FUND DESCRIPTION: SPDR S&P Global Natural Resources ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the SPDR Index Shares Fund, an investment management company. INVESTMENT OBJECTIVE: SPDR S&P Global Natural Resources ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the S&P Global Natural Resources Index. INDEX DESCRIPTION: The S&P Global Natural Resources Index tracks publicly-traded companies in natural resources and/or commodities businesses. The approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs. The Index is comprised of 90 of the largest U.S. and foreign publicly traded companies, based on market capitalization, in natural resources and commodities businesses that meet certain investability requirements. The Index component securities represent a combination of the component securities included in each of the following three sub-indices: the S&P Global Natural Resources - Agriculture Index, the S&P Global Natural Resources - Energy Index and the S&P Global Natural Resources - Metals and Mining Index. The maximum weight of each sub-index is capped at one-third of the total weight of the Index. All Index constituents are weighted proportionate to their float-adjusted market capitalization and are capped so that no stock exceeds 5% of the Index. Exposure to U.S. issuers is limited to 40% of the Index, and exposure to emerging markets is limited to 15% of the Index. Market capitalization and liquidity criteria are subject to change on an annual basis according to market conditions. The Index is rebalanced quarterly. The Index is float adjusted, meaning that only those shares publicly available to investors are included in the index calculation. Countries covered in the Index have historically included, among others, Australia, Brazil, Canada, Chile, China, Denmark, Finland, France, Germany, Hong Kong, India, Italy, Japan, Luxembourg, Netherlands, Norway, Peru, Russia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, United Kingdom and the United States. As of July 30, 2010, the Index was comprised of 90 securities. 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. 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. 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 various circumstances where it may not be possible or practical to purchase all of the securities in the Index for the Fund or amounts of such securities in proportion to their weighting in the Index. Utilizing a sampling strategy uses quantitative analysis to select securities, including securities in the Index, outside of the Index and derivatives, that have a similar investment profile as the Index in terms of key risk factors, performance attributes and other economic characteristics. These include industry weightings, market capitalization, and other financial characteristics of securities. The quantity of holdings in the Fund will be based on a number of factors, including asset size of the Fund. In addition, from time to time, securities are added to or removed from the Index and consequently the countries represented by the Index may change. The Fund may invest directly in local securities or in American Depositary Receipts or Global Depositary Receipts that trade on developed market exchanges. FUND MANAGEMENT: SSgA FM serves as the investment adviser to the Fund, subject to the supervision of the Board, is responsible for the investment management of the Fund.
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