Financial
Financial Select Sector SPDR vs. the S&P 500 Index Comparison of change in value of a $10,000 Investment
(since commencement of investment operations)
$20k
Financial Select Sector SPDR: $11,160 S&P 500: $11,794
$15k
$10k
The Financial Select Sector SPDR invests in a wide array of financial service firms with diversified business lines ranging from investment management to commercial and investment banking. As of 9/30/08, there are 84 companies in the Financial Select Sector SPDR Total Returns (Net Asset Value) Total Returns (Market Close) S&P 500 Index Fund Details Trading Symbol Price (9/30/08) Distributions Expense Ratio Number of Holdings Short Selling Options XLF $19.89 Quarterly 0.23% 84 Yes Yes
All total return figures assume reinvestment of dividends and capital gains at net asset value; actual returns may differ.
$5k 12/16/98 9/30/99 9/30/00 9/30/01 9/30/02 9/30/03 9/30/04 9/30/05 9/30/06 9/30/07 9/30/08
Performance (9/30/08)
Annualized
Latest Quarter
Year to Date
One Year
Three Year
Five Year
Since Incep. 12/16/98
0.79% 0.12% -8.37% 0.47% 0.52%
-29.08% -29.56% -19.29% -29.74% -18.87%
-39.24% -39.44% -21.98% -39.93% -25.36%
-9.54% -9.66% 0.22% -10.14% -8.04%
-2.12% -2.20% 5.16% -2.65% -1.81%
1.13% 1.08% 1.70% 0.58% 0.81%
AFTER-TAX Pre-Liquidation Total Returns (Net Asset Value) AFTER-TAX Post-Liquidation Total Returns (Net Asset Value)
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data please visit www.sectorspdrs.com.
Select Sector SPDR Funds bear a higher level of risk than more broadly diversified funds. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
Directions for Pie:
(As of 9/30/08) 2)
15.89%
XLF
All Holdings and Weightings
JPMorgan Chase 10.66% Bank of America 9.89% Wells Fargo 7.70% Citigroup 6.92% US Bancorp 3.89% Goldman Sachs 3.45% American Express 2.55% Merrill Lynch 2.40% MetLife 2.38% Bank of New York Mellon 2.31% Prudential Financial 1.91% Aflac 1.73% Travelers 1.65% PNC Financial Services 1.60% Morgan Stanley 1.58% Allstate 1.55% CME 1.54% State Street 1.52% Charles Schwab 1.50% Simon Property 1.35% BB&T 1.29% Chubb 1.23% Capital One Financial 1.19% Marsh & McLennan 1.01% Northern Trust 0.99% SunTrust Banks 0.99% Loews 0.89% T Rowe Price 0.86% Franklin Resources 0.83% AON 0.77% Vornado Realty Trust 0.77% Public Storage 0.77% Hartford Financial Services 0.77% Equity Residential 0.75% Progressive 0.73% Principal Financial 0.70% Boston Properties 0.70% Lincoln National 0.68% Prologis 0.67% NYSE Euronext 0.65% HCP 0.63% Hudson City Bancorp 0.59% American International Group 0.55%
S&P 500
Percentage is the estimate weight of the index components in the S&P 500 as of 9/30/08.
Portfolio Stats P/E Ratio P/B Ratio Median Market Cap Beta Average Daily Trading Volume Correlation to S&P 500
Source: Bloomberg, AltaVista Research
54.4 1.3 38.6B 0.98 165,000,000 0.81
Industry Breakdown 1. Diversified Financial Services 2. Commercial Banks 3. Insurance 4. Capital Markets 5. Real Estate Investment Trusts (REITs) 6. Consumer Finance 7. Thrifts & Mortgage Finance 8. Real Estate Management & Development 31.2% 18.8% 18.8% 17.6% 8.2% 4.5% 0.8% 0.1%
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Zions Bancorporation 0.28% Janus Capital 0.24% Developers Diversified Realty 0.24% Genworth Financial 0.23% General Growth Properties 0.21% Apartment Investment & Management 0.19% Huntington Bancshares 0.18% Federated Investors 0.16% MBIA 0.14% CB Richard Ellis 0.14% Sovereign Bancorp 0.13% CIT 0.12% First Horizon National 0.12% E*Trade Financial 0.09% National City 0.08% MGIC Investment 0.05%
There is no assurance that XLF currently holds these securities. Holdings and weightings are updated daily at www.sectorspdrs.com.
Definitions Consumer Discretionary
P/E Ratio
A valuation ratio of a company’s current share price compared to its per-share earnings. It is calculated by dividing the market value per share by earnings per share.
P/B Ratio
A ratio used to compare a stock’s market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter’s book value (book value is simply total assets minus intangible assets and liabilities).
Median Market Cap
The midpoint of the range of the individual market capitalizations for each sector. The market capitalization is defined as the value of a company, that is, the market value of its outstanding shares. This figure is found by taking the stock price and multiplying it by the total number of shares outstanding.
Beta
A measure of a security’s or portfolio’s volatility, or systematic risk, in comparison to the market as a whole. Also known as “beta coefficient”.
Volume
The number of shares or contracts traded in a security or an entire market during a given period of time. It is simply the amount of shares that trade hands from sellers to buyers as a measure of activity.
Correlation
A measure that determines the degree to which two variable’s movements are associated.
Source: Investopedia
19
Legal Disclosure
There are no sales loads on Select Sector SPDR shares but ordinary brokerage commissions may apply and this expense is not reflected in performance calculations. The S&P 500, SPDRs, and Select Sector SPDRs are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use. The stocks included in each Select Sector Index were selected by the compilation agent. Their composition and weighting can be expected to differ to that in any similar indexes that are published by S&P. The S&P 500 Index is an unmanaged index of 500 common stocks that is generally considered representative of the U.S. stock market. The index is heavily weighted toward stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. The S&P 500 Index figures do not reflect any fees, expenses or taxes. Asset allocation cannot assure a profit nor protect against a loss. Select Sector SPDRs are subject to risk similar to those of stocks including those regarding shortselling and margin account maintenance. All ETFs are subject to risk, including possible loss of principal. Sector ETF products are also subject to sector risk and non-diversification risk, which will result in greater price fluctuations than the overall market. An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information, call 1-800-843-2639 or visit www.sectorspdrs.com. Read the prospectus carefully before investing. ALPS Distributors, Inc., a registered brokerdealer, is distributor for the Select Sector SPDR Trust.
SEL000412
Exp. 2/28/2009