Mutual Fund Summary Prospectus (497k)
January 31 2014 - 4:13PM
Edgar (US Regulatory)
|
|
|
|
|
SPDR
®
S&P
®
International Consumer
Discretionary Sector ETF
|
|
|
IPD
|
|
(NYSE Ticker)
SUMMARY PROSPECTUS - JANUARY 31, 2014
Before you invest in the SPDR S&P
International Consumer Discretionary Sector ETF (the Fund), you may want to review the Funds prospectus and statement of additional information, which contain more information about the Fund and the risks of investing in the Fund.
The Funds prospectus and statement of additional information dated January 31, 2014, are incorporated by reference into this summary prospectus. You can find the Funds prospectus and statement of additional information, as well as
other information about the Fund, online at https://www.spdrs.com/product/fund.seam?ticker=IPD. You may also obtain this information at no charge by calling (866) 787-2257 or by sending an e-mail request to Fund_inquiry@ssga.com.
|
INVESTMENT OBJECTIVE
|
The SPDR S&P International Consumer Discretionary Sector ETF (the Fund) seeks to provide investment results that, before fees
and expenses, correspond generally to the total return performance of an index that tracks the consumer discretionary sector of developed global markets outside the United States.
|
FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund (Shares). This table and the example below do not reflect brokerage commissions you may
pay on purchases and sales of the Funds Shares.
|
|
|
|
|
ANNUAL FUND OPERATING EXPENSES
(expenses that you pay each year as a percentage of the value of your
investment):
|
MANAGEMENT FEES
|
|
0.50%
|
|
|
DISTRIBUTION AND SERVICE (12b-1) FEES
|
|
None
|
|
|
OTHER EXPENSES
|
|
0.00%
|
|
|
TOTAL ANNUAL FUND OPERATING EXPENSES
|
|
0.50%
|
|
|
EXAMPLE:
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time
periods indicated, and then sell all of your Shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Funds operating expenses remain the same. Although your actual costs may be
higher or lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
YEAR 1
|
|
YEAR 3
|
|
YEAR 5
|
|
YEAR 10
|
$51
|
|
$160
|
|
$280
|
|
$628
|
PORTFOLIO TURNOVER:
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction
costs and may result in higher taxes when Fund Shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal
year, the Funds portfolio turnover rate was 2% of the average value of its portfolio.
THE FUNDS PRINCIPAL INVESTMENT
STRATEGY
In seeking to track the performance of the S&P Developed Ex-U.S. BMI Consumer Discretionary Sector Index (the
Index), the Fund employs a sampling strategy, which means that the Fund is not required to purchase all of the securities represented in the Index. Instead, the Fund may purchase a subset of the securities in the Index in an effort to
|
|
|
|
|
Precise in a world that isnt.
SM
|
|
1 of 4
|
|
|
hold a portfolio of securities with generally the same risk and return characteristics of the Index. The quantity of holdings in the Fund will be based on a number of factors, including asset
size of the Fund. Based on its analysis of these factors, SSgA Funds Management, Inc. (SSgA FM or the Adviser), the investment adviser to the Fund, may invest the Funds assets in a subset of securities in the Index or
may invest the Funds assets 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 or in American Depositary Receipts
(ADRs) or Global Depositary Receipts (GDRs) based on securities comprising the Index. The Fund will provide shareholders with at least 60 days notice prior to any material change in this 80% investment policy. 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 (including money market funds advised by the Adviser).
The Index is designed to represent the non-U.S. consumer discretionary sub-industry of developed countries
included in the S&P Global BMI (Broad Market Index) (Global Equity Index). The Global Equity Index is a comprehensive, float-weighted, rules-based benchmark that is readily divisible and customizable. A country will be eligible for
inclusion in the Global Equity Index if it is classified as either a developed or emerging market by the S&P Global Equity Index Committee. Country classification is reviewed annually and determined based on quantitative criteria and feedback
from market participants via a publicly available market consultation. All publicly listed companies with float-adjusted market capitalization of a minimum of $100 million and at least $50 million annual trading volume are included for
each country. Membership in the Index is based on: (1) industry sector according to the Global Industry Classification Standard (GICS
®
), a four-tiered industry classification structure, and (2) region according to the BMI Developed World Series criteria. All Index constituents are weighted
proportionate to their float-adjusted market capitalization and are capped so that no stock exceeds 20% of the Index; stocks that exceed 5% of the Index market cap weight, in aggregate, should not exceed 45% of the Index. Changes in capped weights
are monitored on a quarterly basis and adjusted if needed on the quarterly rebalancing dates. Countries covered in the Index have historically included, among others, Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece,
Hong Kong, Ireland, Israel, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, Portugal, Singapore, South Korea, Spain, Sweden, Switzerland and the United Kingdom. As of December 31, 2013, the Index was comprised of 813
securities.
The Index is sponsored by S&P Dow Jones Indices LLC (the Index Provider), which is not affiliated with the
Fund or the Adviser. The Index Provider determines the composition of the Index, relative weightings of the securities in the Index and publishes information regarding the market value of the Index.
PRINCIPAL RISKS OF INVESTING IN THE FUND
As with all investments, there are certain risks of investing in the Fund, and you could lose money on an investment in the Fund.
PASSIVE STRATEGY/INDEX RISK:
The Fund is managed with a passive investment strategy, attempting to track the performance of an unmanaged index of securities. This differs from an actively managed fund, which
typically seeks to outperform a benchmark index. As a result, the Fund may hold constituent securities of the Index regardless of the current or projected performance of a specific security or a particular industry or market sector. Maintaining
investments in securities regardless of market conditions or the performance of individual securities could cause the Funds return to be lower than if the Fund employed an active strategy.
INDEX TRACKING RISK:
While the Adviser seeks to track the performance of the Index as closely as possible (
i.e.,
achieve a high degree of correlation with the Index), the Funds return may not
match or achieve a high degree of correlation with the return of the Index due to operating expenses, transaction costs, cash flows, regulatory requirements and operational inefficiencies. For example, the Adviser anticipates that it may take
several business days for additions and deletions to the Index to be reflected in the portfolio composition of the Fund.
EQUITY INVESTING RISK:
An investment in the Fund involves risks similar to those of investing in any fund of equity securities, such as market fluctuations, changes in interest rates and perceived trends in
stock prices.
FOREIGN INVESTMENT RISK:
Returns on investments in foreign securities could be more volatile than, or trail the returns on, investments in U.S. securities. Investments in securities issued by entities based
outside the U.S. pose distinct risks since political and economic events unique to a country or region will affect those markets and their
|
|
|
|
|
Precise in a world that isnt.
SM
|
|
2 of 4
|
|
|
issuers. Further, such entities and/or their securities may also be affected by currency controls; different accounting, auditing, financial reporting, and legal standards and practices;
different practices for clearing and settling trades; expropriation; changes in tax policy; greater market volatility; differing securities market structures; higher transaction costs; and various administrative difficulties, such as delays in
clearing and settling portfolio transactions or in receiving payment of dividends. Securities traded on foreign markets may be less liquid (harder to sell) than securities traded domestically. In addition, the value of the currency of the country in
which the Fund has invested could decline relative to the value of the U.S. dollar, which may affect the value of the investment to U.S. investors. These risks may be heightened in connection with investments in developing or emerging
countries. In addition, investments in ADRs and GDRs may be less liquid and more volatile than the underlying shares in their primary trading market.
CONSUMER DISCRETIONARY SECTOR RISK:
The Funds
assets will be concentrated in the consumer discretionary sector, which means the Fund will be more affected by the performance of the consumer discretionary sector than a fund that was more diversified. The success of consumer product manufacturers
and retailers is tied closely to the performance of the overall international economy, interest rates, competition and consumer confidence. Success depends heavily on disposable household income and consumer spending. Also, companies in the consumer
discretionary sector may be subject to severe competition, which may have an adverse impact on their profitability. Changes in demographics and consumer tastes can also affect the demand for, and success of, consumer products and services in the
marketplace.
NON-DIVERSIFICATION RISK:
The Fund is non-diversified and may invest a larger percentage of its assets in securities of a few issuers or a single issuer than that of a diversified fund. As a result, the
Funds performance may be disproportionately impacted by the performance of relatively few securities.
FUND PERFORMANCE
|
|
|
|
|
The following bar chart and table provide an indication of the risks of investing in the Fund by showing changes in the Funds performance from year to year and by
showing how the Funds average annual returns for certain time periods compare with the average annual returns of the Index. The Funds past performance (before and after taxes) is not necessarily an indication of how the Fund will perform
in the future. Updated performance information is available online at
http://www.spdrs.com
.
|
|
|
|
ANNUAL TOTAL RETURN
(years ended 12/31)
Highest Quarterly Return:
27.35% (Q2 2009)
Lowest Quarterly Return: -19.35% (Q3 2011)
|
AVERAGE ANNUAL TOTAL RETURNS
(for periods ending 12/31/13)
The after-tax returns presented in the table below are calculated using highest historical individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your specific tax situation and may differ from those shown below. After-tax returns are not relevant to investors who hold Shares of the Fund through
tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. The returns after taxes can exceed the return before taxes due to the application of foreign tax credits and/or an assumed tax benefit for a shareholder from
realizing a capital loss on a sale of Fund Shares.
|
|
|
|
|
|
|
|
|
ONE YEAR
|
|
FIVE YEARS
|
|
SINCE INCEPTION
(7/16/08)
|
RETURN BEFORE TAXES
|
|
34.06%
|
|
20.15%
|
|
10.73%
|
RETURN AFTER TAXES ON DISTRIBUTIONS
|
|
33.69%
|
|
19.99%
|
|
10.56%
|
RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND SHARES
|
|
19.60%
|
|
16.76%
|
|
8.79%
|
S&P DEVELOPED EX-U.S. BMI CONSUMER DISCRETIONARY SECTOR INDEX
(reflects no deduction for fees, expenses or taxes)
|
|
34.48%
|
|
20.74%
|
|
10.70%
|
|
|
|
|
|
Precise in a world that isnt.
SM
|
|
3 of 4
|
|
|
PORTFOLIO MANAGEMENT
INVESTMENT ADVISER
SSgA FM serves as the investment adviser to the Fund.
PORTFOLIO MANAGERS
The professionals primarily responsible for the day-to-day management of the Fund are Mike Feehily and John Tucker.
MIKE FEEHILY, CFA
,
is a Senior Managing Director of the Adviser. He joined the Adviser in 1997, moved to State Street Global Markets LLC in 2006 and rejoined the Adviser in 2010.
JOHN TUCKER, CFA
, is a Senior Managing Director of the Adviser. He
joined the Adviser in 1988.
PURCHASE AND SALE INFORMATION
The Fund will issue (or redeem) Shares to certain institutional investors (typically market makers or other broker-dealers) only in large blocks of 50,000 Shares known as Creation
Units. Creation Unit transactions are typically conducted in exchange for the deposit or delivery of in-kind securities and/or cash constituting a substantial replication, or a representation, of the securities included in the Funds
benchmark Index.
Individual Shares of the Fund may only be purchased and sold on the NYSE Arca, Inc., other national securities
exchanges, electronic crossing networks and other alternative trading systems through your broker-dealer at market prices. Because Fund Shares trade at market prices rather than at net asset value (NAV), Shares may trade at a price
greater than NAV (premium) or less than NAV (discount).
TAX INFORMATION
The Funds distributions are expected to be taxed as ordinary income, qualified dividend income and/or capital gains, unless you are investing through a tax-deferred arrangement, such as a
401(k) plan or individual retirement account.
IPDSUMPRO
|
|
|
|
|
Precise in a world that isnt.
SM
|
|
4 of 4
|
|
|