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EXCHANGE TRADED FUND REPORT TM
October 27, 2014
Category Equity
Type Large-cap Core
Region U.S. Domestic
SPDR S&P 500 ETF Trust (SPY)
$196.16
$196.10
0.03%
Price (as of Oct. 27,2014)
NAV (as of Oct. 27, 2014)
Premium/Discount
S&P Capital IQ ETF Ranking Details (as of 10/27/14)
Performance Analytics:
OVERWEIGHT
S&P CIQ STARS
MARKETWEIGHT S&P CIQ Fair Value
UNDERWEIGHT S&P CIQ Technical
98%
91%
Risk Considerations:
OVERWEIGHT
S&P CIQ Qual. Rank
MARKETWEIGHT S&P CIQ Risk Assess.
S&P Credit Rating
UNDERWEIGHT
Standard Deviation
OVERWEIGHT
90%
98%
92%
Cost Factors:
MARKETWEIGHT
UNDERWEIGHT
Expense Ratio (Gross)
Price to NAV
Bid/Ask Spread
Overall S&P Capital IQ ETF Ranking:
OVERWEIGHT
ETF Commentary (October 27, 2014): SPY seeks to track the price performance of the underlying holdings in
the S&P 500 Index. S&P Capital IQ uses three broad input categories to calculate the overall ranking for
SPY within the universe of 739 ranked Equity ETFs. Based on S&P Capital IQ's proprietary Performance
Analytics we have an Overweight outlook for SPY generally employing inputs from S&P Capital IQ STARS,
Fair Value, and Technical Indicators. We believe Quality Rank, Risk Assessment, and Credit Rating, along
with Standard Deviation, are important risk measures, and we view SPY's Risk Considerations as
Overweight compared to other ETFs in its asset class. Finally, our assessments for cost factors such as
expense ratio and Price to NAV lead to an Overweight ranking. SPY's Top Ten holdings were 17.8% of total
assets. SPY has total assets of $174.3 billion. The Total Market Capitalization of SPY's holdings is $174.4
billion.
Index Tracked: The S&P 500 Index measures the performance of the large capitalization sector of the US
equity market. The Index is a capitalization-weighted index from a broad range of industries chosen for
market size, liquidity and industry group representation.
S&P Capital IQ ETF Rankings are derived from the holdings-weighted average score of all available holdings within the ETF (such as STARS) or of the ETF itself
(such as Standard Deviation). Note: Percentages highlight the percentage S&P Capital IQ coverage of the underlying holdings. Additional information on the S&P
Capital IQ ETF Ranking can be found in the Disclosures section of this report.
Key ETF Statistics (Yield as of 9/30/14; Performance as of 10/27/14)
12-Month (%) Return
3-Year CAGR (%) Return
5-Year CAGR (%) Return
13.65
17.51
15.32
12-Mth Yld/30-day SEC Yld(%) 1.87/1.83
52-Week Range
$174.10 - $201.73
Average Daily Volume
177,816,884
ETF Constituents Breakdown (%) (as of 9/30/14)
U.S. %
74
2
Large Cap
19
1
<1
<1
Small Cap
--
--
Micro Cap
--
--
Mid Cap
174,372.9M
888,932,000
3.0%
Inception Date
Exchange
Assets (as of 10/27/14)
1/22/93
ARX
174,319.6M
Performance of $10,000 Investment (10/31/09 - 8/31/14)
ETF $21,306.00 as of 8/31/14
Style Index: S&P 500 Daily Reinvested Total Return Index $21,423.00 as of 8/31/14
INTL. % -100 -80 -60 -40 -20 0 20 40 60 80 100
Mega Cap
Mkt Cap (as of 10/27/14)
Shares Outstanding
Turnover
$22,000
$20,000
$18,000
$16,000
Weighted Average Market Cap:
$124,479,658,031
Median Market Cap:
$17,015,410,000
Equity
96
3
<1
--
Fixed Income
--
--
Commodities
--
--
Real Estate
Other
<1
$14,000
$12,000
$10,000
2010
2011
2012
2013
2014
Performance data quoted represents past performance, which does not guarantee future
results. Investment return and principal value of investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than original cost. Current
performance may be lower or higher than the performance data quoted; current to the
most recent month-end performance information can be obtained at www.ssgafunds.com
or 800-843-2639. Total Return does not take into account fees and expenses. If fees and
expenses had been included, performance would have been lower. Index performance
excludes management fees, transaction costs and expenses. Indexes are unmanaged and
one cannot invest directly in an index.
ETF Comparison (Ranking, Market Price as of 10/27/14; Performance as of 9/30/14)
SPY
SPDR S&P 500 ETF Trust
$196.16
0.11
19.55
15.60
8.02
9.18
Average Annual Market Price Total Returns (%)
Ticker Exchange Traded Fund
XLK
QQQ
IWL
IVV
VV
Technology Select Sector SPDR Fund
PowerShares QQQ Trust, Series 1
iShares Russell Top 200 ETF
iShares Core S&P 500 ETF
Vanguard Large-Cap Index Fund; ETF Shares
S&P Capital
IQ Ranking Market Price
$39.29
$98.69
$44.62
$197.43
$90.03
Exp. Ratio (%)
1 Year
5 Year
10 Year
0.16
0.20
0.15
0.07
0.09
26.81
27.09
20.54
19.63
19.16
15.72
19.78
15.26
15.62
15.77
9.24
11.77
-8.05
8.51
Since Inception
2.83
4.87
15.02
4.06
7.79
Note: Comparisons are based on the S&P Capital IQ classification assigned to the ETF and the overall S&P Capital IQ Ranking. Since Inception returns are annualized except for ETFs that are less
than one year old. For ETFs that are less than one year old, Since Inception performance is cumulative. Besides performance, unique differences exist between the ETFs shown including, among
others, structure, objectives, costs and expenses. These differences should be carefully reviewed before an investment determination is made.
Please read the Required Disclosures on the last page of this report.
Page 1 of 10
EXCHANGE TRADED FUND REPORT TM October 27, 2014 Category Equity Type Large-cap Core
Region U.S. Domestic
SPDR S&P 500 ETF Trust (SPY)
Shares Outstanding and Total Net Assets (as of 9/30/14)
Additional Key ETF Characteristics (as of 9/30/14)
Shares Outstanding
Total Net Assets
940,000K
$180B
Underlying Index
SPX
Number of Holdings
NAV Ticker
SPY.NV
Expense Ratio (Gross)
503
0.11
Expense Ratio (Net)
0.10
920,000K
$175B
Intraday NAV Ticker SPY.IV
900,000K
$170B
IPO NAV
$43.54
Fiscal year End
9/30/13
880,000K
$165B
Family
Optionable
Yes
860,000K
$160B
State Street Bank and
Trust Company
Average P/E Ratio
22.49
840,000K
$155B
Manager
Passively Managed
Average Price/Cash Flow
15.67
820,000K
$150B
Telephone
800-843-2639
Average Price/Book
4.60
CUSIP
78462F103
Nov 13
Dec 13
Jan 14
Feb 14
Mar 14 Apr 14
May 14
Jun 14
Jul 14
Aug 14
Sep 14
www.ssgafunds.com 200 Clarendon Street Boston, MA 02116
S&P Capital IQ's ETF Market Perspective (as of 10/15/14)
5-Year Market Price Performance (as of 10/27/14)
As of September 2014, there was approximately $1.9 trillion in
U.S.-based ETFs and ETNs. U.S. Equities represent 57% of assets, but
gained just 41% of the inflows in the first seven months of the year,
according to BlackRock data.
In September, U.S. sector-focused ETFs experienced approximately
$940 million, with health care and consumer staples among bright spots.
Diversified U.S. large-cap products had $10 billion of inflows during the
month, erasing year-to-date outflows. Internationally, investors favored
country specific European ETFs but more diversified Europe ETFs were
unpopular. Meanwhile, emerging markets continued to garner investor
favor.
In September, led by outflows from gold and energy products,
commoditiy ETFs saw more than $1 billion of outflows.
Overall, there are 892 equity ETFs and 47 commodity ETFs on our
MarketScope Advisor platform, with 96 that launched since the
beginning of 2014.
SPY
Best 3-Month
1/1/12 - 3/31/12
200 Day Moving Avg
Worst 3-Month
3/1/12 - 5/31/12
BestWorst
3 3
Mos.Mos.
12.53%
-3.54%
$220.0
200.0
180.0
160.0
140.0
120.0
100.0
2010
2011
Close
10/27/14
$196.16
2012
2013
2014
Volume
3,000M
1,500M
Average Daily Volume
Average Daily Value Traded
Average Daily Volume
(Shares)
(Dollar)
(% of Total Assets)
1 Month
162,159,865
1 Month
$31,287,381,620
1 Month
18.10%
3 Month
114,534,318
3 Month
$22,399,130,344
3 Month
13.00%
6 Month
97,994,001
6 Month
$19,080,242,404
6 Month
11.32%
Total Return (%) (as of 10/27/14)
Average Annual
YTD
1 Year
3 Year
5 Year
10 Year
Since
Inception
2013
2012
2011
2010
2009
Market Price
7.69
13.65
17.51
15.32
7.86
9.12
32.31
15.99
1.89
15.06
26.36
Net Asset Value
7.75
13.63
17.52
15.31
7.85
9.15
32.21
15.84
2.06
14.93
26.42
S&P Capital IQ Peers
6.89
26.83
17.45
19.21
7.82
--
34.89
16.72
1.13
15.83
30.10
S&P 500 Daily Reinv IX
7.87
13.79
17.67
15.43
7.95
10.39
32.39
16.00
2.11
15.06
26.46
3 Year
5 Year
10 Year
Since
Inception
1.00
1.00
1.00
1.00
Standard Deviation (Mkt Price) - Annualized
10.39
13.06
14.61
14.70
Standard Deviation (NAV) - Annualized
10.39
13.06
14.61
14.70
Sharpe Ratio (Mkt Price) - Annualized
2.01
1.16
0.50
0.49
Sharpe Ratio (NAV) - Annualized
2.01
1.16
0.50
0.49
Mean
1.77
1.28
0.74
0.83
R-Squared
1.00
1.00
1.00
1.00
-0.01
-0.01
-0.01
-0.01
Average Annual Total Return (%) (as of 9/30/14)
Risk Analysis (%) (as of 9/30/14)
1 Year
5 Year
10 Year
Since
Inception
Market Price
19.55
15.60
8.02
9.18
NAV
19.01
15.46
7.96
--
Performance data quoted represents past performance, which does
not guarantee future results. Investment return and principal value of
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than original cost. Current performance may
be lower or higher than the performance data quoted; current to the
most recent month-end performance information can be obtained at
www.ssgafunds.com or 800-843-2639. Total Return does not take into
account fees and expenses. If fees and expenses had been included,
performance would have been lower.
Beta
Alpha
Page 2 of 10
EXCHANGE TRADED FUND REPORT TM October 27, 2014 Category Equity Type Large-cap Core
Region U.S. Domestic
SPDR S&P 500 ETF Trust (SPY)
S&P Capital IQ Market Commentary: U.S. (as of 10/16/14)
S&P Capital IQ Economic Sector Representation (as of 9/30/14)
S&P Capital IQ's Investment Policy Committee has a 12-month target for the
S&P 500 to 2100. Prices lead fundamentals, as investors react to educated
hunches surrounding fluctuations in fundamental forecasts. It has nothing to do
with the number of days in which the S&P 500 rose or fell by 1% or more (since
2000, annual up/down days averaged 41 and 42, respectively), but the speed
with which meaningful moves have occurred. That's why 5%-10% declines in
the S&P 500 since WWII took a median of 28 days to materialize versus 39 days
to recover, and declines of 10%-20% took 70 days vs. 75. Recent damage has
been great. It won't be repaired overnight.
Capital IQ reports that consensus estimates call for a 5% increase in second
quarter 2014 year-over-year operating EPS for the S&P 500. Strength has been
seen in Health Care, Industrials and Materials sectors. For full year 2015,
expectations are for 12% growth. The S&P 500 was recently trading at a P/E
ratio of 14.5 estimated 2015 EPS, while the S&P 400 and S&P 600, traded at
15.5X and 15.4X, respectively.
So far in 2014, the S&P 500 Index has risen 3.1%, outperforming the S&P 400's
2.8% loss and a greater one for small caps. In the mid- and small-cap indices,
value stocks have outperformed growth.
S&P Capital IQ's Investment Policy Committee currently favors the Health Care,
Industrials and Information Technology sectors.
-100
GICS Sectors
-80
-60
-40
-20
0
20
40
60
80
100
%
Consumer Discretionary
Consumer Staples
11.68
9.52
Energy
9.66
Financials
16.27
Health Care
13.84
Industrials
10.29
Information Technology
18.62
Materials
3.40
Telecom Services
2.43
Utilities
2.97
Specialty/Non GIC
1.51
Top 5 Industry Equity Holdings % of
Assets (as of 9/30/14)
Top 5 Sub-Industry Equity Holdings % of
Assets (as of 9/30/14)
Oil, Gas & Consumable Fuels
7.85
Pharmaceuticals
6.19
Pharmaceuticals
6.19
Diversified Banks
5.08
Banks
6.02
Technology Hardware, Storage & Peripherals
4.59
Technology Hardware, Storage & Peripherals
4.59
Integrated Oil & Gas
4.14
Software
3.80
Systems Software
3.08
Top 5 Total % of Assets
28.45
Developed vs Emerging Markets % of
Assets (as of 9/30/14)
Top 5 Total % of Assets
23.08
Top 5 Country Holdings % of Assets
(as of 9/30/14)
●
Developed
●
Emerging
100.09
0.04
United States
Ireland
97.27
1.49
●
Unclassified
0.00
Switzerland
0.54
United Kingdom
0.39
Netherlands
0.26
Top 5 Total % of Assets
99.95
S&P Capital
IQ
Quality Rank
S&P
Capital IQ
Fair Value
Top 10 ETF Holdings (Holdings last reported on 9/30/14; S&P Capital IQ rankings as of 10/28/14)
S&P Capital
% of ETF
IQ
Ticker
Name
Assets
STARS
YTD
Return
3.43
★★★★★
31.15
B+
5
2.28
★★★★★
-7.40
A
3
2.17
★★★★★
22.72
A-
4
1.71
★★★★★
13.63
A+
2
1.46
★★★★★
-8.95
A-
3
1.43
★★★★★
17.69
B
1.40
★★★★★
13.02
A-
3
1.29
★★★★★
0.27
B+
5
1.29
★★★★★
-7.92
A
3
1.29
★★★★★
5.58
A+
2
17.75
★★★★★
7.98%
B+*
--*
1
2
3
4
5
6
7
8
9
10
AAPL
XOM
MSFT
JNJ
GE
BRK.B
WFC
JPM
CVX
PG
Apple Inc
Exxon Mobil Corp
Microsoft Corp
Johnson & Johnson
General Electric Co
Berkshire Hathaway Inc
Wells Fargo & Co
JPMorgan Chase and Co
Chevron Corp
Procter & Gamble Co
Top 10 Total % of Assets
*
* Represents a holdings-weighted average of S&P Capital IQ rankings of the Top 10 Holdings of the portfolio. Averages are only calculated if rankings are available for all Top 10 holdings.
NR
'NR' Not Ranked
All of the fund performance information contained in this report was supplied by Lipper, A Reuters Company, subject to the following: Copyright © 2014 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including
caching, framing or similar means, is expressly prohibited without the prior consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Other important disclosures are included on the last
page of this report.
Page 3 of 10
EXCHANGE TRADED FUND REPORT TM October 27, 2014 Category Equity Type Large-cap Core
Region U.S. Domestic
SPDR S&P 500 ETF Trust (SPY)
* S&P Capital IQ's Recommended Asset Allocations
CONSERVATIVE
US Equity
Foreign Equity
Fixed Income
Cash
MODERATE
35%
10%
45%
10%
US Equity
Foreign Equity
Fixed Income
Cash
AGGRESSIVE
50%
15%
25%
10%
US Equity
Foreign Equity
Fixed Income
Cash
60%
25%
10%
5%
Highest Scoring ETFs by Asset Grouping (as of 10/27/14)
Domestic Equity
Large-cap Growth
Schwab US Large-Cap Growth ETF (SCHG), Vanguard Russell 1000 Growth Index F... (VONG), Vanguard Mega Cap Growth Index Fund;... (MGK)
Large-cap Value
iShares Russell Top 200 Value ETF (IWX), iShares S&P 500 Value ETF (IVE), Vanguard Russell 1000 Value Index Fu... (VONV)
Large-cap Core
Technology Select Sector SPDR Fund (XLK), PowerShares QQQ Trust, Series 1 (QQQ), iShares Russell Top 200 ETF (IWL)
Mid-cap Growth
Vanguard S&P Mid-Cap 400 Growth Inde... (IVOG), Vanguard Mid-Cap Growth Index Fund;... (VOT), iShares Russell Mid-Cap Growth ETF (IWP)
Mid-cap Value
Vanguard S&P Mid-Cap 400 Value Index... (IVOV), iShares Russell Mid-Cap Value ETF (IWS), Vanguard Mid-Cap Value Index Fund; E... (VOE)
Mid-cap Core
Schwab US Mid-Cap ETF (SCHM), Vanguard S&P Mid-Cap 400 Index Fund;... (IVOO), SPDR S&P MidCap 400 ETF (MDY)
Small-cap Growth
iShares Morningstar Small-Cap Growth... (JKK), Vanguard Small-Cap Growth Index Fund... (VBK), Vanguard Russell 2000 Growth Index F... (VTWG)
Small-cap Value
iShares Russell 2000 Value ETF (IWN), iShares S&P Small-Cap 600 Value ETF (IJS), Vanguard Small-Cap Value Index Fund;... (VBR)
Small-cap Core
Vanguard Russell 2000 Index Fund; ET... (VTWO), iShares Russell 2000 ETF (IWM), iShares Core S&P Small-Cap ETF (IJR)
Multi-cap
iShares MSCI USA ETF (EUSA), iShares MSCI USA Quality Factor ETF (QUAL), Vanguard Total Stock Market Index Fu... (VTI)
Foreign Equity
Asia/Pacific
Vanguard Pacific Stock Index Fund;Va... (VPL), BLDRS Asia 50 ADR Index Fund (ADRA), iShares MSCI Australia ETF (EWA)
Asia ex-Japan
PowerShares FTSE RAFI Asia Pacific e... (PAF), Deutsche X-trackers MSCI Asia Pacifi... (DBAP), iShares MSCI All Country Asia ex Jap... (AAXJ)
Canada
iShares MSCI Canada ETF (EWC)
Emerging Markets
iShares MSCI Turkey ETF (TUR), Schwab Emerging Markets Equity ETF (SCHE), Deutsche X-trackers MSCI South Korea... (DBKO)
Europe
iShares MSCI Austria Capped ETF (EWO), SPDR STOXX Europe 50 ETF (FEU), iShares MSCI Belgium Capped ETF (EWK)
Global
Vanguard Total World Stock Index Fun... (VT), iShares MSCI ACWI ETF (ACWI), iShares Enhanced International Large... (IEIL)
International
Vanguard Tax-Managed International F... (VEA), Schwab International Equity ETF (SCHF), SPDR S&P World ex-US ETF (GWL)
Speciality Equity
Dividends
Vanguard Dividend Appreciation Index... (VIG), WisdomTree LargeCap Dividend Fund (DLN), Schwab US Dividend Equity ETF (SCHD)
Volatility
iShares MSCI USA Minimum Volatility ETF (USMV), Powershares S&P 500 Low Volatility P... (SPLV), SPDR Russell 1000 Low Volatility ETF (LGLV)
MLP
S&P does not have any Overweight or Marketweight ranked ETFs in this asset grouping.
Real Estate
iShares Residential Real Estate Capp... (REZ), Schwab US REIT ETF (SCHH), Vanguard REIT Index Fund; ETF Shares (VNQ)
GICS Sectors
Consumer Discretionary
Consumer Discretionary Select Sector... (XLY), Fidelity MSCI Consumer Discretionary... (FDIS), PowerShares S&P SmallCap Consumer Di... (PSCD)
Consumer Staples
Vanguard Consumer Staples Index Fund... (VDC), Consumer Staples Select Sector SPDR... (XLP), Fidelity MSCI Consumer Staples Index... (FSTA)
Energy
Market Vectors Oil Services ETF (OIH), Fidelity MSCI Energy Index ETF (FENY), Energy Select Sector SPDR Fund (XLE)
Financials
Financial Select Sector SPDR Fund (XLF), Vanguard Financials Index Fund; ETF... (VFH), iShares US Financials ETF (IYF)
Health Care
Health Care Select Sector SPDR Fund (XLV), iShares US Medical Devices ETF (IHI), PowerShares S&P SmallCap Health Care... (PSCH)
Industrials
Fidelity MSCI Industrials Index ETF (FIDU), Vanguard Industrials Index Fund; ETF... (VIS), PowerShares S&P SmallCap Industrials... (PSCI)
Information Technology
Vanguard Information Technology Inde... (VGT), iShares US Technology ETF (IYW), iShares Global Tech ETF (IXN)
Materials
Materials Select Sector SPDR Fund (XLB), Vanguard Materials Index Fund; ETF S... (VAW), iShares Global Materials ETF (MXI)
Telecom Services
iShares Global Telecom ETF (IXP), Fidelity MSCI Telecommunications Ser... (FCOM), iShares US Telecommunications ETF (IYZ)
Utilities
Utilities Select Sector SPDR Fund (XLU), Fidelity MSCI Utilities Index ETF (FUTY), Vanguard Utilities Index Fund; ETF S... (VPU)
* The S&P Capital IQ Investment Policy Committee’s asset allocations are based on market expectations and are subject to change. The Highest Scoring ETFs by Asset Grouping listed above are based on their Overall
S&P Capital IQ ETF Ranking. No consideration was given to non-ranking issues as amount of assets under management, number of outstanding shareholders and length of time available to investors. The above listing
of ETFs is for informational purposes only and is not a recommendation by Standard & Poor's or its affiliates to buy, sell, or hold the ETFs, nor is it considered to be investment advice.
All investment involves risks including the possible loss of principal and that there is no guarantee that any fund will achieve its objective. Please see each ETF's prospectus for the specific risks associated with an
investment in the ETF.
Page 4 of 10
EXCHANGE TRADED FUND REPORT TM October 27, 2014 Category Equity Type Large-cap Core
Region U.S. Domestic
SPDR S&P 500 ETF Trust (SPY)
Glossary
12-Month Yield (%). A measure of the rate of return on the
Mean. Calculated as the average of the one-month total returns
over a certain time period.
Moving Average. Average price of the ETF during a recent
income distributions in the past 12 months. The yield is computed
by dividing the sum of the income dividends paid during the
previous twelve months (or the previous 52 weeks for periods
ending at any time other than month-end) by the latest NAV or
market price/maximum offer price, adjusted for capital gains
distributions. (The adjusted ending NAV/Market Price is calculated
as the ending NAV/Market Price plus 100% of cap gains within
last 3 months plus 50% of the cap gains between the last 4 to 9
months). "NP" is shown when the Fund has not provided data for
the Standardized 30-day SEC yield.
trading period, eg. 200 days.
30-day SEC Yield. The SEC yield, reported by the fund, is
Optionable. This depicts whether stock options related to the
based on a 30-day period ending on the last day of the previous
month. 'NP' is shown when the Fund has not provided data.
Alpha. A cumulative return measure of an ETF’s performance
NAV Total Return. The Total Return of an ETF, based on its
NAV at the beginning and end of the holding period. This may be
different from the ETF's Market Price Return.
Net Asset Value. This is a calculation, on a per share basis, of
the ETF’s underlying net worth. It is derived, at a given point in
time, by subtracting the value of the ETF’s liabilities from the value
of the ETF’s assets, and then dividing this by the number of ETF
shares outstanding.
ETF’s shares are available.
Premium/Discount. The percent by which the selling or
versus the expected total return of a relevant benchmark (e.g., a
regional index (S&P Asia 50 Index, S&P Europe 350® Index or S&P
500® Index)), based on a 12-month time horizon. STARS was
designed to meet the needs of investors looking to put their
investment decisions in perspective. Data used to assist in
determining the STARS ranking may be the result of the analyst’s
own models as well as internal proprietary models resulting from
dynamic data inputs. As an input to the S&P ETF Ranking, S&P
evaluates the weighted average STARS of the underlying holdings
of the ETF compared with other ranked ETFs.
S&P Capital IQ Technical. In researching the past market
history of prices and trading volume for each company, S&P
Capital IQ's computer models apply special technical methods and
formulas to identify and project price trends for the ETF.
Shares Outstanding. Number of ETF shares owned by third
parties.
relative to an index after allowing for differences in risk.
purchase price of an ETF is greater than (Premium) or less than
(Discount) its net asset value (NAV).
Sharpe Ratio. A measure of a fund's historical returns adjusted
Asset Grouping. A category in which specific ETFs are
Price-to-NAV. Represents the relationship between the share
Standard Deviation. A historical measure of the variability of
grouped on the basis of similar holdings-based characteristics,
such as market capitalization and style (e.g. Large Cap Growth);
geography (e.g. Europe); and sector emphasis (e.g. Consumer
Discretionary).
Assets. Dollar value of assets in the ETF calculated by the ETF's
Daily NAV and Daily Shares Outstanding.
Average Annual Total Return. Calculated as the average
annual compounded rate of return as of the end of the last
calendar quarter. The calculation assumes reinvestment of
distributions.
Average Daily Volume. The average daily trading volume of
the ETF for the past 20 days, shown in millions.
Average P/E Ratio. A weighted average calculation of stock
price-to-earnings ratio for the ETF’s equity holdings.
Average Price/Book. A weighted average calculation of
stock price-to-book value ratio for the ETF’s equity holdings.
Average Price/Cash Flow. A weighted average calculation
of stock price-to-cash flow ratio for the ETF’s equity holdings.
Best 3-Month Return/Period. Based on month-end returns,
the most favorable three-month return to shareholders of the ETF
over a rolling 3-year period.
Beta. Measurement of an ETF’s price sensitivity to changes in
the price of the S&P Capital IQ selected benchmark. For example, a
beta of 2 means than the price of the ETF has moved, on average,
twice as much as the benchmark.
Bid/Ask Spread. A measurement of the relative gap between
the offer price to buy shares of an ETF, and the price at which
another party is willing to sell. As an input to the S&P Capital IQ
ETF Ranking, S&P Capital IQ evaluates the 5-day moving average
Bid/Ask Spread of the ETF compared with other ranked ETFs.
price of the ETF and the net asset value (NAV) per share of the
underlying holdings. As an input to the S&P Capital IQ ETF
Ranking, S&P Capital IQ evaluates the 5-day moving average Priceto-NAV of the ETF compared with other ETFs.
R-Squared. Measures the degree to which a fund's behavior is
correlated to its category benchmark.
S&P Credit Rating. The S&P Credit Rating is an issuer credit
rating, a forward-looking opinion about an obligor's overall
financial capacity (its creditworthiness) to pay its financial
obligations. This opinion focuses on the obligor's capacity and
willingness to meet its financial commitments as they come due. It
does not apply to any specific financial obligation, as it does not
take into account the nature of and provisions of the obligation, its
standing in bankruptcy or liquidation, statutory preferences, or the
legality and enforceability of the obligation. In addition, it does not
take into account the creditworthiness of the guarantors, insurers,
or other forms of credit enhancement on the obligation.
Counterparty credit ratings, ratings assigned under the Corporate
Credit Rating Service (formerly called the Credit Assessment
Service) and sovereign credit ratings are all forms of issuer credit
ratings. Issuer credit ratings can be either long term or short term.
Short-term issuer credit ratings reflect the obligor's
creditworthiness over a short-term time horizon. As an input to the
S&P Capital IQ ETF Ranking, S&P Capital IQ evaluates the
weighted average Credit Rating of the underlying holdings of the
ETF compared with other ranked ETFs.
end of a specified period of time. The calculation includes price
changes and assumes reinvestment of all distributions of
dividends and capital gains.
ETFs that have the same S&P Capital IQ style classification. S&P
Capital IQ uses information pulled from an ETF’s prospectus to
assign a classification based on 40 inputs. We review an ETF’s
classification on a regular basis and as such an ETF may
periodically shift as new data becomes available.
Exchange. Principal exchange on which shares of the ETF are
S&P Capital IQ Qualitative Risk Assessment. Reflects
percentage of average assets, before (or net of) management fees,
disbursements or other expenses as published in the ETF's
prospectus. As an input to the S&P Capital IQ ETF Ranking, S&P
Capital IQ evaluates the ETF's Gross Expense Ratio compared with
other ranked ETFs.
Fiscal Year End. For financial accounting purposes, the month
when the ETF’s operating year ends.
GICS. An industry classification standard, developed by Standard
and Poor's in collaboration with Morgan Stanley Capital
International (MSCI). Under the GICS structure, companies are
classified in one of 154 sub-industries, which are grouped into 68
industries, 24 industry groups, and 10 economic sectors (consumer
discretionary, consumer staples, energy, financials, health care,
industrials, information technology, materials, telecom services,
and utilities). This four-tier structure accommodates companies
across the world and facilitates sector analysis and investing.
Inception Date. Date on which shares of the ETF began
publicly trading.
IPO NAV. The NAV at the inception date of the fund.
Market Cap. ETF market price multiplied by number of shares
outstanding.
Market Price Total Return. The Total Return of an ETF,
based on the 4PM closing market price at the beginning and end of
the holding period, which does not represent the returns an
investor would receive if shares were traded at other times.
Market price return may be different from the ETF's NAV return.
Style Index. An index, as determined by S&P Capital IQ,
against which S&P Capital IQ believes it is reasonable to measure
the ETF’s historical performance, based on risk (volatility) and
return. This Index may not be the same as the fund's chosen
tracking index.
Total Return. Calculated as a rate of return at the end of a
specified period of time. The calculation includes price changes
and assumes reinvestment of all distributions of dividends and
capital gains. Total return can be calculated as an average annual
or cumulative return.
Turnover. The frequency at which the portfolio is changed
during a year, as reported by the fund.
Type. S&P Capital IQ designated type describing what S&P
Capital IQ believes is the investment emphasis of a given ETF.
Worst 3-Month Return Period. Based on month-end
returns, the worst three-month return to shareholders of the ETF
over a rolling 3-year period.
exclusive proprietary quantitative model, stocks are ranked in one
of five groups. The Fair Value rankings range from: 5-Stock is
significantly undervalued relative to the Fair Value universe; 1Stock is significantly overvalued relative to the Fair Value
universe. As an input to the S&P Capital IQ ETF Ranking, S&P
Capital IQ evaluates the weighted average Fair Value Rank of the
underlying holdings of the ETF compared with other ranked ETFs.
S&P Capital IQ Peers. S&P Capital IQ peers include those
Expense Ratio (Gross, Net). Operating expense as a
an ETF’s returns. If a fund has a high standard deviation, its returns
have been relatively volatile; a low standard deviation indicates
returns have been less volatile. As an input to the S&P Capital IQ
ETF Ranking, S&P Capital IQ evaluates the ETF's three-year
standard deviation compared with other ETFs in its category.
S&P Capital IQ Fair Value Rank. Using S&P Capital IQ's
Category. The asset class of the ETF.
Cumulative Return. The actual return of an investment at the
traded.
ARX = NYSE Arca
ASE = NYSE Amex
NGM = NASDAQ Global Market
NNM = NASDAQ National Market
NYS = NYSE
OTC = OTC Market
for risk, or volatility.
an S&P Capital IQ equity analyst's view of a given company's
operational risk, or the risk of a firm's ability to continue as an
ongoing concern. The Qualitative Risk Assessment is a relative
ranking to the S&P Capital IQ U.S. STARS universe, and should be
reflective of risk factors related to a company's operations, as
opposed to risk and volatility measures associated with share
prices. For an ETF this reflects on a capitalization-weighted basis,
the average qualitative risk assessment assigned to holdings of
the fund. As an input to the S&P Capital IQ ETF Ranking, S&P
Capital IQ evaluates the weighted average Qualitative Risk
Assessment of the underlying holdings of the ETF compared with
other ranked ETFs.
S&P Capital IQ Quality Rank. Growth and stability of
earnings and dividends are deemed key elements in establishing
S&P Capital IQ's Quality Rankings for common stocks, which are
designed to encapsulate the nature of this record in a single
symbol. It should be noted, however, that the process also takes
into consideration certain adjustments and modifications deemed
desirable in establishing such rankings. The final score for each
stock is measured against a scoring matrix determined by analysis
of the scores of a large and representative sample of stocks.
Rankings range from A+ (Highest) to C (Lowest) and D (In
Reorganization). As an input to the S&P Capital IQ ETF Ranking,
S&P Capital IQ evaluates the weighted average S&P Capital IQ
Quality Rank of the underlying holdings of the ETF compared with
other ranked ETFs.
S&P Capital IQ STARS. Since January 1, 1987, S&P Capital
IQ Equity Research has ranked a universe of U.S. common stocks,
ADRs (American Depositary Receipts), and ADSs (American
Depositary Shares) based on a given equity’s potential for future
performance. Similarly, S&P Capital IQ Equity Research has ranked
Asian and European equities since June 30, 2002. Under
proprietary STARS (STock Appreciation Ranking System), S&P
Capital IQ equity analysts rank equities according to their
individual forecast of an equity’s future total return potential
Page 5 of 10
EXCHANGE TRADED FUND REPORT TM October 27, 2014 Category Equity Type Large-cap Core
Region U.S. Domestic
SPDR S&P 500 ETF Trust (SPY)
Required Disclosures
ETFs may not be appropriate for all investors. To
determine if this ETF is an appropriate investment
for you, carefully consider the ETF’s investment
objectives, risk factors and charges and expenses
before investing. This and other information can be
found in the ETF’s prospectus, which may be
obtained by calling [800-843-2639] or visiting the
ETF’s website at [www.ssgafunds.com.]
This report is for informational purposes only. When using
this report, investors are advised to consult the
accompanying glossary of investment terms. Total return
performance is historical and assumes reinvestment of all
dividends and capital gain distributions.Past performance
is no guarantee of future results. Investment return
and principal value will fluctuate so that, when redeemed,
an investor’s shares may be worth more or less than their
original cost. Current performance may be lower or higher
than the performance data quoted; performance current to
the most recent month-end can be obtained at www.
ssgafunds.com or 800-843-2639.
ETFs issue and redeem shares at net asset value (“NAV”)
only in large blocks of shares called “Creation Units”, or
multiples thereof. Only broker dealers and large institutional
investors with creation and redemption agreements, called
Authorized Participants (“APs”) can purchase and redeem
Creation Units. ETFs are subject to risks similar to those of
stocks, including those regarding short selling, margin
account maintenance and loss of principal. Investors buying
or selling ETF shares on the secondary market may incur
brokerage costs and other transactional fees.
Risk disclaimers
Investments are subject to investment risks including the
possible loss of the principal amount invested. The ETF may
be subject, but not limited, to the following investment
risks:
ETF Risk
Shares of an ETF may trade above or below their NAV.
Shares will fluctuate in price due to daily volume changes.
However, the market prices of Shares will generally
fluctuate in accordance with changes in NAV as well as the
relative supply of, and demand for, Shares on the Exchange.
During periods of market volatility the trading price of
Shares may deviate significantly from the NAV.
Market risk. ETFs are typically designed to track the
performance of certain indices, market sectors, or groups of
assets such as stocks, bonds, or commodities. The market
value of an ETF may decline due to general market
conditions and the volatility associated with the underlying
indices or assets can result in a loss of the ETF’s value.
Tracking error risk. The ETF’s goal is to track a specific
market index or asset, normally referred as fund target
index. The discrepancy between the ETF’s performance and
the performance of its target index is known as tracking
error. A variety of factors can create a performance gap
between ETF and its target index such as the impact of
transaction fees and expenses incurred by the ETF, changes
in composition of the underlying index/assets, the ETF
manager’s replication strategy and sampling techniques,
and the timing of purchases and redemptions of fund
shares.
Concentration risk. An ETF's portfolio reflects the underlying
Index's concentration in the securities of a particular issuer
or issuers, which means that the fund may invest a
relatively high percentage of its assets in a limited number
of issuers. Therefore, the ETF's performance may be more
vulnerable to changes in the market value of a single issuer
or group of issuers and more susceptible to risks associated
with a single economic, political or regulatory occurrence
than a diversified fund.
S&P Capital IQ ETF Ranking Methodology & Inputs
Equity Investing Risk
The ETF invests in equity securities, which are subject to
changes in value that may be attributable to market
perception of a particular issuer or to general stock market
fluctuations that affect all issuers. Investments in equity
securities may be more volatile than those in other asset
classes. Special risks are involved with significant exposure
to a particular sector, including increased susceptibility
related to economic, business or other developments
affecting that sector
Small and midsize company risk. Small and midsize
companies carry additional risks because the operating
histories of these companies tend to be more limited, their
earnings and revenues less predictable, and their share
prices more volatile than those of larger, more established
companies. The shares of smaller companies tend to trade
less frequently than those of larger, more established
companies, which can adversely affect the pricing of these
securities and the ETF's ability to sell these securities.
Large cap stock risk. Stocks of large cap companies may
underperform the stocks of lower quality, or smaller
capitalization companies during periods when the stocks of
such companies are in favor.
Growth securities risk. Growth companies generally seek to
achieve high earning growth regardless of market
conditions. Growth stocks usually have high
price-to-earnings and price-to-book ratios, which means
that these stocks are relatively high-priced in comparison
with the companies' Net Asset Values (NAVs). Stocks of
growth companies or “growth securities” have market
values that may be more volatile than those of other types
of investments. Growth securities typically do not pay a
dividend, which can help cushion stock prices in market
downturns and reduce potential losses.
Value securities risk. Value stocks are those that generally
have fallen out of favor in the marketplace and are
considered bargain-priced compared with book value,
replacement value, or liquidation value. Typically, value
stocks are priced much lower than stocks of similar
companies in the same industry. The prices of value stocks
may lag the stock market for long periods of time if the
market fails to recognize the company’s intrinsic worth.
International Equity Risk
Foreign investment risk. ETF’s investments in foreign
securities may be subject to political, social and economic
factors affecting investments in foreign issuers. Special
risks associated with investments in foreign issuers include
exposure to currency fluctuations, less liquidity, less
developed or less efficient trading markets, lack of
comprehensive company information, political and economic
instability and differing auditing and legal standards.
Foreign currency risk. Investments in foreign currencies are
subject to the risk that those currencies will decline in value
relative to the U.S. dollar or, in the case of hedged
positions, that the U.S. dollar will decline relative to the
currency being hedged. Currency exchange rates may
fluctuate significantly over short periods of time. Foreign
currencies are also subject to risks caused by inflation,
interest rates, budget deficits and low savings rates,
political factors and government intervention and controls.
Emerging market risk. The securities of issuers located in
emerging markets tend to be more volatile and less liquid
than securities of issuers located in more developed
economies, and emerging markets generally have less
diverse and less developed economic structures and less
stable political systems than those of developed countries.
The securities of issuers located or doing substantial
business in emerging markets are often subject to rapid and
large changes in price.
A S&P Capital IQ ETF overall ranking provides S&P Capital
IQ’s quantitative and holistic assessment of the
performance, risk profile and relative costs of a given ETF
compared with all ETFs in its Category with an overall S&P
Capital IQ ETF ranking. Rankings range from Overweight
(highest) to Underweight (lowest) and follow a normalized
distribution curve.
To generate the ETF Ranking, S&P Capital IQ analyzes an
ETF’s holdings and characteristics across three components
- Performance Analytics, Risk Considerations, and Cost
Factors. The overall S&P Capital IQ ETF ranking is based on
a weighted average score of the three components. For
equity ETFs, this analysis incorporates the following:
Performance Analytics. The component ranking is a
weighted average score of up to three inputs – S&P Capital
IQ STARS, S&P Capital IQ Fair Value and S&P Capital IQ
Technical.
Risk Considerations. The component ranking is a
weighted average score of up to four inputs – S&P Capital
IQ Quality Rank, S&P Capital IQ Risk Assessments, S&P
Credit Rating and Standard Deviation.
Cost Factors. This component ranking is a weighted
average score of up to three inputs – Gross Expense Ratio,
Price-to-NAV and Bid/Ask Spread. Component rankings and
the Overall ETF Ranking are represented as Overweight,
Marketweight or Underweight indications, following a
normalized distribution curve:
Overweight rankings are assigned to approximately
the top quartile of the asset class.
Marketweight rankings are assigned to
approximately the second and third quartiles of the
asset class.
Underweight rankings are assigned to
approximately the bottom quartile of the asset class.
In cases where sufficient analytical measures are not
available on underlying assets, the ranking will be displayed
as “NA” for Not Available
All of the views expressed in this research report accurately
reflect our quantitative research models regarding any and
all of the subject securities or issuers. No part of our
compensation was, is, or will be, directly or indirectly,
related to the specific recommendations or views expressed
in this research report.
An ETF may receive an overall S&P ETF ranking even when
the ETF does not have a ranking for each of the ten input
factors. The ranking for a component or input factor is based
upon all ETFs with a ranking for that component or input
factor and can include ETFs without an overall S&P ETF
ranking. In cases where sufficient analytical measures are
not available on holdings data, the ranking will be displayed
as “NA” for Not Available
Standard & Poor’s classifies an ETF by region (e.g., U.S.
Domestic Equity or Asia Developed Markets), type or style
(Growth, Value or Core), Market Capitalization (Large-Cap,
Mid-Cap or Small-Cap), and one of ten GICS sectors. For
more details on ETF classification, please refer to the
methodology document, Standard & Poor’s
Exchange-Traded Fund (ETF) Methodology, located at
www.standardandpoors.com
All of the views expressed in this research report accurately
reflect our quantitative research models regarding any and
all of the subject securities or issuers. No part of our
compensation was, is, or will be, directly or indirectly,
related to the specific recommendations or views expressed
in this research report.
S&P Capital IQ does not assign ratings of Buy, Hold, or Sell
Page 6 of 10
EXCHANGE TRADED FUND REPORT TM October 27, 2014 Category Equity Type Large-cap Core
Region U.S. Domestic
SPDR S&P 500 ETF Trust (SPY)
S&P Capital IQ ETF Ranking Methodology & Inputs
to ETFs. Overweight, Marketweight and Underweight are
not the equivalent of buy, hold and sell recommendations
but represent recommended relative weightings (as
described above).
For disclosure purposes only and to satisfy regulatory
requirement, S&P Capital IQ corresponds Overweight with a
buy recommendation; Marketweight with a hold
recommendation and Underweight with Sell
recommendation. The Overweight/Buy, Marketweight/Hold,
and Underweight/Sell ranking distribution is a fixed
distribution based on the relative weightings describe
above. Overweight/Buy represents 25% of the total
distribution and ETFs in the top quartile. Marketweight/Hold
represents 50% of the total distribution and ETFs in the 2
middle quartiles. Underweight/Sell represents 25% of the
total distribution and ETFs in the bottom quartile.
Other disclaimers
About S&P Capital IQ's Distributors:
S&P Capital IQ’s ETF Reports have been prepared and
issued by S&P Capital IQ and/or one of its affiliates. In the
United States, ETF Reports are prepared by SPIAS and
issued by Standard & Poor’s Financial Services LLC (“S&P”).
SPIAS is authorized and regulated by the U.S. Securities and
Exchange Commission. McGraw-Hill Financial Research
Europe Limited (“MHFRE”), which is authorized and
regulated by the Financial Conduct Authority and trades as
S&P Capital IQ, includes within its territorial scope under
the Markets in Financial Instruments Directive (MiFID) in
relation to the distribution of investment research reports,
the following European Union member states and the three
(3) European Economic Area European Free Trade
Association (EFTA) States (Iceland, Liechtenstein and
Norway): Austria; Belgium; Bulgaria; Cyprus; Czech
Republic; Denmark; Estonia; Finland; France; Germany;
Gibraltar; Greece; Hungary; Iceland; Ireland; Italy; Latvia;
Liechtenstein; Lithuania; Luxembourg; Malta; Netherlands;
Norway; Poland; Portugal; Romania; Slovakia; Slovenia;
Spain; Sweden and the United Kingdom. In Hong Kong, ETF
Reports have been prepared and issued by Standard &
Poor’s Investment Advisory Services (HK) Limited, which is
regulated by the Hong Kong Securities Futures Commission;
in Singapore, by McGraw-Hill Financial Singapore Pte.
Limited (“MHFSPL”), which is regulated by the Monetary
Authority of Singapore; in Malaysia, by Standard & Poor’s
Malaysia Sdn Bhd, which is regulated by the Securities
Commission of Malaysia; in Australia, by Standard & Poor’s
Information Services (Australia) Pty Ltd (“SPIS”), which is
regulated by the Australian Securities & Investments
Commission; and in Japan, by McGraw-Hill Financial Japan
KK, which is registered by Kanto Financial Bureau.
S&P Capital IQ or an affiliate may license certain
intellectual property or provide pricing or other services to,
or otherwise have a financial interest in, certain issuers of
securities, including exchange-traded investments whose
investment objective is to substantially replicate the returns
of a proprietary index of S&P Dow Jones Indices, such as
the S&P 500. In cases where S&P Capital IQ or an affiliate
is paid fees that are tied to the amount of assets that are
invested in the fund or the volume of trading activity in the
fund, investment in the fund will generally result in S&P
Capital IQ or an affiliate receiving compensation in addition
to the subscription fees or other compensation for services
rendered by S&P Capital IQ. A reference to a particular
investment or security by S&P Capital IQ and/or one of its
affiliates is not a recommendation to buy, sell, or hold such
investment or security, nor is it considered to be investment
advice.
this report. S&P Capital IQ does not receive fees from
mutual funds and/ or funds for their inclusion in this report.
S&P Capital IQ and its affiliates provide a wide range of
services to, or relating to, many organizations, including
issuers of securities, investment advisers, broker-dealers,
investment banks, other financial institutions and financial
intermediaries, and accordingly may receive fees or other
economic benefits from those organizations, including
organizations whose securities or services they may
recommend, rate, include in model portfolios, evaluate or
otherwise address.
S&P Dow Jones Indices does not sponsor, endorse, sell,
promote or manage any investment fund or other vehicle
that seeks to provide an investment return based on the
returns of any S&P Dow Jones index. No other unit of
Standard & Poor’s Financial Services LLC (“S&P”), including
S&P Dow Jones Indices, contributed to the content of this
report. S&P does not trade for its own account.
Indexes are unmanaged, statistical composites and their
returns do not include payment of any sales charges or fees
an investor would pay to purchase the securities they
represent. Such costs would lower performance. It is not
possible to invest directly in an index.
For details on the S&P Capital IQ research objectivity and
conflict-of-interest policies, please visit: www.spcapitaliq.
com/Policies
For a list of companies mentioned in a S&P Capital IQ
Research Report for which McGraw Hill Financial, Inc. and/
or one of its affiliates own 1% or more of common equity
securities and for a list of companies mentioned in a
Research Report that own more than 5% of the common
equity securities of McGraw Hill Financial, Inc. and/or one
of its affiliates, please visit: www.spcapitaliq.com/
issuer-stock-ownership
For a list of companies mentioned in a Research Report with
whom S&P Capital IQ and/or one of its affiliates has had
business relationships within the past year, please go to:
www.spcapitaliq.com/Relationships
General Disclaimers
Notice to all jurisdictions:
Where S&P Capital IQ’s ETF Reports are made
available in a language other than English and in the
case of inconsistencies between the English and translated
versions of a ETF Report, the English version will
control and supersede any ambiguities associated
with any part or section of a ETF Report that has
been issued in a foreign language . Neither S&P
Capital IQ nor its affiliates guarantee the accuracy of the
translation. Assumptions, opinions and estimates constitute
our judgment as of the date of this material and are subject
to change without notice.
Past performance is not necessarily indicative of
future results.
S&P Capital IQ, its affiliates, and any third-party providers,
as well as their directors, officers, shareholders, employees
or agents (collectively, “S&P Parties”) do not guarantee the
accuracy, completeness or adequacy of this material, and
S&P Parties shall have no liability for any errors, omissions,
or interruptions therein, regardless of the cause, or for the
results obtained from the use of the information provided by
the S&P Parties. S&P PARTIES DISCLAIM ANY AND ALL
EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT
LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY,
SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR
USE. In no event shall S&P Parties be liable to any party for
any direct, indirect, incidental, exemplary, compensatory,
punitive, special or consequential damages, costs,
expenses, legal fees, or losses (including, without limitation,
lost income or lost profits and opportunity costs) in
connection with any use of the information contained in this
document even if advised of the possibility of such
damages.
Ratings from Standard & Poor’s Ratings Services are
statements of opinion as of the date they are expressed and
not statements of fact or recommendations to purchase,
hold, or sell any securities or to make any investment
decisions. S&P assumes no obligation to update its opinions
following publication in any form or format. S&P should not
be relied on and are not substitutes for the skill, judgment
and experience of the user, its management, employees,
advisors and/or clients when making investment and other
business decisions. S&P’s opinions do not address the
suitability of any security.
Standard & Poor’s Ratings Services does not contribute to
or participate in the development of ETF Reports. Standard
& Poor’s Ratings Services may receive compensation for its
ratings and certain credit-related analyses, normally from
issuers or underwriters of securities or from obligors. S&P
reserves the right to disseminate its opinions and analyses.
S&P’s public ratings and analyses are made available on its
Web sites, www.standardandpoors.com (free of charge),
and www.ratingsdirect.com and www.globalcreditportal.
com (subscription), and may be distributed through other
means, including via S&P’s publications and third-party
redistributors. Additional information about our ratings fees
is available at www.standardandpoors.com/usratingsfees.
S&P Capital IQ and its affiliates do not act as a fiduciary.
While SPIAS has obtained information from sources it
believes to be reliable, SPIAS does not perform an audit and
undertakes no duty of due diligence or independent
verification of any information it receives.
S&P keeps certain activities of its business units separate
from each other in order to preserve the independence and
objectivity of their respective activities. As a result, certain
business units of S&P may have information that is not
available to other S&P business units. S&P has established
policies and procedures to maintain the confidentiality of
certain non-public information received in connection with
each analytical process.
No endorsement of any ETF included in this report should be
implied by the fact that the ETF bears the S&P mark or is
based on an S&P Dow Jones Index. S&P Capital IQ does not
receive fees from ETFs and/ or funds for their inclusion in
Page 7 of 10
EXCHANGE TRADED FUND REPORT TM October 27, 2014 Category Equity Type Large-cap Core
Region U.S. Domestic
SPDR S&P 500 ETF Trust (SPY)
Notice to all Non U.S. Residents:
S&P Capital IQ’s ETF Reports may be distributed in certain
localities, countries and/or jurisdictions (“Territories”) by
independent third parties or independent intermediaries
and/or distributors (the “Intermediaries” or “Distributors”).
Intermediaries are not acting as agents or representatives
of S&P Capital IQ. In Territories where an Intermediary
distributes S&P Capital IQ’s ETF Reports, the Intermediary,
and not S&P Capital IQ, is solely responsible for complying
with all applicable regulations, laws, rules, circulars, codes
and guidelines established by local and/or regional
regulatory authorities, including laws in connection with the
distribution of third-party ETF Reports, licensing
requirements, supervisory and record keeping obligations
that the Intermediary may have under the applicable laws
and regulations of the territories where it distributes the
ETF Reports.
Each ETF Report is not directed to, or intended for
distribution to or use by, any person or entity who is a
citizen or resident of or located in any locality, state, country
or other jurisdiction where such distribution, publication,
availability or use would be contrary to law or regulation or
which would subject S&P Capital IQ or its affiliates to any
registration or licensing requirements in such jurisdiction.
Each ETF Report is not directed to, or intended for
distribution to or use by, any person or entity who is not in a
class qualified to receive ETF Reports (e.g., a qualified
person and/or investor), as defined by the local laws or
regulations in the country or jurisdiction where the person is
domiciled, a citizen or resident of, or the entity is legally
registered or domiciled.
S&P Capital IQ’s ETF Reports are not intended for
distribution in or directed to entities, residents or
investors in: Albania, Belarus, Bosnia, Burma, Cote
d’Ivoire, Croatia, Cuba, Democratic Republic of the
Congo, Former Yugoslav Republic of Macedonia,
Herzegovina, Iran, Iraq, Kosovo, Kuwait, Lebanon,
Libya, Montenegro and Serbia, North Korea,
Somalia, Sudan, South Korea, Syria, Taiwan,
Thailand, Turkey, Yemen, Zimbabwe.
For residents of Australia: ETF Reports are issued and/
or distributed in Australia by SPIS. Any express or implied
opinion contained in a ETF Report is limited to “General
Advice” and based solely on consideration of the
investment merits of the financial product(s) alone. The
information in a ETF Report has not been prepared for use
by retail investors and has been prepared without taking
account of any particular investor’s financial or investment
objectives, financial situation or needs. Before acting on any
advice, any investor using the advice should consider its
appropriateness having regard to their own or their clients’
objectives, financial situation and needs. Investors should
obtain a Product Disclosure Statement relating to the
product and consider the statement before making any
decision or recommendation about whether to acquire the
product. Each opinion must be weighed solely as one factor
in any investment decision made by or on behalf of any
adviser and any such adviser must accordingly make their
own assessment taking into account an individual’s
particular circumstances.
More information about the written criteria and
methodologies for the generation of ETF Reports and
historical information for ETF Reports for the past 12 months
are available by contacting S&P Capital IQ Client Services
Department at 61-1300-792-553 or via e-mail at
[email protected].
For residents of Bahamas: The Intermediary, and not
S&P Capital IQ, is solely responsible for complying with
licensing requirements under the Securities Industry Act of
1999 and the Securities Industry Regulations of 2000 of The
Bahamas, when distributing ETF Reports to members of the
public in The Bahamas. The Intermediary is also solely
responsible for providing any required disclosures under
applicable securities laws and regulations to its Bahamian
clients, including but not limited to disclosing whether the
Intermediary: (i) has a reasonable basis for specific
investment recommendations, and the recommended
security’s price or price range at the time of the
recommendation to the client; (ii) makes a market in the
recommended security; (iii) its directors, officers or principal
shareholders have a current or contingent financial interest
in the recommended security, unless the interest is nominal;
(iv) participated in a public offering of the recommended
security in the last two (2) years; and (v) has disclosed any
conflict of interest between it and the issuer of the
recommended security.
For residents of Bermuda: The Bermuda Monetary
Authority or the Registrar of Companies in Bermuda has not
approved the ETF Reports and any representation, explicit or
implicit, is prohibited.
For residents of Brazil: ETF Reports are distributed by
S&P Capital IQ and in compliance with Instruction 483
enacted by Comissão de Valores Mobiliários (the Brazilian
Securities Commission) dated as of July 6, 2010, the analyst
(where applicable) who prepares a ETF Report or a report
extract affirms: (i) that all the views expressed herein and/or
in a ETF Report accurately reflect his or her personal views
about the securities and issuers; (ii) that all
recommendations issued by him or her were independently
produced, including from the opinion of the entity in which
he or she is an employee. S&P Capital IQ is of the opinion
its ETF Reports have been prepared in accordance with
section 17, II of Instruction 483. The distributor of the ETF
Report is responsible for disclosing any circumstances that
may impact the independence of S&P Capital IQ’s ETF
Report, in accordance with section 17, II of Instruction 483.
For residents of British Virgin Islands: All products
and services offered by S&P Capital IQ and its affiliates are
provided or performed, outside of the British Virgin Islands.
The intended recipients of the ETF Reports are (i) persons
who are not members of the public for the purposes of the
Securities and Investment Business Act, 2010 (“SIBA”); (ii)
persons who are professional services providers to the
British Virgin Islands business companies for the purposes
of SIBA; and (iii) any other person who is given the ETF
Reports by a person licensed as an investment advisor in
the British Virgin Islands. If you are in any doubt as to
whether you are the intended recipient of this document,
please consult your licensed investment advisor.
For residents of Canada: Canadian investors should be
aware that any specific securities discussed in a ETF Report
can only be purchased in Canada through a Canadian
registered dealer and, if such securities are not available in
the secondary market, they can only be purchased by
eligible private placement purchasers on a basis that is
exempt from the prospectus requirements of Canadian
securities law and will be subject to resale restrictions.
Information in ETF Reports may not be suitable or
appropriate for Canadian investors. Only a registered
distributor is eligible to distribute excerpts of any ETF
Reports, and distributor will be deemed to assume
regulatory responsibility for the excerpted information, and
undertakes to provide notice to clients that it will be
assuming such responsibility.
For residents of Chile: S&P Capital IQ shall not be acting
as an intermediary of any securities referred to in a ETF
Report. S&P Capital IQ (and its affiliates) is not registered
with, and such securities may not be registered in the
Securities Registry maintained by the Superintendencia de
Valores y Seguros de Chile (Chilean Securities and
Insurance Superintendence or “SVS”) pursuant to the
Chilean Securities Market Law 18045. Accordingly,
investment research presented in a ETF Report is not
intended to constitute a public or private offer of securities
in Chile within the meaning of Article 4 of the Chilean
Securities Market Law 18045, as amended and restated,
and supplemental rules enacted thereunder.
For residents of China: S&P Capital IQ’s ETF Reports are
not distributed in or directed to residents in The People’s
Republic of China. Neither S&P Capital IQ nor its affiliates
target investors in China.
For residents of Colombia: This information and/or
information contained in ETF Reports is not intended or
should not be construed as constituting information delivery
to the Colombian Securities Market under Colombian Law.
For residents of Czech Republic: The Intermediary, and
not S&P Capital IQ, is solely responsible for complying with
licensing requirements under the Capital Markets Act (Act
No. 256/2004 Coll., as amended), implementing Directive
2004/39/EC of the European Parliament and of the Council
of 21 April, 2004 on markets in financial instruments
amending Council Directives 85/611/EEC and 93/6/EEC and
Directive 2000/12/EC of the European Parliament and of the
Council and repealing Council Directive 93/22/EEC and its
implementing directives, and Directive 2003/125/EC
implementing Directive 2003/6/EC as regards the fair
presentation of investment recommendations and the
disclosure of conflicts of interest; and the Civil Code (Act
No. 40/1964 Coll., as amended) as regards the distance
financial contract regulation protecting the consumers.
For residents of Dubai (DIFC): The information
contained in ETF Reports distributed by S&P Capital IQ is
intended for investors who are “professional clients”, as
defined in Rule 2.3.2(2) of the Conduct of Business Module
(COB) of the DFSA Rulebook.
SPIS holds an Australian Financial Services License Number
258896. Please refer to the SPIS Financial Services Guide
for more information at:www.spcapitaliq.com/
FinancialServicesGuide.
Page 8 of 10
EXCHANGE TRADED FUND REPORT TM October 27, 2014 Category Equity Type Large-cap Core
Region U.S. Domestic
SPDR S&P 500 ETF Trust (SPY)
For residents of the European Economic Area (EEA):
ETF Reports have been approved for distribution in the EEA
listed here: Austria; Belgium; Bulgaria; Cyprus; Czech
Republic (see further disclosure above); Denmark; Estonia;
Finland; France (see further disclosure below); Germany;
Gibraltar; Greece (see further disclosure below); Hungary
(see further disclosure below); Iceland; Ireland (see further
disclosure below); Italy; Latvia; Liechtenstein; Lithuania;
Luxembourg; Malta (see further disclosure below);
Netherlands; Norway; Poland; Portugal; Romania; Slovakia
(see further disclosure below); Slovenia; Spain (see further
disclosure below); Sweden and United Kingdom (see further
disclosure below), as investment research by MHFRE, which
is authorized and regulated by the Financial Conduct
Authority in the UK.
More information about the written criteria and
methodologies for the generation of ETF Reports and
historical information for ETF Reports for the past 12 months
are available by contacting S&P Capital IQ Client Services
Department at (212) 438-4510 or via e-mail at
[email protected].
For residents of Finland: S&P Capital IQ’s ETFs Reports
are not intended for distribution in or directed to residents in
Finland unless the fund for which the Fund Research Report
relates is authorized in Finland or the fund or the distributor
of the Fund Research Report has obtained marketing
permission from the Financial Supervisory Authority
(FIN-FSA) for marketing of the fund in Finland.
For residents of France: The Intermediary, and not S&P
Capital IQ, is solely responsible for complying with the rules
related to the distribution of investment recommendations
as specified in the Financial Code and the Autorité des
Marchés Financiers rule book.
For residents of Guernsey, Isle of Man and Jersey:
The ETF Reports provide by S&P Capital IQ serve to assist
the Intermediary in determining the advice it provides to its
clients, but are not intended as advice to any of the
Intermediary’s clients and the intermediary, and not S&P
Capital IQ, will be solely responsible for the provision of
investment advice to the client. Independent investment
advice should be sought by persons in their capacity as
investors or potential investors and the Intermediary will be
solely responsible for complying with any applicable
regulatory obligations relating to the distribution of
investment research.
For residents of Greece: S&P Capital IQ ETF Reports
should only be used for the purposes of investment
research, and should not be interpreted as or be used to
provide investment advice or as part of any offer to the
public of any specific security or financial instrument.
For residents of Hong Kong: Information in the ETF
Reports shall not be construed to imply any relationship,
advisory or otherwise, between S&P and the recipient user
of the ETF Report unless expressly agreed by S&P Capital
IQ. S&P Capital IQ is not acting nor should it be deemed to
be acting, as a “fiduciary” or as an “investment manager” or
“investment advisor” to any recipient of this information
unless expressly agreed by S&P Capital IQ. The Distributor
of the ETF Reports will be solely responsible for describing
its role to its clients with respect to the distribution of S&P
Capital IQ’s ETF Reports.
For residents of Hungary: The Intermediary, and not
S&P Capital IQ, is solely responsible for complying with the
rules related to data protection requirements as set out in
Act CXII of 2011 on the Right of Informational
Self-Determination and on Freedom of information; and
with Act CLV. of 1997 on Consumer Protection and with Act
CXXXVIII of 2007 on Investment services.
For residents of Monaco: The Intermediary, and not S&P
Capital IQ, will be solely responsible for providing copies of
S&P’s ETF Reports to the appropriate Monegasque
regulator prior to distributing to its clients.
For residents of India: Residents of India should consult
their financial and legal advisers regarding the suitability of
any of S&P Capital IQ’s services and products. S&P Capital
IQ does not intend to utilize the ETF Report service to invite
or carry out any business activities with S&P Capital IQ. ETF
Reports provided by S&P Capital IQ serve to assist the
Intermediary in determining the advice it provides to its
clients, but are not intended as advice to the Intermediary
and to any of the Intermediary’s clients and the intermediary
will be solely responsible for the provision of investment
advice to the client.
For residents of Peru: S&P Capital IQ’s ETF Reports shall
not, under any circumstances, be considered an invitation to
take deposits or funds from the public, under any
mechanism, or to carry on any activities that may be
prohibited by Peruvian law. The Intermediary also agrees
that the use of S&P Capital IQ’s ETF Reports shall not be
used by Intermediary to solicit an investment in the
securities that are the subject of the ETF Report in any way
that may be prohibited by Peruvian law.
For residents of Indonesia ETF Reports do not constitute
an offering document and it should not be construed as an
offer of securities in Indonesia, and any such securities will
only be offered or sold through a financial institution.
For residents of Ireland: Certain of S&P Capital IQ’s
equity ETF Reports may be considered to be marketing
communications for purposes of Irish law.
For residents of Israel: ETF Reports are intended only for
distribution to “Qualified Investors”, as defined in the
Schedule to Israel’s Regulation of Investment Advice,
Investment Marketing and Portfolio Management Law of
1995. All other persons who are not Qualified Investors
under Israeli law should seek additional investment advice
from their financial advisers. The relevant analyst declares
that the views expressed in a particular ETF Report faithfully
reflect the analyst’s personal views regarding the securities
under review and the issuer of the securities.
For residents of Japan: ETF Reports are intended only
for distribution to “Asset Management Firms”.
For residents of Kazakhstan: ETF Reports are not
intended for distribution to the public in Kazakhstan. Any
distribution to specific persons is the sole responsibility of
the distributor and the distributor, and not S&P Capital IQ, is
responsible for complying with all local regulations,
including but not limited to advertising requirements related
to public solicitation.
For residents of Malta: The distributor of ETF Reports in
Malta, is solely responsible for ensuring that the investment
research produced by S&P Capital IQ and proposed to be
disseminated in or from within Malta is reviewed for
compliance with the investment services rules issued by the
Malta Financial Services Authority in terms of the
Investment Services Act, Cap 370 of the laws of Malta.
For residents of Mexico: S&P Capital IQ is not regulated
or supervised by the Mexican National Banking and
Securities Commission (“CNBV”). S&P Capital IQ has a
licensed rating agency affiliate in Mexico (Standard &
Poor’s, S.A. De C.V.), of which S&P maintains firewalls and
seeks to avoid conflicts of interest, pursuant to approved
policies. ETF Reports on securities that are not registered
with the National Securities Registry maintained by the
Mexican National Securities Registry are intended only for
distribution to qualified, institutional investors or to any
other investors to whom distribution the S&P Research is
permissible under Mexican law.
For residents of Morocco: ETF Reports are intended for
distribution only to professional investors.
For residents of Qatar: The Distributor, and not S&P
Capital IQ, is responsible for complying with all relevant
licensing requirements as set forth by the Qatar Financial
Markets Authority or the Qatar Central Bank, and with all
relevant rules and regulations set out in the Qatar Financial
Markets Authority’s rule book, including third party branded
investment research distribution of securities that are
admitted for trading on a Qatari securities exchange
(Admitted Securities).
For residents of Russia: ETF Reports on financial
instruments are intended for “qualified investors”, as
defined in the Securities market law of the Russian
Federation dated 22 April 1996, as amended, only.
For residents of The Kingdom of Saudi Arabia: S&P
Capital IQ and its affiliates do not distribute ETF Reports in
the Kingdom of Saudi Arabia. Residents of Saudi Arabia
should be aware that the distributor of S&P Capital IQ’s ETF
Reports may not be permitted to distribute investment
research either: (i) from a permanent place of business in or
otherwise within the territory of the Kingdom of Saudi
Arabia; or (ii) to an investor in the Kingdom of Saudi Arabia
unless that investor is a Capital Market Authority authorized
investor or the Saudi Arabian Monetary Agency.
When a distributor disseminates S&P Capital IQ’s ETF
Reports in the Kingdom of Saudi Arabia, the distributor, and
not S&P Capital IQ, is solely responsible for approving the
contents of ETF Reports and complying with licensing
requirements and authorizations of the Saudi Arabian
Capital Market Authority’s (“CMA”), including CMA’s
Authorized Persons Regulations concerning securities
advertisements.
S&P does not conduct a securities business in the Kingdom
of Saudi Arabia and the distributor, and not S&P Capital IQ,
assumes all responsibilities and liabilities for distributing
ETF Reports in the Kingdom of Saudi Arabia. ETF Reports
are not intended to be investment advice and do
not constitute any form of invitation or inducement
by S&P Capital IQ to engage in an investment
activity in the Kingdom of Saudi Arabia . S&P Capital
IQ does not communicate directly with a distributor’s
customers and a distributor’s customers should not contact
S&P Capital IQ directly regarding any information or data
provided in ETF Reports.
For residents of Singapore: ETF Reports that contain
extracts from S&P Capital IQ’s ETF Reports are not
prepared, issued or reviewed by MHFSPL and MHFSPL
assumes no responsibility for the ETF Reports, and nothing
referenced by MHFSPL should be considered to be a
solicitation or recommendation to buy or sell any security,
nor should it be considered to be investment advice.
Page 9 of 10
EXCHANGE TRADED FUND REPORT TM October 27, 2014 Category Equity Type Large-cap Core
Region U.S. Domestic
SPDR S&P 500 ETF Trust (SPY)
For residents of Slovak Republic: The Intermediary,
and not S&P Capital IQ, is solely responsible for complying
with the rules related to the Slovak Securities Act (Act No.
566/2001 Coll., as amended), implementing Directive 2004/
39/EC of the European Parliament and of the Council of 21
April 2004 on markets in financial instruments amending
Council Directives 85/611/EEC and 93/6/EEC and Directive
2000/12/EC of the European Parliament and of the Council
and repealing Council Directive 93/22/EEC and its
implementing directives, and Directive 2003/125/EC
implementing Directive 2003/6/EC as regards the fair
presentation of investment recommendations and the
disclosure of conflicts of interest; and with the Slovak Act
on Consumer Protection in Distance Financial Services
Contracts (Act No. 266/2005 Coll., as amended).
For residents of Uruguay: S&P Capital IQ or its affiliates
are not, individually a risk assessment entity registered
with the Central Bank of Uruguay, and S&P Capital IQ’s ETF
Reports do not constitute a risk assessment. Investment
research presented in an ETF Report is not intended to
constitute a public or private offer of securities in Uruguay.
S&P Capital IQ’s ETF Reports are not intended for
worldwide distribution, as such, and are not published to
Uruguayan clients in Spanish.
For residents of Sweden: The intermediary, and not S&P
Capital IQ, is responsible for using the information provided
in ETFs Reports in accordance with Swedish marketing
rules, including the MPA and the Directive 2003/125/EC.
Fund ETF Reports should only be used for marketing
purposes when the relevant financial product is permitted or
authorized for sale in Sweden.
This investment analysis was prepared from the following
sources: S&P MarketScope, S&P Industry Reports; Standard
& Poor's, 55 Water St., New York, NY 10041.
For residents of Switzerland: ETFS Reports of
authorized funds by the Swiss Federal Financial Market
Supervisory Authority (FINMA) are not intended for
distribution in Switzerland. The intermediary, and not S&P
Capital IQ, is responsible for determining whether a fund is
authorized for distribution in Switzerland as well as
determining whether the underlying client is a qualified
investor.
For residents of Venezuela: ETF Reports can only be
distributed in Venezuela by an investment advisor, duly
licensed under Venezuelan law. The distributor of the ETF
Reports, and not S&P Capital IQ, is solely responsible for
complying with licensing requirements.
STANDARD & POOR’S, S&P, S&P 500, GICS, STARS, S&P
MIDCAP 400, and S&P SMALLCAP 600 are registered
trademarks of Standard & Poor’s Financial Services LLC.
Additional information is available upon request.
ETF reference data provided by Lipper.
For residents of the United Arab Emirates (UAE):
S&P Capital IQ and its affiliates neither undertake banking,
financial, or investment consultations business in or into the
UAE within the meaning of the Central Bank Board of
Directors’ Resolution No. 164/8/94 regarding the
regulations for investment companies nor provides financial
analysis or consultation services in or into the UAE within
the meaning of UAE SECURITIES AND COMMODITIES
AUTHORITY DECISION NO. 48/R OF 2008 concerning
financial consultation and financial analysis.
Investment research distributed by S&P Capital IQ and its
affiliates is not intended to amount to an offer of securities
within the meaning of DIFC Law NO. 12 OF 2004 (the DIFC
Markets Law) or the equivalent laws, rules and regulations
made by the Central Bank of the UAE and their Emirates
Securities and Commodities Authority. Neither the Dubai
Financial Services Authority, the UAE Securities nor
Commodities Authority of the Central Bank of the UAE has
reviewed or verified any of the information provided in a ETF
Report or through any service provided by S&P Capital IQ or
its affiliates, or has any responsibility for it.
If a recipient of ETF Report does not understand any of the
contents of the ETF Report, the recipient should contact a
financial advisor. Users of extracts of investment ETF
Reports should be aware that if they are distributed in the
UAE by an intermediary, the intermediary is solely
responsible for the distribution and contents of the
investment research in the UAE.
For residents of the United Kingdom: In the United
Kingdom ETF Reports are approved and/or communicated by
MHFRE which is authorized and regulated by the Financial
Conduct Authority for the conduct of investment business in
the UK. ETF Reports are only directed at and should only be
relied on by investors outside of the UK or investors who are
inside the UK and who are professional clients in matters
relating to investments or who are high net worth investors,
as defined by the FCA and in Article 19(5) or Article 49(2) (a)
to (d) of the UK Financial Services and Markets Act 2000
(Financial Promotion) Order 2005, respectively. MHFRE may
not distribute ETF Reports to retail clients, as defined by the
FCA.
Redistribution or reproduction is prohibited without written permission. Copyright ©2014 Standard & Poor's Financial Services LLC. All rights reserved.
STANDARD & POOR's, S&P, S&P CAPITAL IQ, S&P 500, S&P EUROPE 350 and STARS are registered trademarks of Standard & Poor's Financial Services LLC.
Page 10 of 10