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VIEWS: 38 PAGES: 2

									                                          S&P U.S. REIT Composite




EXCHANGE-TRADED PRODUCTS:
                                          About the Index
EXCHANGE-TRADED FUNDS (ETFs)              Introduced in 1997, the S&P U.S. REIT Composite index measures the securitized U.S. Real Estate
First Trust S&P REIT Index Fund
                                          Investment Trust (REIT) market. REITs act as operating companies that purchase, manage, invest
Standard & Poor’s does not sponsor,       in, maintain, and market real estate. The S&P U.S. REIT Composite covers approximately 89%
endorse, sell or promote any S&P          of the U.S. REIT market capitalization, and maintains a constituency that reflects the market’s
index-based investment product.
                                          overall composition.
                                          Designed as a market indicator, the S&P U.S. REIT Composite        • Market Capitalization. A REIT must maintain a market cap in
                                          contains securities selected for market representation               excess of US$ 100 million to be considered.
                                          according to geography and property type. All of the               • Dividend Payment. A REIT must have made a dividend
                                          companies in the S&P U.S. REIT Composite index are publicly          payment in the previous year to be considered for inclusion.
                                          traded equity REITs.                                               • Public Float. There must be public float of at least 50%.

                                          REITs are included in the Financials sector of the Global          • Liquidity and Price. Adequate liquidity and reasonable

                                          Industry Classification Standard (GICS®), which was                   per-share-price -- the ratio of annual dollar value traded to

                                          developed to meet the financial community’s need for one              market capitalization should be 0.3 or greater. Very low stock

                                          complete, consistent set of sector definitions that reflects           prices can affect a stock’s liquidity.

                                          today’s economies. All securities added to the S&P U.S.            • Trading History. After an initial public offering, a REIT must

                                          REIT Composite meet the index’s liquidity, price, and market         trade for at least six months before it will be considered for

                                          capitalization requirements. These requirements help to foster       inclusion.

                                          an index that is comprised of tradable securities, making it       • Financial Viability. Usually measured as four consecutive

                                          useful for both benchmarking and replication purposes.               quarters of positive as-reported earnings. As-reported
                                                                                                               earnings are GAAP net income excluding discontinued
Contact Us:                               Index Methodology
                                                                                                               operations and extraordinary items.
index_services@standardandpoors.com       The S&P Index Committee follows a set of published
                                                                                                             • Share Changes. Share adjustments that exceed 5% are
                                          guidelines for maintaining the index. Complete details of
                                                                                                               made at the time of the change. Share adjustments of less
New York               +1.212.438.2046    these guidelines, including the criteria for index additions and
Toronto                +1.416.507.3200
                                                                                                               than 5% are made on a quarterly basis.
                                          removals, policy statements, and research papers are available
London                +44.20.7176.8888                                                                       CRITERIA FOR INDEX REMOVALS
                                          on the Web site at www.indices.standardandpoors.com.
Paris                 +33.1.40.75.77.91                                                                      • REITs that substantially violate one or more of the criteria for
Tokyo                   +813.4550.8463    The Index Committee’s primary goal is to provide investors a
                                          reliable indicator of the securitized real estate market.            index inclusion.
Beijing               +86.10.6569.2919
Sydney                 +61.2.9255.9870
                                                                                                             • REITs that are consolidated into other REITs, or which
                                          CRITERIA FOR INDEX ADDITIONS
                                                                                                               restructure so that they no longer meet the inclusion criteria.
                                          • Eligibility. Only equity REITs are eligible for addition.
For more information, including current
data and index performance, visit our     • Traded on a major exchange. A REIT must trade on the
Web site:                                   NYSE, AMEX, or NASDAQ National Market to be considered
www.indices.standardandpoors.com            for inclusion.
         Leading Measures for
             U.S. Markets                              S&P U.S. REIT Composite
                                                      S&P U.S. Indices
12/31/2007                                                                                                           S&P U.S. Indices
Tracks the market performance,                                                                                   S&P U.S. REIT Composite
covering 89% of the securitized U.S.
Real Estate Investment Trust market.

Index Performance                                     5 Year Historical Performance
Returns        1 Month         -5.38%                   500
               3 Month        -13.37%
               YTD            -16.80%
                                                        400
Returns (% pa) 1 Year         -16.80%
               3 Years          7.85%
               5 Years         17.61%                   300
               7 Years         15.10%
Risk (% pa)    3 Years Std Dev 17.03%
                                                        200
               5 Years Std Dev 16.59%
Sharpe Ratio 3 Years            0.0824
               5 Years          0.2557                  100


                                                          0
                                                          Dec-02       Jun-03       Dec-03       Jun-04          Dec-04    Jun-05       Dec-05       Jun-06       Dec-06   Jun-07   Dec-07


Top 10 Companies
                                                          Float Adjusted                                                               Investable
                                                             Market Cap                     Index               Sub-Industry              Weight
Country             Company                                   ($ Million)                  Weight                    Weight                Factor      GICS® Sub-Industry
USA                 Simon Property Group, Inc                    19,370.3                   7.19%                     25.36%                  1.00     Retail REITs
USA                 ProLogis                                     16,322.1                   6.06%                     61.03%                  1.00     Industrial REITs
USA                 Vornado Realty Trust                         11,784.6                   4.37%                     60.34%                  0.88     Diversified REITs
USA                 Boston Properties                            10,949.7                   4.06%                     27.65%                  1.00     Office REITs
USA                 Genl Growth Properties                       10,040.2                   3.73%                     13.15%                  1.00     Retail REITs
USA                 Equity Residential                            9,885.6                   3.67%                     26.45%                  1.00     Residential REITs
USA                 Kimco Realty                                  9,198.6                   3.41%                     12.04%                  1.00     Retail REITs
USA                 Public Storage                                9,140.2                   3.39%                     14.05%                  0.73     Specialized REITs
USA                 Host Hotels & Resorts                         8,901.6                   3.30%                     13.69%                  1.00     Specialized REITs
USA                 Plum Creek Timber Co.                         7,931.6                   2.94%                     12.20%                  1.00     Specialized REITs


Tickers                                               Sub-Industry Breakdown                                                     Portfolio Characteristics
S&P U.S. REIT Composite                                                          Diversified                                     Number of Companies                                  100
 Bloomberg              SPREIT                                                     REITs           Industrial                    Adjusted Market Cap ($ Billion)                    269.38
 Reuters             .SPREITS                                                      7.25%             REITs                       Company Size (Adjusted $ Billion):
                                                              Specialized
                                                                REITs                                9.93%                                                        Average              2.69
                                                               24.14%                                           Mortgage
                                                                                                                                                                    Largest           19.37
                                                                                                                 REITs
                                                                                                                                                                  Smallest             0.11
                                                                                                                 1.75%
                                                                                                                                                                    Median             1.48
                                                                                                            Office REITs         % Weight Largest Company                            7.19%
                                                                                                              14.70%             Top 10 Holdings (% Market Cap Share)               42.14%

                                                                                                      Residential
                                                                Retail REITs
                                                                                                        REITs
                                                                  28.35%
                                                                                                       13.88%

Standard & Poor's assumes no responsibility for the accuracy or completeness of the above data and disclaims all express or implied warranties in connection therewith.

								
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