ETF Research Center

Select Sector SPDR� holding S&P 500 stocks in the Health Care sector. Component industries include Health Care Equipment & Services; and Pharmaceutical & Biotechnology. 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)	$20,894
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	62
Wgt avg mkt cap (mns)	$149,965
Large cap (>$10bn)	99.6%
Mid cap ($2-10bn)	0.4%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	51.6 %
JOHNSON & JOHNSON	10.1 %
UNITEDHEALTH GROUP INC	7.2 %
MERCK & CO. INC.	5.9 %
PFIZER INC	5.7 %
MEDTRONIC PLC	4.1 %
ABBOTT LABORATORIES	4.0 %
BRISTOL-MYERS SQUIBB CO	4.0 %
AMGEN INC	3.7 %
THERMO FISHER SCIENTIFIC INC	3.5 %
ABBVIE INC	3.3 %

TOP COUNTRY EXPOSURE
	UNITED STATES	93.3 %
	IRELAND	6.3 %
	BRITAIN	0.3 %

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.
20.5%	20.5%	10.1%	14.6%	8.3%

Market Correlations
versus...	Beta	R-squared
S&P500	0.86	62%
MSCI EAFE	0.77	41%
MSCI Emg. Mkts.	0.56	37%

Technical Indicators
Recent close	$104.49
30d moving avg.	$101.88
Annualized volatility	13.3%
Short interest (ETF)	14.5%
Short interest (Underlying)	2.0%
Relative strength (RSI)	71

Liquidity measures
Avg. volume (thou.)	5,792
Turnover	2.9%
Bid/Ask (% of price)	0.01%
ADV underlying (mns)	$20,235

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

XLV

Expense:

13 bp

ALTAR Score™:

6.8%

ALTERNATIVE ETFs BASED ON OVERLAP WITH XLV
Ticker	Fund Name	Overlap¹ vs XLV (%)	Expense ratio (bp)	Savings vs XLV (bp)	ALTAR Score™ (%)	ALTAR vs XLV (%)
IYH	iShares US Healthcare	90.7	43	-30	5.9	-0.9
FHLC	Fidelity MSCI Health Care	85.2	8	5	5.5	-1.3
VHT	Vanguard Health Care	84.1	10	3	5.5	-1.3
JHMH	John Hancock Multifactor Health Care	72.7	40	-27	6.3	-0.5
IXJ	iShares S&P Global Healthcare	67.8	46	-33	6.0	-0.8
RYH	Invesco S&P Equal Weight Healthcare	59.5	40	-27	6.7	-0.1
IEHS	iShares Evolved U.S. Healthcare Staples	58.9	18	-5	5.6	-1.3
IEIH	iShares Evolved U.S. Innovative Healthcare	48.8	18	-5	3.8	-3.1
PBE	Invesco Dynamic Biotechnology & Genome	38.5	57	-44	10.5	+3.7
PJP	Invesco Dynamic Pharmaceuticals	38.5	56	-43	10.5	+3.7
FXH	First Trust Health Care Alphadex	38.1	63	-50	6.7	-0.2
FTXH	First Trust Nasdaq Pharmaceuticals	37.2	60	-47	4.1	-2.7
IHE	iShares DJ US Pharmaceuticals	31.3	42	-29	4.9	-1.9
PPH	VanEck Vectors Pharmaceuticals	28.5	36	-23	8.9	+2.1
GDNA	Goldman Sachs Motif Human Evolution	28.3	50	-37	1.0	-5.8
IHI	iShares DJ US Medical Devices	27.9	43	-30	3.6	-3.2
LNGR	Global X Longevity Thematic	27.4	50	-37	3.2	-3.6
DURA	VanEck Vectors Morningstar Durable Dividend	24.9	29	-16	6.5	-0.3
XPH	SPDR S&P Pharmaceuticals ETF	23.6	35	-22	4.5	-2.3
HLAL	Wahed FTSE USA Shariah	23.4	50	-37	5.3	-1.6

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:	Health Care 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	23.2	%
Divided by: Fwd. P/BV	3.4	x
Less: Expense ratio	13	bp
Equals: ALTAR Score	6.8	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.40	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.