ETF Research Center

SPDR S&P Health Care Equipment ETF is an exchange-traded fund incorporated in the USA. The Fund's objective is to replicate as closely as possible the performance of the S&P Health Care Equipment Select Industry Index.

FUND BASICS
Category	US Equities
Fund Sponsor	SSGA Funds Management Inc
Website	www.spdrs.com
Inception date	Jan 27, 2011
Assets (mns)	$553
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	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	68
Wgt avg mkt cap (mns)	$17,991
Large cap (>$10bn)	36.1%
Mid cap ($2-10bn)	32.7%
Small cap (<$2bn)	31.2%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	21.0 %
ALIGN TECHNOLOGY INC	2.4 %
INOGEN INC	2.4 %
WRIGHT MEDICAL GROUP NV	2.3 %
DEXCOM INC	2.3 %
STAAR SURGICAL CO	2.0 %
INSULET CORP	2.0 %
ABIOMED INC	2.0 %
NEVRO CORP	2.0 %
NUVASIVE INC	1.9 %
DENTSPLY SIRONA, INC.	1.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	93.0 %
	NETHERLANDS	2.4 %
	IRELAND	1.6 %
	BRITAIN	1.4 %

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.
12.7%	2.3%	1.0%	--	7.0%

Market Correlations
versus...	Beta	R-squared
S&P500	1.08	61%
MSCI EAFE	0.86	32%
MSCI Emg. Mkts.	0.58	24%

Technical Indicators
Recent close	$81.90
30d moving avg.	$77.96
Annualized volatility	16.8%
Short interest (ETF)	9.8%
Short interest (Underlying)	6.3%
Relative strength (RSI)	65

Liquidity measures
Avg. volume (thou.)	43
Turnover	0.6%
Bid/Ask (% of price)	0.13%
ADV underlying (mns)	$5,159

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the SPDR S&P Health Care Equipment ETF based on the alternatives' overlap in portfolio holdings with XHE. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

XHE

Expense:

35 bp

ALTAR Score™:

2.2%

ALTERNATIVE ETFs BASED ON OVERLAP WITH XHE
Ticker	Fund Name	Overlap¹ vs XHE (%)	Expense ratio (bp)	Savings vs XHE (bp)	ALTAR Score™ (%)	ALTAR vs XHE (%)
IHI	iShares DJ US Medical Devices	36.2	43	-8	3.9	+1.7
HTEC	Robo Global Healthcare Technology and Innovation	35.1	68	-33	0.0	-2.2
RYH	Invesco S&P Equal Weight Healthcare	30.7	40	-5	7.3	+5.1
PTH	Invesco DWA Healthcare Momentum	28.2	60	-25	-1.4	-3.6
IEHS	iShares Evolved U.S. Healthcare Staples	25.1	18	17	6.1	+3.9
FXH	First Trust Health Care Alphadex	23.1	63	-28	7.4	+5.2
JHMH	John Hancock Multifactor Health Care	22.2	40	-5	6.9	+4.7
GDNA	Goldman Sachs Motif Human Evolution	21.2	50	-15	1.0	-1.2
FHLC	Fidelity MSCI Health Care	20.1	8	27	6.1	+3.9
IYH	iShares US Healthcare	20.1	43	-8	6.6	+4.4
VHT	Vanguard Health Care	19.9	10	25	6.1	+3.9
PSCH	Invesco S&P Small Cap Health Care	19.5	29	6	2.9	+0.7
LNGR	Global X Longevity Thematic	19.1	50	-15	3.7	+1.5
XLV	Health Care Select Sector SPDR	18.5	13	22	7.5	+5.3
IXJ	iShares S&P Global Healthcare	14.5	46	-11	6.6	+4.4
SLIM	Obesity	12.3	35	0	2.4	+0.2
CLRG	IQ Chaikin U.S. Large Cap	9.0	25	10	8.2	+6.0
DEF	Invesco Defensive Equity	8.7	59	-24	4.9	+2.7
JKK	iShares Morningstar Small Cap Growth	8.7	30	5	1.1	-1.1
INAU	Innovation United States	8.5	81	-46	5.5	+3.3

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 S&P Health Care Equipment
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	9.8	%
Divided by: Fwd. P/BV	3.8	x
Less: Expense ratio	35	bp
Equals: ALTAR Score	2.2	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.43	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.