ETF Research Center

SPDR Pharmaceuticals ETF objective is to replicate as closely as possible the performance of the S&P Pharmaceuticals Select Industry Index, an equal-weighted index.

FUND BASICS
Category	US Equities
Fund Sponsor	SSGA Funds Management Inc
Website	www.spdrs.com
Inception date	Jun 22, 2006
Assets (mns)	$253
Currency	USD
Expense ratio	35 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	41
Wgt avg mkt cap (mns)	$58,067
Large cap (>$10bn)	35.4%
Mid cap ($2-10bn)	37.8%
Small cap (<$2bn)	26.8%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	45.5 %
ELI LILLY & CO	4.8 %
MYLAN N.V.	4.8 %
ELANCO ANIMAL HEALTH, INC.	4.7 %
ZOETIS INC	4.6 %
PERRIGO CO	4.5 %
HORIZON PHARMA PLC	4.5 %
CATALENT INC	4.4 %
ENDO INTERNATIONAL PLC	4.4 %
JOHNSON & JOHNSON	4.4 %
PFIZER INC	4.3 %

TOP COUNTRY EXPOSURE
	UNITED STATES	72.7 %
	IRELAND	21.7 %
	BRITAIN	4.8 %
	CAYMAN ISLANDS	0.6 %
	SINGAPORE	0.1 %

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.
25.6%	25.6%	-1.4%	11.5%	10.4%

Market Correlations
versus...	Beta	R-squared
S&P500	1.39	62%
MSCI EAFE	1.21	39%
MSCI Emg. Mkts.	0.83	31%

Technical Indicators
Recent close	$46.04
30d moving avg.	$45.27
Annualized volatility	21.4%
Short interest (ETF)	40.5%
Short interest (Underlying)	8.2%
Relative strength (RSI)	72

Liquidity measures
Avg. volume (thou.)	105
Turnover	1.9%
Bid/Ask (% of price)	0.08%
ADV underlying (mns)	$4,976

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

XPH

Expense:

35 bp

ALTAR Score™:

4.6%

ALTERNATIVE ETFs BASED ON OVERLAP WITH XPH
Ticker	Fund Name	Overlap¹ vs XPH (%)	Expense ratio (bp)	Savings vs XPH (bp)	ALTAR Score™ (%)	ALTAR vs XPH (%)
IHE	iShares DJ US Pharmaceuticals	63.7	42	-7	5.0	+0.4
FTXH	First Trust Nasdaq Pharmaceuticals	53.1	60	-25	4.3	-0.3
PBE	Invesco Dynamic Biotechnology & Genome	45.6	57	-22	10.8	+6.2
PJP	Invesco Dynamic Pharmaceuticals	45.6	56	-21	10.8	+6.2
PPH	VanEck Vectors Pharmaceuticals	41.0	36	-1	9.0	+4.4
IEIH	iShares Evolved U.S. Innovative Healthcare	32.4	18	17	3.9	-0.7
IYH	iShares US Healthcare	23.7	43	-8	6.0	+1.4
FHLC	Fidelity MSCI Health Care	23.6	8	27	5.6	+1.0
XLV	Health Care Select Sector SPDR	23.6	13	22	7.0	+2.3
VHT	Vanguard Health Care	23.5	10	25	5.6	+1.0
JHMH	John Hancock Multifactor Health Care	22.5	40	-5	6.4	+1.8
IXJ	iShares S&P Global Healthcare	19.5	46	-11	6.1	+1.5
DURA	VanEck Vectors Morningstar Durable Dividend	17.5	29	6	6.5	+1.9
FXH	First Trust Health Care Alphadex	15.2	63	-28	6.8	+2.2
RYH	Invesco S&P Equal Weight Healthcare	15.1	40	-5	6.8	+2.1
SPHQ	Invesco S&P 500 Quality	13.8	15	20	5.4	+0.8
OUSA	O'Shares FTSE U.S. Quality Dividend	12.3	48	-13	5.7	+1.1
CNCR	Loncar Cancer Immunotherapy	12.1	79	-44	-4.1	-8.7
PTH	Invesco DWA Healthcare Momentum	12.0	60	-25	-3.6	-8.2
BTEC	Principal Healthcare Innovators Index	11.8	42	-7	-4.1	-8.7

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:	SPDR S&P Pharmaceuticals ETF
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	14.8	%
Divided by: Fwd. P/BV	3.0	x
Less: Expense ratio	35	bp
Equals: ALTAR Score	4.6	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.38	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.