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)	$1,866
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	123
Wgt avg mkt cap (mns)	$11,254
Large cap (>$10bn)	34.3%
Mid cap ($2-10bn)	52.3%
Small cap (<$2bn)	13.4%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	28.7 %
SVB FINANCIAL GROUP	3.0 %
FIRST REPUBLIC BANK/CA	3.0 %
CITIZENS FINANCIAL GROUP, INC.	3.0 %
BB&T CORP	2.9 %
ZIONS BANCORPORATION	2.9 %
KEYCORP	2.8 %
PNC FINANCIAL SERVICES GROUP	2.8 %
M & T BANK CORP	2.8 %
HUNTINGTON BANCSHARES INC	2.8 %
COMERICA INC	2.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	97.7 %
	PUERTO RICO	2.3 %

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.
27.5%	27.5%	9.5%	12.1%	3.7%

Market Correlations
versus...	Beta	R-squared
S&P500	1.42	64%
MSCI EAFE	1.25	41%
MSCI Emg. Mkts.	0.80	29%

Technical Indicators
Recent close	$56.80
30d moving avg.	$57.76
Annualized volatility	21.4%
Short interest (ETF)	89.3%
Short interest (Underlying)	4.6%
Relative strength (RSI)	57

Liquidity measures
Avg. volume (thou.)	5,040
Turnover	15.3%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$2,501

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™:

8.0%

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	74.8	35	0	8.1	+0.1
IAT	iShares DJ US Regional Banks	61.6	42	-7	7.4	-0.6
FTXO	First Trust Nasdaq Bank	47.1	60	-25	7.6	-0.4
KBWR	Invesco KBW Regional Bank	45.5	35	0	8.4	+0.4
KBWB	Invesco KBW Bank Portfolio	34.6	35	0	7.5	-0.5
QABA	First Trust NASDAQ ABA Community Bank	33.5	60	-25	7.9	-0.1
FXO	First Trust Financial Alphadex	23.0	63	-28	7.6	-0.4
FOVL	iShares Focused Value Factor	20.0	25	10	8.6	+0.6
RYF	Invesco S&P Equal Weight Financials	19.1	40	-5	7.0	-1.0
UTRN	Vesper U.S. Large Cap Short-Term Reversal Strategy	16.8	75	-40	7.2	-0.8
IEFN	iShares Evolved U.S. Financials	15.8	18	17	7.2	-0.8
TPSC	Timothy Plan US Small Cap Core	15.6	52	-17	6.6	-1.4
JHMF	John Hancock Multifactor Financials	14.8	40	-5	6.3	-1.7
PSCF	Invesco S&P Small Cap Financials	14.4	29	6	9.0	+1.0
JKL	iShares Morningstar Small Cap Value	14.3	30	5	8.8	+0.8
IYG	iShares DJ US Financial Services	14.1	42	-7	6.1	-1.9
MDYV	SPDR S&P400 Mid Cap Value	13.9	15	20	7.7	-0.3
CVY	Invesco Multi-Asset Income	13.9	97	-62	7.9	-0.1
IJJ	iShares S&P MidCap 400 Value	13.8	25	10	7.6	-0.4
SDVY	First Trust SMID Cap Rising Dividend Achievers	13.8	60	-25	7.3	-0.8

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	9.5	%
Divided by: Fwd. P/BV	1.1	x
Less: Expense ratio	35	bp
Equals: ALTAR Score	8.0	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.63	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.