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)	$584
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)	$19,209
Large cap (>$10bn)	37.8%
Mid cap ($2-10bn)	28.4%
Small cap (<$2bn)	33.9%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	20.4 %
TANDEM DIABETES CARE INC	2.3 %
DEXCOM INC	2.2 %
IRHYTHM TECHNOLOGIES, INC.	2.2 %
MERIT MEDICAL SYSTEMS INC	2.2 %
NEVRO CORP	2.0 %
INSULET CORP	1.9 %
ICU MEDICAL INC	1.9 %
PENUMBRA, INC.	1.9 %
WEST PHARMACEUTICAL SERVICES	1.9 %
GLAUKOS CORP	1.9 %

TOP COUNTRY EXPOSURE
	UNITED STATES	93.5 %
	IRELAND	3.4 %
	NETHERLANDS	1.6 %
	BRITAIN	1.5 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
-0.4%	11.4%	0.8%	--	7.7%

Market Correlations
versus...	Beta	R-squared
S&P500	1.10	60%
MSCI EAFE	0.88	32%
MSCI Emg. Mkts.	0.54	21%

Technical Indicators
Recent close	$89.48
30d moving avg.	$87.63
Annualized volatility	17.2%
Short interest (ETF)	9.9%
Short interest (Underlying)	6.3%
Relative strength (RSI)	61

Liquidity measures
Avg. volume (thou.)	32
Turnover	0.5%
Bid/Ask (% of price)	0.12%
ADV underlying (mns)	$5,959

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the SPDR S&P Health Care Equipment ETF 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™:

2.1%

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	37.8	43	-8	3.6	+1.5
HTEC	Robo Global Healthcare Technology and Innovation	33.9	68	-33	0.0	-2.1
RYH	Invesco S&P Equal Weight Healthcare	33.3	40	-5	6.6	+4.5
IEHS	iShares Evolved U.S. Healthcare Staples	25.7	18	17	5.6	+3.5
JHMH	John Hancock Multifactor Health Care	23.4	40	-5	6.2	+4.2
FXH	First Trust Health Care Alphadex	22.3	62	-27	5.3	+3.2
GDNA	Goldman Sachs Motif Human Evolution	21.2	50	-15	0.9	-1.2
IYH	iShares US Healthcare	21.0	43	-8	6.1	+4.0
FHLC	Fidelity MSCI Health Care	20.9	8	27	5.6	+3.6
VHT	Vanguard Health Care	20.8	10	25	5.5	+3.5
PSCH	Invesco S&P Small Cap Health Care	19.8	29	6	3.2	+1.1
LNGR	Global X Longevity Thematic	19.5	50	-15	3.3	+1.2
XLV	Health Care Select Sector SPDR	19.1	13	22	7.0	+4.9
PTH	Invesco DWA Healthcare Momentum	17.9	60	-25	-3.2	-5.3
IXJ	iShares S&P Global Healthcare	15.0	46	-11	6.1	+4.0
SLIM	Obesity	13.8	35	0	1.8	-0.3
CLRG	IQ Chaikin U.S. Large Cap	9.6	25	10	8.0	+5.9
NUMG	NuShares ESG Mid-Cap Growth	9.0	40	-5	3.6	+1.5
JKH	iShares Morningstar Mid Cap Growth	8.6	30	5	2.6	+0.6
BTEC	Principal Healthcare Innovators Index	8.4	42	-7	-3.9	-6.0

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

	2015	2016	2017	2018	2019	2020E	2021E
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

	2019	2020E	2021E
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 ETF
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	10.0	%
Divided by: Fwd. P/BV	4.1	x
Less: Expense ratio	35	bp
Equals: ALTAR Score	2.1	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.42	CATEGORY AVERAGE	1.56

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.