Fund Description: The SPDR S&P Semiconductor ETF, formerly streetTRACKS SPDR Semiconductor 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 SPDR S&P Semiconductor ETF seeks to replicate as closely as possible, before fees and expenses, the performance of the S&P Semiconductor Select Industry Index. INDEX DESCRIPTION: The S&P Semiconductor Select Industry Index represents the semiconductor sector of the S&P Total Market Index. The Index is one of nineteen S&P Select Industry Indices each designed to measure the performance of a narrow sub-industry or group of sub-industries as defined by the Global Industry Classification Standards (GICS). Membership in the Select Industry Indices is determined by a stock's GICS classification, as well as by 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 consists of the S&P TMI constituents belonging to a particular GICS sub-industry or group of sub-industries that satisfy the following criteria: (i) have a float-adjusted market capitalization above $500 million (market capitalization threshold) with a liquidity ratio (defined by dollar value traded over the previous 12 months divided by average market capitalization over the previous 12 months) greater than or equal to 90% (the liquidity threshold) or have a float-adjusted market capitalization above $400 million (market capitalization threshold) with a liquidity ratio (defined by dollar value traded over the previous 12 months divided by average market capitalization over the previous 12 months) greater than or equal to 150% (the liquidity threshold); (ii) represent 100% of the float-adjusted market capitalization of the relevant GICS sub-industry(ies); (iii) are U.S.-based companies; and (iv) the length of time to evaluate liquidity is reduced to the available trading period for initial public offerings or spin-offs that do not have 12 months of trading history. S&P has separated the inclusion and exclusion criteria such that existing index constituents may satisfy a lower market capitalization and trading volume requirement than those not included in the Index as of the Index rebalancing reference date. Existing Index members must have a float-adjusted market capitalization above $300 million with a liquidity ratio greater or equal to 50%. Rebalancing occurs on the third Friday of the quarter-ending month. The S&P TMI tracks all the U.S. common stocks listed on the NYSE (including NYSE Arca and NYSE Amex), the NASDAQ Global Select Market, the NASDAQ Select Market and the NASDAQ Capital Market. The Index is an equal weighted market cap Index. As of September 30, 2010, the Index was comprised of 25 stocks. 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.