Real Estate

One important difference between Select SPDRs and conventional mutual fund shares is that Select Sector SPDRs are available for purchase or sale intraday on NYSE Arca. As a result, Select Sector SPDRs may trade at a premium or discount to the Funds underlying Net Asset Value (”NAV”). The NAV of each Select Sector SPDR is calculated each business day at the close of regular trading on NYSE Arca, ordinarily 4:00 p.m. EST. The NAV of the shares will generally fluctuate with changes in the market value of the Select Sector SPDR’s security holdings. The trading prices of shares, will fluctuate in accordance with changes in the Fund’s NAV as well as market forces, including supply and demand, economic conditions and other factors. The adviser cannot predict whether shares will trade below, at, or above NAV. Price differences may be due, in large part, to the fact that supply and demand forces at work in the secondary trading market for shares will be closely related to, but not identical to, the same forces influencing the prices of the stocks of the Select Sector Index trading individually or in the aggregate at any point in time. However, given that Select Sector SPDRs can be created and redeemed in Creation Units at the Fund level, the adviser believes that large discounts or premiums should not be sustained.

The tables below are presented to illustrate i) the daily premium or discount between the prior closing NAV and the last trade price, ii) the daily premium or discount between the prior closing NAV and the midpoint price between the bid and offer on NYSE Arca and,iii) the frequency distribution of premium and discount per quarter between closing NAV and closing market price. A Basis Point is equal to one hundredth of one percent.