ETF Research Center

Select Sector SPDR� holding S&P 500 stocks in the Basic Materials sector. The fund seeks investment results that, before expenses, generally correspond to the price and yield performance of the benchmark index. For product information and a prospectus visit www.sectorspdr.com.

FUND BASICS
Category	US Equities
Fund Sponsor	State Street Global Advisors
Website	www.sectorspdrs.com
Inception date	Dec 22, 1998
Assets (mns)	$4,098
Currency	USD
Expense ratio	13 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	State Street Bank & Trust
Weighting	Market Cap
Index replication	Full
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	29
Wgt avg mkt cap (mns)	$39,028
Large cap (>$10bn)	97.0%
Mid cap ($2-10bn)	3.0%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	64.9 %
PRAXAIR INC	16.3 %
AIR PRODUCTS & CHEMICALS INC	7.4 %
ECOLAB INC	6.9 %
SHERWIN-WILLIAMS CO/THE	6.8 %
DOW CHEMICAL	6.4 %
DOW, INC.	5.5 %
NEWMONT MINING CORP	4.6 %
PPG INDUSTRIES INC	4.4 %
LYONDELLBASELL INDU-CL A	3.4 %
BALL CORP	3.2 %

TOP COUNTRY EXPOSURE
	UNITED STATES	77.7 %
	BRITAIN	22.1 %

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.
24.1%	24.1%	6.9%	8.8%	7.6%

Market Correlations
versus...	Beta	R-squared
S&P500	1.02	80%
MSCI EAFE	1.06	71%
MSCI Emg. Mkts.	0.74	60%

Technical Indicators
Recent close	$60.87
30d moving avg.	$60.37
Annualized volatility	13.8%
Short interest (ETF)	22.6%
Short interest (Underlying)	3.4%
Relative strength (RSI)	59

Liquidity measures
Avg. volume (thou.)	4,820
Turnover	7.2%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$3,751

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the Materials Select Sector SPDR ETF based on the alternatives' overlap in portfolio holdings with XLB. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

XLB

Expense:

13 bp

ALTAR Score™:

9.1%

ALTERNATIVE ETFs BASED ON OVERLAP WITH XLB
Ticker	Fund Name	Overlap¹ vs XLB (%)	Expense ratio (bp)	Savings vs XLB (bp)	ALTAR Score™ (%)	ALTAR vs XLB (%)
VAW	Vanguard Materials	77.8	10	3	8.4	-0.6
FMAT	Fidelity MSCI Materials	77.1	8	5	8.4	-0.7
IYM	iShares DJ US Basic Material	74.1	42	-29	8.4	-0.7
RTM	Invesco S&P Equal Weight Materials	67.3	40	-27	8.2	-0.9
JHMA	John Hancock Multifactor Materials	66.9	40	-27	7.4	-1.7
MXI	iShares S&P Global Materials	35.7	46	-33	6.6	-2.5
PYZ	Invesco Dynamic Basic Materials Sector	32.2	60	-47	5.1	-3.9
FXZ	First Trust Materials Alphadex	31.0	64	-51	7.6	-1.5
SZNE	Pacer CFRA-Stovall Equal Weight Seasonal Rotation	24.2	60	-47	7.0	-2.0
FTAG	First Trust Indxx Global Agriculture	18.1	70	-57	8.2	-0.8
EQRR	ProShares Equities for Rising Rates	18.0	35	-22	7.5	-1.6
NANR	SPDR S&P N. American Nat. Resources	14.8	35	-22	3.8	-5.3
DIET	Defiance Next Gen Food & Agriculture	12.1	30	-17	5.4	-3.7
GNR	SPDR S&P Global Nat. Resources	11.6	40	-27	6.1	-3.0
IGE	iShares North American Natural Resources	11.0	46	-33	3.8	-5.3
CUT	Invesco Timber	10.5	55	-42	7.0	-2.1
YLDE	ClearBridge Dividend Strategy ESG	10.5	60	-47	4.4	-4.7
NOBL	ProShares S&P500 Aristocrats	10.4	35	-22	5.6	-3.4
KNG	Cboe Vest S&P 500 Dividend Aristocrats Target Income	10.4	75	-62	5.2	-3.9

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:	Materials Select Sector SPDR
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	15.4	%
Divided by: Fwd. P/BV	1.7	x
Less: Expense ratio	13	bp
Equals: ALTAR Score	9.1	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.58	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.