SPDR KBW Regional Banking ETF objective is to replicate as closely as possible the performance of the KBW Regional Banking Index, an equal-weighted index.

FUND BASICS
Category	US Equities
Fund Sponsor	SSGA Funds Management Inc
Website	www.spdrs.com
Inception date	Jun 22, 2006
Assets (mns)	$2,026
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	122
Wgt avg mkt cap (mns)	$10,853
Large cap (>$10bn)	36.2%
Mid cap ($2-10bn)	52.0%
Small cap (<$2bn)	11.9%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	28.3 %
FIRST REPUBLIC BANK/CA	3.0 %
ZIONS BANCORPORATION	3.0 %
COMERICA INC	2.9 %
PNC FINANCIAL SERVICES GROUP	2.9 %
FIFTH THIRD BANCORP	2.8 %
SVB FINANCIAL GROUP	2.8 %
KEYCORP	2.8 %
M & T BANK CORP	2.8 %
CITIZENS FINANCIAL GROUP, INC.	2.7 %
BB&T CORP	2.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	97.7 %
	PUERTO RICO	2.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru October 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
17.2%	2.3%	8.1%	12.2%	3.1%

Market Correlations
versus...	Beta	R-squared
S&P500	1.51	57%
MSCI EAFE	1.09	25%
MSCI Emg. Mkts.	0.61	13%

Technical Indicators
Recent close	$55.96
30d moving avg.	$53.94
Annualized volatility	24.2%
Short interest (ETF)	96.6%
Short interest (Underlying)	4.6%
Relative strength (RSI)	67

Liquidity measures
Avg. volume (thou.)	5,540
Turnover	15.3%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$3,047

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

KRE

Expense:

35 bp

ALTAR Score™:

8.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH KRE
Ticker	Fund Name	Overlap¹ vs KRE (%)	Expense ratio (bp)	Savings vs KRE (bp)	ALTAR Score™ (%)	ALTAR vs KRE (%)
KBE	KBW Bank ETF	74.5	35	0	8.3	+0.1
IAT	iShares DJ US Regional Banks	63.0	42	-7	7.5	-0.7
FTXO	First Trust Nasdaq Bank	44.3	60	-25	7.8	-0.4
KBWR	Invesco KBW Regional Bank	44.3	35	0	8.6	+0.4
QABA	First Trust NASDAQ ABA Community Bank	36.6	60	-25	8.2	-0.1
KBWB	Invesco KBW Bank Portfolio	33.8	35	0	7.8	-0.5
FXO	First Trust Financial Alphadex	21.7	63	-28	8.1	-0.2
RYF	Invesco S&P Equal Weight Financials	21.5	40	-5	7.5	-0.7
IEFN	iShares Evolved U.S. Financials	16.7	18	17	7.5	-0.8
JKL	iShares Morningstar Small Cap Value	15.8	30	5	9.1	+0.8
JHMF	John Hancock Multifactor Financials	15.3	40	-5	6.7	-1.5
SDVY	First Trust SMID Cap Rising Dividend Achievers	14.7	60	-25	7.6	-0.7
IYG	iShares DJ US Financial Services	14.7	42	-7	6.6	-1.7
FNCL	Fidelity MSCI Financials	14.1	8	27	7.5	-0.8
FNK	First Trust Mid Cap Value AlphaDEX	14.0	70	-35	9.1	+0.8
VFH	Vanguard Financials	13.9	10	25	7.5	-0.8
IWN	iShares Russell 2000 Value	13.1	24	11	6.5	-1.7
VTWV	Vanguard Russell 2000 Value	12.9	20	15	6.6	-1.7
PSCF	Invesco S&P Small Cap Financials	12.5	29	6	8.8	+0.5
PY	Principal Shareholder Yield	12.2	29	6	8.0	-0.3

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 Regional Banking
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	9.6	%
Divided by: Fwd. P/BV	1.1	x
Less: Expense ratio	35	bp
Equals: ALTAR Score	8.3	%

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.