Fund Description: The SPDR S&P Capital Markets ETF, formerly the SPDR KBW Capital Markets ETF, formerly the streetTRACKS KBW Capital Markets ETF, is an exchange-traded index fund or Index ETF which is a separate portfolio of the SPDR Series Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The SPDR S&P Capital Markets ETF seeks to provide investment results that, before expenses, correspond generally to the total return performance of the S&P Capital Markets Select Industry Index which tracks the performance of publicly traded companies that do business as broker-dealers, asset managers, trust and custody banks or exchanges. INDEX DESCRIPTION: The S&P Capital Markets Select Industry Index represents the capital markets industry group of the S&P Total Market Index. The Index is one of twenty-five of the S&P Select Industry Indices, each designed to measure the performance of a narrow sub-industry or group of sub-industries determined based on the Global Industry Classification Standards (GICS). Membership in the Select Industry Indices is based on the GICS Classification, as well as liquidity and market cap requirements. Companies in the Select Industry Indices are classified based primarily on revenues; however, earnings and market perception are also considered. The Index is an equal weighted market cap index and includes the following sub-industries: Asset Management & Custody Banks, Investment Banking & Brokerage. As of September 30, 2011, the Index was comprised of 45 stocks. FUND STRATEGY: Under normal market conditions, the Fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the Index. The Fund uses a passive management strategy designed to track the total return performance of the Index. The Fund employs a replication strategy, which means that the Fund typically invests in substantially all of the securities represented in the Index in approximately the same proportions as the Index. However, under various circumstances, it may not be possible or practicable to purchase all of the stocks in the index in those weightings. In those circumstances, the Fund may purchase a sample of the stocks in the index in proportions to replicate generally the performance of the index as a whole. There may also be instances in which to overweight another stock in the index, purchase (or sell) securities not in the index which is believed appropriate to substitute for one or more index components, or utilize various combinations of other available investment techniques, in seeking to track accurately the Index. In addition, from time to time stocks are added to or removed from an index. The Fund may sell stocks that are represented in the index, or purchase stocks that are not yet represented in the index, in anticipation of their removal from or addition to the index. FUND MANAGEMENT: SSgA FM serves as the investment adviser and is primarily responsible for the day-to-day management of the Fund.