ETF Research Center

Select Sector SPDR� holding S&P 500 stocks in the Energy 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)	$10,812
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)	$133,933
Large cap (>$10bn)	94.4%
Mid cap ($2-10bn)	5.6%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	75.0 %
EXXON MOBIL CORP	22.3 %
CHEVRON CORP	19.8 %
EOG RESOURCES INC	4.8 %
CONOCOPHILLIPS	4.6 %
SCHLUMBERGER LTD	4.3 %
PHILLIPS 66	4.0 %
KINDER MORGAN INC	4.0 %
OCCIDENTAL PETROLEUM CORP	3.9 %
VALERO ENERGY CORP	3.6 %
MARATHON PETROLEUM	3.6 %

TOP COUNTRY EXPOSURE
	UNITED STATES	99.0 %
	BRITAIN	0.8 %

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.
11.7%	11.7%	-1.9%	3.3%	6.9%

Market Correlations
versus...	Beta	R-squared
S&P500	1.27	56%
MSCI EAFE	1.39	56%
MSCI Emg. Mkts.	0.83	34%

Technical Indicators
Recent close	$59.12
30d moving avg.	$60.40
Annualized volatility	20.5%
Short interest (ETF)	9.8%
Short interest (Underlying)	3.3%
Relative strength (RSI)	56

Liquidity measures
Avg. volume (thou.)	13,370
Turnover	7.3%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$6,796

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 18 potential alternatives to the Energy Select Sector SPDR ETF based on the alternatives' overlap in portfolio holdings with XLE. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

XLE

Expense:

13 bp

ALTAR Score™:

4.2%

ALTERNATIVE ETFs BASED ON OVERLAP WITH XLE
Ticker	Fund Name	Overlap¹ vs XLE (%)	Expense ratio (bp)	Savings vs XLE (bp)	ALTAR Score™ (%)	ALTAR vs XLE (%)
IYE	iShares DJ US Energy Sector	90.6	42	-29	3.8	-0.4
VDE	Vanguard Energy	89.1	10	3	3.8	-0.5
FENY	Fidelity MSCI Energy	88.1	8	5	3.8	-0.4
JHME	John Hancock Multifactor Energy	66.4	40	-27	3.1	-1.2
RYE	Invesco S&P Equal Weight Energy ETF	59.4	40	-27	3.2	-1.1
IGE	iShares North American Natural Resources	57.2	46	-33	3.8	-0.4
IXC	iShares Global Energy	51.2	46	-33	4.9	+0.7
FTXN	First Trust Nasdaq Oil & Gas	46.3	60	-47	4.0	-0.2
FXN	First Trust Energy Alphadex	44.2	63	-50	3.9	-0.3
FILL	iShares MSCI Global Energy Producers	40.9	39	-26	5.5	+1.3
NANR	SPDR S&P N. American Nat. Resources	37.1	35	-22	3.8	-0.4
IEO	iShares U.S. Oil & Gas Exploration & Production	33.9	42	-29	2.8	-1.4
XOP	SPDR S&P Oil & Gas Exploration & Production	33.0	35	-22	2.9	-1.3
PXI	Invesco Dynamic Energy Sector	30.7	60	-47	0.4	-3.9
FRAK	VanEck Vectors Unconventional Oil & Gas	26.0	54	-41	1.8	-2.4
HDV	iShares High Dividend	22.8	8	5	6.9	+2.7
FDL	First Trust Morningstar Dividend Leaders	22.0	45	-32	8.3	+4.1
EQRR	ProShares Equities for Rising Rates	19.1	35	-22	7.5	+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:	Energy Select Sector SPDR
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	6.1	%
Divided by: Fwd. P/BV	1.4	x
Less: Expense ratio	13	bp
Equals: ALTAR Score	4.2	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.47	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.