ETF Research Center

Select Sector SPDR� holding S&P 500 stocks in the Industrials sector. Component industries include Capital Goods; Commercial Services & Supplies; and Transportation firms. 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)	$12,790
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	71
Wgt avg mkt cap (mns)	$75,891
Large cap (>$10bn)	96.7%
Mid cap ($2-10bn)	3.3%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	43.8 %
BOEING CO	6.9 %
HONEYWELL INTERNATIONAL INC	5.2 %
UNION PACIFIC CORP	5.1 %
UNITED TECHNOLOGIES CORP	5.0 %
LOCKHEED MARTIN CORP	4.2 %
3M CO	4.2 %
GENERAL ELECTRIC CO	4.1 %
UNITED PARCEL SERVICE-CL B	3.3 %
CATERPILLAR INC	3.3 %
RAYTHEON COMPANY	2.6 %

TOP COUNTRY EXPOSURE
	UNITED STATES	93.5 %
	IRELAND	4.6 %
	BRITAIN	1.6 %

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.
29.1%	29.1%	9.8%	13.7%	7.9%

Market Correlations
versus...	Beta	R-squared
S&P500	1.23	85%
MSCI EAFE	1.18	65%
MSCI Emg. Mkts.	0.77	47%

Technical Indicators
Recent close	$83.04
30d moving avg.	$82.36
Annualized volatility	16.2%
Short interest (ETF)	18.7%
Short interest (Underlying)	3.0%
Relative strength (RSI)	59

Liquidity measures
Avg. volume (thou.)	9,668
Turnover	6.3%
Bid/Ask (% of price)	0.01%
ADV underlying (mns)	$14,029

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

XLI

Expense:

13 bp

ALTAR Score™:

6.0%

ALTERNATIVE ETFs BASED ON OVERLAP WITH XLI
Ticker	Fund Name	Overlap¹ vs XLI (%)	Expense ratio (bp)	Savings vs XLI (bp)	ALTAR Score™ (%)	ALTAR vs XLI (%)
VIS	Vanguard Industrials	77.8	10	3	6.1	+0.1
FIDU	Fidelity Industrials	77.2	8	5	5.8	-0.2
RGI	Invesco S&P Equal Weight Industrials	63.5	40	-27	6.5	+0.5
JHMI	John Hancock Multifactor Industrials	59.1	40	-27	6.4	+0.5
IYJ	iShares DJ US Industrials	59.0	42	-29	5.2	-0.8
EXI	iShares Global Industrials	51.6	46	-33	5.9	-0.1
PPA	Invesco Aero & Defense	32.3	59	-46	4.9	-1.1
FXR	First Trust Industrials/Producer Durables	29.2	62	-49	6.7	+0.7
ITA	iShares U.S. Aerospace & Defense	26.8	42	-29	5.4	-0.6
BIBL	Inspire 100	26.1	35	-22	5.2	-0.8
SZNE	Pacer CFRA-Stovall Equal Weight Seasonal Rotation	23.7	60	-47	7.1	+1.1
XKFF	SPDR Kensho Final Frontiers	23.5	45	-32	6.3	+0.4
XAR	SPDR S&P Aerospace & Defense	22.2	35	-22	5.5	-0.5
PRN	Invesco DWA Industrials Momentum	21.6	60	-47	13.5	+7.5
MAGA	Point Bridge GOP Stock Tracker	21.3	72	-59	6.1	+0.2
VIG	Vanguard Dividend Appreciation	21.1	6	7	5.2	-0.8
IYT	iShares Transportation Average	20.5	42	-29	8.3	+2.3
DGRW	WisdomTree US Dividend Growth	18.4	28	-15	7.1	+1.2
DIA	SPDR Dow Jones Industrial Average	17.9	17	-4	5.8	-0.2

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

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	24.2	%
Divided by: Fwd. P/BV	4.0	x
Less: Expense ratio	13	bp
Equals: ALTAR Score	6.0	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.59	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.