ETF Research Center

Select Sector SPDR� holding S&P 500 stocks in the Financial sector. Component industries include diversified financial services, insurance, banks, capital markets, consumer finance, thrifts and mortgage finance, and mortgage REITs. 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)	$25,240
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	68
Wgt avg mkt cap (mns)	$198,980
Large cap (>$10bn)	99.1%
Mid cap ($2-10bn)	0.9%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	55.8 %
BERKSHIRE HATHAWAY INC-CL B	12.8 %
JPMORGAN CHASE & CO	12.3 %
BANK OF AMERICA CORP	8.2 %
WELLS FARGO & CO	6.4 %
CITIGROUP INC	5.1 %
US BANCORP	2.5 %
AMERICAN EXPRESS CO	2.4 %
GOLDMAN SACHS GROUP INC	2.1 %
CME GROUP INC	2.1 %
CHUBB LIMITED	2.0 %

TOP COUNTRY EXPOSURE
	UNITED STATES	95.4 %
	BRITAIN	2.1 %
	SWITZERLAND	2.0 %
	BERMUDA	0.3 %

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.
22.4%	11.6%	10.3%	11.6%	4.0%

Market Correlations
versus...	Beta	R-squared
S&P500	1.18	68%
MSCI EAFE	0.89	33%
MSCI Emg. Mkts.	0.58	23%

Technical Indicators
Recent close	$29.80
30d moving avg.	$28.40
Annualized volatility	17.2%
Short interest (ETF)	11.6%
Short interest (Underlying)	1.7%
Relative strength (RSI)	71

Liquidity measures
Avg. volume (thou.)	49,034
Turnover	5.8%
Bid/Ask (% of price)	0.04%
ADV underlying (mns)	$14,434

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Financials Select Sector SPDR ETF based on the alternatives' overlap in portfolio holdings with XLF. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

XLF

Expense:

13 bp

ALTAR Score™:

7.1%

ALTERNATIVE ETFs BASED ON OVERLAP WITH XLF
Ticker	Fund Name	Overlap¹ vs XLF (%)	Expense ratio (bp)	Savings vs XLF (bp)	ALTAR Score™ (%)	ALTAR vs XLF (%)
FNCL	Fidelity MSCI Financials	80.4	8	5	7.4	+0.3
RWW	Invesco S&P Financials Revenue	80.2	45	-32	7.4	+0.3
VFH	Vanguard Financials	79.5	10	3	7.4	+0.3
IYG	iShares DJ US Financial Services	69.4	42	-29	6.5	-0.6
IEFN	iShares Evolved U.S. Financials	63.3	18	-5	7.4	+0.4
JHMF	John Hancock Multifactor Financials	59.4	40	-27	6.7	-0.4
IYF	iShares DJ US Financials	59.4	42	-29	6.2	-0.9
RYF	Invesco S&P Equal Weight Financials	57.7	40	-27	7.5	+0.4
IXG	iShares S&P Global Financial Sector	48.4	46	-33	8.3	+1.2
KBWB	Invesco KBW Bank Portfolio	42.5	35	-22	7.7	+0.6
DFNL	Davis Select Financial	40.5	64	-51	6.7	-0.3
SPVU	Invesco S&P 500 Value	35.0	13	0	11.0	+4.0
FTXO	First Trust Nasdaq Bank	34.7	60	-47	7.7	+0.7
DUSA	Davis Select U.S. Equity	28.1	63	-50	5.1	-2.0
PWV	Invesco Dynamic Large Cap Value	26.7	55	-42	7.9	+0.8
IWX	iShares Russell Top 200 Value	26.5	20	-7	7.0	-0.1
FXO	First Trust Financial Alphadex	26.3	63	-50	8.0	+0.9
XRLV	Invesco S&P 500 ex-Rate Sensitive Low Volatility	24.2	25	-12	5.7	-1.4
JKF	iShares Morningstar Large Value	24.0	25	-12	7.7	+0.7
MGV	Vanguard Mega Cap 300 Value	22.8	7	6	7.1	+0.0

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

	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:	Financials Select Sector SPDR
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	10.4	%
Divided by: Fwd. P/BV	1.4	x
Less: Expense ratio	13	bp
Equals: ALTAR Score	7.1	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.61	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.