Fund Description: SPDR S&P Software & Services 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 Software & Services ETF seeks to replicate as closely as possible, before fees and expenses, of the total return performance of the S&P Software & Services Select Industry Index. INDEX DESCRIPTION: The S&P Software & Services Select Industry Index represents the application software, data processing and outsourced services, home entertainment Software, internet software and services, IT consulting, and systems software sub-industries of the S&P Total Stock Market Index. The Index is one of twenty five (25) 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 certain criteria listed in the Prospectus. 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 August 31, 2011, the Index was comprised of 134 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, 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.