Fund Description: The SPDR S&P Aerospace & Defense ETF is an exchange-traded index fund or Index ETF which is a separate portfolio of the SPDR Series Trust, an open-end management investment company. INVESTMENT OBJECTIVE: The Aerospace & Defense ETF seeks to replicate as closely as possible, before fees and expenses, of the total return performance of the S&P Aerospace & Defense Select Industry Index, formerly S&P Aerospace & Defense Industry Index. INDEX DESCRIPTION: The S&P Aerospace & Defense Select Industry Index represents the Aerospace and Defense sector of the S&P Total Market Index. The Index is one of twenty-five (25) 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 according to GICS which determines classifications primarily based on revenues; however, earnings and market perception are also considered. The S&P TMI tracks all the U.S common stocks listed on the NYSE (including NYSE Arca and NYSE Amex), and all the NASDAQ Markets. The Index is an equal weighted market cap index. FUND STRATEGY: In seeking to track the 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. Under normal market conditions, the Fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the Index. In addition, the Fund may invest in equity securities that are not included in the Index, futures, options, swap contracts and other derivatives, cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds. FUND MANAGEMENT: SSgA Funds Management, Inc. serves as the investment advisor to the Fund.