# EDGAR Filing Document

**Accession Number:** 0001064641
**File Stem:** 0001193125-23-016290
**Filing Date:** 2023-1
**Character Count:** 1050622
**Document Hash:** f47de6ad0824515f18d22c6e55e56257
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-016290.hdr.sgml**: 20230126

**ACCESSION NUMBER**: 0001193125-23-016290

**CONFORMED SUBMISSION TYPE**: 485BPOS

**PUBLIC DOCUMENT COUNT**: 60

**FILED AS OF DATE**: 20230126

**DATE AS OF CHANGE**: 20230126

**EFFECTIVENESS DATE**: 20230131

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SELECT SECTOR SPDR TRUST
- **CENTRAL INDEX KEY:** 0001064641
- **IRS NUMBER:** 000000000
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-08837
- **FILM NUMBER:** 23558349

**BUSINESS ADDRESS:**
- **STREET 1:** ONE LINCOLN STREET
- **CITY:** BOSTON
- **STATE:** MA
- **ZIP:** 02111
- **BUSINESS PHONE:** 866-732-8673

**MAIL ADDRESS:**
- **STREET 1:** ONE LINCOLN STREET
- **CITY:** BOSTON
- **STATE:** MA
- **ZIP:** 02111

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SECTOR SPDR TRUST
- **DATE OF NAME CHANGE:** 19980622
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SELECT SECTOR SPDR TRUST
- **CENTRAL INDEX KEY:** 0001064641
- **IRS NUMBER:** 000000000
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-57791
- **FILM NUMBER:** 23558348

**BUSINESS ADDRESS:**
- **STREET 1:** ONE LINCOLN STREET
- **CITY:** BOSTON
- **STATE:** MA
- **ZIP:** 02111
- **BUSINESS PHONE:** 866-732-8673

**MAIL ADDRESS:**
- **STREET 1:** ONE LINCOLN STREET
- **CITY:** BOSTON
- **STATE:** MA
- **ZIP:** 02111

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SECTOR SPDR TRUST
- **DATE OF NAME CHANGE:** 19980622

## Series and Classes Contracts Data

### The Consumer Discretionary Select Sector SPDR Fund (Series ID: S000006408)

| Class ID   | Class Name                                         | Ticker Symbol   |
|:---|:---|:---|
| C000017594 | The Consumer Discretionary Select Sector SPDR Fund | XLY             |

### The Consumer Staples Select Sector SPDR Fund (Series ID: S000006409)

| Class ID   | Class Name                                   | Ticker Symbol   |
|:---|:---|:---|
| C000017595 | The Consumer Staples Select Sector SPDR Fund | XLP             |

### The Energy Select Sector SPDR Fund (Series ID: S000006410)

| Class ID   | Class Name                         | Ticker Symbol   |
|:---|:---|:---|
| C000017596 | The Energy Select Sector SPDR Fund | XLE             |

### The Financial Select Sector SPDR Fund (Series ID: S000006411)

| Class ID   | Class Name                            | Ticker Symbol   |
|:---|:---|:---|
| C000017597 | The Financial Select Sector SPDR Fund | XLF             |

### The Health Care Select Sector SPDR Fund (Series ID: S000006412)

| Class ID   | Class Name                              | Ticker Symbol   |
|:---|:---|:---|
| C000017598 | The Health Care Select Sector SPDR Fund | XLV             |

### The Industrial Select Sector SPDR Fund (Series ID: S000006413)

| Class ID   | Class Name                             | Ticker Symbol   |
|:---|:---|:---|
| C000017599 | The Industrial Select Sector SPDR Fund | XLI             |

### The Materials Select Sector SPDR Fund (Series ID: S000006414)

| Class ID   | Class Name                            | Ticker Symbol   |
|:---|:---|:---|
| C000017600 | The Materials Select Sector SPDR Fund | XLB             |

### The Technology Select Sector SPDR Fund (Series ID: S000006415)

| Class ID   | Class Name                             | Ticker Symbol   |
|:---|:---|:---|
| C000017601 | The Technology Select Sector SPDR Fund | XLK             |

### The Utilities Select Sector SPDR Fund (Series ID: S000006416)

| Class ID   | Class Name                            | Ticker Symbol   |
|:---|:---|:---|
| C000017602 | The Utilities Select Sector SPDR Fund | XLU             |

### The Real Estate Select Sector SPDR Fund (Series ID: S000051152)

| Class ID   | Class Name                              | Ticker Symbol   |
|:---|:---|:---|
| C000161049 | The Real Estate Select Sector SPDR Fund | XLRE            |

### The Communication Services Select Sector SPDR Fund (Series ID: S000062095)

| Class ID   | Class Name                                         | Ticker Symbol   |
|:---|:---|:---|
| C000201048 | The Communication Services Select Sector SPDR Fund | XLC             |

?xml version="1.0" encoding="utf-8" ? SELECT SECTOR SPDR TRUST

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**As filed with the U.S. Securities and Exchange Commission on January 26, 2023**

**Registration Numbers: 333-57791; 811-08837**

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

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**FORM N-1A**

**REGISTRATION STATEMENT** 

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; ***UNDER*** <br> ***THE SECURITIES ACT OF 1933***<br>| **☒**  |
| **Post-Effective Amendment No. 52** | **☒**  |

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**and/or**

**REGISTRATION STATEMENT** 

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; ***UNDER*** <br> ***THE INVESTMENT COMPANY ACT OF 1940***<br>| **☒**  |
| **Amendment No. 55** | **☒**  |

---

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**THE SELECT SECTOR SPDR**<sup>®</sup> **TRUST**

**(Exact Name of Registrant as Specified in Charter)**

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**One Iron Street**

**Boston, Massachusetts 02210**

**(Address of Principal Executive Offices)**

**(617) 664-1465**

**(Registrant's Telephone Number)**

**Sean O'Malley, Esq.**

**Senior Vice President and General Counsel**

**c/o SSGA Funds Management, Inc.**

**One Iron Street**

**Boston, Massachusetts 02210**

**(Name and Address of Agent for Service)**

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***Copies to:***

**W. John McGuire, Esq.**

**Morgan, Lewis & Bockius LLP**

**1111 Pennsylvania Avenue, NW**

**Washington, D.C. 20004**

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It is proposed that this filing will become effective:

☐ immediately upon filing pursuant to Rule 485, paragraph (b)

☒ on January 31, 2023 pursuant to Rule 485, paragraph (b) 

☐ 60 days after filing pursuant to Rule 485, paragraph (a)(1)

☐ on _________________ pursuant to Rule 485, paragraph (a)(1) 

☐ 75 days after filing pursuant to Rule 485, paragraph (a)(2) 

☐ on _________________ pursuant to Rule 485, paragraph (a)(2)

If appropriate, check the following box:

☐ This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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![](g435817g2xyspdr_grayscalelog.gif)

**Prospectus**

**The Communication Services Select Sector SPDR**<sup>®</sup> **Fund (XLC)**

**The Consumer Discretionary Select Sector SPDR**<sup>®</sup> **Fund (XLY)**

**The Consumer Staples Select Sector SPDR**<sup>®</sup> **Fund (XLP)**

**The Energy Select Sector SPDR**<sup>®</sup> **Fund (XLE)**

**The Financial Select Sector SPDR**<sup>®</sup> **Fund (XLF)**

**The Health Care Select Sector SPDR**<sup>®</sup> **Fund (XLV)**

**The Industrial Select Sector SPDR**<sup>®</sup> **Fund (XLI)**

**The Materials Select Sector SPDR**<sup>®</sup> **Fund (XLB)**

**The Real Estate Select Sector SPDR**<sup>®</sup> **Fund (XLRE)**

**The Technology Select Sector SPDR**<sup>®</sup> **Fund (XLK)**

**The Utilities Select Sector SPDR**<sup>®</sup> **Fund (XLU)**

Principal U.S. Listing Exchange: NYSE Arca, Inc.

**January 31, 2023**

The U.S. Securities and Exchange Commission has not approved or disapproved these securities or passed upon the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense. Shares in the Funds are not guaranteed or insured by the Federal Deposit Insurance Corporation or any other agency of the U.S. Government, nor are Shares deposits or obligations of any bank. It is possible to lose money by investing in the Funds.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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**Table of Contents**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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| | |
|:---|:---|
| **Fund Summaries** |  |
| The Communication Services Select Sector SPDR Fund | 1  |
| The Consumer Discretionary Select Sector SPDR Fund | 9  |
| The Consumer Staples Select Sector SPDR Fund | 17  |
| The Energy Select Sector SPDR Fund | 25  |
| The Financial Select Sector SPDR Fund | 33  |
| The Health Care Select Sector SPDR Fund | 41  |
| The Industrial Select Sector SPDR Fund | 49  |
| The Materials Select Sector SPDR Fund | 57  |
| The Real Estate Select Sector SPDR Fund | 65  |
| The Technology Select Sector SPDR Fund | 74  |
| The Utilities Select Sector SPDR Fund | 82  |
| Additional Strategies Information | 91  |
| Additional Risk Information | 93  |
| Management | 107  |
| Additional Index Information | 113  |
| Additional Purchase and Sale Information | 114  |
| Distribution and Service Plan | 116  |
| Distributions | 116  |
| Portfolio Holdings Disclosure | 117  |
| Additional Tax Information | 117  |
| General Information | 123  |
| Financial Highlights | 123  |
| Where to Learn More About the Funds | Back Cover |

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![](g435817g2selectsect_satellit.jpg)

<sup>Fund Summaries</sup>

**The Communication Services Select Sector SPDR Fund**

**XLC**

**Investment Objective**

The Communication Services Select Sector SPDR Fund (the "Fund") seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Communication Services Select Sector Index (the "Index").

**Fees and Expenses of the Fund**

The table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund ("Fund Shares"). **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and Example below.**

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment):** 

---

| | |
|:---|:---|
| Management fees | 0.03% |
| Distribution and service (12b-1) fees<sup>1</sup> | 0.02% |
| Other expenses | 0.05% |
| **Total annual Fund operating expenses**<sup>1</sup> | **0.10%** |

---

<sup>1</sup>

The Fund's "Distribution and service (12b-1) fees" and "Total annual Fund operating expenses"have been restated to reflect current fees.

**Example:**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated, and then sell or hold all of your Fund Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's 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** |
| $10 | $32 | $56 | $128 |

---

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<sup>Fund Summaries</sup>

**XLC**

**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 Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 21% of the average value of its portfolio.

**The Fund's Principal Investment 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 95%, of its total assets in the securities comprising the Index. The Fund will provide shareholders with at least 60 days' notice prior to any material change in this 95% investment policy. In addition, the Fund may invest in cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds (including money market funds advised by SSGA Funds Management, Inc. ("SSGA FM" or the "Adviser"), the investment adviser to the Fund).

The Index includes companies that have been identified as Communication Services companies by the Global Industry Classification Standard (GICS<sup>®</sup>), including securities of companies from the following industries: diversified telecommunication services; wireless telecommunication services; media; entertainment; and interactive media & services. The Index is one of eleven Select Sector Indexes developed and maintained in accordance with the following criteria: (1) each of the component securities in the Index is a constituent of the S&P 500 Index; and (2) the Index is calculated by S&P Dow Jones Indices LLC ("S&P DJI") based on a proprietary "modified market capitalization" methodology which means that modifications may be made to the market capitalization weights of single stock concentrations in order to conform to the requirements of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code" or "IRC"). As of November 30, 2022, the Index was composed of 25 stocks.

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<sup>Fund Summaries</sup>

**XLC**

The Index is also sponsored and compiled by S&P DJI. S&P DJI determines the composition of the Index and relative weightings of the securities in the Index based on the Index methodology (as the "Index Compilation Agent"). S&P DJI also publishes information regarding the market value of the Index (as the "Index Provider"). S&P DJI is not affiliated with the Fund or the Adviser.

**Principal Risks of Investing in the Fund**

As with all investments, there are certain risks of investing in the Fund. Fund Shares will change in value, and you could lose money by investing in the Fund. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

***Market Risk:*** The Fund's investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile and prices of investments can change substantially due to various factors including, but not limited to, economic growth or recession, changes in interest rates, inflation, changes in the actual or perceived creditworthiness of issuers, and general market liquidity. The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Local, regional or global events such as war, military conflicts, acts of terrorism, natural disasters, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments.

***Equity Investing Risk:*** The market prices of equity securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. The value of a security may decline for a number of reasons that may directly relate to the issuer and also may decline due to general industry or market conditions that are not specifically related to a particular company. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

***Communication Services Sector Risk:*** The Fund's assets will be concentrated in the communication services sector, which means the Fund will be more affected by the performance of the communication services sector than a fund that is more diversified. Communication services companies are

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<sup>Fund Summaries</sup>

**XLC**

particularly vulnerable to the potential obsolescence of products and services due to technological advancement and the innovation of competitors. Companies in the communication services sector may also be affected by other competitive pressures, such as pricing competition, as well as research and development costs, substantial capital requirements and government regulation. Additionally, fluctuating domestic and international demand, shifting demographics and often unpredictable changes in consumer tastes can drastically affect a communication services company's profitability. While all companies may be susceptible to network security breaches, certain companies in the communication services sector may be particular targets of hacking and potential theft of proprietary or consumer information or disruptions in service, which could have a material adverse effect on their businesses.

***Fluctuation of Net Asset Value, Share Premiums and Discounts Risk:*** As with all exchange-traded funds, Fund Shares may be bought and sold in the secondary market at market prices. The trading prices of Fund Shares in the secondary market may differ from the Fund's daily net asset value per share and there may be times when the market price of the shares is more than the net asset value per share (premium) or less than the net asset value per share (discount). This risk is heightened in times of market volatility or periods of steep market declines.

***Indexing Strategy/Index Tracking Risk:*** The Fund is managed with an indexing investment strategy, attempting to track the performance of an unmanaged index of securities, regardless of the current or projected performance of the Index or of the actual securities comprising the Index. This differs from an actively-managed fund, which typically seeks to outperform a benchmark index. As a result, the Fund's performance may be less favorable than that of a portfolio managed using an active investment strategy. The structure and composition of the Index will affect the performance, volatility, and risk of the Index and, consequently, the performance, volatility, and risk of the Fund. Errors in index data, index computations or the construction of the Index in accordance with its methodology may occur from time to time and may not be identified and corrected by the Index Provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. When there are changes made to the component

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<sup>Fund Summaries</sup>

**XLC**

securities of the Index and the Fund in turn makes similar changes to its portfolio, any transaction costs and market exposure arising from such portfolio changes will be borne directly by the Fund and its shareholders. The Fund may recognize gains as a result of rebalancing or reconstituting its securities holdings to reflect changes in the securities included in the Index. The Fund also may be required to distribute any such gains to its shareholders to avoid adverse federal income tax consequences. While the Adviser seeks to track the performance of the Index (*i.e.*, achieve a high degree of correlation with the Index), the Fund's return may not match the return of the Index. The Fund incurs a number of operating expenses not applicable to the Index, and incurs costs in buying and selling securities. In addition, the Fund may not be fully invested at times, generally as a result of cash flows into or out of the Fund or reserves of cash held by the Fund to meet redemptions.

***Large-Capitalization Securities Risk:*** Returns on investments in securities of large companies could trail the returns on investments in securities of smaller and mid-sized companies. Larger companies may be unable to respond as quickly as smaller and mid-sized companies to competitive challenges or to changes in business, product, financial, or market conditions. Larger companies may not be able to maintain growth at the high rates that may be achieved by well-managed smaller and mid-sized companies.

***Non-Diversification Risk:*** As a "non-diversified" fund, the Fund may hold a smaller number of portfolio securities than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of Fund Shares may be more volatile than the values of shares of more diversified funds. The Fund may become diversified for periods of time solely as a result of tracking the Index (e.g., changes in weightings of one or more component 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 Fund's performance from year to year and by showing how the Fund's average annual returns for certain time periods compare with the average annual returns of the Index and the S&P 500 Index.

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<sup>Fund Summaries</sup>

**XLC**

The S&P 500 Index is a well-known, broad-based securities market index that includes common stocks of approximately 500 companies from a number of sectors representing a significant portion of the market value of all stocks publicly traded in the United States. The Fund's 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 by calling 1-866-732-8673 or visiting our website at www.sectorspdr.com.

**Annual Total Returns (years ended 12/31)**

![](g435817g2imgcfe156a51.jpg)

Highest Quarterly Return: 22.54% (Q2, 2020)

Lowest Quarterly Return: -20.88% (Q2, 2022)

**Average Annual Total Returns (for periods ending 12/31/22)**

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 Fund Shares through tax-advantaged arrangements, such as 401(k) plans or individual retirement accounts. The returns after taxes can exceed the returns before taxes due to an assumed tax benefit for a shareholder from realizing a capital loss on a sale of Fund Shares.

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<sup>Fund Summaries</sup>

**XLC**

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| | | |
|:---|:---|:---|
|  | One<br> Year<br>| Since Inception<br> 06/18/2018<br>|
| Return Before Taxes | -37.65% | -0.04% |
| Return After Taxes on Distributions | -37.79% | -0.24% |
| Return After Taxes on Distributions and Sale <br> of Fund Shares<br>| -22.16% | 0.00% |
| Communication Services Select Sector Index <br> (reflects no deduction for fees, expenses or <br> taxes)<br>| -37.66% | 0.05% |
| S&P 500 Index (reflects no deduction for <br> fees, expenses or taxes)<br>| -18.11% | 9.32% |

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**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 Michael Feehily, Karl Schneider and Kala O'Donnell.

Michael Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997 to 2006 and rejoined in 2010. Effective March 1, 2023, Mr. Feehily will no longer serve as a portfolio manager of the Fund.

Karl Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global Equity Beta Solutions in the Americas. He joined the Adviser in 1997.

Kala O'Donnell is a Vice President of the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. She joined the Adviser in 1995.

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<sup>Fund Summaries</sup>

**XLC**

**Purchase and Sale Information**

The Fund will issue (or redeem) Fund Shares to certain institutional investors (typically market makers or other broker-dealers) only in large blocks of Fund Shares known as "Creation Units." Creation Unit transactions are conducted in exchange for the deposit or delivery of in-kind securities and/or cash.

Individual Fund Shares may only be purchased and sold on the NYSE Arca, Inc. (the "Exchange"), 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"), Fund Shares may trade at a price greater than NAV (premium) or less than NAV (discount). When buying or selling Fund Shares in the secondary market, you may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a seller is willing to accept for Fund Shares (ask) (the "bid-ask spread"). Recent information regarding the Fund's NAV, market price, premiums and discounts, and bid-ask spreads is available at www.sectorspdr.com.

**Tax Information**

The Fund's distributions are expected to be taxed as ordinary income, qualified dividend income and/or capital gains, unless you are investing through a tax-advantaged arrangement, such as a 401(k) plan or individual retirement account. Any withdrawals made from a tax-advantaged arrangement may be taxable to you.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase Fund Shares through a broker-dealer or other financial intermediary (such as a bank), the Adviser, the Distributor or their affiliates may pay the financial intermediary for certain activities related to the Fund, including educational training programs, conferences, the development of technology platforms and reporting systems, or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.

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![](g435817g2selectsect_gift.jpg)

<sup>Fund Summaries</sup>

**The Consumer Discretionary Select Sector SPDR Fund**

**XLY**

**Investment Objective**

The Consumer Discretionary Select Sector SPDR Fund (the "Fund") seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Consumer Discretionary Select Sector Index (the "Index").

**Fees and Expenses of the Fund**

The table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund ("Fund Shares"). **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and Example below.**

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment):** 

---

| | |
|:---|:---|
| Management fees | 0.03% |
| Distribution and service (12b-1) fees<sup>1</sup> | 0.02% |
| Other expenses | 0.05% |
| **Total annual Fund operating expenses**<sup>1</sup> | **0.10%** |

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<sup>1</sup>

The Fund's "Distribution and service (12b-1) fees" and "Total annual Fund operating expenses"have been restated to reflect current fees.

**Example:**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated, and then sell or hold all of your Fund Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's 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** |
| $10 | $32 | $56 | $128 |

---

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<sup>Fund Summaries</sup>

**XLY**

**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 Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 22% of the average value of its portfolio.

**The Fund's Principal Investment 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 95%, of its total assets in the securities comprising the Index. The Fund will provide shareholders with at least 60 days' notice prior to any material change in this 95% investment policy. In addition, the Fund may invest in cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds (including money market funds advised by SSGA Funds Management, Inc. ("SSGA FM" or the "Adviser"), the investment adviser to the Fund).

The Index includes companies that have been identified as Consumer Discretionary companies by the Global Industry Classification Standard (GICS<sup>®</sup>), including securities of companies from the following industries: retail (specialty, multiline, internet and direct marketing); hotels, restaurants and leisure; textiles, apparel and luxury goods; household durables; automobiles; auto components; distributors; leisure products; and diversified consumer services. The Index is one of eleven Select Sector Indexes developed and maintained in accordance with the following criteria: (1) each of the component securities in the Index is a constituent of the S&P 500 Index; and (2) the Index is calculated by S&P Dow Jones Indices LLC ("S&P DJI") based on a proprietary "modified market capitalization" methodology which means that modifications may be made to the market capitalization weights of single

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<sup>Fund Summaries</sup>

**XLY**

stock concentrations in order to conform to the requirements of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code" or "IRC"). As of November 30, 2022, the Index was composed of 56 stocks.

The Index is also sponsored and compiled by S&P DJI. S&P DJI determines the composition of the Index and relative weightings of the securities in the Index based on the Index methodology (as the "Index Compilation Agent"). S&P DJI also publishes information regarding the market value of the Index (as the "Index Provider"). S&P DJI is not affiliated with the Fund or the Adviser.

**Principal Risks of Investing in the Fund**

As with all investments, there are certain risks of investing in the Fund. Fund Shares will change in value, and you could lose money by investing in the Fund. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

***Market Risk:*** The Fund's investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile and prices of investments can change substantially due to various factors including, but not limited to, economic growth or recession, changes in interest rates, inflation, changes in the actual or perceived creditworthiness of issuers, and general market liquidity. The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Local, regional or global events such as war, military conflicts, acts of terrorism, natural disasters, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments.

***Equity Investing Risk:*** The market prices of equity securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. The value of a security may decline for a number of reasons that may directly relate to the issuer and also may decline due to general industry or market conditions that are not specifically related to a particular company. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

------

<sup>Fund Summaries</sup>

**XLY**

***Consumer Discretionary Sector Risk:*** The Fund's 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 is more diversified. The success of consumer product manufacturers and retailers is tied closely to the performance of the overall domestic and global 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 respective profitability. Changes in demographics and consumer tastes can also affect the demand for, and success of, consumer products and services in the marketplace.

***Fluctuation of Net Asset Value, Share Premiums and Discounts Risk:*** As with all exchange-traded funds, Fund Shares may be bought and sold in the secondary market at market prices. The trading prices of Fund Shares in the secondary market may differ from the Fund's daily net asset value per share and there may be times when the market price of the shares is more than the net asset value per share (premium) or less than the net asset value per share (discount). This risk is heightened in times of market volatility or periods of steep market declines.

***Indexing Strategy/Index Tracking Risk:*** The Fund is managed with an indexing investment strategy, attempting to track the performance of an unmanaged index of securities, regardless of the current or projected performance of the Index or of the actual securities comprising the Index. This differs from an actively-managed fund, which typically seeks to outperform a benchmark index. As a result, the Fund's performance may be less favorable than that of a portfolio managed using an active investment strategy. The structure and composition of the Index will affect the performance, volatility, and risk of the Index and, consequently, the performance, volatility, and risk of the Fund. Errors in index data, index computations or the construction of the Index in accordance with its methodology may occur from time to time and may not be identified and corrected by the Index Provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. When there are changes made to the component securities of the Index and the Fund in turn makes similar changes to its

------

<sup>Fund Summaries</sup>

**XLY**

portfolio, any transaction costs and market exposure arising from such portfolio changes will be borne directly by the Fund and its shareholders. The Fund may recognize gains as a result of rebalancing or reconstituting its securities holdings to reflect changes in the securities included in the Index. The Fund also may be required to distribute any such gains to its shareholders to avoid adverse federal income tax consequences. While the Adviser seeks to track the performance of the Index (*i.e.*, achieve a high degree of correlation with the Index), the Fund's return may not match the return of the Index. The Fund incurs a number of operating expenses not applicable to the Index, and incurs costs in buying and selling securities. In addition, the Fund may not be fully invested at times, generally as a result of cash flows into or out of the Fund or reserves of cash held by the Fund to meet redemptions.

***Large-Capitalization Securities Risk:*** Returns on investments in securities of large companies could trail the returns on investments in securities of smaller and mid-sized companies. Larger companies may be unable to respond as quickly as smaller and mid-sized companies to competitive challenges or to changes in business, product, financial, or market conditions. Larger companies may not be able to maintain growth at the high rates that may be achieved by well-managed smaller and mid-sized companies.

***Non-Diversification Risk:*** As a "non-diversified" fund, the Fund may hold a smaller number of portfolio securities than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of Fund Shares may be more volatile than the values of shares of more diversified funds. The Fund may become diversified for periods of time solely as a result of tracking the Index (e.g., changes in weightings of one or more component 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 Fund's performance from year to year and by showing how the Fund's average annual returns for certain time periods compare with the average annual returns of the Index and the S&P 500 Index. The S&P 500 Index is a well-known, broad-based securities market index that

------

<sup>Fund Summaries</sup>

**XLY**

includes common stocks of approximately 500 companies from a number of sectors representing a significant portion of the market value of all stocks publicly traded in the United States. The Fund's 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 by calling 1-866-732-8673 or visiting our website at www.sectorspdr.com.

**Annual Total Returns (years ended 12/31)**

![](g435817g2img18f284b42.jpg)

Highest Quarterly Return: 30.61% (Q2, 2020)

Lowest Quarterly Return: -25.51% (Q2, 2022)

**Average Annual Total Returns (for periods ending 12/31/22)**

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 Fund Shares through tax-advantaged arrangements, such as 401(k) plans or individual retirement accounts. The returns after taxes can exceed the returns before taxes due to an assumed tax benefit for a shareholder from realizing a capital loss on a sale of Fund Shares.

------

<sup>Fund Summaries</sup>

**XLY**

---

| | | | |
|:---|:---|:---|:---|
|  | One<br> Year<br>| Five<br> Years<br>| Ten<br> Years<br>|
| Return Before Taxes | -36.24% | 6.63% | 11.90% |
| Return After Taxes on Distributions | -36.38% | 6.36% | 11.56% |
| Return After Taxes on Distributions and Sale of <br> Fund Shares<br>| -21.34% | 5.19% | 9.87% |
| Consumer Discretionary Select Sector Index <br> (reflects no deduction for fees, expenses or <br> taxes)<br>| -36.23% | 6.76% | 12.07% |
| S&P 500 Index (reflects no deduction for fees, <br> expenses or taxes)<br>| -18.11% | 9.42% | 12.56% |

---

**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 Michael Feehily, Karl Schneider and Kala O'Donnell.

Michael Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997 to 2006 and rejoined in 2010. Effective March 1, 2023, Mr. Feehily will no longer serve as a portfolio manager of the Fund.

Karl Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global Equity Beta Solutions in the Americas. He joined the Adviser in 1997.

Kala O'Donnell is a Vice President of the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. She joined the Adviser in 1995.

------

<sup>Fund Summaries</sup>

**XLY**

**Purchase and Sale Information**

The Fund will issue (or redeem) Fund Shares to certain institutional investors (typically market makers or other broker-dealers) only in large blocks of Fund Shares known as "Creation Units." Creation Unit transactions are conducted in exchange for the deposit or delivery of in-kind securities and/or cash.

Individual Fund Shares may only be purchased and sold on the NYSE Arca, Inc. (the "Exchange"), 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"), Fund Shares may trade at a price greater than NAV (premium) or less than NAV (discount). When buying or selling Fund Shares in the secondary market, you may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a seller is willing to accept for Fund Shares (ask) (the "bid-ask spread"). Recent information regarding the Fund's NAV, market price, premiums and discounts, and bid-ask spreads is available at www.sectorspdr.com.

**Tax Information**

The Fund's distributions are expected to be taxed as ordinary income, qualified dividend income and/or capital gains, unless you are investing through a tax-advantaged arrangement, such as a 401(k) plan or individual retirement account. Any withdrawals made from a tax-advantaged arrangement may be taxable to you.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase Fund Shares through a broker-dealer or other financial intermediary (such as a bank), the Adviser, the Distributor or their affiliates may pay the financial intermediary for certain activities related to the Fund, including educational training programs, conferences, the development of technology platforms and reporting systems, or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.

------

![](g435817g2selectsector_cart.jpg)

<sup>Fund Summaries</sup>

**The Consumer Staples Select Sector SPDR Fund**

**XLP**

**Investment Objective**

The Consumer Staples Select Sector SPDR Fund (the "Fund") seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Consumer Staples Select Sector Index (the "Index").

**Fees and Expenses of the Fund**

The table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund ("Fund Shares"). **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and Example below.**

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment):** 

---

| | |
|:---|:---|
| Management fees | 0.03% |
| Distribution and service (12b-1) fees<sup>1</sup> | 0.02% |
| Other expenses | 0.05% |
| **Total annual Fund operating expenses**<sup>1</sup> | **0.10%** |

---

<sup>1</sup>

The Fund's "Distribution and service (12b-1) fees" and "Total annual Fund operating expenses"have been restated to reflect current fees.

**Example:**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated, and then sell or hold all of your Fund Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's 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** |
| $10 | $32 | $56 | $128 |

---

------

<sup>Fund Summaries</sup>

**XLP**

**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 Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 11% of the average value of its portfolio.

**The Fund's Principal Investment 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 95%, of its total assets in the securities comprising the Index. The Fund will provide shareholders with at least 60 days' notice prior to any material change in this 95% investment policy. In addition, the Fund may invest in cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds (including money market funds advised by SSGA Funds Management, Inc. ("SSGA FM" or the "Adviser"), the investment adviser to the Fund).

The Index includes companies that have been identified as Consumer Staples companies by the Global Industry Classification Standard (GICS<sup>®</sup>), including securities of companies from the following industries: food and staples retailing; household products; food products; beverages; tobacco; and personal products. The Index is one of eleven Select Sector Indexes developed and maintained in accordance with the following criteria: (1) each of the component securities in the Index is a constituent of the S&P 500 Index; and (2) the Index is calculated by S&P Dow Jones Indices LLC ("S&P DJI") based on a proprietary "modified market capitalization" methodology which means that modifications may be made to the market capitalization weights of single stock concentrations in order to conform to the requirements of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code" or "IRC"). As of November 30, 2022, the Index was composed of 33 stocks.

------

<sup>Fund Summaries</sup>

**XLP**

The Index is also sponsored and compiled by S&P DJI. S&P DJI determines the composition of the Index and relative weightings of the securities in the Index based on the Index methodology (as the "Index Compilation Agent"). S&P DJI also publishes information regarding the market value of the Index (as the "Index Provider"). S&P DJI is not affiliated with the Fund or the Adviser.

**Principal Risks of Investing in the Fund**

As with all investments, there are certain risks of investing in the Fund. Fund Shares will change in value, and you could lose money by investing in the Fund. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

***Market Risk:*** The Fund's investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile and prices of investments can change substantially due to various factors including, but not limited to, economic growth or recession, changes in interest rates, inflation, changes in the actual or perceived creditworthiness of issuers, and general market liquidity. The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Local, regional or global events such as war, military conflicts, acts of terrorism, natural disasters, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments.

***Equity Investing Risk:*** The market prices of equity securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. The value of a security may decline for a number of reasons that may directly relate to the issuer and also may decline due to general industry or market conditions that are not specifically related to a particular company. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

***Consumer Staples Sector Risk:*** The Fund's assets will be concentrated in the consumer staples sector, which means the Fund will be more affected by the performance of the consumer staples sector than a fund that is more diversified. Consumer staples companies are subject to government regulation

------

<sup>Fund Summaries</sup>

**XLP**

affecting their products which may negatively impact such companies' performance. For instance, government regulations may affect the permissibility of using various food additives and production methods of companies that make food products, which could affect company profitability. Tobacco companies may be adversely affected by the adoption of proposed legislation and/or by litigation. Also, the success of food, beverage, household and personal product companies may be strongly affected by consumer interest, marketing campaigns and other factors affecting supply and demand, including performance of the overall domestic and global economy, interest rates, competition and consumer confidence and spending.

***Fluctuation of Net Asset Value, Share Premiums and Discounts Risk:*** As with all exchange-traded funds, Fund Shares may be bought and sold in the secondary market at market prices. The trading prices of Fund Shares in the secondary market may differ from the Fund's daily net asset value per share and there may be times when the market price of the shares is more than the net asset value per share (premium) or less than the net asset value per share (discount). This risk is heightened in times of market volatility or periods of steep market declines.

***Indexing Strategy/Index Tracking Risk:*** The Fund is managed with an indexing investment strategy, attempting to track the performance of an unmanaged index of securities, regardless of the current or projected performance of the Index or of the actual securities comprising the Index. This differs from an actively-managed fund, which typically seeks to outperform a benchmark index. As a result, the Fund's performance may be less favorable than that of a portfolio managed using an active investment strategy. The structure and composition of the Index will affect the performance, volatility, and risk of the Index and, consequently, the performance, volatility, and risk of the Fund. Errors in index data, index computations or the construction of the Index in accordance with its methodology may occur from time to time and may not be identified and corrected by the Index Provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. When there are changes made to the component securities of the Index and the Fund in turn makes similar changes to its portfolio, any transaction costs and market exposure arising from such portfolio changes will be borne directly by the Fund and its shareholders. The Fund

------

<sup>Fund Summaries</sup>

**XLP**

may recognize gains as a result of rebalancing or reconstituting its securities holdings to reflect changes in the securities included in the Index. The Fund also may be required to distribute any such gains to its shareholders to avoid adverse federal income tax consequences. While the Adviser seeks to track the performance of the Index (*i.e.*, achieve a high degree of correlation with the Index), the Fund's return may not match the return of the Index. The Fund incurs a number of operating expenses not applicable to the Index, and incurs costs in buying and selling securities. In addition, the Fund may not be fully invested at times, generally as a result of cash flows into or out of the Fund or reserves of cash held by the Fund to meet redemptions.

***Large-Capitalization Securities Risk:*** Returns on investments in securities of large companies could trail the returns on investments in securities of smaller and mid-sized companies. Larger companies may be unable to respond as quickly as smaller and mid-sized companies to competitive challenges or to changes in business, product, financial, or market conditions. Larger companies may not be able to maintain growth at the high rates that may be achieved by well-managed smaller and mid-sized companies.

***Non-Diversification Risk:*** As a "non-diversified" fund, the Fund may hold a smaller number of portfolio securities than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of Fund Shares may be more volatile than the values of shares of more diversified funds. The Fund may become diversified for periods of time solely as a result of tracking the Index (e.g., changes in weightings of one or more component 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 Fund's performance from year to year and by showing how the Fund's average annual returns for certain time periods compare with the average annual returns of the Index and the S&P 500 Index. The S&P 500 Index is a well-known, broad-based securities market index that includes common stocks of approximately 500 companies from a number of sectors representing a significant portion of the market value of all stocks publicly traded

------

<sup>Fund Summaries</sup>

**XLP**

in the United States. The Fund's 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 by calling 1-866-732-8673 or visiting our website at www.sectorspdr.com.

**Annual Total Returns (years ended 12/31)**

![](g435817g2imgd9647cb63.jpg)

Highest Quarterly Return: 14.59% (Q1, 2013)

Lowest Quarterly Return: -12.99% (Q1, 2020)

**Average Annual Total Returns (for periods ending 12/31/22)**

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 Fund Shares through tax-advantaged arrangements, such as 401(k) plans or individual retirement accounts. The returns after taxes can exceed the returns before taxes due to an assumed tax benefit for a shareholder from realizing a capital loss on a sale of Fund Shares.

------

<sup>Fund Summaries</sup>

**XLP**

---

| | | | |
|:---|:---|:---|:---|
|  | One<br> Year<br>| Five<br> Years<br>| Ten<br> Years<br>|
| Return Before Taxes | -0.82% | 8.44% | 10.76% |
| Return After Taxes on Distributions | -1.46% | 7.70% | 10.02% |
| Return After Taxes on Distributions and Sale of <br> Fund Shares<br>| -0.14% | 6.49% | 8.69% |
| Consumer Staples Select Sector Index (reflects <br> no deduction for fees, expenses or taxes)<br>| -0.70% | 8.59% | 10.94% |
| S&P 500 Index (reflects no deduction for fees, <br> expenses or taxes)<br>| -18.11% | 9.42% | 12.56% |

---

**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 Michael Feehily, Karl Schneider and Dwayne Hancock.

Michael Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997 to 2006 and rejoined in 2010. Effective March 1, 2023, Mr. Feehily will no longer serve as a portfolio manager of the Fund.

Karl Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global Equity Beta Solutions in the Americas. He joined the Adviser in 1997.

Dwayne Hancock, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. He joined the Adviser in 1996.

------

<sup>Fund Summaries</sup>

**XLP**

**Purchase and Sale Information**

The Fund will issue (or redeem) Fund Shares to certain institutional investors (typically market makers or other broker-dealers) only in large blocks of Fund Shares known as "Creation Units." Creation Unit transactions are conducted in exchange for the deposit or delivery of in-kind securities and/or cash.

Individual Fund Shares may only be purchased and sold on the NYSE Arca, Inc. (the "Exchange"), 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"), Fund Shares may trade at a price greater than NAV (premium) or less than NAV (discount). When buying or selling Fund Shares in the secondary market, you may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a seller is willing to accept for Fund Shares (ask) (the "bid-ask spread"). Recent information regarding the Fund's NAV, market price, premiums and discounts, and bid-ask spreads is available at www.sectorspdr.com.

**Tax Information**

The Fund's distributions are expected to be taxed as ordinary income, qualified dividend income and/or capital gains, unless you are investing through a tax-advantaged arrangement, such as a 401(k) plan or individual retirement account. Any withdrawals made from a tax-advantaged arrangement may be taxable to you.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase Fund Shares through a broker-dealer or other financial intermediary (such as a bank), the Adviser, the Distributor or their affiliates may pay the financial intermediary for certain activities related to the Fund, including educational training programs, conferences, the development of technology platforms and reporting systems, or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.

------

![](g435817g2selectsector_oilrig.jpg)

<sup>Fund Summaries</sup>

**The Energy Select Sector SPDR Fund**

**XLE**

**Investment Objective**

The Energy Select Sector SPDR Fund (the "Fund") seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Energy Select Sector Index (the "Index").

**Fees and Expenses of the Fund**

The table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund ("Fund Shares"). **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and Example below.**

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment):** 

---

| | |
|:---|:---|
| Management fees | 0.03% |
| Distribution and service (12b-1) fees<sup>1</sup> | 0.02% |
| Other expenses | 0.05% |
| **Total annual Fund operating expenses**<sup>1</sup> | **0.10%** |

---

<sup>1</sup>

The Fund's "Distribution and service (12b-1) fees" and "Total annual Fund operating expenses"have been restated to reflect current fees.

**Example:**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated, and then sell or hold all of your Fund Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's 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** |
| $10 | $32 | $56 | $128 |

---

------

<sup>Fund Summaries</sup>

**XLE**

**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 Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 9% of the average value of its portfolio.

**The Fund's Principal Investment 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 95%, of its total assets in the securities comprising the Index. The Fund will provide shareholders with at least 60 days' notice prior to any material change in this 95% investment policy. In addition, the Fund may invest in cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds (including money market funds advised by SSGA Funds Management, Inc. ("SSGA FM" or the "Adviser"), the investment adviser to the Fund).

The Index includes companies that have been identified as Energy companies by the Global Industry Classification Standard (GICS<sup>®</sup>), including securities of companies from the following industries: oil, gas and consumable fuels; and energy equipment and services. The Index is one of eleven Select Sector Indexes developed and maintained in accordance with the following criteria: (1) each of the component securities in the Index is a constituent of the S&P 500 Index; and (2) the Index is calculated by S&P Dow Jones Indices LLC ("S&P DJI") based on a proprietary "modified market capitalization" methodology which means that modifications may be made to the market capitalization weights of single stock concentrations in order to conform to the requirements of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code" or "IRC"). As of November 30, 2022, the Index was composed of 23 stocks.

------

<sup>Fund Summaries</sup>

**XLE**

The Index is also sponsored and compiled by S&P DJI. S&P DJI determines the composition of the Index and relative weightings of the securities in the Index based on the Index methodology (as the "Index Compilation Agent"). S&P DJI also publishes information regarding the market value of the Index (as the "Index Provider"). S&P DJI is not affiliated with the Fund or the Adviser.

**Principal Risks of Investing in the Fund**

As with all investments, there are certain risks of investing in the Fund. Fund Shares will change in value, and you could lose money by investing in the Fund. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

***Market Risk:*** The Fund's investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile and prices of investments can change substantially due to various factors including, but not limited to, economic growth or recession, changes in interest rates, inflation, changes in the actual or perceived creditworthiness of issuers, and general market liquidity. The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Local, regional or global events such as war, military conflicts, acts of terrorism, natural disasters, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments.

***Equity Investing Risk:*** The market prices of equity securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. The value of a security may decline for a number of reasons that may directly relate to the issuer and also may decline due to general industry or market conditions that are not specifically related to a particular company. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

***Energy Sector Risk:*** The Fund's assets will be concentrated in the energy sector, which means the Fund will be more affected by the performance of the energy sector than a fund that is more diversified. Issuers in energy-related industries can be significantly affected by fluctuations in energy prices

------

<sup>Fund Summaries</sup>

**XLE**

and supply and demand of energy fuels. Markets for various energy-related commodities can have significant volatility, and are subject to control or manipulation by large producers or purchasers. Companies in the energy sector may need to make substantial expenditures, and to incur significant amounts of debt, in order to maintain or expand their reserves. Oil and gas exploration and production can be significantly affected by natural disasters as well as changes in exchange rates, interest rates, government regulation, world events and economic conditions. These companies may be at risk for environmental damage claims.

***Fluctuation of Net Asset Value, Share Premiums and Discounts Risk:*** As with all exchange-traded funds, Fund Shares may be bought and sold in the secondary market at market prices. The trading prices of Fund Shares in the secondary market may differ from the Fund's daily net asset value per share and there may be times when the market price of the shares is more than the net asset value per share (premium) or less than the net asset value per share (discount). This risk is heightened in times of market volatility or periods of steep market declines.

***Indexing Strategy/Index Tracking Risk:*** The Fund is managed with an indexing investment strategy, attempting to track the performance of an unmanaged index of securities, regardless of the current or projected performance of the Index or of the actual securities comprising the Index. This differs from an actively-managed fund, which typically seeks to outperform a benchmark index. As a result, the Fund's performance may be less favorable than that of a portfolio managed using an active investment strategy. The structure and composition of the Index will affect the performance, volatility, and risk of the Index and, consequently, the performance, volatility, and risk of the Fund. Errors in index data, index computations or the construction of the Index in accordance with its methodology may occur from time to time and may not be identified and corrected by the Index Provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. When there are changes made to the component securities of the Index and the Fund in turn makes similar changes to its portfolio, any transaction costs and market exposure arising from such portfolio changes will be borne directly by the Fund and its shareholders. The Fund may recognize gains as a result of rebalancing or reconstituting its securities

------

<sup>Fund Summaries</sup>

**XLE**

holdings to reflect changes in the securities included in the Index. The Fund also may be required to distribute any such gains to its shareholders to avoid adverse federal income tax consequences. While the Adviser seeks to track the performance of the Index (*i.e.*, achieve a high degree of correlation with the Index), the Fund's return may not match the return of the Index. The Fund incurs a number of operating expenses not applicable to the Index, and incurs costs in buying and selling securities. In addition, the Fund may not be fully invested at times, generally as a result of cash flows into or out of the Fund or reserves of cash held by the Fund to meet redemptions.

***Large-Capitalization Securities Risk:*** Returns on investments in securities of large companies could trail the returns on investments in securities of smaller and mid-sized companies. Larger companies may be unable to respond as quickly as smaller and mid-sized companies to competitive challenges or to changes in business, product, financial, or market conditions. Larger companies may not be able to maintain growth at the high rates that may be achieved by well-managed smaller and mid-sized companies.

***Non-Diversification Risk:*** As a "non-diversified" fund, the Fund may hold a smaller number of portfolio securities than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of Fund Shares may be more volatile than the values of shares of more diversified funds. The Fund may become diversified for periods of time solely as a result of tracking the Index (e.g., changes in weightings of one or more component 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 Fund's performance from year to year and by showing how the Fund's average annual returns for certain time periods compare with the average annual returns of the Index and the S&P 500 Index. The S&P 500 Index is a well-known, broad-based securities market index that includes common stocks of approximately 500 companies from a number of sectors representing a significant portion of the market value of all stocks publicly traded

------

<sup>Fund Summaries</sup>

**XLE**

in the United States. The Fund's 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 by calling 1-866-732-8673 or visiting our website at www.sectorspdr.com.

**Annual Total Returns (years ended 12/31)**

![](g435817g2img2508d95e4.jpg)

Highest Quarterly Return: 38.97% (Q1, 2022)

Lowest Quarterly Return: -50.72% (Q1, 2020)

**Average Annual Total Returns (for periods ending 12/31/22)**

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 Fund Shares through tax-advantaged arrangements, such as 401(k) plans or individual retirement accounts. The returns after taxes can exceed the returns before taxes due to an assumed tax benefit for a shareholder from realizing a capital loss on a sale of Fund Shares.

------

<sup>Fund Summaries</sup>

**XLE**

---

| | | | |
|:---|:---|:---|:---|
|  | One<br> Year<br>| Five<br> Years<br>| Ten<br> Years<br>|
| Return Before Taxes | 64.42% | 9.12% | 5.90% |
| Return After Taxes on Distributions | 62.80% | 7.83% | 4.95% |
| Return After Taxes on Distributions and Sale of <br> Fund Shares<br>| 39.01% | 6.73% | 4.40% |
| Energy Select Sector Index (reflects no <br> deduction for fees, expenses or taxes)<br>| 64.56% | 9.25% | 6.03% |
| S&P 500 Index (reflects no deduction for fees, <br> expenses or taxes)<br>| -18.11% | 9.42% | 12.56% |

---

**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 Michael Feehily, Karl Schneider and Ted Janowsky.

Michael Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997 to 2006 and rejoined in 2010. Effective March 1, 2023, Mr. Feehily will no longer serve as a portfolio manager of the Fund.

Karl Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global Equity Beta Solutions in the Americas. He joined the Adviser in 1997.

Ted Janowsky, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. He joined the Adviser in 2005.

------

<sup>Fund Summaries</sup>

**XLE**

**Purchase and Sale Information**

The Fund will issue (or redeem) Fund Shares to certain institutional investors (typically market makers or other broker-dealers) only in large blocks of Fund Shares known as "Creation Units." Creation Unit transactions are conducted in exchange for the deposit or delivery of in-kind securities and/or cash.

Individual Fund Shares may only be purchased and sold on the NYSE Arca, Inc. (the "Exchange"), 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"), Fund Shares may trade at a price greater than NAV (premium) or less than NAV (discount). When buying or selling Fund Shares in the secondary market, you may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a seller is willing to accept for Fund Shares (ask) (the "bid-ask spread"). Recent information regarding the Fund's NAV, market price, premiums and discounts, and bid-ask spreads is available at www.sectorspdr.com.

**Tax Information**

The Fund's distributions are expected to be taxed as ordinary income, qualified dividend income and/or capital gains, unless you are investing through a tax-advantaged arrangement, such as a 401(k) plan or individual retirement account. Any withdrawals made from a tax-advantaged arrangement may be taxable to you.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase Fund Shares through a broker-dealer or other financial intermediary (such as a bank), the Adviser, the Distributor or their affiliates may pay the financial intermediary for certain activities related to the Fund, including educational training programs, conferences, the development of technology platforms and reporting systems, or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.

------

![](g435817g2selectsector_percen.jpg)

<sup>Fund Summaries</sup>

**The Financial Select Sector SPDR Fund**

**XLF**

**Investment Objective**

The Financial Select Sector SPDR Fund (the "Fund") seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Financial Select Sector Index (the "Index").

**Fees and Expenses of the Fund**

The table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund ("Fund Shares"). **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and Example below.**

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment):** 

---

| | |
|:---|:---|
| Management fees | 0.03% |
| Distribution and service (12b-1) fees<sup>1</sup> | 0.02% |
| Other expenses | 0.05% |
| **Total annual Fund operating expenses**<sup>1</sup> | **0.10%** |

---

<sup>1</sup>

The Fund's "Distribution and service (12b-1) fees" and "Total annual Fund operating expenses"have been restated to reflect current fees.

**Example:**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated, and then sell or hold all of your Fund Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's 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** |
| $10 | $32 | $56 | $128 |

---

------

<sup>Fund Summaries</sup>

**XLF**

**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 Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 4% of the average value of its portfolio.

**The Fund's Principal Investment 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 95%, of its total assets in the securities comprising the Index. The Fund will provide shareholders with at least 60 days' notice prior to any material change in this 95% investment policy. In addition, the Fund may invest in cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds (including money market funds advised by SSGA Funds Management, Inc. ("SSGA FM" or the "Adviser"), the investment adviser to the Fund).

The Index includes companies that have been identified as Financial companies by the Global Industry Classification Standard (GICS<sup>®</sup>), including securities of companies from the following industries: diversified financial services; insurance; banks; capital markets; mortgage real estate investment trusts ("REITs"); consumer finance; and thrifts and mortgage finance. The Index is one of eleven Select Sector Indexes developed and maintained in accordance with the following criteria: (1) each of the component securities in the Index is a constituent of the S&P 500 Index; and (2) the Index is calculated by S&P Dow Jones Indices LLC ("S&P DJI") based on a proprietary "modified market capitalization" methodology which means that modifications may be made to the market capitalization weights of single stock concentrations in order to conform to the requirements of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code" or "IRC"). As of November 30, 2022, the Index was composed of 67 stocks.

------

<sup>Fund Summaries</sup>

**XLF**

The Index is also sponsored and compiled by S&P DJI. S&P DJI determines the composition of the Index and relative weightings of the securities in the Index based on the Index methodology (as the "Index Compilation Agent"). S&P DJI also publishes information regarding the market value of the Index (as the "Index Provider"). S&P DJI is not affiliated with the Fund or the Adviser.

**Principal Risks of Investing in the Fund**

As with all investments, there are certain risks of investing in the Fund. Fund Shares will change in value, and you could lose money by investing in the Fund. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

***Market Risk:*** The Fund's investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile and prices of investments can change substantially due to various factors including, but not limited to, economic growth or recession, changes in interest rates, inflation, changes in the actual or perceived creditworthiness of issuers, and general market liquidity. The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Local, regional or global events such as war, military conflicts, acts of terrorism, natural disasters, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments.

***Equity Investing Risk:*** The market prices of equity securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. The value of a security may decline for a number of reasons that may directly relate to the issuer and also may decline due to general industry or market conditions that are not specifically related to a particular company. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

***Financial Sector Risk:*** The Fund's assets will be concentrated in the financial sector, which means the Fund will be more affected by the performance of the financial sector than a fund that is more diversified. Financial services companies are subject to extensive governmental regulation, which may

------

<sup>Fund Summaries</sup>

**XLF**

limit both the amounts and types of loans and other financial commitments they can make, the interest rates and fees they can charge, the scope of their activities, the prices they can charge and the amount of capital they must maintain. Profitability is largely dependent on the availability and cost of capital funds and can fluctuate significantly when interest rates change or due to increased competition. In addition, deterioration of the credit markets generally may cause an adverse impact in a broad range of markets, including U.S. and international credit and interbank money markets generally, thereby affecting a wide range of financial institutions and markets. Certain events in the financial sector may cause an unusually high degree of volatility in the financial markets, both domestic and foreign, and cause certain financial services companies to incur large losses. Securities of financial services companies may experience a dramatic decline in value when such companies experience substantial declines in the valuations of their assets, take action to raise capital (such as the issuance of debt or equity securities), or cease operations. Credit losses resulting from financial difficulties of borrowers and financial losses associated with investment activities can negatively impact the sector. Insurance companies may be subject to severe price competition. Adverse economic, business or political developments could adversely affect financial institutions engaged in mortgage finance or other lending or investing activities directly or indirectly connected to the value of real estate.

***Fluctuation of Net Asset Value, Share Premiums and Discounts Risk:*** As with all exchange-traded funds, Fund Shares may be bought and sold in the secondary market at market prices. The trading prices of Fund Shares in the secondary market may differ from the Fund's daily net asset value per share and there may be times when the market price of the shares is more than the net asset value per share (premium) or less than the net asset value per share (discount). This risk is heightened in times of market volatility or periods of steep market declines.

***Indexing Strategy/Index Tracking Risk:*** The Fund is managed with an indexing investment strategy, attempting to track the performance of an unmanaged index of securities, regardless of the current or projected performance of the Index or of the actual securities comprising the Index. This differs from an actively-managed fund, which typically seeks to outperform a benchmark index. As a result, the Fund's performance may be less favorable

------

<sup>Fund Summaries</sup>

**XLF**

than that of a portfolio managed using an active investment strategy. The structure and composition of the Index will affect the performance, volatility, and risk of the Index and, consequently, the performance, volatility, and risk of the Fund. Errors in index data, index computations or the construction of the Index in accordance with its methodology may occur from time to time and may not be identified and corrected by the Index Provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. When there are changes made to the component securities of the Index and the Fund in turn makes similar changes to its portfolio, any transaction costs and market exposure arising from such portfolio changes will be borne directly by the Fund and its shareholders. The Fund may recognize gains as a result of rebalancing or reconstituting its securities holdings to reflect changes in the securities included in the Index. The Fund also may be required to distribute any such gains to its shareholders to avoid adverse federal income tax consequences. While the Adviser seeks to track the performance of the Index (*i.e.*, achieve a high degree of correlation with the Index), the Fund's return may not match the return of the Index. The Fund incurs a number of operating expenses not applicable to the Index, and incurs costs in buying and selling securities. In addition, the Fund may not be fully invested at times, generally as a result of cash flows into or out of the Fund or reserves of cash held by the Fund to meet redemptions.

***Large-Capitalization Securities Risk:*** Returns on investments in securities of large companies could trail the returns on investments in securities of smaller and mid-sized companies. Larger companies may be unable to respond as quickly as smaller and mid-sized companies to competitive challenges or to changes in business, product, financial, or market conditions. Larger companies may not be able to maintain growth at the high rates that may be achieved by well-managed smaller and mid-sized companies.

***Non-Diversification Risk:*** As a "non-diversified" fund, the Fund may hold a smaller number of portfolio securities than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of Fund Shares may be more volatile than the values of shares of more diversified funds. The Fund may become diversified for periods of time solely as a

------

<sup>Fund Summaries</sup>

**XLF**

result of tracking the Index (e.g., changes in weightings of one or more component 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 Fund's performance from year to year and by showing how the Fund's average annual returns for certain time periods compare with the average annual returns of the Index and the S&P 500 Index. The S&P 500 Index is a well-known, broad-based securities market index that includes common stocks of approximately 500 companies from a number of sectors representing a significant portion of the market value of all stocks publicly traded in the United States. The Fund's 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 by calling 1-866-732-8673 or visiting our website at www.sectorspdr.com.

**Annual Total Returns (years ended 12/31)**

![](g435817g2img9c75090d5.jpg)

Highest Quarterly Return: 23.15% (Q4, 2020)

Lowest Quarterly Return: -31.94% (Q1, 2020)

**Average Annual Total Returns (for periods ending 12/31/22)**

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

------

<sup>Fund Summaries</sup>

**XLF**

relevant to investors who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans or individual retirement accounts. The returns after taxes can exceed the returns before taxes due to an assumed tax benefit for a shareholder from realizing a capital loss on a sale of Fund Shares.

---

| | | | |
|:---|:---|:---|:---|
|  | One<br> Year<br>| Five<br> Years<br>| Ten<br> Years<br>|
| Return Before Taxes | -10.56% | 6.29% | 12.02% |
| Return After Taxes on Distributions | -10.99% | 5.77% | 11.15% |
| Return After Taxes on Distributions and Sale of <br> Fund Shares<br>| -5.95% | 4.85% | 9.85% |
| Financial Select Sector Index (reflects no <br> deduction for fees, expenses or taxes)<br>| -10.53% | 6.42% | 12.16% |
| S&P 500 Index (reflects no deduction for fees, <br> expenses or taxes)<br>| -18.11% | 9.42% | 12.56% |

---

**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 Karl Schneider, Dwayne Hancock and Kala O'Donnell.

Karl Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global Equity Beta Solutions in the Americas. He joined the Adviser in 1997.

Dwayne Hancock, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. He joined the Adviser in 1996.

Kala O'Donnell is a Vice President of the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. She joined the Adviser in 1995.

------

<sup>Fund Summaries</sup>

**XLF**

**Purchase and Sale Information**

The Fund will issue (or redeem) Fund Shares to certain institutional investors (typically market makers or other broker-dealers) only in large blocks of Fund Shares known as "Creation Units." Creation Unit transactions are conducted in exchange for the deposit or delivery of in-kind securities and/or cash.

Individual Fund Shares may only be purchased and sold on the NYSE Arca, Inc. (the "Exchange"), 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"), Fund Shares may trade at a price greater than NAV (premium) or less than NAV (discount). When buying or selling Fund Shares in the secondary market, you may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a seller is willing to accept for Fund Shares (ask) (the "bid-ask spread"). Recent information regarding the Fund's NAV, market price, premiums and discounts, and bid-ask spreads is available at www.sectorspdr.com.

**Tax Information**

The Fund's distributions are expected to be taxed as ordinary income, qualified dividend income and/or capital gains, unless you are investing through a tax-advantaged arrangement, such as a 401(k) plan or individual retirement account. Any withdrawals made from a tax-advantaged arrangement may be taxable to you.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase Fund Shares through a broker-dealer or other financial intermediary (such as a bank), the Adviser, the Distributor or their affiliates may pay the financial intermediary for certain activities related to the Fund, including educational training programs, conferences, the development of technology platforms and reporting systems, or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.

------

![](g435817g2selectsector_scope.jpg)

<sup>Fund Summaries</sup>

**The Health Care Select Sector SPDR Fund**

**XLV**

**Investment Objective**

The Health Care Select Sector SPDR Fund (the "Fund") seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Health Care Select Sector Index (the "Index").

**Fees and Expenses of the Fund**

The table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund ("Fund Shares"). **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and Example below.**

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment):** 

---

| | |
|:---|:---|
| Management fees | 0.03% |
| Distribution and service (12b-1) fees<sup>1</sup> | 0.02% |
| Other expenses | 0.05% |
| **Total annual Fund operating expenses**<sup>1</sup> | **0.10%** |

---

<sup>1</sup>

The Fund's "Distribution and service (12b-1) fees" and "Total annual Fund operating expenses"have been restated to reflect current fees.

**Example:**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated, and then sell or hold all of your Fund Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's 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** |
| $10 | $32 | $56 | $128 |

---

------

<sup>Fund Summaries</sup>

**XLV**

**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 Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 2% of the average value of its portfolio.

**The Fund's Principal Investment 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 95%, of its total assets in the securities comprising the Index. The Fund will provide shareholders with at least 60 days' notice prior to any material change in this 95% investment policy. In addition, the Fund may invest in cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds (including money market funds advised by SSGA Funds Management, Inc. ("SSGA FM" or the "Adviser"), the investment adviser to the Fund).

The Index includes companies that have been identified as Health Care companies by the Global Industry Classification Standard (GICS<sup>®</sup>), including securities of companies from the following industries: pharmaceuticals; health care equipment and supplies; health care providers and services; biotechnology; life sciences tools and services; and health care technology. The Index is one of eleven Select Sector Indexes developed and maintained in accordance with the following criteria: (1) each of the component securities in the Index is a constituent of the S&P 500 Index; and (2) the Index is calculated by S&P Dow Jones Indices LLC ("S&P DJI") based on a proprietary "modified market capitalization" methodology which means that modifications may be made to the market capitalization weights of single stock concentrations in order to conform to the requirements of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code" or "IRC"). As of November 30, 2022, the Index was composed of 64 stocks.

------

<sup>Fund Summaries</sup>

**XLV**

The Index is also sponsored and compiled by S&P DJI. S&P DJI determines the composition of the Index and relative weightings of the securities in the Index based on the Index methodology (as the "Index Compilation Agent"). S&P DJI also publishes information regarding the market value of the Index (as the "Index Provider"). S&P DJI is not affiliated with the Fund or the Adviser.

**Principal Risks of Investing in the Fund**

As with all investments, there are certain risks of investing in the Fund. Fund Shares will change in value, and you could lose money by investing in the Fund. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

***Market Risk:*** The Fund's investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile and prices of investments can change substantially due to various factors including, but not limited to, economic growth or recession, changes in interest rates, inflation, changes in the actual or perceived creditworthiness of issuers, and general market liquidity. The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Local, regional or global events such as war, military conflicts, acts of terrorism, natural disasters, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments.

***Equity Investing Risk:*** The market prices of equity securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. The value of a security may decline for a number of reasons that may directly relate to the issuer and also may decline due to general industry or market conditions that are not specifically related to a particular company. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

***Health Care Sector Risk:*** The Fund's assets will be concentrated in the health care sector, which means the Fund will be more affected by the performance of the health care sector than a fund that is more diversified. Companies in the health care sector are subject to extensive government

------

<sup>Fund Summaries</sup>

**XLV**

regulation and their profitability can be significantly affected by restrictions on government reimbursement for medical expenses, rising costs of medical products and services, pricing pressure (including price discounting), limited product lines and an increased emphasis on the delivery of healthcare through outpatient services. Companies in the health care sector are heavily dependent on obtaining and defending patents, which may be time consuming and costly, and the expiration of patents may also adversely affect the profitability of these companies. Health care companies are also subject to extensive litigation based on product liability and similar claims. In addition, their products can become obsolete due to industry innovation, changes in technologies or other market developments. Many new products in the health care sector require significant research and development and may be subject to regulatory approvals, all of which may be time consuming and costly with no guarantee that any product will come to market.

***Fluctuation of Net Asset Value, Share Premiums and Discounts Risk:*** As with all exchange-traded funds, Fund Shares may be bought and sold in the secondary market at market prices. The trading prices of Fund Shares in the secondary market may differ from the Fund's daily net asset value per share and there may be times when the market price of the shares is more than the net asset value per share (premium) or less than the net asset value per share (discount). This risk is heightened in times of market volatility or periods of steep market declines.

***Indexing Strategy/Index Tracking Risk:*** The Fund is managed with an indexing investment strategy, attempting to track the performance of an unmanaged index of securities, regardless of the current or projected performance of the Index or of the actual securities comprising the Index. This differs from an actively-managed fund, which typically seeks to outperform a benchmark index. As a result, the Fund's performance may be less favorable than that of a portfolio managed using an active investment strategy. The structure and composition of the Index will affect the performance, volatility, and risk of the Index and, consequently, the performance, volatility, and risk of the Fund. Errors in index data, index computations or the construction of the Index in accordance with its methodology may occur from time to time and may not be identified and corrected by the Index Provider for a period of time or at all, which may have an adverse impact on the Fund

------

<sup>Fund Summaries</sup>

**XLV**

and its shareholders. When there are changes made to the component securities of the Index and the Fund in turn makes similar changes to its portfolio, any transaction costs and market exposure arising from such portfolio changes will be borne directly by the Fund and its shareholders. The Fund may recognize gains as a result of rebalancing or reconstituting its securities holdings to reflect changes in the securities included in the Index. The Fund also may be required to distribute any such gains to its shareholders to avoid adverse federal income tax consequences. While the Adviser seeks to track the performance of the Index (*i.e.*, achieve a high degree of correlation with the Index), the Fund's return may not match the return of the Index. The Fund incurs a number of operating expenses not applicable to the Index, and incurs costs in buying and selling securities. In addition, the Fund may not be fully invested at times, generally as a result of cash flows into or out of the Fund or reserves of cash held by the Fund to meet redemptions.

***Large-Capitalization Securities Risk:*** Returns on investments in securities of large companies could trail the returns on investments in securities of smaller and mid-sized companies. Larger companies may be unable to respond as quickly as smaller and mid-sized companies to competitive challenges or to changes in business, product, financial, or market conditions. Larger companies may not be able to maintain growth at the high rates that may be achieved by well-managed smaller and mid-sized companies.

***Non-Diversification Risk:*** As a "non-diversified" fund, the Fund may hold a smaller number of portfolio securities than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of Fund Shares may be more volatile than the values of shares of more diversified funds. The Fund may become diversified for periods of time solely as a result of tracking the Index (e.g., changes in weightings of one or more component 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 Fund's performance from year to year and by showing how the Fund's average annual returns for certain time periods

------

<sup>Fund Summaries</sup>

**XLV**

compare with the average annual returns of the Index and the S&P 500 Index. The S&P 500 Index is a well-known, broad-based securities market index that includes common stocks of approximately 500 companies from a number of sectors representing a significant portion of the market value of all stocks publicly traded in the United States. The Fund's 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 by calling 1-866-732-8673 or visiting our website at www.sectorspdr.com.

**Annual Total Returns (years ended 12/31)**

![](g435817g2img7835544c6.jpg)

Highest Quarterly Return: 15.70% (Q1, 2013)

Lowest Quarterly Return: -12.69% (Q1, 2020)

**Average Annual Total Returns (for periods ending 12/31/22)**

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 Fund Shares through tax-advantaged arrangements, such as 401(k) plans or individual retirement accounts. The returns after taxes can exceed the returns before taxes due to an assumed tax benefit for a shareholder from realizing a capital loss on a sale of Fund Shares.

------

<sup>Fund Summaries</sup>

**XLV**

---

| | | | |
|:---|:---|:---|:---|
|  | One<br> Year<br>| Five<br> Years<br>| Ten<br> Years<br>|
| Return Before Taxes | -2.05% | 12.37% | 14.88% |
| Return After Taxes on Distributions | -2.41% | 11.89% | 14.42% |
| Return After Taxes on Distributions and Sale of <br> Fund Shares<br>| -0.98% | 9.79% | 12.47% |
| Health Care Select Sector Index (reflects no <br> deduction for fees, expenses or taxes)<br>| -1.95% | 12.52% | 15.05% |
| S&P 500 Index (reflects no deduction for fees, <br> expenses or taxes)<br>| -18.11% | 9.42% | 12.56% |

---

**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 Michael Feehily, Karl Schneider and Dwayne Hancock.

Michael Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997 to 2006 and rejoined in 2010. Effective March 1, 2023, Mr. Feehily will no longer serve as a portfolio manager of the Fund.

Karl Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global Equity Beta Solutions in the Americas. He joined the Adviser in 1997.

Dwayne Hancock, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. He joined the Adviser in 1996.

------

<sup>Fund Summaries</sup>

**XLV**

**Purchase and Sale Information**

The Fund will issue (or redeem) Fund Shares to certain institutional investors (typically market makers or other broker-dealers) only in large blocks of Fund Shares known as "Creation Units." Creation Unit transactions are conducted in exchange for the deposit or delivery of in-kind securities and/or cash.

Individual Fund Shares may only be purchased and sold on the NYSE Arca, Inc. (the "Exchange"), 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"), Fund Shares may trade at a price greater than NAV (premium) or less than NAV (discount). When buying or selling Fund Shares in the secondary market, you may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a seller is willing to accept for Fund Shares (ask) (the "bid-ask spread"). Recent information regarding the Fund's NAV, market price, premiums and discounts, and bid-ask spreads is available at www.sectorspdr.com.

**Tax Information**

The Fund's distributions are expected to be taxed as ordinary income, qualified dividend income and/or capital gains, unless you are investing through a tax-advantaged arrangement, such as a 401(k) plan or individual retirement account. Any withdrawals made from a tax-advantaged arrangement may be taxable to you.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase Fund Shares through a broker-dealer or other financial intermediary (such as a bank), the Adviser, the Distributor or their affiliates may pay the financial intermediary for certain activities related to the Fund, including educational training programs, conferences, the development of technology platforms and reporting systems, or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.

------

![](g435817g2selectsector_jet.jpg)

<sup>Fund Summaries</sup>

**The Industrial Select Sector SPDR Fund**

**XLI**

**Investment Objective**

The Industrial Select Sector SPDR Fund (the "Fund") seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Industrial Select Sector Index (the "Index").

**Fees and Expenses of the Fund**

The table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund ("Fund Shares"). **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and Example below.**

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment):** 

---

| | |
|:---|:---|
| Management fees | 0.03% |
| Distribution and service (12b-1) fees<sup>1</sup> | 0.02% |
| Other expenses | 0.05% |
| **Total annual Fund operating expenses**<sup>1</sup> | **0.10%** |

---

<sup>1</sup>

The Fund's "Distribution and service (12b-1) fees" and "Total annual Fund operating expenses"have been restated to reflect current fees.

**Example:**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated, and then sell or hold all of your Fund Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's 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** |
| $10 | $32 | $56 | $128 |

---

------

<sup>Fund Summaries</sup>

**XLI**

**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 Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 7% of the average value of its portfolio.

**The Fund's Principal Investment 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 95%, of its total assets in the securities comprising the Index. The Fund will provide shareholders with at least 60 days' notice prior to any material change in this 95% investment policy. In addition, the Fund may invest in cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds (including money market funds advised by SSGA Funds Management, Inc. ("SSGA FM" or the "Adviser"), the investment adviser to the Fund).

The Index includes companies that have been identified as Industrial companies by the Global Industry Classification Standard (GICS<sup>®</sup>), including securities of companies from the following industries: aerospace and defense; industrial conglomerates; marine; transportation infrastructure; machinery; road and rail; air freight and logistics; commercial services and supplies; professional services; electrical equipment; construction and engineering; trading companies and distributors; airlines; and building products. The Index is one of eleven Select Sector Indexes developed and maintained in accordance with the following criteria: (1) each of the component securities in the Index is a constituent of the S&P 500 Index; and (2) the Index is calculated by S&P Dow Jones Indices LLC ("S&P DJI") based on a proprietary "modified market capitalization" methodology which means that modifications may be made to the market capitalization weights of single

------

<sup>Fund Summaries</sup>

**XLI**

stock concentrations in order to conform to the requirements of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code" or "IRC"). As of November 30, 2022, the Index was composed of 71 stocks.

The Index is also sponsored and compiled by S&P DJI. S&P DJI determines the composition of the Index and relative weightings of the securities in the Index based on the Index methodology (as the "Index Compilation Agent"). S&P DJI also publishes information regarding the market value of the Index (as the "Index Provider"). S&P DJI is not affiliated with the Fund or the Adviser.

**Principal Risks of Investing in the Fund**

As with all investments, there are certain risks of investing in the Fund. Fund Shares will change in value, and you could lose money by investing in the Fund. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

***Market Risk:*** The Fund's investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile and prices of investments can change substantially due to various factors including, but not limited to, economic growth or recession, changes in interest rates, inflation, changes in the actual or perceived creditworthiness of issuers, and general market liquidity. The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Local, regional or global events such as war, military conflicts, acts of terrorism, natural disasters, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments.

***Equity Investing Risk:*** The market prices of equity securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. The value of a security may decline for a number of reasons that may directly relate to the issuer and also may decline due to general industry or market conditions that are not specifically related to a particular company. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

------

<sup>Fund Summaries</sup>

**XLI**

***Industrial Sector Risk:*** The Fund's assets will be concentrated in the industrial sector, which means the Fund will be more affected by the performance of the industrial sector than a fund that is more diversified. Industrial companies are affected by supply and demand both for their specific product or service and for industrial sector products in general. Government regulation, world events, exchange rates and economic conditions, technological developments and liabilities for environmental damage and general civil liabilities will likewise affect the performance of these companies. Aerospace and defense companies, a component of the industrial sector, can be significantly affected by government spending policies because companies involved in this industry rely, to a significant extent, on U.S. and foreign government demand for their products and services. Thus, the financial condition of, and investor interest in, aerospace and defense companies are heavily influenced by governmental defense spending policies which are typically under pressure from efforts to control the U.S. (and other) government budgets. Transportation securities, a component of the industrial sector, are cyclical and have occasional sharp price movements which may result from changes in the economy, fuel prices, labor agreements and insurance costs.

***Fluctuation of Net Asset Value, Share Premiums and Discounts Risk:*** As with all exchange-traded funds, Fund Shares may be bought and sold in the secondary market at market prices. The trading prices of Fund Shares in the secondary market may differ from the Fund's daily net asset value per share and there may be times when the market price of the shares is more than the net asset value per share (premium) or less than the net asset value per share (discount). This risk is heightened in times of market volatility or periods of steep market declines.

***Indexing Strategy/Index Tracking Risk:*** The Fund is managed with an indexing investment strategy, attempting to track the performance of an unmanaged index of securities, regardless of the current or projected performance of the Index or of the actual securities comprising the Index. This differs from an actively-managed fund, which typically seeks to outperform a benchmark index. As a result, the Fund's performance may be less favorable than that of a portfolio managed using an active investment strategy. The structure and composition of the Index will affect the performance, volatility, and risk of the Index and, consequently, the performance, volatility, and

------

<sup>Fund Summaries</sup>

**XLI**

risk of the Fund. Errors in index data, index computations or the construction of the Index in accordance with its methodology may occur from time to time and may not be identified and corrected by the Index Provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. When there are changes made to the component securities of the Index and the Fund in turn makes similar changes to its portfolio, any transaction costs and market exposure arising from such portfolio changes will be borne directly by the Fund and its shareholders. The Fund may recognize gains as a result of rebalancing or reconstituting its securities holdings to reflect changes in the securities included in the Index. The Fund also may be required to distribute any such gains to its shareholders to avoid adverse federal income tax consequences. While the Adviser seeks to track the performance of the Index (*i.e.*, achieve a high degree of correlation with the Index), the Fund's return may not match the return of the Index. The Fund incurs a number of operating expenses not applicable to the Index, and incurs costs in buying and selling securities. In addition, the Fund may not be fully invested at times, generally as a result of cash flows into or out of the Fund or reserves of cash held by the Fund to meet redemptions.

***Large-Capitalization Securities Risk:*** Returns on investments in securities of large companies could trail the returns on investments in securities of smaller and mid-sized companies. Larger companies may be unable to respond as quickly as smaller and mid-sized companies to competitive challenges or to changes in business, product, financial, or market conditions. Larger companies may not be able to maintain growth at the high rates that may be achieved by well-managed smaller and mid-sized companies.

***Non-Diversification Risk:*** As a "non-diversified" fund, the Fund may hold a smaller number of portfolio securities than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of Fund Shares may be more volatile than the values of shares of more diversified funds. The Fund may become diversified for periods of time solely as a result of tracking the Index (e.g., changes in weightings of one or more component securities).

------

<sup>Fund Summaries</sup>

**XLI**

**Fund Performance**

The following bar chart and table provide an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for certain time periods compare with the average annual returns of the Index and the S&P 500 Index. The S&P 500 Index is a well-known, broad-based securities market index that includes common stocks of approximately 500 companies from a number of sectors representing a significant portion of the market value of all stocks publicly traded in the United States. The Fund's 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 by calling 1-866-732-8673 or visiting our website at www.sectorspdr.com.

**Annual Total Returns (years ended 12/31)**

![](g435817g2imgadbe64ab7.jpg)

Highest Quarterly Return: 19.21% (Q4, 2022)

Lowest Quarterly Return: -27.09% (Q1, 2020)

**Average Annual Total Returns (for periods ending 12/31/22)**

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 Fund Shares through tax-advantaged arrangements,

------

<sup>Fund Summaries</sup>

**XLI**

such as 401(k) plans or individual retirement accounts. The returns after taxes can exceed the returns before taxes due to an assumed tax benefit for a shareholder from realizing a capital loss on a sale of Fund Shares.

---

| | | | |
|:---|:---|:---|:---|
|  | One<br> Year<br>| Five<br> Years<br>| Ten<br> Years<br>|
| Return Before Taxes | -5.54% | 7.27% | 12.10% |
| Return After Taxes on Distributions | -5.93% | 6.81% | 11.58% |
| Return After Taxes on Distributions and Sale of <br> Fund Shares<br>| -3.04% | 5.63% | 9.95% |
| Industrial Select Sector Index (reflects no <br> deduction for fees, expenses or taxes)<br>| -5.48% | 7.42% | 12.28% |
| S&P 500 Index (reflects no deduction for fees, <br> expenses or taxes)<br>| -18.11% | 9.42% | 12.56% |

---

**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 Michael Feehily, Karl Schneider, Emiliano Rabinovich and Amy Cheng.

Michael Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997 to 2006 and rejoined in 2010. Effective March 1, 2023, Mr. Feehily will no longer serve as a portfolio manager of the Fund.

Karl Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global Equity Beta Solutions in the Americas. He joined the Adviser in 1997.

------

<sup>Fund Summaries</sup>

**XLI**

Emiliano Rabinovich, CFA, is a Managing Director of the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. He joined the Adviser in 2006.

Amy Cheng is a Vice President of the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. She joined the Adviser in 2000.

**Purchase and Sale Information**

The Fund will issue (or redeem) Fund Shares to certain institutional investors (typically market makers or other broker-dealers) only in large blocks of Fund Shares known as "Creation Units." Creation Unit transactions are conducted in exchange for the deposit or delivery of in-kind securities and/or cash.

Individual Fund Shares may only be purchased and sold on the NYSE Arca, Inc. (the "Exchange"), 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"), Fund Shares may trade at a price greater than NAV (premium) or less than NAV (discount). When buying or selling Fund Shares in the secondary market, you may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a seller is willing to accept for Fund Shares (ask) (the "bid-ask spread"). Recent information regarding the Fund's NAV, market price, premiums and discounts, and bid-ask spreads is available at www.sectorspdr.com.

**Tax Information**

The Fund's distributions are expected to be taxed as ordinary income, qualified dividend income and/or capital gains, unless you are investing through a tax-advantaged arrangement, such as a 401(k) plan or individual retirement account. Any withdrawals made from a tax-advantaged arrangement may be taxable to you.

------

<sup>Fund Summaries</sup>

**XLI**

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase Fund Shares through a broker-dealer or other financial intermediary (such as a bank), the Adviser, the Distributor or their affiliates may pay the financial intermediary for certain activities related to the Fund, including educational training programs, conferences, the development of technology platforms and reporting systems, or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.

------

![](g435817g2selectsector_hardha.jpg)

<sup>Fund Summaries</sup>

**The Materials Select Sector SPDR Fund**

**XLB**

**Investment Objective**

The Materials Select Sector SPDR Fund (the "Fund") seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Materials Select Sector Index (the "Index").

**Fees and Expenses of the Fund**

The table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund ("Fund Shares"). **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and Example below.**

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment):** 

---

| | |
|:---|:---|
| Management fees | 0.03% |
| Distribution and service (12b-1) fees<sup>1</sup> | 0.02% |
| Other expenses | 0.05% |
| **Total annual Fund operating expenses**<sup>1</sup> | **0.10%** |

---

<sup>1</sup>

The Fund's "Distribution and service (12b-1) fees" and "Total annual Fund operating expenses"have been restated to reflect current fees.

**Example:**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated, and then sell or hold all of your Fund Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's 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** |
| $10 | $32 | $56 | $128 |

---

------

<sup>Fund Summaries</sup>

**XLB**

**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 Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 2% of the average value of its portfolio.

**The Fund's Principal Investment 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 95%, of its total assets in the securities comprising the Index. The Fund will provide shareholders with at least 60 days' notice prior to any material change in this 95% investment policy. In addition, the Fund may invest in cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds (including money market funds advised by SSGA Funds Management, Inc. ("SSGA FM" or the "Adviser"), the investment adviser to the Fund).

The Index includes companies that have been identified as Materials companies by the Global Industry Classification Standard (GICS<sup>®</sup>), including securities of companies from the following industries: chemicals; metals and mining; paper and forest products; containers and packaging; and construction materials. The Index is one of eleven Select Sector Indexes developed and maintained in accordance with the following criteria: (1) each of the component securities in the Index is a constituent of the S&P 500 Index; and (2) the Index is calculated by S&P Dow Jones Indices LLC ("S&P DJI") based on a proprietary "modified market capitalization" methodology which means that modifications may be made to the market capitalization weights of single stock concentrations in order to conform to the requirements of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code" or "IRC"). As of November 30, 2022, the Index was composed of 28 stocks.

------

<sup>Fund Summaries</sup>

**XLB**

The Index is also sponsored and compiled by S&P DJI. S&P DJI determines the composition of the Index and relative weightings of the securities in the Index based on the Index methodology (as the "Index Compilation Agent"). S&P DJI also publishes information regarding the market value of the Index (as the "Index Provider"). S&P DJI is not affiliated with the Fund or the Adviser.

**Principal Risks of Investing in the Fund**

As with all investments, there are certain risks of investing in the Fund. Fund Shares will change in value, and you could lose money by investing in the Fund. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

***Market Risk:*** The Fund's investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile and prices of investments can change substantially due to various factors including, but not limited to, economic growth or recession, changes in interest rates, inflation, changes in the actual or perceived creditworthiness of issuers, and general market liquidity. The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Local, regional or global events such as war, military conflicts, acts of terrorism, natural disasters, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments.

***Equity Investing Risk:*** The market prices of equity securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. The value of a security may decline for a number of reasons that may directly relate to the issuer and also may decline due to general industry or market conditions that are not specifically related to a particular company. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

***Materials Sector Risk:*** The Fund's assets will be concentrated in the materials sector, which means the Fund will be more affected by the performance of the materials sector than a fund that is more diversified. Many materials companies are significantly affected by the level and volatility of commodity

------

<sup>Fund Summaries</sup>

**XLB**

prices, exchange rates, import controls, worldwide competition, environmental policies and consumer demand. At times, worldwide production of industrial materials has exceeded demand as a result of over-building or economic downturns, leading to poor investment returns or losses. Other risks may include liabilities for environmental damage and general civil liabilities, depletion of resources, and mandated expenditures for safety and pollution control. The materials sector may also be affected by economic cycles, technical progress, labor relations, and government regulations.

***Fluctuation of Net Asset Value, Share Premiums and Discounts Risk:*** As with all exchange-traded funds, Fund Shares may be bought and sold in the secondary market at market prices. The trading prices of Fund Shares in the secondary market may differ from the Fund's daily net asset value per share and there may be times when the market price of the shares is more than the net asset value per share (premium) or less than the net asset value per share (discount). This risk is heightened in times of market volatility or periods of steep market declines.

***Indexing Strategy/Index Tracking Risk:*** The Fund is managed with an indexing investment strategy, attempting to track the performance of an unmanaged index of securities, regardless of the current or projected performance of the Index or of the actual securities comprising the Index. This differs from an actively-managed fund, which typically seeks to outperform a benchmark index. As a result, the Fund's performance may be less favorable than that of a portfolio managed using an active investment strategy. The structure and composition of the Index will affect the performance, volatility, and risk of the Index and, consequently, the performance, volatility, and risk of the Fund. Errors in index data, index computations or the construction of the Index in accordance with its methodology may occur from time to time and may not be identified and corrected by the Index Provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. When there are changes made to the component securities of the Index and the Fund in turn makes similar changes to its portfolio, any transaction costs and market exposure arising from such portfolio changes will be borne directly by the Fund and its shareholders. The Fund may recognize gains as a result of rebalancing or reconstituting its securities holdings to reflect changes in the securities included in the Index. The Fund

------

<sup>Fund Summaries</sup>

**XLB**

also may be required to distribute any such gains to its shareholders to avoid adverse federal income tax consequences. While the Adviser seeks to track the performance of the Index (*i.e.*, achieve a high degree of correlation with the Index), the Fund's return may not match the return of the Index. The Fund incurs a number of operating expenses not applicable to the Index, and incurs costs in buying and selling securities. In addition, the Fund may not be fully invested at times, generally as a result of cash flows into or out of the Fund or reserves of cash held by the Fund to meet redemptions.

***Large-Capitalization Securities Risk:*** Returns on investments in securities of large companies could trail the returns on investments in securities of smaller and mid-sized companies. Larger companies may be unable to respond as quickly as smaller and mid-sized companies to competitive challenges or to changes in business, product, financial, or market conditions. Larger companies may not be able to maintain growth at the high rates that may be achieved by well-managed smaller and mid-sized companies.

***Non-Diversification Risk:*** As a "non-diversified" fund, the Fund may hold a smaller number of portfolio securities than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of Fund Shares may be more volatile than the values of shares of more diversified funds. The Fund may become diversified for periods of time solely as a result of tracking the Index (e.g., changes in weightings of one or more component 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 Fund's performance from year to year and by showing how the Fund's average annual returns for certain time periods compare with the average annual returns of the Index and the S&P 500 Index. The S&P 500 Index is a well-known, broad-based securities market index that includes common stocks of approximately 500 companies from a number of sectors representing a significant portion of the market value of all stocks publicly traded

------

<sup>Fund Summaries</sup>

**XLB**

in the United States. The Fund's 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 by calling 1-866-732-8673 or visiting our website at www.sectorspdr.com.

**Annual Total Returns (years ended 12/31)**

![](g435817g2img0d9c1c138.jpg)

Highest Quarterly Return: 25.79% (Q2, 2020)

Lowest Quarterly Return: -26.25% (Q1, 2020)

**Average Annual Total Returns (for periods ending 12/31/22)**

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 Fund Shares through tax-advantaged arrangements, such as 401(k) plans or individual retirement accounts. The returns after taxes can exceed the returns before taxes due to an assumed tax benefit for a shareholder from realizing a capital loss on a sale of Fund Shares.

------

<sup>Fund Summaries</sup>

**XLB**

---

| | | | |
|:---|:---|:---|:---|
|  | One<br> Year<br>| Five<br> Years<br>| Ten<br> Years<br>|
| Return Before Taxes | -12.31% | 7.31% | 9.77% |
| Return After Taxes on Distributions | -12.78% | 6.78% | 9.21% |
| Return After Taxes on Distributions and Sale of <br> Fund Shares<br>| -6.96% | 5.66% | 7.89% |
| Materials Select Sector Index (reflects no <br> deduction for fees, expenses or taxes)<br>| -12.27% | 7.38% | 9.88% |
| S&P 500 Index (reflects no deduction for fees, <br> expenses or taxes)<br>| -18.11% | 9.42% | 12.56% |

---

**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 Michael Feehily, Karl Schneider and Ted Janowsky.

Michael Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997 to 2006 and rejoined in 2010. Effective March 1, 2023, Mr. Feehily will no longer serve as a portfolio manager of the Fund.

Karl Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global Equity Beta Solutions in the Americas. He joined the Adviser in 1997.

Ted Janowsky, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. He joined the Adviser in 2005.

------

<sup>Fund Summaries</sup>

**XLB**

**Purchase and Sale Information**

The Fund will issue (or redeem) Fund Shares to certain institutional investors (typically market makers or other broker-dealers) only in large blocks of Fund Shares known as "Creation Units." Creation Unit transactions are conducted in exchange for the deposit or delivery of in-kind securities and/or cash.

Individual Fund Shares may only be purchased and sold on the NYSE Arca, Inc. (the "Exchange"), 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"), Fund Shares may trade at a price greater than NAV (premium) or less than NAV (discount). When buying or selling Fund Shares in the secondary market, you may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a seller is willing to accept for Fund Shares (ask) (the "bid-ask spread"). Recent information regarding the Fund's NAV, market price, premiums and discounts, and bid-ask spreads is available at www.sectorspdr.com.

**Tax Information**

The Fund's distributions are expected to be taxed as ordinary income, qualified dividend income and/or capital gains, unless you are investing through a tax-advantaged arrangement, such as a 401(k) plan or individual retirement account. Any withdrawals made from a tax-advantaged arrangement may be taxable to you.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase Fund Shares through a broker-dealer or other financial intermediary (such as a bank), the Adviser, the Distributor or their affiliates may pay the financial intermediary for certain activities related to the Fund, including educational training programs, conferences, the development of technology platforms and reporting systems, or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.

------

![](g435817g2selectsector_reales.jpg)

<sup>Fund Summaries</sup>

**The Real Estate Select Sector SPDR Fund**

**XLRE**

**Investment Objective**

The Real Estate Select Sector SPDR Fund (the "Fund") seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Real Estate Select Sector Index (the "Index").

**Fees and Expenses of the Fund**

The table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund ("Fund Shares"). **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and Example below.**

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment):** 

---

| | |
|:---|:---|
| Management fees | 0.03% |
| Distribution and service (12b-1) fees<sup>1</sup> | 0.02% |
| Other expenses | 0.05% |
| **Total annual Fund operating expenses**<sup>1</sup> | **0.10%** |

---

<sup>1</sup>

The Fund's "Distribution and service (12b-1) fees" and "Total annual Fund operating expenses"have been restated to reflect current fees.

**Example:**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated, and then sell or hold all of your Fund Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's 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** |
| $10 | $32 | $56 | $128 |

---

------

<sup>Fund Summaries</sup>

**XLRE**

**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 Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 11% of the average value of its portfolio.

**The Fund's Principal Investment 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 95%, of its total assets in the securities comprising the Index. The Fund will provide shareholders with at least 60 days' notice prior to any material change in this 95% investment policy. In addition, the Fund may invest in cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds (including money market funds advised by SSGA Funds Management, Inc. ("SSGA FM" or the "Adviser"), the investment adviser to the Fund).

The Index includes companies that have been identified as Real Estate companies by the Global Industry Classification Standard (GICS<sup>®</sup>), including securities of companies from the following industries: real estate management and development and real estate investment trusts ("REITs"), excluding mortgage REITs. The Index is one of eleven Select Sector Indexes developed and maintained in accordance with the following criteria: (1) each of the component securities in the Index is a constituent of the S&P 500 Index; and (2) the Index is calculated by S&P Dow Jones Indices LLC ("S&P DJI") based on a proprietary "modified market capitalization" methodology which means that modifications may be made to the market capitalization weights of single stock concentrations in order to conform to the requirements of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code" or "IRC"). As of November 30, 2022, the Index was composed of 31 stocks.

------

<sup>Fund Summaries</sup>

**XLRE**

The Index is also sponsored and compiled by S&P DJI. S&P DJI determines the composition of the Index and relative weightings of the securities in the Index based on the Index methodology (as the "Index Compilation Agent"). S&P DJI also publishes information regarding the market value of the Index (as the "Index Provider"). S&P DJI is not affiliated with the Fund or the Adviser.

**Principal Risks of Investing in the Fund**

As with all investments, there are certain risks of investing in the Fund. Fund Shares will change in value, and you could lose money by investing in the Fund. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

***Market Risk:*** The Fund's investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile and prices of investments can change substantially due to various factors including, but not limited to, economic growth or recession, changes in interest rates, inflation, changes in the actual or perceived creditworthiness of issuers, and general market liquidity. The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Local, regional or global events such as war, military conflicts, acts of terrorism, natural disasters, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments.

***Equity Investing Risk:*** The market prices of equity securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. The value of a security may decline for a number of reasons that may directly relate to the issuer and also may decline due to general industry or market conditions that are not specifically related to a particular company. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

***Real Estate Sector Risk:*** The Fund's assets will be concentrated in the real estate sector, which means the Fund will be more affected by the performance of the real estate sector than a fund that is more diversified. An investment in a real property company may be subject to risks similar to those associated

------

<sup>Fund Summaries</sup>

**XLRE**

with direct ownership of real estate, including, by way of example, the possibility of declines in the value of real estate, losses from casualty or condemnation, and changes in local and general economic conditions, supply and demand, interest rates, environmental liability, zoning laws, regulatory limitations on rents, property taxes, and operating expenses. Some real property companies have limited diversification because they invest in a limited number of properties, a narrow geographic area, or a single type of property.

***REIT Risk:*** REITs are subject to the risks associated with investing in the securities of real property companies. In particular, REITs may be affected by changes in the values of the underlying properties that they own or operate. Further, REITs are dependent upon specialized management skills, and their investments may be concentrated in relatively few properties, or in a small geographic area or a single property type. REITs are also subject to heavy cash flow dependency and, as a result, are particularly reliant on the proper functioning of capital markets. A variety of economic and other factors may adversely affect a lessee's ability to meet its obligations to a REIT. In the event of a default by a lessee, the REIT may experience delays in enforcing its rights as a lessor and may incur substantial costs associated in protecting its investments. In addition, a REIT could fail to qualify for favorable tax or regulatory treatment.

***Fluctuation of Net Asset Value, Share Premiums and Discounts Risk:*** As with all exchange-traded funds, Fund Shares may be bought and sold in the secondary market at market prices. The trading prices of Fund Shares in the secondary market may differ from the Fund's daily net asset value per share and there may be times when the market price of the shares is more than the net asset value per share (premium) or less than the net asset value per share (discount). This risk is heightened in times of market volatility or periods of steep market declines.

***Indexing Strategy/Index Tracking Risk:*** The Fund is managed with an indexing investment strategy, attempting to track the performance of an unmanaged index of securities, regardless of the current or projected performance of the Index or of the actual securities comprising the Index. This differs from an actively-managed fund, which typically seeks to outperform

------

<sup>Fund Summaries</sup>

**XLRE**

a benchmark index. As a result, the Fund's performance may be less favorable than that of a portfolio managed using an active investment strategy. The structure and composition of the Index will affect the performance, volatility, and risk of the Index and, consequently, the performance, volatility, and risk of the Fund. Errors in index data, index computations or the construction of the Index in accordance with its methodology may occur from time to time and may not be identified and corrected by the Index Provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. When there are changes made to the component securities of the Index and the Fund in turn makes similar changes to its portfolio, any transaction costs and market exposure arising from such portfolio changes will be borne directly by the Fund and its shareholders. The Fund may recognize gains as a result of rebalancing or reconstituting its securities holdings to reflect changes in the securities included in the Index. The Fund also may be required to distribute any such gains to its shareholders to avoid adverse federal income tax consequences. While the Adviser seeks to track the performance of the Index (*i.e.*, achieve a high degree of correlation with the Index), the Fund's return may not match the return of the Index. The Fund incurs a number of operating expenses not applicable to the Index, and incurs costs in buying and selling securities. In addition, the Fund may not be fully invested at times, generally as a result of cash flows into or out of the Fund or reserves of cash held by the Fund to meet redemptions.

***Large-Capitalization Securities Risk:*** Returns on investments in securities of large companies could trail the returns on investments in securities of smaller and mid-sized companies. Larger companies may be unable to respond as quickly as smaller and mid-sized companies to competitive challenges or to changes in business, product, financial, or market conditions. Larger companies may not be able to maintain growth at the high rates that may be achieved by well-managed smaller and mid-sized companies.

***Non-Diversification Risk:*** As a "non-diversified" fund, the Fund may hold a smaller number of portfolio securities than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of Fund Shares may be more volatile than the values of shares of more diversified

------

<sup>Fund Summaries</sup>

**XLRE**

funds. The Fund may become diversified for periods of time solely as a result of tracking the Index (e.g., changes in weightings of one or more component 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 Fund's performance from year to year and by showing how the Fund's average annual returns for certain time periods compare with the average annual returns of the Index and the S&P 500 Index. The S&P 500 Index is a well-known, broad-based securities market index that includes common stocks of approximately 500 companies from a number of sectors representing a significant portion of the market value of all stocks publicly traded in the United States. The Fund's 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 by calling 1-866-732-8673 or visiting our website at www.sectorspdr.com.

**Annual Total Returns (years ended 12/31)**

![](g435817g2imgbff7103b9.jpg)

Highest Quarterly Return: 17.50% (Q4, 2021)

Lowest Quarterly Return: -19.29% (Q1, 2020)

**Average Annual Total Returns (for periods ending 12/31/22)**

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

------

<sup>Fund Summaries</sup>

**XLRE**

tax situation and may differ from those shown below. After-tax returns are not relevant to investors who hold Fund Shares through tax-advantaged arrangements, such as 401(k) plans or individual retirement accounts. The returns after taxes can exceed the returns before taxes due to an assumed tax benefit for a shareholder from realizing a capital loss on a sale of Fund Shares.

---

| | | | |
|:---|:---|:---|:---|
|  | One<br> Year<br>| Five<br> Years<br>| Since Inception<br> 10/07/2015<br>|
| Return Before Taxes | -26.20% | 5.80% | 6.56% |
| Return After Taxes on Distributions | -27.12% | 4.50% | 5.12% |
| Return After Taxes on Distributions <br> and Sale of Fund Shares<br>| -15.37% | 4.01% | 4.53% |
| Real Estate Select Sector Index <br> (reflects no deduction for fees, <br> expenses or taxes)<br>| -26.13% | 5.93% | 6.70% |
| S&P 500 Index (reflects no deduction <br> for fees, expenses or taxes)<br>| -18.11% | 9.42% | 11.53% |

---

**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 Michael Feehily, Karl Schneider and Amy Cheng.

Michael Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997 to 2006 and rejoined in 2010. Effective March 1, 2023, Mr. Feehily will no longer serve as a portfolio manager of the Fund.

Karl Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global Equity Beta Solutions in the Americas. He joined the Adviser in 1997.

------

<sup>Fund Summaries</sup>

**XLRE**

Amy Cheng is a Vice President of the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. She joined the Adviser in 2000.

**Purchase and Sale Information**

The Fund will issue (or redeem) Fund Shares to certain institutional investors (typically market makers or other broker-dealers) only in large blocks of Fund Shares known as "Creation Units." Creation Unit transactions are conducted in exchange for the deposit or delivery of in-kind securities and/or cash.

Individual Fund Shares may only be purchased and sold on the NYSE Arca, Inc. (the "Exchange"), 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"), Fund Shares may trade at a price greater than NAV (premium) or less than NAV (discount). When buying or selling Fund Shares in the secondary market, you may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a seller is willing to accept for Fund Shares (ask) (the "bid-ask spread"). Recent information regarding the Fund's NAV, market price, premiums and discounts, and bid-ask spreads is available at www.sectorspdr.com.

**Tax Information**

The Fund's distributions are expected to be taxed as ordinary income, qualified dividend income and/or capital gains, unless you are investing through a tax-advantaged arrangement, such as a 401(k) plan or individual retirement account. Any withdrawals made from a tax-advantaged arrangement may be taxable to you. Some distributions may be treated as a return of capital for tax purposes. Certain capital gain dividends attributable to dividends the Fund receives from U.S. REITs may be taxable to noncorporate shareholders at a rate other than the generally applicable reduced rates.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase Fund Shares through a broker-dealer or other financial intermediary (such as a bank), the Adviser, the Distributor or their affiliates may pay the financial intermediary for certain activities related to the Fund, including educational training

------

<sup>Fund Summaries</sup>

**XLRE**

programs, conferences, the development of technology platforms and reporting systems, or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.

------

![](g435817g2selectsector_laptop.jpg)

<sup>Fund Summaries</sup>

**The Technology Select Sector SPDR Fund**

**XLK**

**Investment Objective**

The Technology Select Sector SPDR Fund (the "Fund") seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Technology Select Sector Index (the "Index").

**Fees and Expenses of the Fund**

The table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund ("Fund Shares"). **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and Example below.**

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment):** 

---

| | |
|:---|:---|
| Management fees | 0.03% |
| Distribution and service (12b-1) fees<sup>1</sup> | 0.02% |
| Other expenses | 0.05% |
| **Total annual Fund operating expenses**<sup>1</sup> | **0.10%** |

---

<sup>1</sup>

The Fund's "Distribution and service (12b-1) fees" and "Total annual Fund operating expenses"have been restated to reflect current fees.

**Example:**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated, and then sell or hold all of your Fund Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's 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** |
| $10 | $32 | $56 | $128 |

---

------

<sup>Fund Summaries</sup>

**XLK**

**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 Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 9% of the average value of its portfolio.

**The Fund's Principal Investment 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 95%, of its total assets in the securities comprising the Index. The Fund will provide shareholders with at least 60 days' notice prior to any material change in this 95% investment policy. In addition, the Fund may invest in cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds (including money market funds advised by SSGA Funds Management, Inc. ("SSGA FM" or the "Adviser"), the investment adviser to the Fund).

The Index includes companies that have been identified as Information Technology companies by the Global Industry Classification Standard (GICS<sup>®</sup>), including securities of companies from the following industries: technology hardware, storage, and peripherals; software; communications equipment; semiconductors and semiconductor equipment; IT services; and electronic equipment, instruments and components. The Index is one of eleven Select Sector Indexes developed and maintained in accordance with the following criteria: (1) each of the component securities in the Index is a constituent of the S&P 500 Index; and (2) the Index is calculated by S&P Dow Jones Indices LLC ("S&P DJI") based on a proprietary "modified market capitalization" methodology which means that modifications

------

<sup>Fund Summaries</sup>

**XLK**

may be made to the market capitalization weights of single stock concentrations in order to conform to the requirements of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code" or "IRC"). As of November 30, 2022, the Index was composed of 75 stocks.

The Index is also sponsored and compiled by S&P DJI. S&P DJI determines the composition of the Index and relative weightings of the securities in the Index based on the Index methodology (as the "Index Compilation Agent"). S&P DJI also publishes information regarding the market value of the Index (as the "Index Provider"). S&P DJI is not affiliated with the Fund or the Adviser.

**Principal Risks of Investing in the Fund**

As with all investments, there are certain risks of investing in the Fund. Fund Shares will change in value, and you could lose money by investing in the Fund. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

***Market Risk:*** The Fund's investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile and prices of investments can change substantially due to various factors including, but not limited to, economic growth or recession, changes in interest rates, inflation, changes in the actual or perceived creditworthiness of issuers, and general market liquidity. The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Local, regional or global events such as war, military conflicts, acts of terrorism, natural disasters, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments.

***Equity Investing Risk:*** The market prices of equity securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. The value of a security may decline for a number of reasons that may directly relate to the issuer and also may decline due to general industry or market conditions that are not specifically related to a particular company. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

------

<sup>Fund Summaries</sup>

**XLK**

***Technology Sector Risk:*** The Fund's assets will be concentrated in the technology sector, which means the Fund will be more affected by the performance of the technology sector than a fund that is more diversified. Market or economic factors impacting technology companies and companies that rely heavily on technological advances could have a major effect on the value of the Fund's investments. The value of stocks of technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation and competition, both domestically and internationally, including competition from foreign competitors with lower production costs. Stocks of technology companies and companies that rely heavily on technology, especially those of smaller, less-seasoned companies, tend to be more volatile than the overall market. Technology companies are heavily dependent on patent and intellectual property rights, the loss or impairment of which may adversely affect profitability. Additionally, companies in the technology sector may face dramatic and often unpredictable changes in growth rates and competition for the services of qualified personnel.

***Fluctuation of Net Asset Value, Share Premiums and Discounts Risk:*** As with all exchange-traded funds, Fund Shares may be bought and sold in the secondary market at market prices. The trading prices of Fund Shares in the secondary market may differ from the Fund's daily net asset value per share and there may be times when the market price of the shares is more than the net asset value per share (premium) or less than the net asset value per share (discount). This risk is heightened in times of market volatility or periods of steep market declines.

***Indexing Strategy/Index Tracking Risk:*** The Fund is managed with an indexing investment strategy, attempting to track the performance of an unmanaged index of securities, regardless of the current or projected performance of the Index or of the actual securities comprising the Index. This differs from an actively-managed fund, which typically seeks to outperform a benchmark index. As a result, the Fund's performance may be less favorable than that of a portfolio managed using an active investment strategy. The structure and composition of the Index will affect the performance, volatility, and risk of the Index and, consequently, the performance, volatility, and risk of the Fund. Errors in index data, index computations or the construction

------

<sup>Fund Summaries</sup>

**XLK**

of the Index in accordance with its methodology may occur from time to time and may not be identified and corrected by the Index Provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. When there are changes made to the component securities of the Index and the Fund in turn makes similar changes to its portfolio, any transaction costs and market exposure arising from such portfolio changes will be borne directly by the Fund and its shareholders. The Fund may recognize gains as a result of rebalancing or reconstituting its securities holdings to reflect changes in the securities included in the Index. The Fund also may be required to distribute any such gains to its shareholders to avoid adverse federal income tax consequences. While the Adviser seeks to track the performance of the Index (*i.e.*, achieve a high degree of correlation with the Index), the Fund's return may not match the return of the Index. The Fund incurs a number of operating expenses not applicable to the Index, and incurs costs in buying and selling securities. In addition, the Fund may not be fully invested at times, generally as a result of cash flows into or out of the Fund or reserves of cash held by the Fund to meet redemptions.

***Large-Capitalization Securities Risk:*** Returns on investments in securities of large companies could trail the returns on investments in securities of smaller and mid-sized companies. Larger companies may be unable to respond as quickly as smaller and mid-sized companies to competitive challenges or to changes in business, product, financial, or market conditions. Larger companies may not be able to maintain growth at the high rates that may be achieved by well-managed smaller and mid-sized companies.

***Non-Diversification Risk:*** As a "non-diversified" fund, the Fund may hold a smaller number of portfolio securities than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of Fund Shares may be more volatile than the values of shares of more diversified funds. The Fund may become diversified for periods of time solely as a result of tracking the Index (e.g., changes in weightings of one or more component securities).

------

<sup>Fund Summaries</sup>

**XLK**

**Fund Performance**

The following bar chart and table provide an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for certain time periods compare with the average annual returns of the Index and the S&P 500 Index. The S&P 500 Index is a well-known, broad-based securities market index that includes common stocks of approximately 500 companies from a number of sectors representing a significant portion of the market value of all stocks publicly traded in the United States. The Fund's 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 by calling 1-866-732-8673 or visiting our website at www.sectorspdr.com.

**Annual Total Returns (years ended 12/31)**

![](g435817g2img963176fe10.jpg)

Highest Quarterly Return: 30.43% (Q2, 2020)

Lowest Quarterly Return: -19.70% (Q2, 2022)

**Average Annual Total Returns (for periods ending 12/31/22)**

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 Fund Shares through tax-advantaged arrangements,

------

<sup>Fund Summaries</sup>

**XLK**

such as 401(k) plans or individual retirement accounts. The returns after taxes can exceed the returns before taxes due to an assumed tax benefit for a shareholder from realizing a capital loss on a sale of Fund Shares.

---

| | | | |
|:---|:---|:---|:---|
|  | One<br> Year<br>| Five<br> Years<br>| Ten<br> Years<br>|
| Return Before Taxes | -27.71% | 15.56% | 17.41% |
| Return After Taxes on Distributions | -27.88% | 15.25% | 17.01% |
| Return After Taxes on Distributions and Sale of <br> Fund Shares<br>| -16.27% | 12.53% | 14.77% |
| Technology Select Sector Index (reflects no <br> deduction for fees, expenses or taxes)<br>| -27.64% | 15.75% | 17.62% |
| S&P 500 Index (reflects no deduction for fees, <br> expenses or taxes)<br>| -18.11% | 9.42% | 12.56% |

---

**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 Karl Schneider, David Chin and Kala O'Donnell.

Karl Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global Equity Beta Solutions in the Americas. He joined the Adviser in 1997.

David Chin is a Vice President of the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. He joined the Adviser in 1999.

Kala O'Donnell is a Vice President of the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. She joined the Adviser in 1995.

------

<sup>Fund Summaries</sup>

**XLK**

**Purchase and Sale Information**

The Fund will issue (or redeem) Fund Shares to certain institutional investors (typically market makers or other broker-dealers) only in large blocks of Fund Shares known as "Creation Units." Creation Unit transactions are conducted in exchange for the deposit or delivery of in-kind securities and/or cash.

Individual Fund Shares may only be purchased and sold on the NYSE Arca, Inc. (the "Exchange"), 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"), Fund Shares may trade at a price greater than NAV (premium) or less than NAV (discount). When buying or selling Fund Shares in the secondary market, you may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a seller is willing to accept for Fund Shares (ask) (the "bid-ask spread"). Recent information regarding the Fund's NAV, market price, premiums and discounts, and bid-ask spreads is available at www.sectorspdr.com.

**Tax Information**

The Fund's distributions are expected to be taxed as ordinary income, qualified dividend income and/or capital gains, unless you are investing through a tax-advantaged arrangement, such as a 401(k) plan or individual retirement account. Any withdrawals made from a tax-advantaged arrangement may be taxable to you.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase Fund Shares through a broker-dealer or other financial intermediary (such as a bank), the Adviser, the Distributor or their affiliates may pay the financial intermediary for certain activities related to the Fund, including educational training programs, conferences, the development of technology platforms and reporting systems, or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.

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![](g435817g2selectsector_bulb.jpg)

<sup>Fund Summaries</sup>

**The Utilities Select Sector SPDR Fund**

**XLU**

**Investment Objective**

The Utilities Select Sector SPDR Fund (the "Fund") seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Utilities Select Sector Index (the "Index").

**Fees and Expenses of the Fund**

The table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund ("Fund Shares"). **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and Example below.**

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment):** 

---

| | |
|:---|:---|
| Management fees | 0.03% |
| Distribution and service (12b-1) fees<sup>1</sup> | 0.02% |
| Other expenses | 0.05% |
| **Total annual Fund operating expenses**<sup>1</sup> | **0.10%** |

---

<sup>1</sup>

The Fund's "Distribution and service (12b-1) fees" and "Total annual Fund operating expenses"have been restated to reflect current fees.

**Example:**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated, and then sell or hold all of your Fund Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's 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** |
| $10 | $32 | $56 | $128 |

---

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<sup>Fund Summaries</sup>

**XLU**

**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 Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 4% of the average value of its portfolio.

**The Fund's Principal Investment 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 95%, of its total assets in the securities comprising the Index. The Fund will provide shareholders with at least 60 days' notice prior to any material change in this 95% investment policy. In addition, the Fund may invest in cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds (including money market funds advised by SSGA Funds Management, Inc. ("SSGA FM" or the "Adviser"), the investment adviser to the Fund).

The Index includes companies that have been identified as Utilities companies by the Global Industry Classification Standard (GICS<sup>®</sup>), including securities of companies from the following industries: electric utilities; water utilities; multi-utilities; independent power and renewable electricity producers; and gas utilities. The Index is one of eleven Select Sector Indexes developed and maintained in accordance with the following criteria: (1) each of the component securities in the Index is a constituent of the S&P 500 Index; and (2) the Index is calculated by S&P Dow Jones Indices LLC ("S&P DJI") based on a proprietary "modified market capitalization" methodology which means that modifications may be made to the market capitalization weights of single stock concentrations in order to conform to the requirements of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code" or "IRC"). As of November 30, 2022, the Index was composed of 30 stocks.

------

<sup>Fund Summaries</sup>

**XLU**

The Index is also sponsored and compiled by S&P DJI. S&P DJI determines the composition of the Index and relative weightings of the securities in the Index based on the Index methodology (as the "Index Compilation Agent"). S&P DJI also publishes information regarding the market value of the Index (as the "Index Provider"). S&P DJI is not affiliated with the Fund or the Adviser.

**Principal Risks of Investing in the Fund**

As with all investments, there are certain risks of investing in the Fund. Fund Shares will change in value, and you could lose money by investing in the Fund. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

***Market Risk:*** The Fund's investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile and prices of investments can change substantially due to various factors including, but not limited to, economic growth or recession, changes in interest rates, inflation, changes in the actual or perceived creditworthiness of issuers, and general market liquidity. The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Local, regional or global events such as war, military conflicts, acts of terrorism, natural disasters, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments.

***Equity Investing Risk:*** The market prices of equity securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. The value of a security may decline for a number of reasons that may directly relate to the issuer and also may decline due to general industry or market conditions that are not specifically related to a particular company. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

***Utilities Sector Risk:*** The Fund's assets will be concentrated in the utilities sector, which means the Fund will be more affected by the performance of the utilities sector than a fund that is more diversified. Utility companies are affected by supply and demand, operating costs, government regulation,

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<sup>Fund Summaries</sup>

**XLU**

environmental factors, liabilities for environmental damage and general civil liabilities, and rate caps or rate changes. Although rate changes of a regulated utility usually fluctuate in approximate correlation with financing costs, due to political and regulatory factors rate changes ordinarily occur only following a delay after the changes in financing costs. This factor will tend to favorably affect a regulated utility company's earnings and dividends in times of decreasing costs, but conversely, will tend to adversely affect earnings and dividends when costs are rising. The value of regulated utility equity securities may tend to have an inverse relationship to the movement of interest rates. Certain utility companies have experienced full or partial deregulation in recent years. These utility companies are frequently more similar to industrial companies in that they are subject to greater competition and have been permitted by regulators to diversify outside of their original geographic regions and their traditional lines of business. These opportunities may permit certain utility companies to earn more than their traditional regulated rates of return. Some companies, however, may be forced to defend their core business and may be less profitable. In addition, natural disasters, terrorist attacks, government intervention or other factors may render a utility company's equipment unusable or obsolete and negatively impact profitability.

Among the risks that may affect utility companies are the following: risks of increases in fuel and other operating costs; the high cost of borrowing to finance capital construction during inflationary periods; restrictions on operations and increased costs and delays associated with compliance with environmental and nuclear safety regulations; and the difficulties involved in obtaining natural gas for resale or fuel for generating electricity at reasonable prices. Other risks include those related to the construction and operation of nuclear power plants, the effects of energy conservation and the effects of regulatory changes.

***Fluctuation of Net Asset Value, Share Premiums and Discounts Risk:*** As with all exchange-traded funds, Fund Shares may be bought and sold in the secondary market at market prices. The trading prices of Fund Shares in the secondary market may differ from the Fund's daily net asset value per share and there may be times when the market price of the shares is more than the net asset value per share (premium) or less than the net asset

------

<sup>Fund Summaries</sup>

**XLU**

value per share (discount). This risk is heightened in times of market volatility or periods of steep market declines.

***Indexing Strategy/Index Tracking Risk:*** The Fund is managed with an indexing investment strategy, attempting to track the performance of an unmanaged index of securities, regardless of the current or projected performance of the Index or of the actual securities comprising the Index. This differs from an actively-managed fund, which typically seeks to outperform a benchmark index. As a result, the Fund's performance may be less favorable than that of a portfolio managed using an active investment strategy. The structure and composition of the Index will affect the performance, volatility, and risk of the Index and, consequently, the performance, volatility, and risk of the Fund. Errors in index data, index computations or the construction of the Index in accordance with its methodology may occur from time to time and may not be identified and corrected by the Index Provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. When there are changes made to the component securities of the Index and the Fund in turn makes similar changes to its portfolio, any transaction costs and market exposure arising from such portfolio changes will be borne directly by the Fund and its shareholders. The Fund may recognize gains as a result of rebalancing or reconstituting its securities holdings to reflect changes in the securities included in the Index. The Fund also may be required to distribute any such gains to its shareholders to avoid adverse federal income tax consequences. While the Adviser seeks to track the performance of the Index (*i.e.*, achieve a high degree of correlation with the Index), the Fund's return may not match the return of the Index. The Fund incurs a number of operating expenses not applicable to the Index, and incurs costs in buying and selling securities. In addition, the Fund may not be fully invested at times, generally as a result of cash flows into or out of the Fund or reserves of cash held by the Fund to meet redemptions.

***Large-Capitalization Securities Risk:*** Returns on investments in securities of large companies could trail the returns on investments in securities of smaller and mid-sized companies. Larger companies may be unable to respond as quickly as smaller and mid-sized companies to competitive challenges or to changes in business, product, financial, or market conditions. Larger companies may not be able to maintain growth at the high rates that may

------

<sup>Fund Summaries</sup>

**XLU**

be achieved by well-managed smaller and mid-sized companies.

***Non-Diversification Risk:*** As a "non-diversified" fund, the Fund may hold a smaller number of portfolio securities than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of Fund Shares may be more volatile than the values of shares of more diversified funds. The Fund may become diversified for periods of time solely as a result of tracking the Index (e.g., changes in weightings of one or more component 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 Fund's performance from year to year and by showing how the Fund's average annual returns for certain time periods compare with the average annual returns of the Index and the S&P 500 Index. The S&P 500 Index is a well-known, broad-based securities market index that includes common stocks of approximately 500 companies from a number of sectors representing a significant portion of the market value of all stocks publicly traded in the United States. The Fund's 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 by calling 1-866-732-8673 or visiting our website at www.sectorspdr.com.

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<sup>Fund Summaries</sup>

**XLU**

**Annual Total Returns (years ended 12/31)**

![](g435817g2img785f62d711.jpg)

Highest Quarterly Return: 15.47% (Q1, 2016)

Lowest Quarterly Return: -13.53% (Q1, 2020)

**Average Annual Total Returns (for periods ending 12/31/22)**

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 Fund Shares through tax-advantaged arrangements, such as 401(k) plans or individual retirement accounts. The returns after taxes can exceed the returns before taxes due to an assumed tax benefit for a shareholder from realizing a capital loss on a sale of Fund Shares.

------

<sup>Fund Summaries</sup>

**XLU**

---

| | | | |
|:---|:---|:---|:---|
|  | One<br> Year<br>| Five<br> Years<br>| Ten<br> Years<br>|
| Return Before Taxes | 1.44% | 9.44% | 10.92% |
| Return After Taxes on Distributions | 0.71% | 8.60% | 10.02% |
| Return After Taxes on Distributions and Sale of <br> Fund Shares<br>| 1.31% | 7.33% | 8.79% |
| Utilities Select Sector Index (reflects no <br> deduction for fees, expenses or taxes)<br>| 1.57% | 9.59% | 11.10% |
| S&P 500 Index (reflects no deduction for fees, <br> expenses or taxes)<br>| -18.11% | 9.42% | 12.56% |

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**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 Michael Feehily, Karl Schneider and Dwayne Hancock.

Michael Feehily, CFA, is a Senior Managing Director of the Adviser and the Head of Global Equity Beta Solutions in the Americas. He worked at the Adviser from 1997 to 2006 and rejoined in 2010. Effective March 1, 2023, Mr. Feehily will no longer serve as a portfolio manager of the Fund.

Karl Schneider, CAIA, is a Managing Director of the Adviser and Deputy Head of Global Equity Beta Solutions in the Americas. He joined the Adviser in 1997.

Dwayne Hancock, CFA, is a Vice President of the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. He joined the Adviser in 1996.

------

<sup>Fund Summaries</sup>

**XLU**

**Purchase and Sale Information**

The Fund will issue (or redeem) Fund Shares to certain institutional investors (typically market makers or other broker-dealers) only in large blocks of Fund Shares known as "Creation Units." Creation Unit transactions are conducted in exchange for the deposit or delivery of in-kind securities and/or cash.

Individual Fund Shares may only be purchased and sold on the NYSE Arca, Inc. (the "Exchange"), 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"), Fund Shares may trade at a price greater than NAV (premium) or less than NAV (discount). When buying or selling Fund Shares in the secondary market, you may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase Fund Shares (bid) and the lowest price a seller is willing to accept for Fund Shares (ask) (the "bid-ask spread"). Recent information regarding the Fund's NAV, market price, premiums and discounts, and bid-ask spreads is available at www.sectorspdr.com.

**Tax Information**

The Fund's distributions are expected to be taxed as ordinary income, qualified dividend income and/or capital gains, unless you are investing through a tax-advantaged arrangement, such as a 401(k) plan or individual retirement account. Any withdrawals made from a tax-advantaged arrangement may be taxable to you.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase Fund Shares through a broker-dealer or other financial intermediary (such as a bank), the Adviser, the Distributor or their affiliates may pay the financial intermediary for certain activities related to the Fund, including educational training programs, conferences, the development of technology platforms and reporting systems, or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.

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**Additional Strategies Information**

**Principal Strategies**

Please see each Fund's "The Fund's Principal Investment Strategy" section under "Fund Summaries" for a complete discussion of each Fund's principal investment strategies. A Fund may invest in various types of securities and engage in various investment techniques which are not the principal focus of the Fund. Some of these are described below under "Non-Principal Strategies" and others are not described in this Prospectus. These other securities, techniques and practices, together with their associated risks, are described in the Statement of Additional Information (the "SAI"), which you may obtain free of charge by contacting the Distributor (see the back cover of this Prospectus for the address and phone number).

The Adviser seeks to track the performance of a Fund's Index as closely as possible (*i.e*., obtain a high degree of correlation with the Index). A number of factors may affect a Fund's ability to achieve a high degree of correlation with its Index, and there can be no guarantee that a Fund will achieve a high degree of correlation. For example, a Fund may not be able to achieve a high degree of correlation with its Index when there are practical difficulties or substantial costs involved in compiling a portfolio of securities to follow the Index, when a security in the Index becomes temporarily illiquid, unavailable or less liquid, or legal restrictions exist that prohibit the Fund from investing in a security in the Index.

While normally each Fund employs a replication strategy to track the performance of its Index, under various circumstances it may not be possible or practical to purchase all of the securities in the benchmark Index for a Fund, or amounts of such securities in proportion to their weighting in the Index, such as when there are practical difficulties or substantial costs involved in compiling a portfolio of securities to follow the Index; in instances when a security in the Index becomes temporarily illiquid, unavailable or less liquid; or due to legal restrictions (such as diversification requirements that apply to the Fund but not the Index). Under such circumstances, the Adviser intends to employ a sampling strategy in managing such Fund. Sampling means that the Adviser 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 relevant 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 a 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 each Index. The Adviser may sell securities that are represented in an Index, or purchase securities that are not yet represented in an Index, in anticipation of their removal from or addition to an Index. Further,

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the Adviser may choose to overweight securities in an Index, purchase or sell securities not in an Index, or utilize various combinations of other available techniques, in seeking to track an Index.

The Select Sector SPDR Trust's (the "Trust") Board of Trustees (the "Board") may change a Fund's investment strategy and other policies without shareholder approval, except as otherwise indicated in this Prospectus or in the SAI. The Board may not change a Fund's investment objective without shareholder approval.

**Non-Principal Strategies**

*Certain Other Investments*. Each Fund may invest in equity securities that are not included in the Fund's Index, convertible securities, variable rate demand notes, commercial paper, structured notes (notes on which the amount of principal repayment and interest payments are based on the movement of one or more specified factors such as the movement of a particular security or index), swaps and options and futures contracts. Swaps, options and futures contracts, convertible securities and structured notes may be used by a Fund in seeking performance that corresponds to its Index and in managing cash flows.

*Temporary Defensive Positions*. In certain situations or market conditions, a Fund may temporarily depart from its normal investment policies and strategies provided that the alternative is consistent with the Fund's investment objective and is in the best interest of the Fund. For example, a Fund may make larger than normal investments in derivatives to maintain exposure to its Index if it is unable to invest directly in a component security, or if a derivative investment may provide higher liquidity than other types of investments. Consequently, under such circumstances, such Fund may invest in a different mix of investments than it would under normal circumstances.

*Borrowing Money*. Each Fund may borrow money from a bank up to a limit of 10% of the value of its assets, but only for temporary or emergency purposes.

*Lending of Securities*. Each Fund may lend its portfolio securities in an amount not to exceed 40% of the value of its net assets via a securities lending program through its securities lending agent, State Street Bank and Trust Company ("State Street" or the "Lending Agent"), to brokers, dealers and other financial institutions desiring to borrow securities to complete transactions and for other purposes. A securities lending program allows a Fund to receive a portion of the income generated by lending its securities and investing the respective collateral. A Fund will receive collateral for each loaned security which is at least equal to the market value of that security, marked to market each trading day. To the extent a Fund receives cash collateral, as of the date of this Prospectus, the Adviser expects to invest such cash collateral in a fund managed by the Adviser that invests in: a broad range of money market instruments; certificates of deposit and time deposits of U.S. and foreign banks; commercial paper and other high quality

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obligations of U.S. or foreign companies; asset-backed securities; mortgage-related securities; repurchase agreements; and shares of money market funds. In the securities lending program, the borrower generally has the right to vote the loaned securities; however, a Fund may call loans to vote proxies if a material issue affecting the Fund's economic interest in the investment is to be voted upon. Security loans may be terminated at any time by a Fund.

**Additional Risk Information**

The following section provides information regarding the principal risks identified under "Principal Risks of Investing in the Fund" in each Fund Summary along with additional risk information.

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**Principal Risks**

The table below identifies the principal risks of investing in each Fund.

The Communication Services Select Sector SPDR Fund (XLC)

The Consumer Discretionary Select Sector SPDR Fund (XLY)

The Consumer Staples Select Sector SPDR Fund (XLP)

The Energy Select Sector SPDR Fund (XLE)

The Financial Select Sector SPDR Fund (XLF)

The Health Care Select Sector SPDR Fund (XLV)

The Industrial Select Sector SPDR Fund (XLI)

The Materials Select Sector SPDR Fund (XLB)

The Real Estate Select Sector SPDR Fund (XLRE)

The Technology Select Sector SPDR Fund (XLK)

The Utilities Select Sector SPDR Fund (XLU)

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Fund Name** | **XLC** | **XLY** | **XLP** | **XLE** | **XLF** | **XLV** | **XLI** | **XLB** | **XLRE** | **XLK** | **XLU** |
| &nbsp;&nbsp; **Communication Services** <br> **Sector Risk**<br>| x |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp; **Consumer Discretionary** <br> **Sector Risk**<br>|  | x |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp; **Consumer Staples Sector** <br> **Risk**<br>|  |  | x |  |  |  |  |  |  |  |  |
| **Energy Sector Risk** |  |  |  | x |  |  |  |  |  |  |  |
| **Equity Investing Risk** | x | x | x | x | x | x | x | x | x | x | x |
| **Financial Sector Risk** |  |  |  |  | x |  |  |  |  |  |  |
| &nbsp;&nbsp; **Fluctuation of Net Asset** <br> **Value, Share Premiums and** <br> **Discounts Risk**<br>| x | x | x | x | x | x | x | x | x | x | x |
| **Health Care Sector Risk** |  |  |  |  |  | x |  |  |  |  |  |
| &nbsp;&nbsp; **Indexing Strategy/Index** <br> **Tracking Risk**<br>| x | x | x | x | x | x | x | x | x | x | x |
| **Industrial Sector Risk** |  |  |  |  |  |  | x |  |  |  |  |
| &nbsp;&nbsp; **Large-Capitalization** <br> **Securities Risk**<br>| x | x | x | x | x | x | x | x | x | x | x |
| **Market Risk** | x | x | x | x | x | x | x | x | x | x | x |
| **Materials Sector Risk** |  |  |  |  |  |  |  | x |  |  |  |
| **Non-Diversification Risk** | x | x | x | x | x | x | x | x | x | x | x |
| **Real Estate Sector Risk** |  |  |  |  |  |  |  |  | x |  |  |
| **REIT Risk** |  |  |  |  |  |  |  |  | x |  |  |
| **Technology Sector Risk** |  |  |  |  |  |  |  |  |  | x |  |
| **Utilities Sector Risk** |  |  |  |  |  |  |  |  |  |  | x |

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*Communication Services Sector Risk.* Communication services companies are particularly vulnerable to the potential obsolescence of products and services due to technological advancement and the innovation of competitors. Companies in the communication services sector may also be affected by other competitive pressures, such as pricing competition, as well as research and development costs, substantial capital requirements and government regulation. Additionally, fluctuating domestic and international demand, shifting demographics and often unpredictable changes in consumer tastes can drastically affect a communication services company's profitability. While all companies may be susceptible to network security breaches, certain companies in the communication services sector may be particular targets of hacking and potential theft of proprietary or consumer information or disruptions in service, which could have a material adverse effect on their businesses.

*Consumer Discretionary Sector Risk*. The success of consumer product manufacturers and retailers is tied closely to the performance of the overall global 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 respective profitability. Changes in demographics and consumer tastes can also affect the demand for, and success of, consumer products and services in the marketplace.

*Consumer Staples Sector Risk*. Consumer staples companies are subject to government regulation affecting their products which may negatively impact such companies' performance. For instance, government regulations may affect the permissibility of using various food additives and production methods of companies that make food products, which could affect company profitability. Tobacco companies may be adversely affected by the adoption of proposed legislation and/or by litigation. Also, the success of food, beverage, household and personal products companies may be strongly affected by consumer interest, marketing campaigns and other factors affecting supply and demand, including performance of the overall domestic and international economy, interest rates, competition and consumer confidence and spending.

*Energy Sector Risk*. Issuers in energy-related industries can be significantly affected by fluctuations in energy prices and supply and demand of energy fuels caused by geopolitical events, energy conservation or use of alternative fuel sources, the success of exploration projects, weather or meteorological events, taxes, increased governmental or environmental regulation, resource depletion, rising interest rates, declines in domestic or foreign production, accidents or catastrophic events, or terrorist threats or attacks, among others. Markets for various energy-related commodities can have significant volatility, and are subject to control or manipulation by large producers or purchasers. Companies in the energy sector may need to make substantial expenditures, and to incur significant amounts of

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debt, in order to maintain or expand their reserves through exploration of new sources of supply, through the development of existing sources, through acquisitions, or through long-term contracts to acquire reserves. Factors adversely affecting producers, refiners, distributors, or others in the energy sector may affect adversely companies that service or supply those entities, either because demand for those services or products is curtailed, or those services or products come under price pressure.

*Equity Investing Risk*. The market prices of equity securities owned by a Fund may go up or down, sometimes rapidly or unpredictably. The value of a security may decline for a number of reasons that may directly relate to the issuer, such as management performance, financial leverage, non-compliance with regulatory requirements, and reduced demand for the issuer's goods or services. The values of equity securities also may decline due to general industry or market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates, or adverse investor sentiment generally. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

*Financial Sector Risk.* Financial services companies are subject to extensive governmental regulation, which may limit both the amounts and types of loans and other financial commitments they can make, the interest rates and fees they can charge, the scope of their activities, the prices they can charge and the amount of capital they must maintain. Profitability is largely dependent on the availability and cost of capital funds and can fluctuate significantly when interest rates change or due to increased competition. In addition, deterioration of the credit markets generally may cause an adverse impact in a broad range of markets, including U.S. and international credit and interbank money markets generally, thereby affecting a wide range of financial institutions and markets. Certain events in the financial sector may cause an unusually high degree of volatility in the financial markets, both domestic and foreign, and cause certain financial services companies to incur large losses. Securities of financial services companies may experience a dramatic decline in value when such companies experience substantial declines in the valuations of their assets, take action to raise capital (such as the issuance of debt or equity securities), or cease operations. Credit losses resulting from financial difficulties of borrowers and financial losses associated with investment activities can negatively impact the sector. Insurance companies may be subject to severe price competition. Adverse economic, business or political developments could adversely affect financial institutions engaged in mortgage finance or other lending or investing activities directly or indirectly connected to the value of real estate. The Financial Select Sector SPDR Fund's exposure to real estate securities is limited to mortgage REITs.

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*Fluctuation of Net Asset Value, Share Premiums and Discounts Risk*. The net asset value of Fund Shares will generally fluctuate with changes in the market value of a Fund's securities holdings. The market prices of Fund Shares will generally fluctuate in accordance with changes in a Fund's net asset value and supply and demand of Fund Shares on the Exchange. It cannot be predicted whether Fund Shares will trade below, at or above their net asset value. Price differences may be due, in large part, to the fact that supply and demand forces at work in the secondary trading market for Fund Shares will be closely related to, but not identical to, the same forces influencing the prices of the securities of an Index trading individually or in the aggregate at any point in time. The market prices of Fund Shares may deviate significantly from the net asset value of Fund Shares during periods of market volatility. However, given that Fund Shares can be created and redeemed in Creation Units (unlike shares of many closed-end funds, which frequently trade at appreciable discounts from, and sometimes at premiums to, their net asset value), the Adviser believes that large discounts or premiums to the net asset value of Fund Shares should not be sustained over long periods. While the creation/redemption feature is designed to make it likely that Fund Shares normally will trade close to a Fund's net asset value, disruptions to creations and redemptions or market volatility may result in trading prices that differ significantly from such Fund's net asset value. If an investor purchases Fund Shares at a time when the market price is at a premium to the net asset value of Fund Shares or sells at a time when the market price is at a discount to the net asset value of Fund Shares, then the investor may sustain losses.

*Health Care Sector Risk*. Companies in the health care sector are subject to extensive government regulation and their profitability can be significantly affected by restrictions on government reimbursement for medical expenses, rising costs of medical products and services, pricing pressure (including price discounting), limited product lines and an increased emphasis on the delivery of healthcare through outpatient services. Companies in the health care sector are heavily dependent on obtaining and defending patents, which may be time consuming and costly, and the expiration of patents may also adversely affect the profitability of these companies. Health care companies are also subject to extensive litigation based on product liability and similar claims. In addition, their products can become obsolete due to industry innovation, changes in technologies or other market developments. Many new products in the health care sector require significant research and development and may be subject to regulatory approvals, all of which may be time consuming and costly with no guarantee that any product will come to market.

*Indexing Strategy/Index Tracking Risk*. Each Fund is managed with an indexing investment strategy, attempting to track the performance of an unmanaged index of securities. Each Fund will seek to replicate Index returns, regardless of the current or projected performance of the Index or of the actual securities comprising

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the Index. This differs from an actively-managed fund, which typically seeks to outperform a benchmark index. Each Fund generally will buy and will not sell a security included in the Index as long as the security is part of the Index regardless of any sudden or material decline in value or foreseeable material decline in value of the security, even though the Adviser may make a different investment decision for other actively managed accounts or portfolios that hold the security. As a result, a Fund's performance may be less favorable than that of a portfolio managed using an active investment strategy. The structure and composition of an Index will affect the performance, volatility, and risk of the Index (in absolute terms and by comparison with other indices) and, consequently, the performance, volatility, and risk of a Fund. Errors in index data, index computations or the construction of the Index in accordance with its methodology may occur from time to time and may not be identified and corrected by the Index Provider for a period of time or at all, which may have an adverse impact on a Fund and its shareholders. While the Adviser seeks to track the performance of the Index (i.e., achieve a high degree of correlation with the Index), a Fund's return may not match the return of the Index for a number of reasons. Each Fund incurs a number of operating expenses not applicable to the Index, and incurs costs in buying and selling securities. In addition, a Fund may not be fully invested at times, either as a result of cash flows into or out of the Fund or reserves of cash held by the Fund to meet redemptions. Changes in the composition of the Index and regulatory requirements also may impact a Fund's ability to match the return of the Index. Index tracking risk may be heightened during times of increased market volatility or other unusual market conditions.

Pursuant to the applicable Index methodology, a security may be removed from an Index in the event that it does not comply with the eligibility requirements of the Index. As a result, a Fund may be forced to sell securities at inopportune times and/or unfavorable prices due to these changes in its Index components. When there are changes made to the component securities of an Index and the applicable Fund in turn makes similar changes to its portfolio to attempt to increase the correlation between such Fund's portfolio and its Index, any transaction costs and market exposure arising from such portfolio changes will be borne directly by the Fund and its shareholders. Unscheduled changes to an Index may expose a Fund to additional tracking error risk. Each Fund may recognize gains as a result of rebalancing or reconstituting its securities holdings to reflect changes in the securities included in its Index. A Fund also may be required to distribute any such gains to its shareholders to avoid adverse federal income tax consequences.

*Industrial Sector Risk*. Industrial companies are affected by supply and demand both for their specific product or service and for industrial sector products in general. Government regulation, world events, exchange rates and economic conditions, technological developments and liabilities for environmental damage and general civil liabilities will likewise affect the performance of these companies.

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Aerospace and defense companies, a component of the industrial sector, can be significantly affected by government spending policies because companies involved in this industry rely, to a significant extent, on U.S. and foreign government demand for their products and services. Thus, the financial condition of, and investor interest in, aerospace and defense companies are heavily influenced by governmental defense spending policies which are typically under pressure from efforts to control the U.S. (and other) government budgets. Transportation securities, a component of the industrial sector, are cyclical and have occasional sharp price movements which may result from changes in the economy, fuel prices, labor agreements and insurance costs.

*Large-Capitalization Securities Risk.* Securities issued by large-capitalization companies may present risks not present in smaller companies. For example, larger companies may be unable to respond as quickly as smaller and mid-sized companies to competitive challenges or to changes in business, product, financial, or other market conditions. Larger companies may not be able to maintain growth at the high rates that may be achieved by well-managed smaller and mid-sized companies, especially during strong economic periods. Returns on investments in securities of large companies could trail the returns on investments in securities of smaller and mid-sized companies.

*Market Risk*. Market prices of investments held by a Fund will go up or down, sometimes rapidly or unpredictably. A Fund's investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile, and prices of investments can change substantially due to various factors, including, but not limited to, economic growth or recession, changes in interest rates, inflation, changes in actual or perceived creditworthiness of issuers and general market liquidity. Even if general economic conditions do not change, the value of an investment in a Fund could decline if the particular industries, sectors or companies in which the Fund invests do not perform well or are adversely affected by events. Further, legal, political, regulatory and tax changes also may cause fluctuations in markets and securities prices. Local, regional or global events such as war, military conflicts, acts of terrorism, natural disasters, the spread of infectious illness or other public health issues, or other events could have a significant impact on a Fund and its investments.

An outbreak of a respiratory disease caused by a novel coronavirus (known as COVID-19) first detected in China in December 2019 has resulted in a global pandemic and major disruptions to economies and markets around the world, including the United States. Although vaccines have been developed and approved for use by various governments, the duration of the pandemic and its effects cannot be predicted with certainty. COVID-19 has contributed to, and may continue to contribute to, market volatility, inflation, reduced liquidity of certain instruments,

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and systemic economic weakness, and trading in many instruments was and may continue to be disrupted as a result. In addition, the transmission of COVID-19 and efforts to contain its spread have resulted in international border closings, enhanced health screenings, strained healthcare systems and increased healthcare expenses, quarantines and other restrictions on business and personal activities, cancellations, disruptions to supply chains and consumer activity, as well as general public concern and uncertainty. Governments and central banks, including the Federal Reserve in the United States, have taken extraordinary and unprecedented actions to support local and global economies and the financial markets. The impact of these measures, and whether they will be effective to mitigate the economic and market disruption, will not be known for some time. The foregoing could impact a Fund and its investments and result in disruptions to the services provided to a Fund by its service providers.

*Materials Sector Risk.* Many materials companies are significantly affected by the level and volatility of commodity prices, exchange rates, import controls, worldwide competition, environmental policies and consumer demand. At times, worldwide production of industrial materials has exceeded demand as a result of over-building or economic downturns, leading to poor investment returns or losses. Other risks may include liabilities for environmental damage and general civil liabilities, depletion of resources, and mandated expenditures for safety and pollution control. The materials sector may also be affected by economic cycles, technical progress, labor relations, and government regulations.

*Non-Diversification Risk*. As a "non-diversified" fund, each Fund may hold a smaller number of portfolio securities than many other funds. To the extent a Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of Fund Shares may be more volatile than the values of shares of more diversified funds. A Fund may become diversified for periods of time solely as a result of tracking its corresponding Index (e.g., changes in weightings of one or more component securities).

*Real Estate Sector Risk*. There are special risks associated with investment in securities of companies engaged in real property markets, including without limitation REITs and real estate operating companies. An investment in a real property company may be subject to risks similar to those associated with direct ownership of real estate, including, by way of example, the possibility of declines in the value of real estate, losses from casualty or condemnation, and changes in local and general economic conditions, supply and demand, interest rates, environmental liability, zoning laws, regulatory limitations on rents, property taxes, and operating expenses. An investment in a real property company is subject to additional risks, such as poor performance by the manager of the real property company, adverse changes in tax laws, difficulties in valuing and disposing of real estate, and the effect of

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general declines in stock prices. Some real property companies have limited diversification because they invest in a limited number of properties, a narrow geographic area, or a single type of property. Also, the organizational documents of a real property company may contain provisions that make changes in control of the company difficult and time-consuming. As a shareholder in a real property company, the Fund, and indirectly the Fund's shareholders, would bear their ratable shares of the real property company's expenses and would at the same time continue to pay their own fees and expenses.

*REIT Risk*. REITs are subject to the risks associated with investing in the securities of real property companies. In particular, REITs may be affected by changes in the values of the underlying properties that they own or operate. Further, REITs are dependent upon specialized management skills, and their investments may be concentrated in relatively few properties, or in a small geographic area or a single property type. REITs are also subject to heavy cash flow dependency and, as a result, are particularly reliant on the proper functioning of capital markets, as well as defaults by borrowers and self-liquidation. A variety of economic and other factors may adversely affect a lessee's ability to meet its obligations to a REIT. In the event of a default by a lessee, the REIT may experience delays in enforcing its rights as a lessor and may incur substantial costs associated with protecting its investments. In addition, a REIT could possibly fail to qualify for favorable tax treatment under the Internal Revenue Code, or to maintain its exemptions from registration under the 1940 Act, which could have adverse consequences for a Fund. Investments in REITs are also subject to the risks affecting equity markets generally.

*Technology Sector Risk*. Market or economic factors impacting technology companies and companies that rely heavily on technological advances could have a major effect on the value of the Fund's investments. The value of stocks of technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation and competition, both domestically and internationally, including competition from foreign competitors with lower production costs. Technology companies may have limited product lines, markets, financial resources or personnel. Stocks of technology companies and companies that rely heavily on technology, especially those of smaller, less-seasoned companies, tend to be more volatile than the overall market. Technology companies are heavily dependent on patent and intellectual property rights, the loss or impairment of which may adversely affect profitability. Additionally, companies in the technology sector may face dramatic and often unpredictable changes in growth rates and competition for the services of qualified personnel.

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*Utilities Sector Risk.* Utility companies are affected by supply and demand, operating costs, government regulation, environmental factors, liabilities for environmental damage and general civil liabilities, and rate caps or rate changes. Although rate changes of a regulated utility usually fluctuate in approximate correlation with financing costs, due to political and regulatory factors, rate changes ordinarily occur only following a delay after the changes in financing costs. This factor will tend to favorably affect a regulated utility company's earnings and dividends in times of decreasing costs, but conversely, will tend to adversely affect earnings and dividends when costs are rising. The value of regulated utility equity securities may tend to have an inverse relationship to the movement of interest rates. Certain utility companies have experienced full or partial deregulation in recent years. These utility companies are frequently more similar to industrial companies in that they are subject to greater competition and have been permitted by regulators to diversify outside of their original geographic regions and their traditional lines of business. These opportunities may permit certain utility companies to earn more than their traditional regulated rates of return. Some companies, however, may be forced to defend their core business and may be less profitable. In addition, natural disasters, terrorist attacks, government intervention or other factors may render a utility company's equipment unusable or obsolete and negatively impact profitability.

Among the risks that may affect utility companies are the following: risks of increases in fuel and other operating costs; the high cost of borrowing to finance capital construction during inflationary periods; restrictions on operations and increased costs and delays associated with compliance with environmental and nuclear safety regulations; and the difficulties involved in obtaining natural gas for resale or fuel for generating electricity at reasonable prices. Other risks include those related to the construction and operation of nuclear power plants, the effects of energy conservation and the effects of regulatory changes.

**Non-Principal Risks**

*Authorized Participants, Market Makers and Liquidity Providers Concentration Risk.* A Fund has a limited number of financial institutions that may act as Authorized Participants ("APs"), which are responsible for the creation and redemption activity for a Fund. In addition, there may be a limited number of market makers and/or liquidity providers in the marketplace. To the extent either of the following events occur, Fund Shares may trade at a material discount to NAV and possibly face delisting: (i) APs exit the business or otherwise become unable to process creation and/or redemption orders and no other APs step forward to perform these services, or (ii) market makers and/or liquidity providers exit the business or significantly reduce their business activities and no other entities step forward to perform their functions.

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*Conflicts of Interest Risk.* An investment in a Fund will be subject to a number of actual or potential conflicts of interest. For example, the Adviser or its affiliates may provide services to a Fund, such as securities lending agency services, custodial, administrative, bookkeeping, and accounting services, transfer agency and shareholder servicing, securities brokerage services, and other services for which the Fund would compensate the Adviser and/or such affiliates. The Funds may invest in other pooled investment vehicles sponsored, managed, or otherwise affiliated with the Adviser. There is no assurance that the rates at which a Fund pays fees or expenses to the Adviser or its affiliates, or the terms on which it enters into transactions with the Adviser or its affiliates will be the most favorable available in the market generally or as favorable as the rates the Adviser or its affiliates make available to other clients. Because of its financial interest, the Adviser will have an incentive to enter into transactions or arrangements on behalf of a Fund with itself or its affiliates in circumstances where it might not have done so in the absence of that interest, provided that the Adviser will comply with applicable regulatory requirements.

The Adviser and its affiliates serve as investment adviser to other clients and may make investment decisions that may be different from those that will be made by the Adviser on behalf of the Funds. For example, the Adviser may provide asset allocation advice to some clients that may include a recommendation to invest in or redeem from particular issuers while not providing that same recommendation to all clients invested in the same or similar issuers. The Adviser may (subject to applicable law) be simultaneously seeking to purchase (or sell) investments for a Fund and to sell (or purchase) the same investment for accounts, funds, or structured products for which it serves as asset manager, or for other clients or affiliates. The Adviser and its affiliates may invest for clients in various securities that are senior, *pari passu* or junior to, or have interests different from or adverse to, the securities that are owned by a Fund. The Adviser or its affiliates, in connection with its other business activities, may acquire material nonpublic confidential information that may restrict the Adviser from purchasing securities or selling securities for itself or its clients (including the Funds) or otherwise using such information for the benefit of its clients or itself.

The foregoing does not purport to be a comprehensive list or complete explanation of all potential conflicts of interests which may affect a Fund. A Fund may encounter circumstances, or enter into transactions, in which conflicts of interest that are not listed or discussed above may arise.

*Costs of Buying and Selling Shares*. Investors buying or selling Fund Shares in the secondary market will pay brokerage commissions or other charges imposed by brokers, as determined by that broker. Brokerage commissions are often a fixed amount and may be a significant proportional cost for investors seeking to buy or sell relatively small amounts of Fund Shares. In addition, secondary

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market investors will also incur the cost of the difference between the price that an investor is willing to pay for Fund Shares (the "bid" price) and the price at which an investor is willing to sell Fund Shares (the "ask" price). This difference in bid and ask prices is often referred to as the "spread" or "bid/ask spread." The bid/ask spread varies over time for Fund Shares based on trading volume and market liquidity, and is generally lower if Fund Shares have more trading volume and market liquidity and higher if Fund Shares have little trading volume and market liquidity. Further, increased market volatility may cause increased bid/ask spreads. Due to the costs of buying or selling Fund Shares, including bid/ask spreads, frequent trading of Fund Shares may significantly reduce investment results and an investment in Fund Shares may not be advisable for investors who anticipate regularly making small investments.

*Cybersecurity Risk*. With the increased use of technologies such as the Internet and the dependence on computer systems to perform business and operational functions, funds (such as the Funds) and their service providers (including the Adviser) may be prone to operational and information security risks resulting from cyber-attacks and/or technological malfunctions. In general, cyber-attacks are deliberate, but unintentional events may have similar effects. Cyber-attacks include, among others, stealing or corrupting data maintained online or digitally, preventing legitimate users from accessing information or services on a website, releasing confidential information without authorization, and causing operational disruption. Successful cyber-attacks against, or security breakdowns of, a Fund, the Adviser, a sub-adviser or a custodian, transfer agent, or other affiliated or third-party service provider may adversely affect a Fund or its shareholders. For instance, cyber-attacks or technical malfunctions may interfere with the processing of shareholder or other transactions, affect a Fund's ability to calculate its NAV, cause the release of private shareholder information or confidential Fund information, impede trading, cause reputational damage, and subject a Fund to regulatory fines, penalties or financial losses, reimbursement or other compensation costs, and additional compliance costs. Cyber-attacks or technical malfunctions may render records of Fund assets and transactions, shareholder ownership of Fund Shares, and other data integral to the functioning of a Fund inaccessible or inaccurate or incomplete. A Fund may also incur substantial costs for cybersecurity risk management in order to prevent cyber incidents in the future. A Fund and its shareholders could be negatively impacted as a result. While the Adviser has established a business continuity plan and systems designed to minimize the risk of cyber-attacks through the use of technology, processes and controls, there are inherent limitations in such plan and systems, including the possibility that certain risks have not been identified, given the evolving nature of this threat. Each Fund relies on third-party service providers for many of its day-to-day operations, and will be subject to the risk that the protections and protocols implemented by those service providers will be ineffective to protect the Fund

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from cyber-attack. The Adviser does not control the cybersecurity plans and systems put in place by third-party service providers, and such third-party service providers may have limited indemnification obligations to the Adviser or the Funds. Similar types of cybersecurity risks or technical malfunctions also are present for issuers of securities in which each Fund invests, which could result in material adverse consequences for such issuers, and may cause a Fund's investment in such securities to lose value.

*Derivatives Risk.* A derivative is a financial contract the value of which depends on, or is derived from, the value of an underlying asset, interest rate, or index. Derivative transactions typically involve leverage and may have significant volatility. It is possible that a derivative transaction will result in a loss greater than the principal amount invested, and a Fund may not be able to close out a derivative transaction at a favorable time or price. Risks associated with derivative instruments include potential changes in value in response to interest rate changes or other market developments or as a result of the counterparty's credit quality; the potential for the derivative transaction not to have the effect the Adviser anticipated or a different or less favorable effect than the Adviser anticipated; the failure of the counterparty to the derivative transaction to perform its obligations under the transaction or to settle a trade; possible mispricing or improper valuation of the derivative instrument; imperfect correlation in the value of a derivative with the asset, rate, or index underlying the derivative; the risk that a Fund may be required to post collateral or margin with its counterparty, and will not be able to recover the collateral or margin in the event of the counterparty's insolvency or bankruptcy; the risk that a Fund will experience losses on its derivatives investments and on its other portfolio investments, even when the derivatives investments may be intended in part or entirely to hedge those portfolio investments; the risks specific to the asset underlying the derivative instrument; lack of liquidity for the derivative instrument, including without limitation absence of a secondary trading market; the potential for reduced returns to a Fund due to losses on the transaction and an increase in volatility; the potential for the derivative transaction to have the effect of accelerating the recognition of gain; and legal risks arising from the documentation relating to the derivative transaction.

*Index Licensing Risk*. It is possible that the license under which the Adviser or a Fund is permitted to replicate or otherwise use an Index will be terminated or may be disputed, impaired or cease to remain in effect. In such a case, the Adviser may be required to replace the relevant Index with another index which it considers to be appropriate in light of the investment strategy of a Fund. The use of any such substitute index may have an adverse impact on a Fund's performance. In the event that the Adviser is unable to identify a suitable replacement for the relevant Index, it may determine to terminate a Fund.

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*Money Market Risk*. An investment in a money market fund is not a deposit of any bank and is not insured or guaranteed by the FDIC or any other government agency. Certain money market funds seek to preserve the value of their shares at $1.00 per share, although there can be no assurance that they will do so, and it is possible to lose money by investing in such a money market fund. A major or unexpected change in interest rates or a decline in the credit quality of an issuer or entity providing credit support, an inactive trading market for money market instruments, or adverse market, economic, industry, political, regulatory, geopolitical, and other conditions could cause the share price of such a money market fund to fall below $1.00. It is possible that such a money market fund will issue and redeem shares at $1.00 per share at times when the fair value of the money market fund's portfolio per share is more or less than $1.00. None of State Street Corporation, State Street, State Street Global Advisors ("SSGA"), SSGA FM or their affiliates ("State Street Entities") guarantee the value of an investment in a money market fund at $1.00 per share. Investors should have no expectation of capital support to a money market fund from State Street Entities. Other money market funds price and transact at a "floating" NAV that will fluctuate along with changes in the market-based value of fund assets. Shares sold utilizing a floating NAV may be worth more or less than their original purchase price. Recent changes in the regulation of money market funds may affect the operations and structures of money market funds. A money market fund may be permitted or required to impose redemption fees or to impose limitations on redemptions during periods of high illiquidity in the markets for the investments held by it.

*Securities Lending Risk.* Each Fund may lend portfolio securities with a value of up to 40% of its net assets. For these purposes, net assets shall exclude the value of all assets received as collateral for the loan. Such loans may be terminated at any time. Any such loans must be continuously secured by collateral maintained on a current basis in an amount at least equal to the market value of the securities loaned by a Fund. In a loan transaction, as compensation for lending its securities, a Fund will receive a portion of the dividends or interest accrued on the securities held as collateral or, in the case of cash collateral, a portion of the income from the investment of such cash. In addition, a Fund will receive the amount of all dividends, interest and other distributions on the loaned securities. However, the borrower has the right to vote the loaned securities. A Fund will call loans to vote proxies if a material issue affecting the investment is to be voted upon. Should the borrower of the securities fail financially, a Fund may experience delays in recovering the securities or exercising its rights in the collateral. Loans are made only to borrowers that are deemed by the securities lending agent to be of good financial standing. In a loan transaction, a Fund will also bear the risk of any decline in value of securities acquired with cash collateral. A Fund will

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attempt to minimize this risk by limiting the investment of cash collateral to high quality instruments of short maturity. The Adviser will take into account the tax impact to shareholders of substitute payments for dividends when overseeing a Fund's securities lending activity.

*Trading Issues*. Although Fund Shares are listed for trading on the Exchange and may be listed or traded on U.S. and non-U.S. stock exchanges other than the Exchange, there can be no assurance that an active trading market for such Fund Shares will develop or be maintained. Trading in Fund Shares on the Exchange may be halted due to market conditions or for reasons that, in the view of the Exchange, make trading in Fund Shares inadvisable. In addition, trading in Fund Shares on the Exchange is subject to trading halts caused by extraordinary market volatility pursuant to Exchange "circuit breaker" rules. Similar to the shares of operating companies listed on a stock exchange, Fund Shares may be sold short and are therefore subject to the risk of increased volatility in the trading price of the Fund's shares. While each Fund expects that the ability of Authorized Participants to create and redeem Fund Shares at net asset value should be effective in reducing any such volatility, there is no guarantee that it will eliminate the volatility associated with such short sales. There can be no assurance that the requirements of the Exchange necessary to maintain the listing of a Fund will continue to be met or will remain unchanged or that Fund Shares will trade with any volume, or at all, on any stock exchange.

**Management**

SSGA FM serves as the investment adviser to each Fund and, subject to the oversight of the Board, is responsible for the investment management of each Fund. The Adviser provides an investment management program for each Fund and manages the investment of each Fund's assets. The Adviser is a wholly-owned subsidiary of State Street Global Advisors, Inc., which itself is a wholly-owned subsidiary of State Street Corporation. The Adviser is registered with the U.S. Securities and Exchange Commission ("SEC") under the Investment Advisers Act of 1940, as amended. The Adviser and certain other affiliates of State Street Corporation make up SSGA. SSGA is one of the world's largest institutional money managers and the investment management arm of State Street Corporation. As of September 30, 2022, the Adviser managed approximately $768.42 billion in assets and SSGA managed approximately $3.26 trillion in assets. The Adviser's principal business address is One Iron Street, Boston, Massachusetts 02210.

For the services provided to the Funds under the Investment Advisory Agreement, each Fund pays the Adviser a fee accrued daily and payable monthly based on the Trust's average daily net assets at the following annual rates: 0.05% of the first $12.5 billion of average daily net assets of the Trust, 0.04% of the next $17.5 billion of average daily net assets of the Trust, 0.035% of the next $20.0 billion

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of average daily net assets of the Trust, 0.03% of the next $50.0 billion of average daily net assets of the Trust, 0.0285% of the next $50.0 billion of average daily net assets of the Trust, 0.0271% of the next $50.0 billion of average daily net assets of the Trust, and 0.0256% thereafter. The advisory fee is allocated to each Fund pro rata based upon the net assets of each Fund. For the services provided to each Fund under the Investment Advisory Agreement for the fiscal year ended September 30, 2022, the fee paid to the Adviser was equivalent to an effective rate of 0.0305% of each applicable Fund's average daily net assets.

From time to time, the Adviser may waive all or a portion of its management fee, although it does not currently intend to do so.

A discussion regarding the basis for the Board's approval of the continuation of the Investment Advisory Agreement for all Funds is available in the Trust's Annual Report to Shareholders for the fiscal year ended September 30, 2022.

*Portfolio Managers.*

The Adviser manages the Funds using a team of investment professionals. The team approach is used to create an environment that encourages the flow of investment ideas. The portfolio managers within each team work together in a cohesive manner to develop and enhance techniques that drive the investment process for the respective investment strategy. This approach requires portfolio managers to share a variety of responsibilities, including investment strategy and analysis, while retaining responsibility for the implementation of the strategy within any particular portfolio. The approach also enables the team to draw upon the resources of other groups within SSGA. Each portfolio management team is overseen by the SSGA Investment Committee.

The table below identifies the professionals primarily responsible for the day-to-day management of each Fund:

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| | |
|:---|:---|
| **Portfolio Managers** | **Fund** |
| Michael Feehily, Karl Schneider and Amy <br> Cheng<br>| The Real Estate Select Sector SPDR Fund |
| Karl Schneider, David Chin and Kala <br> O'Donnell<br>| The Technology Select Sector SPDR Fund |
| Michael Feehily, Karl Schneider and Dwayne <br> Hancock<br>| The Consumer Staples Select Sector SPDR Fund, The Health Care Select Sector <br> SPDR Fund, The Utilities Select Sector SPDR Fund<br>|
| Michael Feehily, Karl Schneider and Ted <br> Janowsky<br>| The Energy Select Sector SPDR Fund, The Materials Select Sector SPDR Fund |
| Karl Schneider, Dwayne Hancock and Kala <br> O'Donnell<br>| The Financial Select Sector SPDR Fund |
| Michael Feehily, Karl Schneider and Kala <br> O'Donnell<br>| The Communication Services Select Sector SPDR Fund, The Consumer <br> Discretionary Select Sector SPDR Fund<br>|
| Michael Feehily, Karl Schneider, Emiliano <br> Rabinovich and Amy Cheng<br>| The Industrial Select Sector SPDR Fund |

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**Amy Cheng**

Amy Cheng is a Vice President of SSGA and the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. Within this group, she is the strategy leader for alternative asset equities. She is responsible for the

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management of various domestic, international and emerging market equity index strategies, including listed real estate securities and commodities. Prior to joining the Global Equity Beta Solutions Group in 2008, Ms. Cheng worked in SSGA's Implementation Group, where she performed the day-to-day management of active developed and emerging market equity portfolios. She also worked as an operations associate responsible for funds managed by the active international equities team. Prior to joining SSGA in 2000, Ms. Cheng worked at Mellon Financial. Ms. Cheng earned a Bachelor of Arts in Economics and Political Science from the University of Rochester and a Master of Business Administration from the Carroll School of Management at Boston College. She is a member of the FTSE EPRA/NAREIT Global Real Estate Index Series Americas Regional Advisory Committee.

**David Chin**

David Chin is a Vice President of SSGA and the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. He is responsible for managing a full range of equity index and tax-efficient products. Prior to joining SSGA in 1999, Mr. Chin worked at Frank Russell Company, OneSource Information Systems, and PanAgora Asset Management. Mr. Chin has been working in the investment management field since 1992. Mr. Chin holds a Bachelor of Science in Management Information Systems from the University of Massachusetts/Boston and a Master of Business Administration from the University of Arizona.

**Michael Feehily**

Effective March 1, 2023, Mr. Feehily will no longer serve as a portfolio manager. Michael Feehily, CFA, is a Senior Managing Director of SSGA and the Adviser and the Head of Global Equity Beta Solutions in the Americas. He is also a member of the Senior Leadership Team and is a voting member on the firm's Trade Management Oversight Committee and the North America Product Committee. In his current role, Mr. Feehily is responsible for overseeing the Global Equity Beta Solutions portfolio management team in the Boston office and helping lead the strategic direction of the business. In addition, he contributes to developing new business opportunities, consulting with clients, and running day-to-day business operations. Mr. Feehily rejoined SSGA in 2010 after spending four years in State Street Global Markets, LLC, where he helped to build the Global Exposure Solutions business. This group created and managed portfolios that were designed to meet the short-term market exposure needs of institutional clients. Prior to this, Mr. Feehily had been Head of the U.S. Passive Equity Team within SSGA, which he originally joined in 1997. He began his career at State Street in 1993 within the Global Services division, where he was a member of the Performance & Analytics team and was one of the founding members of the firm's Private Edge business, which helped to analyze clients' private market investments such as venture capital, corporate finance, and real estate. Mr. Feehily received a Bachelor of Science

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from Babson College in Finance, Investments, and Economics. He received a Master of Business Administration in Finance from Bentley College and also earned the Chartered Financial Analyst (CFA) designation. Mr. Feehily is a member of the CFA Institute and CFA Society Boston, Inc. He is also a former member of the FTSE/Russell Index Client Advisory Board and the S&P Index Advisory Committee. He is registered as an Advising Representative with all Canadian Provincial Securities Commissions under State Street Global Advisor Limited's (Canada) Portfolio Manager registration category. He currently serves as an Executive Sponsor for the Inclusion & Diversity Talent Acquisition Pillar at SSGA.

**Dwayne Hancock**

Dwayne Hancock, CFA, is a Vice President of SSGA and the Adviser and a Senior Portfolio Manager in the firm's Global Equity Beta Solutions (GEBS) Group. Within this group, he is currently the strategy leader for the group's non-U.S. passive products. Prior to taking on this responsibility, Mr. Hancock was the ETF product specialist for the GEBS group. He is also a member of the SSGA Valuation Committee. Mr. Hancock currently manages a varied mix of funds with both domestic and international strategies, which include separate accounts, commingled funds, mutual funds and ETFs. Additionally, he has played a primary role in determining trading strategies for significant benchmark changes such as the annual Russell indices reconstitution. Mr. Hancock joined SSGA in 1996 and became part of the GEBS portfolio management team in 1998. Prior to this, he worked in the firm's Passive International Equity Operations department as a senior analyst. He has been working in the investment management field since 1994. Mr. Hancock holds a Master of Business Administration from the Carroll School of Management at Boston College and a Bachelor of Science in Business Administration from Framingham State College. He also earned the Chartered Financial Analyst (CFA) designation and is a member of CFA Society Boston, Inc.

**Ted Janowsky**

Ted Janowsky, CFA, is a Vice President of SSGA and the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. In this capacity, he manages a diverse group of equity and derivative-based index portfolios and has played a significant role designing proprietary portfolio management software. Additionally, Mr. Janowsky was head of the portfolio management team of SSGA's Company Stock Group, which manages all fiduciary transactions and company stock investments including employee stock ownership plans, 401(k) plans, defined benefit plans and non-qualified plans. Prior to joining the Global Equity Beta Solutions Group, he worked as an application developer in Investor Technology Services within State Street Corporation. He also worked as a business analyst in State Street's London and Sydney offices. Mr. Janowsky joined SSGA in 2005. Mr. Janowsky holds a Bachelor of Science in Business Administration from Bucknell

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University and a Master of Business Administration from the Carroll School of Management at Boston College. He has also earned the Chartered Financial Analyst (CFA) designation and is a member of the CFA Institute and CFA Society Boston, Inc.

**Kala O'Donnell**

Kala O'Donnell is a Vice President of SSGA and the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. She is responsible for managing both domestic and international equity index portfolios, including a variety of separate accounts, commingled funds, ETFs and alternative beta strategies. Additionally, Ms. O'Donnell has been involved in various research and process improvement projects, and has served as a hedging specialist within the Group. Prior to joining SSGA, Ms. O'Donnell worked in State Street Corporation's Mutual Funds division in the U.S., as well as in Canada and Germany. She has been in the investment management field since she joined SSGA in 1995. Ms. O'Donnell holds a Bachelor of Science in Accounting from Lehigh University and a Master of Business Administration in International Business from Bentley College. She is member of the Chartered Financial Analyst (CFA) Institute and CFA Society Boston, Inc.

**Emiliano Rabinovich**

Emiliano Rabinovich, CFA, is a Managing Director of SSGA and the Adviser and a Senior Portfolio Manager in the Global Equity Beta Solutions Group. Within this group, he is the strategy leader for their Tax Aware, Smart Beta and ESG products. Mr. Rabinovich currently manages a varied mix of funds that include both traditional indexing and a variety of alternative beta mandates. He also manages local and global strategies and fund structures, which include separate accounts, commingled funds, mutual funds and ETFs. Mr. Rabinovich joined SSGA in Montreal in 2006, where he was the Head of the Global Equity Beta Solutions Group in Canada. He has been working in the investment management field since 2003. Mr. Rabinovich holds a Bachelor of Arts in Economics from the University of Buenos Aires and a Master of Arts in Economics from the University of CEMA. He has also earned the Chartered Financial Analyst (CFA) designation and is a member of CFA Society Boston, Inc.

**Karl Schneider**

Karl Schneider, CAIA, is a Managing Director of SSGA and the Adviser and Deputy Head of Global Equity Beta Solutions (GEBS) in the Americas, where he also serves as a Senior Portfolio Manager for a number of the group's passive equity portfolios. Previously within GEBS, he served as a portfolio manager and product specialist for U.S. equity strategies and synthetic beta strategies, including commodities, buy/write, and hedge fund replication. He is also a member of the S&P Dow Jones U.S. Equities Index Advisory Panel. Prior to joining the GEBS

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group, Mr. Schneider worked as a portfolio manager in SSGA's Currency Management Group, managing both active currency selection and traditional passive hedging overlay portfolios. He joined SSGA in 1997. Mr. Schneider holds a Bachelor of Science in Finance and Investments from Babson College and a Master of Science in Finance from the Carroll School of Management at Boston College. He has earned the Chartered Alternative Investment Analyst (CAIA) designation and is a member of the CAIA Association.

Additional information about the portfolio managers' compensation, other accounts managed by the portfolio managers, and the portfolio managers' ownership of the Funds is available in the SAI.

*Administrator, Sub-Administrator, Custodian and Transfer Agent.* The Adviser serves as Administrator for each Fund. State Street, part of State Street Corporation, is the Sub-Administrator for each Fund and the Custodian for each Fund's assets, and serves as Transfer Agent to each Fund.

*Lending Agent.* State Street is the securities lending agent for each Fund. For its services, the lending agent would typically receive a portion of the net investment income, if any, earned on the collateral for the securities loaned.

*Distributor.* ALPS Portfolio Solutions Distributor, Inc. (the "Distributor") serves as the Funds' distributor pursuant to a Distribution Agreement between the Distributor and the Trust. The Distributor will not distribute Fund Shares in less than Creation Units, and it does not maintain a secondary market in Fund Shares. The Distributor may enter into selected dealer agreements with other broker-dealers or other qualified financial institutions for the sale of Creation Units of Fund Shares.

*Additional Information*. The Board oversees generally the operations of the Funds and the Trust. The Trust enters into contractual arrangements with various parties, including among others the Funds' investment adviser, custodian, transfer agent, and accountants, who provide services to the Funds. Shareholders are not parties to any such contractual arrangements or intended beneficiaries of those contractual arrangements, and those contractual arrangements are not intended to create in any shareholder any right to enforce them directly against the service providers or to seek any remedy under them directly against the service providers.

This Prospectus provides information concerning the Trust and the Funds that you should consider in determining whether to purchase Fund Shares. Neither this Prospectus nor the related SAI is intended, or should be read, to be or give rise to an agreement or contract between the Trust or the Funds and any investor, or to give rise to any rights in any shareholder or other person other than any rights under federal or state law that may not be waived.

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**Additional Index Information**

**Index License**

S&P Opco, LLC, a subsidiary of S&P DJI and S&P Global ("S&P"), and NYSE Arca, Inc. (either directly or through affiliates) have entered into a license agreement with respect to each Fund's Select Sector Index. The Trust has entered into a sublicense agreement with S&P whereby each Fund pays an annual sub-license fee to S&P based on a percentage of the Fund's total expense ratio for the most recent fiscal year and applied to the Fund's average daily net assets.

**Additional Information Concerning Index Construction and Maintenance**

The Index Compilation Agent assigns each constituent stock of the S&P 500 Index to a Select Sector Index in alignment with the stock's GICS (Global Industry Classification Standard) classification. Changes to the S&P 500 Index are made as needed in response to corporate actions and market developments, with no annual or semi-annual reconstitution. S&P DJI has sole control over the removal of stocks from the S&P 500 Index and the selection of replacement stocks to be added to the S&P 500 Index.

**Additional Information Concerning the Role of S&P**

The weighting of the stocks included in each Select Sector Index are limited and will likely differ from the weighting of stocks included in any similar S&P 500 sector index that is published and disseminated by S&P DJI because each S&P 500 sector index uses a float adjusted market capitalization which does not limit the weight of any stocks in the index. S&P DJI acts as "index calculation agent" in connection with the calculation and dissemination of each Select Sector Index. S&P DJI and its affiliates do not sponsor, endorse, sell or market Fund Shares.

Neither S&P DJI nor its affiliates make any representation or warranty, express or implied, to SSGA FM, the owners of Fund Shares of the Select Sector SPDR Funds or any member of the public regarding the ability of a Fund to track the performance of the various sectors represented in the stock market. Additionally, S&P DJI and its affiliates do not make any representation or warranty, express or implied, to SSGA FM, the owners of Fund Shares or any member of the public regarding the advisability of investing in securities generally or in Fund Shares particularly.

With respect to the Select Sector Indices, S&P DJI's only relationship to the Trust is the licensing of certain trademarks and trade names of S&P, the S&P 500 Index and Select Sector Indices which are determined, composed and calculated by S&P DJI. S&P<sup>®</sup> and S&P 500<sup>®</sup> are trademarks of Standard & Poor's Financial Services LLC, an affiliate of S&P DJI; Select Sector<sup>®</sup> is a trademark of S&P DJI; Dow Jones<sup>®</sup> is a trademark of Dow Jones Trademark Holdings LLC; and these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by

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the Trust. S&P DJI and its affiliates have no obligation to take the needs of SSGA FM, the Trust or the owners of Fund Shares into consideration in determining, composing or calculating the S&P 500 or the Select Sector Indices.

Although S&P DJI seeks to obtain and use information from sources which it considers reliable, S&P DJI and its affiliates do not guarantee the accuracy and/or completeness of the S&P 500 Index, any Select Sector SPDR Index (collectively, the "Indexes") or any data related thereto. S&P DJI and its affiliates make no warranty, express or implied, as to results to be obtained by SSGA FM, the Trust, owners of a Fund, or any other person or entity from the use of the S&P 500 Index, the Indexes or any data related thereto in connection with the rights licensed under the license agreement or for any other use. S&P DJI and its affiliates make no express or implied warranties, and hereby expressly disclaim all warranties of merchantability or fitness for a particular purpose with respect to the S&P 500 Index, the Indexes or any data related thereto. Without limiting any of the foregoing, in no event shall S&P DJI and its affiliates have any liability for any special, punitive, indirect or consequential damages (including lost profits), even if notified of the possibility of such damages.

The Indexes identified herein are determined, composed and calculated without regard to any Fund Shares or the issuer thereof. S&P DJI is not responsible for, and has not participated in, the determination of the timing of, prices of, or quantities of any Fund Shares to be issued, or in the determination or calculation of the equation by which Fund Shares are redeemable.

**Additional Purchase and Sale Information**

Fund Shares are listed for secondary trading on the Exchange and individual Fund Shares may only be purchased and sold in the secondary market through a broker-dealer. The secondary markets are closed on weekends and also are generally closed on the following holidays: New Year's Day, Dr. Martin Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial Day (observed), Juneteenth National Independence Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. The Exchange may close early on the business day before certain holidays and on the day after Thanksgiving Day. Exchange holiday schedules are subject to change without notice. If you buy or sell Fund Shares in the secondary market, you will pay the secondary market price for Fund Shares. In addition, you may incur customary brokerage commissions and charges and may pay some or all of the spread between the bid and the offered price in the secondary market on each leg of a round trip (purchase and sale) transaction.

The trading prices of Fund Shares will fluctuate continuously throughout trading hours based on market supply and demand rather than the relevant Fund's net asset value, which is calculated at the end of each business day. Fund Shares

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will trade on the Exchange at prices that may be above (*i.e*., at a premium) or below (*i.e*., at a discount), to varying degrees, the daily net asset value of Fund Shares. The trading prices of Fund Shares may deviate significantly from the relevant Fund's net asset value during periods of market volatility. Given, however, that Fund Shares can be issued and redeemed daily in Creation Units, the Adviser believes that large discounts and premiums to net asset value should not be sustained over long periods.

The Exchange will disseminate, every fifteen seconds during the regular trading day, an indicative optimized portfolio value ("IOPV") relating to each Fund. The IOPV calculations are estimates of the value of each Fund's net asset value per Fund Share. Premiums and discounts between the IOPV and the market price may occur. This should not be viewed as a "real-time" update of the net asset value per Fund Share. The IOPV is based on the current market value of the published basket of portfolio securities and/or cash required to be deposited in exchange for a Creation Unit and does not necessarily reflect the precise composition of the Fund's actual portfolio at a particular point in time. Moreover, the IOPV is generally determined by using current market quotations and/or price quotations obtained from broker-dealers and other market intermediaries and valuations based on current market rates. The IOPV may not be calculated in the same manner as the NAV, which (i) is computed only once a day, (ii) unlike the calculation of the IOPV, takes into account Fund expenses, and (iii) may be subject, in accordance with the requirements of the 1940 Act, to fair valuation at different prices than those used in the calculations of the IOPV. Therefore, the IOPV may not reflect the best possible valuation of the Fund's current portfolio. Neither the Funds nor the Adviser or any of their affiliates are involved in, or responsible for, the calculation or dissemination of such IOPVs and make no warranty as to their accuracy.

The Funds do not impose any restrictions on the frequency of purchases and redemptions; however, the Funds reserve the right to reject or limit purchases at any time as described in the SAI. When considering that no restriction or policy was necessary, the Board evaluated the risks posed by market timing activities, such as whether frequent purchases and redemptions would interfere with the efficient implementation of a Fund's investment strategy, or whether they would cause a Fund to experience increased transaction costs. The Board considered that, unlike traditional mutual funds, Fund Shares are issued and redeemed only in large quantities of shares known as Creation Units, available only from a Fund directly, and that most trading in a Fund occurs on the Exchange at prevailing market prices and does not involve the Fund directly. Given this structure, the Board determined that it is unlikely that (a) market timing would be attempted by a Fund's shareholders or (b) any attempts to market time a Fund by shareholders would result in negative impact to the Fund or its shareholders.

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In addition, certain affiliates of each Fund and the Adviser may purchase and resell or distribute Fund Shares pursuant to the registration statement of which this Prospectus is a part.

**Distribution and Service Plan**

Each Fund has adopted a Distribution and Service Plan in accordance with Rule 12b-1 under the 1940 Act pursuant to which payments at an annual rate of up to 0.25% of the Fund's average daily net assets may be made for the sale and distribution of Fund Shares. Effective February 1, 2022, the Board limited each Fund's 12b-1 fee to an annual rate of 0.02% of its average daily net assets (prior to February 1, 2022, each applicable Fund's 12b-1 fee was limited to an annual rate of 0.03% of its average daily net assets). This limitation is in effect through at least January 31, 2024. Because these fees are paid out of a Fund's assets on an on-going basis, these fees will increase the cost of your investment and may cost you more over time than paying other types of sales charges.

**Distributions**

*Dividends and Capital Gains.* As a Fund shareholder, you are entitled to your share of the applicable Fund's income and net realized gains on its investments. Each Fund pays out substantially all of its net earnings to its shareholders as "distributions."

Each Fund typically earns income dividends from stocks, interest from debt securities and securities lending income. These amounts, net of expenses and taxes (if applicable), are passed along to Fund shareholders as "income dividend distributions." Each Fund will generally realize short-term capital gains or losses whenever it sells or exchanges assets held for one year or less. Net short-term capital gains will generally be treated as ordinary income when distributed to shareholders. Each Fund will generally realize long-term capital gains or losses whenever it sells or exchanges assets held for more than one year. Net capital gains (the excess of a Fund's net long-term capital gains over its net short-term capital losses) are distributed to shareholders as "capital gain distributions."

Income dividend distributions, if any, are generally distributed to shareholders quarterly, but may vary significantly from period to period.

Net capital gains for each Fund are distributed at least annually. Dividends may be declared and paid more frequently or at any other time to improve Index tracking or to comply with the distribution requirements of the Internal Revenue Code. In addition, each Fund intends to distribute at least annually amounts representing the full dividend yield net of expenses on the underlying investment

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securities as if the Fund owned the underlying investment securities for the entire dividend period. As a result, some portion of each distribution may result in a return of capital. You will be notified regarding the portion of the distribution which represents a return of capital.

Distributions in cash may be reinvested automatically in additional whole Fund Shares only if the broker through whom you purchased Fund Shares makes such option available. Dividends which are reinvested will nevertheless be taxable to the same extent as if such dividends had not been reinvested.

**Portfolio Holdings Disclosure**

The Funds' portfolio holdings disclosure policy is described in the SAI. In addition, the identities and quantities of the securities held by each Fund are disclosed on the Funds' website.

**Additional Tax Information**

The following discussion is a summary of some important U.S. federal income tax considerations generally applicable to an investment in a Fund. Your investment in a Fund may have other tax implications. Please consult your tax advisor about federal, state, local, foreign or other tax laws applicable to you. Investors, including non-U.S. investors, may wish to consult the SAI tax section for additional disclosure.

Each Fund has elected or will elect to be a regulated investment company ("RIC") and intends to qualify each year to be treated as such. A RIC is generally not subject to tax at the corporate level on income and gains that are distributed to shareholders. However, a Fund's failure to qualify for treatment as a RIC may result in corporate level taxation, and consequently, a reduction in income available for distribution to shareholders.

In general, your distributions are subject to federal income tax when they are paid, whether you take them in cash or reinvest them in a Fund. The income dividends and short-term capital gains distributions you receive from a Fund will be taxed as either ordinary income or qualified dividend income. Subject to certain limitations, dividends that are reported by a Fund as qualified dividend income are taxable to noncorporate shareholders at reduced rates. Any distributions of a Fund's net capital gains are taxable as long-term capital gain regardless of how long you have owned Fund Shares. Long-term capital gains are generally taxed to noncorporate shareholders at reduced rates. Distributions in excess of a Fund's current and accumulated earnings and profits are treated as a tax-free return of capital to the extent of your basis in your Fund Shares, and, in general, as capital gain thereafter.

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In general, dividends may be reported by a Fund as qualified dividend income if they are attributable to qualified dividend income received by such Fund, which, in general, includes dividend income from taxable U.S. corporations and certain foreign corporations (*i.e*., certain foreign corporations incorporated in a possession of the United States or in certain countries with a comprehensive tax treaty with the United States, and certain other foreign corporations if the stock with respect to which the dividend is paid is readily tradable on an established securities market in the United States), provided that the Fund satisfies certain holding period requirements in respect of the stock of such corporations and has not hedged its position in the stock in certain ways. A dividend generally will not be treated as qualified dividend income if the dividend is received with respect to any share of stock held by a Fund for fewer than 61 days during the 121-day period beginning at the date which is 60 days before the date on which such share becomes ex-dividend with respect to such dividend or, in the case of certain preferred stock, for fewer than 91 days during the 181-day period beginning 90 days before such date. These holding period requirements will also apply to your ownership of Fund Shares. Holding periods may be suspended for these purposes for stock that is hedged. Additionally, income derived in connection with a Fund's securities lending activities will not be treated as qualified dividend income.

U.S. individuals with income exceeding specified thresholds are subject to a 3.8% Medicare contribution tax on all or a portion of their "net investment income," which includes taxable interest, dividends and certain capital gains (generally including capital gain distributions and capital gains realized upon the sale of Fund Shares). This 3.8% tax also applies to all or a portion of the undistributed net investment income of certain shareholders that are estates and trusts.

Certain tax-exempt educational institutions will be subject to a 1.4% tax on net investment income. For these purposes, certain dividends and capital gain distributions, and certain gains from the disposition of Fund Shares (among other categories of income), are generally taken into account in computing a shareholder's net investment income.

If you lend your Fund Shares pursuant to securities lending arrangements you may lose the ability to treat Fund dividends (paid while Fund Shares are held by the borrower) as qualified dividend income. You should consult your financial intermediary or tax advisor to discuss your particular circumstances.

Distributions paid in January, but declared by a Fund in October, November or December of the previous year, payable to shareholders of record in such a month, may be taxable to you in the calendar year in which they were declared. The Funds will inform you of the amount of your ordinary income dividends, qualified dividend income and capital gain distributions shortly after the close of each calendar year.

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A distribution will reduce a Fund's net asset value per Fund Share and may be taxable to you as ordinary income or capital gain even though, from an investment standpoint, the distribution may constitute a return of capital.

*Derivatives and Other Complex Securities.* A Fund may invest in complex securities. These investments may be subject to numerous special and complex rules. These rules could affect whether gains and losses recognized by a Fund are treated as ordinary income or capital gain, accelerate the recognition of income to a Fund and/or defer a Fund's ability to recognize losses. In turn, these rules may affect the amount, timing or character of the income distributed to you by a Fund. You should consult your personal tax advisor regarding the application of these rules.

*Index Concentration*. In order to qualify for the favorable tax treatment generally available to RICs, a Fund must satisfy certain diversification requirements. In particular, a Fund generally may not acquire a security if, as a result of the acquisition, more than 50% of the value of the Fund's assets would be invested in (a) issuers in which the Fund has, in each case, invested more than 5% of the Fund's assets and (b) issuers more than 10% of whose outstanding voting securities are owned by the Fund. Given the concentration of certain indexes tracked by the Funds in a relatively small number of securities, it may not be possible for such Funds to fully implement a replication strategy while satisfying these diversification requirements. A Fund's efforts to satisfy the diversification requirements may affect a Fund's execution of its investment strategy and may cause a Fund's return to deviate from that of the Index, and a Fund's efforts to track the Index may cause it inadvertently to fail to satisfy the diversification requirements. If a Fund were to fail to qualify as a RIC, it would be taxed in the same manner as an ordinary corporation, and distributions to its shareholders would not be deductible by the Fund in computing its taxable income.

*Non-U.S. Investors.* Ordinary income dividends paid by a Fund to shareholders who are non-resident aliens or foreign entities will generally be subject to a 30% U.S. withholding tax (other than distributions reported by the Fund as interest-related dividends and short-term capital gain dividends), unless a lower treaty rate applies or unless such income is effectively connected with a U.S. trade or business. In general, a Fund may report interest-related dividends to the extent of its net income derived from U.S. source interest, and a Fund may report short-term capital gain dividends to the extent its net short-term capital gain for the taxable year exceeds its net long-term capital loss. Gains on the sale of Fund Shares and dividends that are, in each case, effectively connected with the conduct of a trade or business within the U.S. will generally be subject to U.S. federal net income taxation at regular income tax rates. Non-U.S. shareholders that own, directly or indirectly, more than 5% of a Fund's shares are urged to consult their own tax advisors concerning special tax rules that may apply to their investment.

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Unless certain non-U.S. entities that hold Fund Shares comply with Internal Revenue Service (the "IRS") requirements that will generally require them to report information regarding U.S. persons investing in, or holding accounts with, such entities, a 30% withholding tax may apply to distributions payable to such entities. A non-U.S. shareholder may be exempt from the withholding described in this paragraph under an applicable intergovernmental agreement between the U.S. and a foreign government, provided that the shareholder and the applicable foreign government comply with the terms of such agreement.

*Real Estate Investments.* Non-U.S. persons are generally subject to U.S. tax on a disposition of a "United States real property interest" (a "USRPI"). Gain on such a disposition is generally referred to as "FIRPTA gain." The Internal Revenue Code provides a look-through rule for distributions of so-called FIRPTA gain by a Fund if certain requirements are met. If the look-through rule applies, certain distributions attributable to income received by a Fund, e.g., from U.S. REITs, may be treated as gain from the disposition of a USRPI, causing distributions to be subject to U.S. withholding taxes, and requiring non-U.S. investors to file nonresident U.S. income tax returns. Also, gain may be subject to a 30% branch profits tax in the hands of a foreign stockholder that is treated as a corporation for federal income tax purposes. Under certain circumstances, Fund Shares may qualify as USRPIs, which could result in 15% withholding on certain distributions and gross redemption proceeds paid to certain non-U.S. shareholders.

For tax years beginning after December 31, 2017 and before January 1, 2026, a noncorporate taxpayer is generally eligible for a deduction of up to 20% of the taxpayer's "qualified REIT dividends." If a Fund receives dividends (other than capital gain dividends) in respect of U.S. REIT shares, the Fund may report its own dividends as eligible for the 20% deduction, to the extent the Fund's income is derived from such qualified REIT dividends, as reduced by allocable Fund expenses. In order for a Fund's dividends to be eligible for this deduction when received by a noncorporate shareholder, the Fund must meet certain holding period requirements with respect to the U.S. REIT shares on which the Fund received the eligible dividends, and the noncorporate shareholder must meet certain holding period requirements with respect to the Fund Shares.

*Taxes on Exchange-Listed Share Sales.* Any capital gain or loss realized upon a sale of Fund Shares is generally treated as long-term capital gain or loss if Fund Shares have been held for more than one year and as short-term capital gain or loss if Fund Shares have been held for one year or less, except that any capital loss on the sale of Fund Shares held for six months or less is treated as long-term capital loss to the extent that capital gain dividends were paid with respect to such Fund Shares.

------

*Taxes on Creations and Redemptions of Creation Units.* A person who exchanges securities for Creation Units generally will recognize a gain or loss. The gain or loss will be equal to the difference between the market value of the Creation Units at the time and the exchanger's aggregate basis in the securities surrendered plus any cash paid for the Creation Units. A person who exchanges Creation Units for securities will generally recognize a gain or loss equal to the difference between the exchanger's basis in the Creation Units and the aggregate market value of the securities and the amount of cash received. The IRS, however, may assert that a loss realized upon an exchange of securities for Creation Units cannot be deducted currently under the rules governing "wash sales," or on the basis that there has been no significant change in economic position. Persons exchanging securities should consult their own tax advisor with respect to whether wash sale rules apply and when a loss might be deductible.

Under current federal tax laws, any capital gain or loss realized upon a redemption (or creation) of Creation Units is generally treated as long-term capital gain or loss if the applicable Fund Shares (or securities surrendered) have been held for more than one year and as a short-term capital gain or loss if the applicable Fund Shares (or securities surrendered) have been held for one year or less.

If you create or redeem Creation Units, you will be sent a confirmation statement showing how many Fund Shares you purchased or sold and at what price.

The Trust on behalf of each Fund has the right to reject an order for Creation Units if the purchaser (or a group of purchasers) would, upon obtaining the Fund Shares so ordered, own 80% or more of the outstanding shares of the applicable Fund and if, pursuant to Section 351 of the Internal Revenue Code, the applicable Fund would have a basis in the securities different from the market value of the securities on the date of deposit. The Trust also has the right to require information necessary to determine beneficial share ownership for purposes of the 80% determination. If the Trust does issue Creation Units to a purchaser (or a group of purchasers) that would, upon obtaining the Fund Shares so ordered, own 80% or more of the outstanding shares of the applicable Fund, the purchaser (or group of purchasers) will not recognize gain or loss upon the exchange of securities for Creation Units.

If a Fund redeems Creation Units in cash, it may bear additional costs and recognize more capital gains than it would if it redeems Creation Units in-kind.

*Certain Tax-Exempt Investors.* A Fund, if investing in certain limited real estate investments and other publicly traded partnerships, may be required to pass through certain "excess inclusion income" and other income as "unrelated business

------

taxable income" ("UBTI"). Prior to investing in a Fund, tax-exempt investors sensitive to UBTI should consult their tax advisors regarding this issue and IRS pronouncements addressing the treatment of such income in the hands of such investors.

*Backup Withholding.* A Fund will be required in certain cases to withhold (as "backup withholding") on amounts payable to any shareholder who (1) has provided the Fund either an incorrect tax identification number or no number at all, (2) is subject to backup withholding by the IRS for failure to properly report payments of interest or dividends, (3) has failed to certify to the Fund that such shareholder is not subject to backup withholding, or (4) has not certified that such shareholder is a U.S. person (including a U.S. resident alien). The backup withholding rate is currently 24%. Backup withholding will not be applied to payments that have been subject to the 30% withholding tax on shareholders who are neither citizens nor permanent residents of the United States.

*Certain Potential Tax Reporting Requirements.* Under U.S. Treasury regulations, if a shareholder recognizes a loss of $2 million or more for an individual shareholder or $10 million or more for a corporate shareholder (or certain greater amounts over a combination of years), the shareholder must file with the IRS a disclosure statement on Form 8886. Direct shareholders of portfolio securities are in many cases excepted from this reporting requirement, but under current guidance shareholders of a RIC are not excepted. Significant penalties may be imposed for the failure to comply with the reporting requirements. The fact that a loss is reportable under these regulations does not affect the legal determination of whether the taxpayer's treatment of the loss is proper. Shareholders should consult their tax advisors to determine the applicability of these regulations in light of their individual circumstances.

*Other Tax Issues.* A Fund may be subject to tax in certain states where the Fund does business (or is treated as doing business as a result of its investments). Furthermore, in those states which have income tax laws, the tax treatment of the Funds and of Fund shareholders with respect to distributions by the Funds may differ from federal tax treatment.

The foregoing discussion summarizes some of the consequences under current federal income tax law of an investment in the Funds. It is not a substitute for personal tax advice. Consult your personal tax advisor about the potential tax consequences of an investment in the Funds under all applicable tax laws.

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**General Information**

The Trust was organized as a Massachusetts business trust on June 10, 1998. If shareholders of any Fund are required to vote on any matters, shareholders are entitled to one vote for each Fund Share they own. Annual meetings of shareholders will not be held except as required by the 1940 Act and other applicable law. See the SAI for more information concerning the Trust's form of organization.

**Management and Organization**

Each Fund is a separate, non-diversified series of the Trust, which is an open-end registered management investment company.

From time to time, a Fund may advertise yield and total return figures. Yield is a historical measure of dividend income, and total return is a measure of past dividend income (assuming that it has been reinvested) plus capital appreciation. Neither yield nor total return should be used to predict the future performance of a Fund.

Morgan, Lewis & Bockius LLP serves as counsel to the Trust, including the Funds. Ernst & Young LLP ("EY") serves as the independent registered public accounting firm and will audit the Funds' financial statements annually.

**Financial Highlights**

The financial highlight tables below are intended to help you understand each Fund's financial performance for the past five fiscal years or, if shorter, the period since each Fund's inception. Certain information reflects the performance results for a single Fund Share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in each Fund (assuming reinvestment of all dividends and distributions).

The Trust's previous independent registered certified public accounting firm (the "Previous Auditor") resigned on April 20, 2020. On May 21, 2020, the Board selected EY to replace the Previous Auditor as the independent registered certified public accountant. The information for the fiscal years ending September 30, 2020, September 30, 2021 and September 30, 2022 has been audited by EY. Previous fiscal years were audited by the Previous Auditor.

EY's report dated September 30, 2022, along with each Fund's financial highlights and financial statements, is included in the annual report to shareholders, which is available upon request. Any references to Notes in these financial highlight tables refer to the "Notes to Financial Statements" section of each Fund's financial statements, and the financial information included in these tables should be read in conjunction with the financial statements incorporated by reference in the SAI.

------

**THE SELECT SECTOR SPDR TRUST**

**FINANCIAL HIGHLIGHTS**

***Selected data for a share outstanding throughout each period***

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **The Communication Services Select Sector SPDR Fund** | **The Communication Services Select Sector SPDR Fund** | **The Communication Services Select Sector SPDR Fund** | **The Communication Services Select Sector SPDR Fund** | **The Communication Services Select Sector SPDR Fund** |
|  | **Year**<br> **Ended**<br> **9/30/22**<br>| **Year**<br> **Ended**<br> **9/30/21**<br>| **Year**<br> **Ended**<br> **9/30/20**<br>| **Year**<br> **Ended**<br> **9/30/19(a)**<br>| **For the**<br> **Period** <br> **06/19/18**<sup>\*</sup> **-** <br> **9/30/18(a)**<br>|
| **Net asset value, beginning of period**  | $80.15 | $59.40 | $49.50 | $48.98 | $50.00 |
| **Income (loss) from investment** <br> **operations:** <br>|  |  |  |  |  |
| Net investment income (loss) (b) | 0.58 | 0.54 | 0.47 | 0.44 | 0.09 |
| Net realized and unrealized gain (loss) (c) | (32.25) | 20.73 | 9.88 | 0.51 | (1.17) |
| Total from investment operations  | (31.67) | 21.27 | 10.35 | 0.95 | (1.08) |
| Net equalization credits and charges (b) | (0.02) | (0.00)(d) | 0.02 | 0.02 | 0.19 |
| **Distributions to shareholders from:** <br>|  |  |  |  |  |
| Net investment income  | (0.57) | (0.52) | (0.47) | (0.45) | (0.05) |
| Return of Capital  |  |  |  |  | (0.08) |
| Total distributions  | (0.57) | (0.52) | (0.47) | (0.45) | (0.13) |
| **Net asset value, end of period**  | $47.89 | $80.15 | $59.40 | $49.50 | $48.98 |
| **Total return (e)** | (39.71)% | 35.88% | 21.05% | 2.07% | (1.78)% |
| **Ratios and Supplemental Data:** <br>|  |  |  |  |  |
| Net assets, end of period (in 000s)  | $7578050 | $15176057 | $10106071 | $6039403 | $2035011 |
| **Ratios to average net assets:** <br>|  |  |  |  |  |
| Total expenses  | 0.10% | 0.11% | 0.13% | 0.13% | 0.15%(f) |
| Net expenses  | 0.10% | 0.11% | 0.13% | 0.13% | 0.13%(f) |
| Net investment income (loss)  | 0.88% | 0.73% | 0.86% | 0.93% | 0.62%(f) |
| Portfolio turnover rate (g) | 21% | 15% | 15% | 16% | 7%(h) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

\* Commencement of operations.

(a) Beginning with the year ended September 30, 2020, the Fund was audited by Ernst & Young LLP. The previous years were audited by another independent registered public accounting firm. 

(b) Per share numbers have been calculated using average shares outstanding, which more appropriately presents the per share data for the year. 

(c) Amounts shown in this caption for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period because of the timing of sales and repurchases of Fund shares in relation to fluctuating market values for the Fund. 

(d) Amount is less than $0.005 per share.

(e) Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of each period reported. Distributions are assumed, for the purpose of this calculation, to be reinvested at net asset value per share on the respective payment dates of each distribution. Total returns for periods of less than one year are not annualized. Broker commission charges are not included in this calculation. 

(f) The ratios for periods less than one year are annualized.

(g) Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions on Select Sector SPDR shares. 

(h) Period less than one year are not annualized.

------

**THE SELECT SECTOR SPDR TRUST**

**FINANCIAL HIGHLIGHTS (continued)**

***Selected data for a share outstanding throughout each period***

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **The Consumer Discretionary Select Sector SPDR Fund** | **The Consumer Discretionary Select Sector SPDR Fund** | **The Consumer Discretionary Select Sector SPDR Fund** | **The Consumer Discretionary Select Sector SPDR Fund** | **The Consumer Discretionary Select Sector SPDR Fund** |
|  | **Year**<br> **Ended**<br> **9/30/22**<br>| **Year**<br> **Ended**<br> **9/30/21**<br>| **Year**<br> **Ended**<br> **9/30/20**<br>| **Year**<br> **Ended**<br> **9/30/19(a)**<br>| **Year**<br> **Ended**<br> **9/30/18(a)**<br>|
| **Net asset value, beginning of period**  | $179.54 | $146.99 | $120.69 | $117.19 | $90.09 |
| **Income (loss) from investment** <br> **operations:** <br>|  |  |  |  |  |
| Net investment income (loss) (b) | 1.23 | 1.09 | 1.46 | 1.58 | 1.49 |
| Net realized and unrealized gain <br> (loss) (c)<br>| (37.06) | 32.54 | 26.34 | 3.51 | 26.81 |
| Total from investment operations  | (35.83) | 33.63 | 27.80 | 5.09 | 28.30 |
| Net equalization credits and <br> charges (b)<br>| (0.01) | 0.01 | (0.06) | (0.02) | 0.09 |
| **Distributions to shareholders from:** <br>|  |  |  |  |  |
| Net investment income  | (1.22) | (1.09) | (1.44) | (1.57) | (1.29) |
| **Net asset value, end of period**  | $142.48 | $179.54 | $146.99 | $120.69 | $117.19 |
| **Total return (d)** | (20.06)% | 22.93% | 23.25% | 4.45% | 31.63% |
| **Ratios and Supplemental Data:** <br>|  |  |  |  |  |
| Net assets, end of period (in 000s)  | $14098639 | $19633737 | $15809198 | $13928314 | $16218942 |
| **Ratios to average net assets:** <br>|  |  |  |  |  |
| Total expenses  | 0.10% | 0.11% | 0.13% | 0.13% | 0.13% |
| Net investment income (loss)  | 0.70% | 0.65% | 1.17% | 1.40% | 1.43% |
| Portfolio turnover rate (e) | 22% | 23% | 11% | 6% | 23% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;(a) Beginning with the year ended September 30, 2020, the Fund was audited by Ernst & Young LLP. The previous years were audited by another independent registered public accounting firm.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Per share numbers have been calculated using average shares outstanding, which more appropriately presents the per share data for the year.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Amounts shown in this caption for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period because of the timing of sales and repurchases of Fund shares in relation to fluctuating market values for the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of each period reported. Distributions are assumed, for the purpose of this calculation, to be reinvested at net asset value per share on the respective payment dates of each distribution. Total returns for periods of less than one year are not annualized. Broker commission charges are not included in this calculation.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions on Select Sector SPDR shares.

------

**THE SELECT SECTOR SPDR TRUST**

**FINANCIAL HIGHLIGHTS (continued)**

***Selected data for a share outstanding throughout each period***

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **The Consumer Staples Select Sector SPDR Fund** | **The Consumer Staples Select Sector SPDR Fund** | **The Consumer Staples Select Sector SPDR Fund** | **The Consumer Staples Select Sector SPDR Fund** | **The Consumer Staples Select Sector SPDR Fund** |
|  | **Year**<br> **Ended**<br> **9/30/22**<br>| **Year**<br> **Ended**<br> **9/30/21**<br>| **Year**<br> **Ended**<br> **9/30/20**<br>| **Year**<br> **Ended**<br> **9/30/19(a)**<br>| **Year**<br> **Ended**<br> **9/30/18(a)**<br>|
| **Net asset value, beginning of period**  | $68.83 | $64.13 | $61.41 | $53.92 | $53.99 |
| **Income (loss) from investment** <br> **operations:** <br>|  |  |  |  |  |
| Net investment income (loss) (b) | 1.84 | 1.85 | 1.66 | 1.60 | 1.52 |
| Net realized and unrealized gain <br> (loss) (c)<br>| (2.16) | 4.67 | 2.70 | 7.41 | (0.17) |
| Total from investment operations  | (0.32) | 6.52 | 4.36 | 9.01 | 1.35 |
| Net equalization credits and charges (b) | 0.03 | (0.01) | 0.00(d) | 0.05 | 0.08 |
| **Distributions to shareholders from:** <br>|  |  |  |  |  |
| Net investment income  | (1.82) | (1.81) | (1.64) | (1.57) | (1.50) |
| **Net asset value, end of period**  | $66.72 | $68.83 | $64.13 | $61.41 | $53.92 |
| **Total return (e)** | (0.63)% | 10.19% | 7.32% | 17.14% | 2.70% |
| **Ratios and Supplemental Data:** <br>|  |  |  |  |  |
| Net assets, end of period (in 000s)  | $14465958 | $11757576 | $13687240 | $14015004 | $9256716 |
| **Ratios to average net assets:** <br>|  |  |  |  |  |
| Total expenses  | 0.10% | 0.11% | 0.13% | 0.13% | 0.13% |
| Net investment income (loss)  | 2.49% | 2.71% | 2.73% | 2.84% | 2.84% |
| Portfolio turnover rate (f) | 11% | 4% | 5% | 10% | 12% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;(a) Beginning with the year ended September 30, 2020, the Fund was audited by Ernst & Young LLP. The previous years were audited by another independent registered public accounting firm.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Per share numbers have been calculated using average shares outstanding, which more appropriately presents the per share data for the year.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Amounts shown in this caption for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period because of the timing of sales and repurchases of Fund shares in relation to fluctuating market values for the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Amount is less than $0.005 per share.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of each period reported. Distributions are assumed, for the purpose of this calculation, to be reinvested at net asset value per share on the respective payment dates of each distribution. Total returns for periods of less than one year are not annualized. Broker commission charges are not included in this calculation.

&nbsp;&nbsp;&nbsp;&nbsp;(f) Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions on Select Sector SPDR shares.

------

**THE SELECT SECTOR SPDR TRUST**

**FINANCIAL HIGHLIGHTS (continued)**

***Selected data for a share outstanding throughout each period***

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **The Energy Select Sector SPDR Fund** | **The Energy Select Sector SPDR Fund** | **The Energy Select Sector SPDR Fund** | **The Energy Select Sector SPDR Fund** | **The Energy Select Sector SPDR Fund** |
|  | **Year**<br> **Ended**<br> **9/30/22**<br>| **Year**<br> **Ended**<br> **9/30/21**<br>| **Year**<br> **Ended**<br> **9/30/20**<br>| **Year**<br> **Ended**<br> **9/30/19(a)**<br>| **Year**<br> **Ended**<br> **9/30/18(a)**<br>|
| **Net asset value, beginning of period**  | $52.12 | $29.97 | $59.18 | $75.75 | $68.46 |
| **Income (loss) from investment** <br> **operations:** <br>|  |  |  |  |  |
| Net investment income (loss) (b) | 2.91 | 2.11 | 2.19 | 4.01 | 1.95 |
| Net realized and unrealized gain <br> (loss) (c)<br>| 20.07 | 22.11 | (27.49) | (18.36) | 7.32 |
| Total from investment operations  | 22.98 | 24.22 | (25.30) | (14.35) | 9.27 |
| Net equalization credits and charges (b) | (0.06) | 0.09 | 0.08 | (0.04) | (0.02) |
| Contribution from Affiliate  |  |  | 0.00(d)(e) |  |  |
| **Distributions to shareholders from:** <br>|  |  |  |  |  |
| Net investment income  | (3.06) | (2.16) | (3.99) | (2.18) | (1.96) |
| **Net asset value, end of period**  | $71.98 | $52.12 | $29.97 | $59.18 | $75.75 |
| **Total return (f)** | 44.34% | 81.93% | (44.68)%(g) | (19.08)% | 13.64% |
| **Ratios and Supplemental Data:** <br>|  |  |  |  |  |
| Net assets, end of period (in 000s)  | $33531192 | $25084339 | $8430789 | $10014781 | $18435159 |
| **Ratios to average net assets:** <br>|  |  |  |  |  |
| Total expenses  | 0.10% | 0.11% | 0.13% | 0.13% | 0.13% |
| Net investment income (loss)  | 4.14% | 4.54% | 5.08% | 6.25% | 2.71% |
| Portfolio turnover rate (h) | 9% | 14% | 13% | 10% | 8% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;(a) Beginning with the year ended September 30, 2020, the Fund was audited by Ernst & Young LLP. The previous years were audited by another independent registered public accounting firm.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Per share numbers have been calculated using average shares outstanding, which more appropriately presents the per share data for the year.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Amounts shown in this caption for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period because of the timing of sales and repurchases of Fund shares in relation to fluctuating market values for the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Amount is less than $0.005 per share.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Contribution paid by an Affiliate in the amount of $290,417.

&nbsp;&nbsp;&nbsp;&nbsp;(f) Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of each period reported. Distributions are assumed, for the purpose of this calculation, to be reinvested at net asset value per share on the respective payment dates of each distribution. Total returns for periods of less than one year are not annualized. Broker commission charges are not included in this calculation.

&nbsp;&nbsp;&nbsp;&nbsp;(g) The contribution from an Affiliate had no impact on total return.

&nbsp;&nbsp;&nbsp;&nbsp;(h) Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions on Select Sector SPDR shares.

------

**THE SELECT SECTOR SPDR TRUST**

**FINANCIAL HIGHLIGHTS (continued)**

***Selected data for a share outstanding throughout each period***

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **The Financial Select Sector SPDR Fund** | **The Financial Select Sector SPDR Fund** | **The Financial Select Sector SPDR Fund** | **The Financial Select Sector SPDR Fund** | **The Financial Select Sector SPDR Fund** |
|  | **Year**<br> **Ended**<br> **9/30/22**<br>| **Year**<br> **Ended**<br> **9/30/21**<br>| **Year**<br> **Ended**<br> **9/30/20**<br>| **Year**<br> **Ended**<br> **9/30/19(a)**<br>| **Year**<br> **Ended**<br> **9/30/18(a)**<br>|
| **Net asset value, beginning of period**  | $37.53 | $24.06 | $28.02 | $27.58 | $25.84 |
| **Income (loss) from investment** <br> **operations:** <br>|  |  |  |  |  |
| Net investment income (loss) (b) | 0.68 | 0.61 | 0.60 | 0.57 | 0.48 |
| Net realized and unrealized gain <br> (loss) (c)<br>| (7.21) | 13.44 | (3.94) | 0.46 | 1.73 |
| Total from investment operations  | (6.53) | 14.05 | (3.34) | 1.03 | 2.21 |
| Net equalization credits and <br> charges (b)<br>| (0.02) | 0.02 | (0.02) | (0.03) | 0.01 |
| **Distributions to shareholders from:** <br>|  |  |  |  |  |
| Net investment income  | (0.67) | (0.60) | (0.60) | (0.56) | (0.48) |
| **Net asset value, end of period**  | $30.31 | $37.53 | $24.06 | $28.02 | $27.58 |
| **Total return (d)** | (17.67)% | 58.79% | (11.98)% | 3.81% | 8.58% |
| **Ratios and Supplemental Data:** <br>|  |  |  |  |  |
| Net assets, end of period (in 000s)  | $26953933 | $40412690 | $16646404 | $22552204 | $31053806 |
| **Ratios to average net assets:** <br>|  |  |  |  |  |
| Total expenses  | 0.10% | 0.11% | 0.13% | 0.13% | 0.13% |
| Net investment income (loss)  | 1.83% | 1.80% | 2.30% | 2.13% | 1.72% |
| Portfolio turnover rate (e) | 4% | 3% | 4% | 4% | 3% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;(a) Beginning with the year ended September 30, 2020, the Fund was audited by Ernst & Young LLP. The previous years were audited by another independent registered public accounting firm.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Per share numbers have been calculated using average shares outstanding, which more appropriately presents the per share data for the year.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Amounts shown in this caption for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period because of the timing of sales and repurchases of Fund shares in relation to fluctuating market values for the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of each period reported. Distributions are assumed, for the purpose of this calculation, to be reinvested at net asset value per share on the respective payment dates of each distribution. Total returns for periods of less than one year are not annualized. Broker commission charges are not included in this calculation.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions on Select Sector SPDR shares.

------

**THE SELECT SECTOR SPDR TRUST**

**FINANCIAL HIGHLIGHTS (continued)**

***Selected data for a share outstanding throughout each period***

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **The Health Care Select Sector SPDR Fund** | **The Health Care Select Sector SPDR Fund** | **The Health Care Select Sector SPDR Fund** | **The Health Care Select Sector SPDR Fund** | **The Health Care Select Sector SPDR Fund** |
|  | **Year**<br> **Ended**<br> **9/30/22**<br>| **Year**<br> **Ended**<br> **9/30/21**<br>| **Year**<br> **Ended**<br> **9/30/20**<br>| **Year**<br> **Ended**<br> **9/30/19(a)**<br>| **Year**<br> **Ended**<br> **9/30/18(a)**<br>|
| **Net asset value, beginning of period**  | $127.26 | $105.56 | $90.13 | $95.11 | $81.76 |
| **Income (loss) from investment** <br> **operations:** <br>|  |  |  |  |  |
| Net investment income (loss) (b) | 1.95 | 1.85 | 1.66 | 2.29 | 1.31 |
| Net realized and unrealized gain <br> (loss) (c)<br>| (6.27) | 21.65 | 16.08 | (5.75) | 13.34 |
| Total from investment operations  | (4.32) | 23.50 | 17.74 | (3.46) | 14.65 |
| Net equalization credits and <br> charges (b)<br>| 0.04 | 0.01 | (0.00)(d) | (0.02) | 0.01 |
| **Distributions to shareholders from:** <br>|  |  |  |  |  |
| Net investment income  | (1.96) | (1.81) | (2.31) | (1.50) | (1.31) |
| **Net asset value, end of period**  | $121.02 | $127.26 | $105.56 | $90.13 | $95.11 |
| **Total return (e)** | (3.47)% | 22.37% | 19.90% | (3.65)% | 18.10% |
| **Ratios and Supplemental Data:** <br>|  |  |  |  |  |
| Net assets, end of period (in 000s)  | $35805067 | $30358856 | $23873455 | $16818717 | $19632378 |
| **Ratios to average net assets:** <br>|  |  |  |  |  |
| Total expenses  | 0.10% | 0.11% | 0.13% | 0.13% | 0.13% |
| Net investment income (loss)  | 1.48% | 1.54% | 1.67% | 2.53% | 1.54% |
| Portfolio turnover rate (f) | 2% | 4% | 3% | 2% | 5% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;(a) Beginning with the year ended September 30, 2020, the Fund was audited by Ernst & Young LLP. The previous years were audited by another independent registered public accounting firm.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Per share numbers have been calculated using average shares outstanding, which more appropriately presents the per share data for the year.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Amounts shown in this caption for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period because of the timing of sales and repurchases of Fund shares in relation to fluctuating market values for the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Amount is less than $0.005 per share.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of each period reported. Distributions are assumed, for the purpose of this calculation, to be reinvested at net asset value per share on the respective payment dates of each distribution. Total returns for periods of less than one year are not annualized. Broker commission charges are not included in this calculation.

&nbsp;&nbsp;&nbsp;&nbsp;(f) Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions on Select Sector SPDR shares.

------

**THE SELECT SECTOR SPDR TRUST**

**FINANCIAL HIGHLIGHTS (continued)**

***Selected data for a share outstanding throughout each period***

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **The Industrial Select Sector SPDR Fund** | **The Industrial Select Sector SPDR Fund** | **The Industrial Select Sector SPDR Fund** | **The Industrial Select Sector SPDR Fund** | **The Industrial Select Sector SPDR Fund** |
|  | **Year**<br> **Ended**<br> **9/30/22**<br>| **Year**<br> **Ended**<br> **9/30/21**<br>| **Year**<br> **Ended**<br> **9/30/20**<br>| **Year**<br> **Ended**<br> **9/30/19(a)**<br>| **Year**<br> **Ended**<br> **9/30/18(a)**<br>|
| **Net asset value, beginning of period**  | $97.77 | $76.98 | $77.66 | $78.37 | $70.99 |
| **Income (loss) from investment** <br> **operations:** <br>|  |  |  |  |  |
| Net investment income (loss) (b) | 1.52 | 1.27 | 1.39 | 1.52 | 1.30 |
| Net realized and unrealized gain <br> (loss) (c)<br>| (14.94) | 20.81 | (0.68) | (0.63) | 7.49 |
| Total from investment operations  | (13.42) | 22.08 | 0.71 | 0.89 | 8.79 |
| Net equalization credits and charges (b) | (0.04) | 0.01 | 0.02 | (0.03) | (0.02) |
| Contribution from Affiliate  |  |  |  | 0.00(d)(e) |  |
| **Distributions to shareholders from:** <br>|  |  |  |  |  |
| Net investment income  | (1.52) | (1.30) | (1.41) | (1.57) | (1.39) |
| **Net asset value, end of period**  | $82.79 | $97.77 | $76.98 | $77.66 | $78.37 |
| **Total return (f)** | (13.95)% | 28.74% | 1.12% | 1.25%(g) | 12.43% |
| **Ratios and Supplemental Data:** <br>|  |  |  |  |  |
| Net assets, end of period (in 000s)  | $11104720 | $17367182 | $12179734 | $9802368 | $12925332 |
| **Ratios to average net assets:** <br>|  |  |  |  |  |
| Total expenses  | 0.10% | 0.11% | 0.13% | 0.13% | 0.13% |
| Net investment income (loss)  | 1.54% | 1.33% | 1.87% | 2.07% | 1.74% |
| Portfolio turnover rate (h) | 7% | 2% | 3% | 3% | 6% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;(a) Beginning with the year ended September 30, 2020, the Fund was audited by Ernst & Young LLP. The previous years were audited by another independent registered public accounting firm.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Per share numbers have been calculated using average shares outstanding, which more appropriately presents the per share data for the year.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Amounts shown in this caption for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period because of the timing of sales and repurchases of Fund shares in relation to fluctuating market values for the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Amount is less than $0.005 per share.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Contribution paid by an Affiliate in the amount of $60,421.

&nbsp;&nbsp;&nbsp;&nbsp;(f) Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of each period reported. Distributions are assumed, for the purpose of this calculation, to be reinvested at net asset value per share on the respective payment dates of each distribution. Total returns for periods of less than one year are not annualized. Broker commission charges are not included in this calculation.

&nbsp;&nbsp;&nbsp;&nbsp;(g) The contribution from an Affiliate had no impact on total return.

&nbsp;&nbsp;&nbsp;&nbsp;(h) Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions on Select Sector SPDR shares.

------

**THE SELECT SECTOR SPDR TRUST**

**FINANCIAL HIGHLIGHTS (continued)**

***Selected data for a share outstanding throughout each period***

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **The Materials Select Sector SPDR Fund** | **The Materials Select Sector SPDR Fund** | **The Materials Select Sector SPDR Fund** | **The Materials Select Sector SPDR Fund** | **The Materials Select Sector SPDR Fund** |
|  | **Year**<br> **Ended**<br> **9/30/22**<br>| **Year**<br> **Ended**<br> **9/30/21**<br>| **Year**<br> **Ended**<br> **9/30/20**<br>| **Year**<br> **Ended**<br> **9/30/19(a)**<br>| **Year**<br> **Ended**<br> **9/30/18(a)**<br>|
| **Net asset value, beginning of period**  | $79.11 | $63.62 | $58.17 | $57.92 | $56.80 |
| **Income (loss) from investment operations:** <br>|  |  |  |  |  |
| Net investment income (loss) (b) | 1.64 | 1.45 | 1.23 | 1.20 | 1.09 |
| Net realized and unrealized gain (loss) (c) | (11.02) | 15.43 | 5.47 | 0.28 | 1.09 |
| Total from investment operations  | (9.38) | 16.88 | 6.70 | 1.48 | 2.18 |
| Net equalization credits and charges (b) | (0.06) | (0.00)(d) | (0.03) | (0.03) | 0.02 |
| **Distributions to shareholders from:** <br>|  |  |  |  |  |
| Net investment income  | (1.69) | (1.39) | (1.22) | (1.20) | (1.08) |
| **Net asset value, end of period**  | $67.98 | $79.11 | $63.62 | $58.17 | $57.92 |
| **Total return (e)** | (12.23)% | 26.60% | 11.76% | 2.64% | 3.84% |
| **Ratios and Supplemental Data:** <br>|  |  |  |  |  |
| Net assets, end of period (in 000s)  | $4702427 | $7501906 | $3917044 | $4201473 | $4547766 |
| **Ratios to average net assets:** <br>|  |  |  |  |  |
| Total expenses  | 0.10% | 0.11% | 0.13% | 0.13% | 0.13% |
| Net investment income (loss)  | 1.97% | 1.83% | 2.15% | 2.18% | 1.84% |
| Portfolio turnover rate (f) | 2% | 5% | 4% | 20% | 17% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;(a) Beginning with the year ended September 30, 2020, the Fund was audited by Ernst & Young LLP. The previous years were audited by another independent registered public accounting firm.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Per share numbers have been calculated using average shares outstanding, which more appropriately presents the per share data for the year.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Amounts shown in this caption for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period because of the timing of sales and repurchases of Fund shares in relation to fluctuating market values for the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Amount is less than $0.005 per share.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of each period reported. Distributions are assumed, for the purpose of this calculation, to be reinvested at net asset value per share on the respective payment dates of each distribution. Total returns for periods of less than one year are not annualized. Broker commission charges are not included in this calculation.

&nbsp;&nbsp;&nbsp;&nbsp;(f) Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions on Select Sector SPDR shares.

------

**THE SELECT SECTOR SPDR TRUST**

**FINANCIAL HIGHLIGHTS (continued)**

***Selected data for a share outstanding throughout each period***

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **The Real Estate Select Sector SPDR Fund**  | **The Real Estate Select Sector SPDR Fund**  | **The Real Estate Select Sector SPDR Fund**  | **The Real Estate Select Sector SPDR Fund**  | **The Real Estate Select Sector SPDR Fund**  |
|  | **Year**<br> **Ended**<br> **9/30/22**<br>| **Year**<br> **Ended**<br> **9/30/21**<br>| **Year**<br> **Ended**<br> **9/30/20**<br>| **Year**<br> **Ended**<br> **9/30/19(a)**<br>| **Year**<br> **Ended**<br> **9/30/18(a)**<br>|
| **Net asset value, beginning of period**  | $44.47 | $35.30 | $39.35 | $32.62 | $32.26 |
| **Income (loss) from investment operations:** <br>|  |  |  |  |  |
| Net investment income (loss) (b) | 0.86 | 0.85 | 0.88 | 0.95 | 0.95 |
| Net realized and unrealized gain (loss) (c) | (7.99) | 9.66 | (3.78) | 6.91 | 0.58 |
| Total from investment operations  | (7.13) | 10.51 | (2.90) | 7.86 | 1.53 |
| Net equalization credits and charges (b) | 0.03 | 0.05 | (0.05) | 0.01 | 0.00(d) |
| **Distributions to shareholders from:** <br>|  |  |  |  |  |
| Net investment income  | (1.37) | (1.39) | (1.10) | (1.14) | (1.17) |
| **Net asset value, end of period**  | $36.00 | $44.47 | $35.30 | $39.35 | $32.62 |
| **Total return (e)** | (16.46)% | 30.42% | (7.46)% | 24.64% | 4.87% |
| **Ratios and Supplemental Data:** <br>|  |  |  |  |  |
| Net assets, end of period (in 000s)  | $4612173 | $4282141 | $2264406 | $3884273 | $2732078 |
| **Ratios to average net assets:** <br>|  |  |  |  |  |
| Total expenses  | 0.10% | 0.11% | 0.13% | 0.13% | 0.13% |
| Net investment income (loss)  | 1.90% | 2.05% | 2.42% | 2.69% | 2.94% |
| Portfolio turnover rate (f) | 11% | 4% | 5% | 3% | 7% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;(a) Beginning with the year ended September 30, 2020, the Fund was audited by Ernst & Young LLP. The previous years were audited by another independent registered public accounting firm.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Per share numbers have been calculated using average shares outstanding, which more appropriately presents the per share data for the year.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Amounts shown in this caption for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period because of the timing of sales and repurchases of Fund shares in relation to fluctuating market values for the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Amount is less than $0.005 per share.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of each period reported. Distributions are assumed, for the purpose of this calculation, to be reinvested at net asset value per share on the respective payment dates of each distribution. Total returns for periods of less than one year are not annualized. Broker commission charges are not included in this calculation.

&nbsp;&nbsp;&nbsp;&nbsp;(f) Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions on Select Sector SPDR shares.

------

**THE SELECT SECTOR SPDR TRUST**

**FINANCIAL HIGHLIGHTS (continued)**

***Selected data for a share outstanding throughout each period***

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **The Technology Select Sector SPDR Fund** | **The Technology Select Sector SPDR Fund** | **The Technology Select Sector SPDR Fund** | **The Technology Select Sector SPDR Fund** | **The Technology Select Sector SPDR Fund** |
|  | **Year**<br> **Ended**<br> **9/30/22**<br>| **Year**<br> **Ended**<br> **9/30/21**<br>| **Year**<br> **Ended**<br> **9/30/20**<br>| **Year**<br> **Ended**<br> **9/30/19(a)**<br>| **Year**<br> **Ended**<br> **9/30/18(a)**<br>|
| **Net asset value, beginning of period**  | $149.35 | $116.76 | $80.51 | $75.30 | $59.13 |
| **Income (loss) from investment** <br> **operations:** <br>|  |  |  |  |  |
| Net investment income (loss) (b) | 1.24 | 1.11 | 1.20 | 1.05 | 0.93 |
| Net realized and unrealized gain <br> (loss) (c)<br>| (30.62) | 32.60 | 36.24 | 5.18 | 16.17 |
| Total from investment operations  | (29.38) | 33.71 | 37.44 | 6.23 | 17.10 |
| Net equalization credits and <br> charges (b)<br>| (0.00)(d) | (0.02) | (0.00)(d) | 0.01 | 0.04 |
| **Distributions to shareholders from:** <br>|  |  |  |  |  |
| Net investment income  | (1.24) | (1.10) | (1.19) | (1.03) | (0.97) |
| **Net asset value, end of period**  | $118.73 | $149.35 | $116.76 | $80.51 | $75.30 |
| **Total return (e)** | (19.82)% | 28.93% | 46.88% | 8.44% | 29.14% |
| **Ratios and Supplemental Data:** <br>|  |  |  |  |  |
| Net assets, end of period (in 000s)  | $35656531 | $43022516 | $34095026 | $22417160 | $22959484 |
| **Ratios to average net assets:** <br>|  |  |  |  |  |
| Total expenses  | 0.10% | 0.11% | 0.13% | 0.13% | 0.13% |
| Net investment income (loss)  | 0.83% | 0.81% | 1.24% | 1.44% | 1.37% |
| Portfolio turnover rate (f) | 9% | 4% | 3% | 6% | 19% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;(a) Beginning with the year ended September 30, 2020, the Fund was audited by Ernst & Young LLP. The previous years were audited by another independent registered public accounting firm.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Per share numbers have been calculated using average shares outstanding, which more appropriately presents the per share data for the year.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Amounts shown in this caption for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period because of the timing of sales and repurchases of Fund shares in relation to fluctuating market values for the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Amount is less than $0.005 per share.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of each period reported. Distributions are assumed, for the purpose of this calculation, to be reinvested at net asset value per share on the respective payment dates of each distribution. Total returns for periods of less than one year are not annualized. Broker commission charges are not included in this calculation.

&nbsp;&nbsp;&nbsp;&nbsp;(f) Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions on Select Sector SPDR shares.

------

**THE SELECT SECTOR SPDR TRUST**

**FINANCIAL HIGHLIGHTS (continued)**

***Selected data for a share outstanding throughout each period***

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **The Utilities Select Sector SPDR Fund** | **The Utilities Select Sector SPDR Fund** | **The Utilities Select Sector SPDR Fund** | **The Utilities Select Sector SPDR Fund** | **The Utilities Select Sector SPDR Fund** |
|  | **Year**<br> **Ended**<br> **9/30/22**<br>| **Year**<br> **Ended**<br> **9/30/21**<br>| **Year**<br> **Ended**<br> **9/30/20**<br>| **Year**<br> **Ended**<br> **9/30/19(a)**<br>| **Year**<br> **Ended**<br> **9/30/18(a)**<br>|
| **Net asset value, beginning of period**  | $63.88 | $59.40 | $64.73 | $52.68 | $53.05 |
| **Income (loss) from investment** <br> **operations:** <br>|  |  |  |  |  |
| Net investment income (loss) (b) | 1.96 | 1.86 | 2.00 | 1.90 | 1.76 |
| Net realized and unrealized gain <br> (loss) (c)<br>| 1.61 | 4.61 | (5.36) | 12.01 | (0.28) |
| Total from investment operations  | 3.57 | 6.47 | (3.36) | 13.91 | 1.48 |
| Net equalization credits and charges (b) | 0.04 | (0.01) | (0.02) | 0.01 | (0.04) |
| **Distributions to shareholders from:** <br>|  |  |  |  |  |
| Net investment income  | (2.03) | (1.98) | (1.95) | (1.87) | (1.81) |
| **Net asset value, end of period**  | $65.46 | $63.88 | $59.40 | $64.73 | $52.68 |
| **Total return (d)** | 5.46% | 10.95% | (5.12)% | 26.85% | 2.89% |
| **Ratios and Supplemental Data:** <br>|  |  |  |  |  |
| Net assets, end of period (in 000s)  | $16119053 | $11956669 | $11405751 | $11296483 | $7642260 |
| **Ratios to average net assets:** <br>|  |  |  |  |  |
| Total expenses  | 0.10% | 0.11% | 0.13% | 0.13% | 0.13% |
| Net investment income (loss)  | 2.76% | 2.89% | 3.29% | 3.30% | 3.37% |
| Portfolio turnover rate (e) | 4% | 3% | 3% | 5% | 5% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;(a) Beginning with the year ended September 30, 2020, the Fund was audited by Ernst & Young LLP. The previous years were audited by another independent registered public accounting firm.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Per share numbers have been calculated using average shares outstanding, which more appropriately presents the per share data for the year.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Amounts shown in this caption for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period because of the timing of sales and repurchases of Fund shares in relation to fluctuating market values for the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of each period reported. Distributions are assumed, for the purpose of this calculation, to be reinvested at net asset value per share on the respective payment dates of each distribution. Total returns for periods of less than one year are not annualized. Broker commission charges are not included in this calculation.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions on Select Sector SPDR shares.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

------

**Where to Learn More About the Funds**

This Prospectus does not contain all the information included in the Registration Statement filed with the SEC with respect to Fund Shares. The SAI and the Annual and Semi-Annual Reports to shareholders, each of which has been or will be filed with the SEC, provide more information about the Funds. The Prospectus and SAI may be supplemented from time to time. In the Annual Report, you will find a discussion of the market conditions and investment strategies that significantly affected each Fund's performance during the Fund's last fiscal year. The SAI is incorporated herein by reference (*i.e.*, it is legally part of this Prospectus). These materials may be obtained without charge, upon request, by writing to the Distributor, ALPS Portfolio Solutions Distributor, Inc., 1290 Broadway, Suite 1000, Denver, CO 80203, by visiting the Funds' website at www.sectorspdr.com or by calling the following number:

**Investor Information: 1-866-SECTOR-ETF (1-866-732-8673)**

The Registration Statement, including this Prospectus, the SAI, and the exhibits as well as any shareholder reports may be reviewed on the EDGAR Database on the SEC's website (http://www.sec.gov). You may also obtain copies of this and other information, after paying a duplicating fee, by electronic request at the following E-mail address: publicinfo@sec.gov.

Shareholder inquiries may be directed to the Funds in writing to ALPS Portfolio Solutions Distributor, Inc., 1290 Broadway, Suite 1000, Denver, CO 80203, or by calling the Investor Information number listed above.

**No person has been authorized to give any information or to make any representations other than those contained in this Prospectus in connection with the offer of Fund Shares, and, if given or made, the information or representations must not be relied upon as having been authorized by the Trust or the Funds. Neither the delivery of this Prospectus nor any sale of Fund Shares shall under any circumstance imply that the information contained herein is correct as of any date after the date of this Prospectus.**

**Dealers effecting transactions in Fund Shares, whether or not participating in this distribution, are generally required to deliver a Prospectus. This is in addition to any obligation of dealers to deliver a Prospectus when acting as underwriters.**

SSSPDRPRO

The Trust's Investment Company Act Number is 811-08837

------

**THE SELECT SECTOR SPDR**<sup>®</sup> **TRUST (THE "TRUST")** 

**STATEMENT OF ADDITIONAL INFORMATION**

January 31, 2023

This Statement of Additional Information ("SAI") is not a prospectus. With respect to each of the Trust's series listed below, this SAI should be read in conjunction with the prospectus dated January 31, 2023 (the "Prospectus"), as may be revised from time to time.

---

| | |
|:---|:---|
| **FUND** | **TICKER** |
| THE COMMUNICATION SERVICES SELECT SECTOR SPDR<sup>®</sup> FUND | XLC |
| THE CONSUMER DISCRETIONARY SELECT SECTOR SPDR<sup>®</sup> FUND | XLY |
| THE CONSUMER STAPLES SELECT SECTOR SPDR<sup>®</sup> FUND | XLP |
| THE ENERGY SELECT SECTOR SPDR<sup>®</sup> FUND | XLE |
| THE FINANCIAL SELECT SECTOR SPDR<sup>®</sup> FUND | XLF |
| THE HEALTH CARE SELECT SECTOR SPDR<sup>®</sup> FUND | XLV |
| THE INDUSTRIAL SELECT SECTOR SPDR<sup>®</sup> FUND | XLI |
| THE MATERIALS SELECT SECTOR SPDR<sup>®</sup> FUND | XLB |
| THE REAL ESTATE SELECT SECTOR SPDR<sup>®</sup> FUND | XLRE |
| THE TECHNOLOGY SELECT SECTOR SPDR<sup>®</sup> FUND | XLK |
| THE UTILITIES SELECT SECTOR SPDR<sup>®</sup> FUND | XLU |

---

Principal U.S. Listing Exchange for each ETF: NYSE Arca, Inc.

Capitalized terms used herein that are not defined have the same meaning as in the Prospectus, unless otherwise noted. Copies of the Prospectus and the Trust's [<u>Annual Report to Shareholders</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522300047/d403933dncsr.htm) for the fiscal year ended September 30, 2022 may be obtained without charge by writing to the Trust's Distributor, ALPS Portfolio Solutions Distributor, Inc., at 1290 Broadway, Suite 1000, Denver, Colorado 80203, by visiting the Funds' website at https://www.sectorspdr.com or by calling 1-866-732-8673. The Report of Independent Registered Public Accounting Firm, financial highlights and financial statements of the Funds included in the Trust's Annual Report to Shareholders for the fiscal year ended September 30, 2022 are incorporated by reference into this SAI.

"S&P<sup>®</sup>", "S&P 500<sup>®</sup>", "Standard & Poor's Depositary Receipts<sup>®</sup>" and "SPDR<sup>®</sup>" are trademarks of Standard & Poor's Financial Services LLC, and "Select Sector<sup>®</sup>" is a trademark of S&P Dow Jones Indices LLC. Each of these trademarks have been licensed for use in connection with the listing and trading of Select Sector SPDRs on NYSE Arca, Inc. (the "Exchange"), a national securities exchange. The stocks included in each Select Sector Index (upon which the Select Sector SPDRs are based) are selected by S&P Dow Jones Indices LLC ("S&P DJI" and sometimes referred to as the "Index Compilation Agent") from the universe of companies represented by the S&P 500 Index ("S&P 500"). The composition and weighting of the stocks included in each Select Sector Index can be expected to differ from the composition and weighting of stocks included in any similar S&P 500 sector index that is published and disseminated by S&P DJI (sometimes referred to as the "Index Provider") because, unlike the Select Sector Indices, the S&P 500 sector indices do not limit the weight of any stocks in the indices.

SSSPDRSAI

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**TABLE OF CONTENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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| | |
|:---|:---|
| [General Description of the Trust](#xx_cf15fa82-4908-415b-8332-ac88cbfa0fd7_1) | 4 |
| [Investment Policies](#xx_cf15fa82-4908-415b-8332-ac88cbfa0fd7_5) | 8 |
| [Special Considerations and Risks](#xx_cf15fa82-4908-415b-8332-ac88cbfa0fd7_12) | 15 |
| [Investment Restrictions](#xx_cf15fa82-4908-415b-8332-ac88cbfa0fd7_17) | 20 |
| [Exchange Listing and Trading](#xx_cf15fa82-4908-415b-8332-ac88cbfa0fd7_19) | 22 |
| [Management of the Trust](#xx_cf15fa82-4908-415b-8332-ac88cbfa0fd7_19) | 22 |
| [Investment Advisory and Other Services](#xx_cf15fa82-4908-415b-8332-ac88cbfa0fd7_28) | 31 |
| [Brokerage Transactions](#xx_cf15fa82-4908-415b-8332-ac88cbfa0fd7_36) | 39 |
| [Book Entry Only System](#xx_cf15fa82-4908-415b-8332-ac88cbfa0fd7_38) | 41 |
| [Control Persons and Principal Holders of Securities](#xx_cf15fa82-4908-415b-8332-ac88cbfa0fd7_39) | 42 |
| [Purchase and Redemption of Creation Units](#xx_cf15fa82-4908-415b-8332-ac88cbfa0fd7_43) | 46 |
| [Determination of Net Asset Value](#xx_cf15fa82-4908-415b-8332-ac88cbfa0fd7_47) | 50 |
| [Dividends and Distributions](#xx_cf15fa82-4908-415b-8332-ac88cbfa0fd7_48) | 51 |
| [Taxes](#xx_cf15fa82-4908-415b-8332-ac88cbfa0fd7_49) | 52 |
| [Capital Stock and Other Securities](#xx_cf15fa82-4908-415b-8332-ac88cbfa0fd7_55) | 58 |
| [Counsel and Independent Registered Public Accounting Firm](#xx_cf15fa82-4908-415b-8332-ac88cbfa0fd7_56) | 59 |
| [Financial Statements](#xx_cf15fa82-4908-415b-8332-ac88cbfa0fd7_56) | 59 |
| [Appendix A — Trust's Proxy Voting Policy](#xx_fa84d02c-dd26-4bf5-9566-7c91a0e1215b_1) | A-1 |
| [Appendix B — Adviser's Proxy Voting Policies and Procedures](#xx_c3ccc54d-4a05-4d56-93fb-e9bbc7d6b32b_1) | B-1 |

---

The information contained herein regarding the Select Sector Indices, securities markets and The Depository Trust Company ("DTC") was obtained from publicly available sources.

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**DISCLAIMERS** 

Each Select Sector Index is based on equity securities of public companies that are components of the S&P 500, selected and included in the particular Select Sector Indices on the basis of its GICS (Global Industry Classification Standard) classification, with certain exceptions described below, by the Index Compilation Agent. S&P DJI also acts as "Index Calculation Agent" in connection with the calculation and dissemination of each Select Sector Index.

Select Sector SPDRs are not sponsored, endorsed, sold or marketed by S&P DJI or any of its affiliates. S&P DJI and its affiliates make no representation or warranty, express or implied, to the owners of the Select Sector SPDRs or any member of the public regarding the advisability of investing in securities generally or in the Select Sector SPDRs particularly or the ability of a Select Sector SPDR Fund to track the performance of the various sectors represented in the stock market. The stocks included in each Select Sector Index were selected by the Index Compilation Agent from a universe of companies represented by the S&P 500. Select Sector Indices use a "modified market capitalization" weighting which limits the weight of each Component Stock in the index. As such, the weightings of each Select Sector index can be expected to differ from the weightings of stocks included in the corresponding S&P 500 sector index that is published and disseminated by S&P DJI, as the S&P 500 sector indices use a float adjusted market capitalization which does not limit the weight of any stocks in the index.

With respect to the Select Sector Indices, S&P DJI's only relationship to the Trust is the licensing of certain trademarks and trade names of S&P, the S&P 500 Index and Select Sector Indices which are determined, composed and calculated by S&P DJI. S&P<sup>®</sup> and S&P 500<sup>®</sup> are trademarks of Standard & Poor's Financial Services LLC, an affiliate of S&P DJI; Select Sector<sup>®</sup> is a trademark of S&P DJI; and Dow Jones<sup>®</sup> is a trademark of Dow Jones Trademark Holdings LLC. Each of these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by the Trust. S&P DJI and its affiliates have no obligation to take the needs of SSGA FM, the Trust or the owners of Fund Shares into consideration in determining, composing or calculating the S&P 500 or the Select Sector Indices. S&P DJI and its affiliates are not responsible for and have not participated in any determination or calculation made with respect to issuance or redemption of the Select Sector SPDRs. S&P DJI and its affiliates have no obligation or liability in connection with the administration, marketing or trading of the Select Sector SPDRs.

Although S&P DJI seeks to obtain and use information from sources which it considers reliable, S&P DJI and its affiliates do not guarantee the accuracy and/or completeness of the S&P 500, the Select Sector Indices or any data related thereto. S&P DJI and its affiliates make no warranty, express or implied, as to results to be obtained by the Trust, owners of the Select Sector SPDRs, or any other person or entity from the use of the S&P 500, the Select Sector Indices or any data related thereto in connection with the rights licensed under the license agreement or for any other use. S&P DJI and its affiliates make no express or implied warranties, and hereby expressly disclaim all warranties of merchantability or fitness for a particular purpose, with respect to the S&P 500, the Select Sector Indices or any data related thereto. Without limiting any of the foregoing, in no event shall S&P DJI and its affiliates have any liability for any special, punitive, indirect or consequential damages (including lost profits), even if notified of the possibility of such damages.

The shares are not sponsored or marketed by S&P DJI or its respective affiliates.

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**General Description of the Trust**

The Trust is an open-end management investment company registered with the U.S. Securities and Exchange Commission (the "SEC") under the Investment Company Act of 1940, as amended (the "1940 Act"), and the offering of each Fund's shares ("Shares" or "Fund Shares") is registered with the SEC under the Securities Act of 1933, as amended (the "Securities Act"). The Trust currently consists of 11 series (each, a "Select Sector SPDR Fund" or "Fund" and collectively, the "Select Sector SPDR Funds" or "Funds") as identified on the front cover and described below.

The Trust was organized as a Massachusetts business trust on June 10, 1998. The Trust is governed by a Board of Trustees (the "Board"). The Select Sector SPDR Funds offered by the Trust are: The Communication Services Select Sector SPDR Fund; The Consumer Discretionary Select Sector SPDR Fund; The Consumer Staples Select Sector SPDR Fund; The Energy Select Sector SPDR Fund; The Financial Select Sector SPDR Fund; The Health Care Select Sector SPDR Fund; The Industrial Select Sector SPDR Fund; The Materials Select Sector SPDR Fund; The Real Estate Select Sector SPDR Fund; The Technology Select Sector SPDR Fund; and The Utilities Select Sector SPDR Fund. The investment objective of each Select Sector SPDR Fund is to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in a particular sector or group of industries, as represented by a corresponding benchmark index referred to herein as a "Select Sector Index." SSGA Funds Management, Inc. ("SSGA FM" or the "Adviser") manages each Select Sector SPDR Fund.

Each Select Sector SPDR Fund offers and issues Shares at their net asset value (sometimes referred to herein as "NAV") only in aggregations of a specified number of Shares (each, a "Creation Unit"). Each Select Sector SPDR Fund offers and issues Creation Units generally in exchange for a basket of equity securities designated by the Fund ("Deposit Securities") together with the deposit of a specified cash payment ("Cash Component"). The Shares are listed on the Exchange and trade at market prices. These prices may differ from the Shares' net asset values. The Shares are also redeemable only in Creation Unit aggregations (except upon termination of a Select Sector SPDR Fund), and generally in exchange for portfolio securities and a specified cash payment ("Cash Redemption Amount").

The Trust reserves the right to offer a "cash" option for purchases and redemptions of Creation Units (subject to applicable legal requirements) although it has no current intention of doing so. Creation Units may be issued in advance of receipt of all Deposit Securities subject to various conditions including a requirement to maintain on deposit with the Trust cash in an amount at least equal to a specified percentage of the market value of the missing Deposit Securities as set forth in the Participant Agreement (as defined below). See "Purchase and Redemption of Creation Units." The Trust may impose a transaction fee for each creation or redemption. In all cases, such fees will be limited in accordance with the requirements of the SEC applicable to management investment companies offering redeemable securities.

**THE SELECT SECTOR INDICES AND RELEVANT EQUITY MARKETS** 

Each Select Sector Index is the benchmark for its respective Select Sector SPDR Fund and is intended to give investors an efficient, modified market capitalization-based way to track the movement of baskets of equity securities of public companies that are components of the S&P 500 and are included in a particular sector or group of industries.

**CONSTRUCTION AND MAINTENANCE STANDARDS FOR THE SELECT SECTOR INDICES** 

**Selection Criteria** 

Each Select Sector Index was developed and is maintained in accordance with the following criteria:

Each of the component stocks in a Select Sector Index (the "Component Stocks") has been selected from the universe of companies defined by the S&P 500.

The Select Sector Indices include all of the companies represented in the S&P 500.

The Index Compilation Agent assigns each constituent stock of the S&P 500 Index to a Select Sector Index based on GICS. S&P DJI has sole control over the removal of stocks from the S&P 500 and the selection of replacement stocks to be added to the S&P 500.

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Each Select Sector Index is weighted, on a quarterly basis, based on the float-adjusted market capitalization of each of the Component Stocks, subject to the following asset diversification requirements: (i) the market capitalization-based weighted value of any single Component Stock measured with prices as of the reference date and membership, shares outstanding and investable weight factors as of the rebalancing effective date may not exceed 25% of the total value of its respective Select Sector Index; and (ii) the sum of the constituent stocks with weight greater than 4.8% cannot exceed 50% of the total Index weight.

Rebalancing the Select Sector Indices to meet the asset diversification requirements will be the responsibility of S&P. If on the second Friday of any calendar quarter-end month (a "Quarterly Qualification Date"), a Component Stock (or two or more Component Stocks) approaches the maximum allowable value limits set forth above (the "Asset Diversification Limits"), the percentage that such Component Stock (or Component Stocks) represents in the Select Sector Index will be reduced and the market capitalization-based weighted value of such Component Stock (or Component Stocks) will be redistributed across the Component Stocks that do not closely approach the Asset Diversification Limits in accordance with the following methodology: First, each Component Stock that exceeds 24% of the total value of the Select Sector Index will be reduced to 23% of the total value of the Select Sector Index and the excess amount will be redistributed proportionally across the remaining Component Stocks that each represent less than 23% of the total value of the Select Sector Index. If as a result of this redistribution, another Component Stock then exceeds 23%, the redistribution will be repeated as necessary until no company breaches the 23% weight cap. Second, if the sum of Component Stocks that each exceed 4.8% of the total value of the Select Sector Index exceeds 50% of the total value of the Index, the Component Stocks will be ranked in descending order of their float-adjusted market capitalization, and the first Component Stock to cause the 50% limit to be breached will be reduced to 4.5% and the excess amount will be distributed proportionally across all remaining Component Stocks that represent less than 4.5% of the total value of the Select Sector Index. This redistribution process will be repeated as necessary until at least 50% of the value of the Select Sector Index is accounted for by Component Stocks representing no more than 4.8% of the total value of the Select Sector Index. If necessary, this reallocation process may take place more than once to ensure that the Select Sector Index and the Select Sector SPDR Fund portfolio based upon it conform to the requirements for qualification of the Select Sector SPDR Fund as a regulated investment company ("RIC"), under the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code").

The rebalancing of the Select Sector Indices, based on the processes described above, occurs at the closing prices of the second Friday of March, June, September and December. Changes will become effective after the market close on the third Friday of March, June, September and December.

Additionally, if, on the second to last business day of March, June, September, or December a company has a weight greater than 24% or the sum of the companies with weights greater than 4.8% exceeds 50%, a secondary rebalancing will be triggered with the rebalancing effective date being after the close of the last business day of the month. This secondary rebalancing will use the closing prices as of the second to last business day of March, June, September, or December, and membership, shares outstanding, and investable weight factors as of the rebalancing effective date.

Periodically, the Index Compilation Agent will supply S&P with sector designations for a number of stocks deemed likely candidates for replacement selection by the S&P Dow Jones Indices' 500 Index Committee. If a replacement not on the current list is selected by the S&P Dow Jones Indices' 500 Index Committee, S&P will ask the Index Compilation Agent to assign the stock to one or more of the 11 sectors promptly. S&P will disseminate information on this assignment and on consequent changes in the Select Sector Index(es).

The Index Compilation Agent at any time may determine that a Component Stock which has been assigned to a Select Sector Index has undergone such a transformation in the composition of its business that it should be removed from that Select Sector Index and assigned to a different Select Sector Index, or that it should remain in the Select Sector Index and be assigned to an additional Select Sector Index. In the event that the Index Compilation Agent notifies S&P that a Component Stock's Select Sector Index assignment should be changed, S&P will disseminate notice of the change following its standard procedure for announcing index changes and will implement the change in the affected Select Sector Indices on a date no less than one week after the initial dissemination of information on the sector change to the maximum extent practicable. It is not anticipated that Component Stocks will change sectors frequently.

Component Stocks removed from and added to the S&P 500 will be deleted from and added to the appropriate Select Sector Index(es) on the same schedule used by S&P DJI for additions and deletions from the S&P 500 insofar as practicable.

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A Component Stock may move from one Select Sector Index to another when a GICS reclassification is made. A Component Stock is deleted from the relevant Select Sector Index and added to the other at the time this reclassification occurs for the S&P 500.

**Select Sector Index Calculations** 

With the exception of the weighting constraints described above, each Select Sector Index is calculated using the same methodology utilized by S&P DJI in calculating the S&P 500. In particular:

Each Select Sector Index is calculated using a base-weighted aggregate methodology; that means the level of the Select Sector Index reflects the total market value of all of its Component Stocks relative to a particular base period. Statisticians refer to this type of index, one with a set of combined variables (such as price and number of shares), as a composite index.

The total market value of a company is determined by multiplying the price of the stock by the number of common shares outstanding. An indexed number is used to represent the results of the aggregate market value calculation in order to make the value easier to work with and track over time.

The daily calculation of each Select Sector Index is computed by dividing the total market value of the companies in the Select Sector Index by a number called the "Index Divisor." By itself, the Index Divisor is an arbitrary number. However, in the context of the calculation of the Select Sector Index, it is the only link to the original base period value of the Select Sector Index. The Index Divisor keeps the Select Sector Index comparable over time and adjustments to the Index Divisor ensure that there are no changes in the Select Sector Index level as a result of non-market forces (corporate actions, replacements of stocks in a Select Sector Index, weighting changes, etc.).

Four times a year on a Friday close to the end of each calendar quarter, the share totals of the companies in the S&P 500 are updated by S&P DJI. This information is utilized to update the share totals of companies in each Select Sector Index. After the totals are updated, the Index Divisor is adjusted to compensate for the net change in the market value of the Select Sector Index.

Certain mandatory actions, such as merger and acquisition driven share/investable weight factor changes, stock splits, and mandatory distributions, are not subject to a minimum threshold for implementation. Material share/investable weight factor changes of at least 5% and $150 million resulting from certain non-mandatory actions follow the accelerated implementation rule with sufficient advance notification, and share/investable weight factor changes deemed non-material are implemented quarterly. Changes are reviewed by S&P DJI and, when appropriate, an immediate adjustment is made to the number of shares outstanding used to calculate the Select Sector Index. Any adjustment made by S&P DJI in shares outstanding will result in a corresponding adjustment to each affected Select Sector Index.

S&P DJI handles corporate actions which may arise from time to time and which may have an impact on the calculation of the S&P 500 and, consequently, on the calculation of the Select Sector Index. Corporate actions such as a merger or acquisition, stock splits, spin-offs, etc., require adjustments in the Select Sector Index calculation. Index Divisor adjustments, calculated when necessary, are handled by S&P DJI in its maintenance of the S&P 500. In the event a merger or acquisition changes the relative importance of a company's participation in two or more sectors in a major way, the Select Sector Index assignment of the stock may change. In any event, a new Index Divisor for affected Select Sector Indices will be disseminated promptly by S&P DJI.

**Select Sector Index Dissemination** 

Similar to other published stock index values, the value of each Select Sector Index will be calculated continuously and disseminated at least every 5 seconds via the Consolidated Tape Association. The major electronic financial data vendors – Bloomberg and Reuters—are expected to publish information on each Select Sector Index for their subscribers.

Brief descriptions of the Select Sector Indices on which the Select Sector SPDR Funds are based and the equity markets in which the Select Sector SPDR Funds are invested are provided below. A list of the Component Stocks included in each Select Sector SPDR Fund as of September 30, 2022 is included in the Trust's Annual Report to Shareholders for the fiscal year ended September 30, 2022.

There is no assurance that any Select Sector SPDR Fund holds any particular security, is invested in any particular industry or is invested in a particular security/industry in any certain percentage. Holdings in the Select Sector SPDR Funds will change.

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**Select Sector Index Descriptions** 

**THE COMMUNICATION SERVICES SELECT SECTOR INDEX** 

The Communication Services Select Sector Index is intended to give investors an efficient, modified market capitalization-based way to track the movements of certain public companies that are components of the S&P 500 and are involved in the development and production of communication services products.

**THE CONSUMER DISCRETIONARY SELECT SECTOR INDEX** 

The Consumer Discretionary Select Sector Index is intended to give investors an efficient, modified market capitalization-based way to track the movements of certain public companies that are components of the S&P 500 and are involved in the development and production of consumer discretionary products.

**THE CONSUMER STAPLES SELECT SECTOR INDEX** 

The Consumer Staples Select Sector Index is intended to give investors an efficient, modified market capitalization-based way to track the movements of certain public companies that are components of the S&P 500 and are involved in the development and production of consumer staples products.

**THE ENERGY SELECT SECTOR INDEX** 

The Energy Select Sector Index is intended to give investors an efficient, modified market capitalization-based way to track the movements of certain public companies that are components of the S&P 500 and are involved in the development and production of energy products.

**THE FINANCIAL SELECT SECTOR INDEX** 

The Financial Select Sector Index is intended to give investors an efficient, modified market capitalization-based way to track the movements of certain public companies that are components of the S&P 500 and are involved in the development and production of financial products.

**THE HEALTH CARE SELECT SECTOR INDEX** 

The Health Care Select Sector Index is intended to give investors an efficient, modified market capitalization-based way to track the movements of certain public companies that are components of the S&P 500 and are health care related firms.

**THE INDUSTRIAL SELECT SECTOR INDEX** 

The Industrial Select Sector Index is intended to give investors an efficient, modified market capitalization-based way to track the movements of certain public companies that are components of the S&P 500 and are industrials.

**THE MATERIALS SELECT SECTOR INDEX** 

The Materials Select Sector Index is intended to give investors an efficient, modified market capitalization-based way to track the movements of certain public companies that are components of the S&P 500 and are in basic materials industries.

**THE REAL ESTATE SELECT SECTOR INDEX** 

The Real Estate Select Sector Index is intended to give investors an efficient, modified market capitalization-based way to track the movements of certain public companies that are components of the S&P 500 and are involved in the investment in and/or management and development of real estate.

**THE TECHNOLOGY SELECT SECTOR INDEX** 

The Technology Select Sector Index is intended to give investors an efficient, modified market capitalization-based way to track the movements of certain public companies that are components of the S&P 500 and are involved in the development and production of technology products.

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**THE UTILITIES SELECT SECTOR INDEX** 

The Utilities Select Sector Index is intended to give investors an efficient, modified market capitalization-based way to track the movements of certain public companies that are components of the S&P 500 and are in the utilities industry.

**Investment Policies**

**DIVERSIFICATION STATUS**

Each Select Sector SPDR Fund is classified as a non-diversified investment company under the 1940 Act. A "non-diversified" classification means that a Fund is not limited by the 1940 Act with regard to the percentage of its assets that may be invested in the securities of a single issuer. This means that a Select Sector SPDR Fund may invest a greater portion of its assets in the securities of a single issuer than a diversified fund. The securities of a particular issuer may constitute a greater portion of an Index of each Select Sector SPDR Fund and, therefore, the securities may constitute a greater portion of a Select Sector SPDR Fund's portfolio. This may have an adverse effect on a Fund's performance or subject a Select Sector SPDR Fund's Shares to greater price volatility than more diversified investment companies.

Although each Select Sector SPDR Fund is non-diversified for purposes of the 1940 Act, each Select Sector SPDR Fund intends to maintain the required level of diversification and otherwise conduct its operations so as to qualify as a RIC for purposes of the Internal Revenue Code, and to relieve the Select Sector SPDR Fund of any liability for federal income tax to the extent that its earnings are distributed to shareholders. Compliance with the diversification requirements of the Internal Revenue Code may severely limit the investment flexibility of a Select Sector SPDR Fund and may make it less likely that the Select Sector SPDR Fund will meet its investment objective.

**LENDING PORTFOLIO SECURITIES**

Each Select Sector SPDR Fund may lend portfolio securities to certain creditworthy borrowers in U.S. and non-U.S. markets in an amount not to exceed forty percent (40%) of the value of its net assets. The borrowers provide collateral that is marked to market daily in an amount at least equal to the current market value of the securities loaned. A Select Sector SPDR Fund may terminate a loan at any time and obtain the securities loaned. A Select Sector SPDR Fund receives the value of any interest or cash or non-cash distributions paid on the loaned securities. A Select Sector SPDR Fund cannot vote proxies for securities on loan, but may recall loans to vote proxies if a material issue affecting a Select Sector SPDR Fund's economic interest in the investment is to be voted upon. Distributions received on loaned securities in lieu of dividend payments (i.e., substitute payments) would not be considered qualified dividend income.

With respect to loans that are collateralized by cash, the borrower may be entitled to receive a fee based on the amount of cash collateral. A Select Sector SPDR Fund is compensated by the difference between the amount earned on the reinvestment of cash collateral and the fee paid to the borrower. In the case of collateral other than cash, a Select Sector SPDR Fund is compensated by a fee paid by the borrower equal to a percentage of the market value of the loaned securities. Any cash collateral may be reinvested in certain short-term instruments and highly liquid instruments either directly on behalf of each lending Select Sector SPDR Fund or through one or more joint accounts or money market funds, which may include those managed by the Adviser.

A Select Sector SPDR Fund may pay a portion of the interest or fees earned from securities lending to a borrower as described above, and to one or more securities lending agents approved by the Board who administer the lending program for the Select Sector SPDR Funds in accordance with guidelines approved by the Board. In such capacity, the lending agent causes the delivery of loaned securities from a Select Sector SPDR Fund to borrowers, arranges for the return of loaned securities to the Select Sector SPDR Fund at the termination of a loan, requests deposit of collateral, monitors the daily value of the loaned securities and collateral, requests that borrowers add to the collateral when required by the loan agreements, and provides recordkeeping and accounting services necessary for the operation of the program. State Street Bank and Trust Company ("State Street"), an affiliate of the Trust, has been approved by the Board to serve as a securities lending agent for each Select Sector SPDR Fund and the Trust has entered into an agreement with State Street for such services. Among other matters, the Trust has agreed to indemnify State Street for certain liabilities. State Street has received an order of exemption from the SEC under Sections 17(a) and 12(d)(1) under the 1940 Act to serve as the lending agent for affiliated investment companies such as the Trust and to invest the cash collateral received from loan transactions to be invested in an affiliated cash collateral fund.

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Securities lending involves exposure to certain risks, including operational risk (i.e., the risk of losses resulting from problems in the settlement and accounting process), "gap" risk (i.e., the risk of a mismatch between the return on cash collateral reinvestments and the fees a Select Sector SPDR Fund has agreed to pay a borrower), risk of loss of collateral, credit, legal, counterparty and market risk. Although State Street has agreed to provide a Select Sector SPDR Fund with indemnification in the event of a borrower default, a Select Sector SPDR Fund is still exposed to the risk of losses in the event a borrower does not return a Select Sector SPDR Fund's securities as agreed. For example, delays in recovery of lent securities may cause a Select Sector SPDR Fund to lose the opportunity to sell the securities at a desirable price.

**COMMON STOCK**

Risks inherent in investing in equity securities include the risk that the financial condition of issuers may become impaired or that the general condition of the stock market may deteriorate (either of which may cause a decrease in the value of a Fund's portfolio securities and therefore a decrease in the value of Shares of the Fund). Common stock is susceptible to general stock market fluctuation and to volatile increases and decreases in value as market confidence and perceptions change. These investor perceptions are based on various and unpredictable factors, including expectations regarding government, economic, monetary and fiscal policies; inflation and interest rates; economic expansion or contraction; and global or regional political, economic or banking crises.

Holders of common stock incur more risk than holders of preferred stock and debt obligations because common stockholders, as owners of the issuer, have generally inferior rights to receive payments from the issuer in comparison with the rights of creditors of, or holders of debt obligations or preferred stock issued by, the issuer. Further, unlike debt securities which typically have a stated principal amount payable at maturity (whose value, however, will be subject to market fluctuations prior thereto), or preferred stock which typically has a liquidation preference and which may have stated optional or mandatory redemption provisions, common stock has neither a fixed principal amount nor a maturity. Common stock values are subject to market fluctuations as long as the common stock remains outstanding.

**REAL ESTATE INVESTMENT TRUSTS ("REITs")**

The Financial Select Sector SPDR Fund may invest a portion of its assets in mortgage REITS ("Mortgage REITs"). The Real Estate Select Sector SPDR Fund may invest a portion of its assets in REITs, excluding Mortgage REITs. REITs pool investors' funds for investment primarily in income producing real estate or real estate loans or interests. A REIT is not taxed on income distributed to shareholders if it complies with several requirements relating to its organization, ownership, assets, and income and a requirement that it distribute to its shareholders at least 90% of its taxable income (other than net capital gains) for each taxable year. REITs can generally be classified as Equity REITs, Mortgage REITs and Hybrid REITs. Equity REITs, which invest the majority of their assets directly in real property, derive their income primarily from rents. Equity REITs can also realize capital gains by selling properties that have appreciated in value. Mortgage REITs, which invest the majority of their assets in real estate mortgages, derive their income primarily from interest payments. Hybrid REITs combine the characteristics of both Equity REITs and Mortgage REITs. The Funds will not invest in real estate directly, but only in securities issued by real estate companies. However, the Funds may be subject to risks similar to those associated with the direct ownership of real estate (in addition to securities markets risks) to the extent they invest in the securities of companies in the real estate industry. These include declines in the value of real estate, risks related to general and local economic conditions, dependency on management skill, heavy cash flow dependency, possible lack of availability of mortgage funds, overbuilding, extended vacancies of properties, increased competition, increases in property taxes and operating expenses, changes in zoning laws, losses due to costs resulting from the clean-up of environmental problems, liability to third parties for damages resulting from environmental problems, casualty or condemnation losses, limitations on rents, changes in neighborhood values, the appeal of properties to tenants and changes in interest rates. Investments in REITs may subject Fund shareholders to duplicate management and administrative fees.

In addition to these risks, Equity REITs may be affected by changes in the value of the underlying property owned by the trusts, while Mortgage REITs may be affected by the quality of any credit extended. Further, Equity and Mortgage REITs are dependent upon management skills and may not be diversified. Equity and Mortgage REITs are also subject to heavy cash flow dependency, defaults by borrowers and self-liquidation. In addition, Equity and Mortgage REITs could possibly fail to qualify for the beneficial tax treatment available to REITs under the Internal Revenue Code, or to maintain their exemptions from registration under the 1940 Act. The above factors may also adversely affect a borrower's or a lessee's ability to meet its obligations to the REIT. In the event of a default by a borrower or lessee, the REIT may experience delays in enforcing its rights as a mortgagee or lessor and may incur substantial costs associated with protecting investments.

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**REPURCHASE AGREEMENTS** 

Each Select Sector SPDR Fund may invest in repurchase agreements with commercial banks, brokers or dealers to generate income from its excess cash balances and to invest securities lending cash collateral. A repurchase agreement is an agreement under which a Select Sector SPDR Fund acquires a financial instrument (e.g., a security issued by the U.S. government or an agency thereof, a banker's acceptance or a certificate of deposit) from a seller, subject to resale to the seller at an agreed upon price and date (normally, the next Business Day—as defined below). A repurchase agreement may be considered a loan collateralized by securities. The resale price reflects an agreed upon interest rate effective for the period the instrument is held by a Select Sector SPDR Fund and is unrelated to the interest rate on the underlying instrument.

In these repurchase agreement transactions, the securities acquired by a Select Sector SPDR Fund (including accrued interest earned thereon) must have a total value in excess of the value of the repurchase agreement and are held by the Custodian until repurchased. No more than an aggregate of 15% of a Select Sector SPDR Fund's net assets will be invested in illiquid investments, including repurchase agreements having maturities longer than seven days and securities subject to legal or contractual restrictions on resale, or for which there are no readily available market quotations.

The use of repurchase agreements involves certain risks. For example, if the other party to the agreement defaults on its obligation to repurchase the underlying security at a time when the value of the security has declined, a Select Sector SPDR Fund may incur a loss upon disposition of the security. If the other party to the agreement becomes insolvent and subject to liquidation or reorganization under the U.S. Bankruptcy Code or other laws, a court may determine that the underlying security is collateral for a loan by a Select Sector SPDR Fund not within the control of the Select Sector SPDR Fund and, therefore, the Select Sector SPDR Fund may not be able to substantiate its interest in the underlying security and may be deemed an unsecured creditor of the other party to the agreement.

**OTHER SHORT-TERM INSTRUMENTS**

In addition to repurchase agreements, each Select Sector SPDR Fund may invest in short-term instruments, including money market instruments (including money market funds advised by the Adviser), repurchase agreements, cash and cash equivalents, on an ongoing basis to provide liquidity or for other reasons. Money market instruments are generally short-term investments that may include but are not limited to: (i) shares of money market funds (including those advised by the Adviser); (ii) obligations issued or guaranteed by the U.S. government, its agencies or instrumentalities (including government-sponsored enterprises); (iii) negotiable certificates of deposit ("CDs"), bankers' acceptances, fixed time deposits and other obligations of U.S. and foreign banks (including foreign branches) and similar institutions; (iv) commercial paper rated at the date of purchase "Prime-1" by Moody's or "A-1" by S&P, or if unrated, of comparable quality as determined by the Adviser; (v) non-convertible corporate debt securities (e.g., bonds and debentures) with remaining maturities at the date of purchase of not more than 397 days and that satisfy any rating requirements set forth in Rule 2a-7 under the 1940 Act; and (vi) short-term U.S. dollar-denominated obligations of foreign banks (including U.S. branches) that, in the opinion of the Adviser, are of comparable quality to obligations of U.S. banks which may be purchased by a Fund. Any of these instruments may be purchased on a current or a forward-settled basis. Time deposits are non-negotiable deposits maintained in banking institutions for specified periods of time at stated interest rates. Bankers' acceptances are time drafts drawn on commercial banks by borrowers, usually in connection with international transactions.

**INVESTMENT COMPANIES**

Each Select Sector SPDR Fund may invest in the securities of other investment companies, including money market funds (including those advised by the Adviser or otherwise affiliated with the Adviser), subject to applicable limitations under Section 12(d)(1) of the 1940 Act, SEC rules, and the Select Sector SPDR Fund's investment restrictions.

If a Fund invests in and, thus, is a shareholder of, another investment company, the Fund's shareholders will indirectly bear the Fund's proportionate share of the fees and expenses paid by such other investment company, including advisory fees, in addition to both the management fees payable directly by the Fund to the Fund's own investment adviser and the other expenses that the Fund bears directly in connection with the Fund's own operations.

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**FUTURES CONTRACTS, OPTIONS AND SWAP AGREEMENTS**

Each Select Sector SPDR Fund may invest up to 5% of its assets in derivatives, including exchange-traded futures on indices, exchange-traded futures on Treasuries or Eurodollars, U.S. exchange-traded or OTC put and call options contracts and exchange-traded or OTC swap transactions (including NDFs, interest rate swaps, total return swaps, excess return swaps, and credit default swaps).

<u>Futures and Options on Futures:</u> Futures contracts generally provide for the future sale by one party and purchase by another party of a specified commodity or security at a specified future time and at a specified price. Index futures contracts are settled daily with a payment by one party to the other of a cash amount based on the difference between the level of the index specified in the contract from one day to the next. A futures contract on an index is an agreement pursuant to which two parties agree to take or make delivery of an amount of cash equal to the difference between the value of the index at the close of the last trading day of the contract and the price at which the index contract originally was written. Although the value of an index might be a function of the value of certain specified securities, physical delivery of these securities is not always made. A public market exists in futures contracts covering a number of indexes, as well as financial instruments, including, without limitation: U.S. Treasury bonds; U.S. Treasury notes; GNMA Certificates; three-month U.S. Treasury bills; 90-day commercial paper; bank certificates of deposit; Eurodollar certificates of deposit; the Australian Dollar; the Canadian Dollar; the British Pound; the Japanese Yen; the Swiss Franc; the Mexican Peso; and certain multinational currencies, such as the Euro. It is expected that other futures contracts will be developed and traded in the future. Futures contracts are standardized as to maturity date and underlying instrument and are traded on futures exchanges.

Each Select Sector SPDR Fund may purchase and write (sell) call and put options on futures. Options on futures give the holder the right, in return for the premium paid, to assume a long position (call) or short position (put) in a futures contract at a specified exercise price upon expiration of, or at any time during the period of, the option. Upon exercise of a call option, the holder acquires a long position in the futures contract and the writer is assigned the opposite short position. In the case of a put option, the opposite is true.

Each Select Sector SPDR Fund is required to make a good faith margin deposit in cash or U.S. government securities (or other eligible collateral) with a broker or custodian to initiate and maintain open positions in futures contracts. A margin deposit is intended to assure completion of the contract (delivery or acceptance of the underlying commodity or payment of the cash settlement amount) if it is not terminated prior to the specified delivery date. Brokers may establish deposit requirements which are higher than the exchange minimums. Futures contracts are customarily purchased and sold on margin deposits which may range upward from less than 5% of the value of the contract being traded.

After a futures contract position is opened, the value of the contract is marked to market daily. If the futures contract price changes to the extent that the margin on deposit does not satisfy price changes, additional payments will be required. Conversely, change in the contract value may reduce the required margin, resulting in a repayment of excess margin to the contract holder. Variation margin payments are made to and from the futures broker for as long as the contract remains open. In such case, a Select Sector SPDR Fund would expect to earn interest income on its margin deposits. Although some futures contracts call for making or taking delivery of the underlying commodity, generally these obligations are closed out prior to delivery by offsetting purchases or sales of matching futures contracts (involving the same exchange, underlying commodity, security or index and delivery month). If an offsetting purchase price is less than the original sale price, a Select Sector SPDR Fund realizes a capital gain, or if it is more, the Select Sector SPDR Fund realizes a capital loss. Conversely, if an offsetting sale price is more than the original purchase price, a Select Sector SPDR Fund realizes a capital gain, or if it is less, the Select Sector SPDR Fund realizes a capital loss. The transaction costs also must be included in these calculations.

<u>Options:</u> Each Select Sector SPDR Fund may purchase and sell put and call options. Such options may relate to particular securities and may or may not be listed on a national securities exchange and issued by the Options Clearing Corporation. Options trading is a highly specialized activity that entails greater than ordinary investment risk. Options on particular securities may be more volatile than the underlying securities, and therefore, on a percentage basis, an investment in options may be subject to greater fluctuation than an investment in the underlying securities themselves.

<u>Swap Transactions:</u> Each Select Sector SPDR Fund may enter into swap transactions, including interest rate swap, credit default swap, NDF, and total return swap transactions. Swap transactions are contracts between parties in which one party agrees to make periodic payments to the other party based on the change in market value or level of a specified rate, index or asset. In return, the other party agrees to make payments to the first party based on the return of a different specified rate, index or asset. Swap transactions will usually be done on a net basis, i.e., where the two parties make net

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payments with a Select Sector SPDR Fund receiving or paying, as the case may be, only the net amount of the two payments. The net amount of the excess, if any, of a Select Sector SPDR Fund's obligations over its entitlements with respect to each swap is accrued on a daily basis and an amount of cash or equivalents having an aggregate value at least equal to the accrued excess is maintained by the Select Sector SPDR Fund. Swaps may be used in conjunction with other instruments to offset interest rate, currency or other underlying risks. For example, interest rate swaps may be offset with "caps," "floors" or "collars." A "cap" is essentially a call option which places a limit on the amount of floating rate interest that must be paid on a certain principal amount. A "floor" is essentially a put option which places a limit on the minimum amount that would be paid on a certain principal amount. A "collar" is essentially a combination of a long cap and a short floor where the limits are set at different levels.

The use of swap transactions by the Select Sector SPDR Fund entails certain risks, which may be different from, or possibly greater than, the risks associated with investing directly in the securities and other investments that are the referenced asset for the swap agreement. Swaps are highly specialized instruments that require investment techniques, risk analyses, and tax planning different from those associated with stocks, bonds, and other traditional investments. The use of a swap requires an understanding not only of the referenced asset, reference rate, or index, but also of the swap itself, without the benefit of observing the performance of the swap under all the possible market conditions. Because some swap transactions have a leverage component, adverse changes in the value or level of the underlying asset, reference rate, or index can result in a loss substantially greater than the amount invested in the swap itself. Certain swaps have the potential for unlimited loss, regardless of the size of the initial investment.

Bilateral OTC transactions differ from exchange-traded or cleared derivatives transactions in several respects. Bilateral OTC transactions are transacted directly with dealers and not with a clearing corporation. Without the availability of a clearing corporation, bilateral OTC transaction pricing is normally done by reference to information from market makers and/or available index data, which information is carefully monitored by the Adviser and verified in appropriate cases. As bilateral OTC transactions are entered into directly with a dealer, there is a risk of nonperformance by the dealer as a result of its insolvency or otherwise. Under regulations adopted by the CFTC and federal banking regulators ("Margin Rules"), each Select Sector SPDR Fund is required to post collateral (known as variation margin) to cover the mark-to-market exposure in respect of its uncleared swaps. The Margin Rules also mandate that collateral in the form of initial margin be posted to cover potential future exposure attributable to uncleared swap transactions. In the event a Select Sector SPDR Fund is required to post collateral in the form of initial margin or variation margin in respect of its uncleared swap transactions, all such collateral will be posted with a third party custodian pursuant to a triparty custody agreement between the Select Sector SPDR Fund, its dealer counterparty and an unaffiliated custodian.

The requirement to execute certain OTC derivatives contracts on exchanges or electronic trading platforms called swap execution facilities ("SEFs") may offer certain advantages over traditional bilateral OTC trading, such as ease of execution, price transparency, increased liquidity and/or favorable pricing. However, SEF trading may make it more difficult and costly for a Select Sector SPDR Fund to enter into highly tailored or customized transactions and may result in additional costs and risks. Market participants such as the Select Sector SPDR Funds that execute derivatives contracts through a SEF, whether directly or through a broker intermediary, are required to submit to the jurisdiction of the SEF and comply with SEF and CFTC rules and regulations which impose, among other things disclosure and recordkeeping obligations. In addition, a Select Sector SPDR Fund will generally incur SEF or broker intermediary fees when it trades on a SEF. A Select Sector SPDR Fund may also be required to indemnify the SEF or broker intermediary for any losses or costs that may result from the Select Sector SPDR Fund's transactions on the SEF.

<u>Total Return Swaps:</u> Each Select Sector SPDR Fund may enter into total return swap transactions for investment purposes. Total return swaps are transactions in which one party agrees to make periodic payments based on the change in market value of the underlying assets, which may include a specified security, basket of securities or security indexes during the specified period, in return for periodic payments based on a fixed or variable interest rate of the total return from other underlying assets. Total return swaps may be used to obtain exposure to a security or market without owning or taking physical custody of such security or market, including in cases in which there may be disadvantages associated with direct ownership of a particular security. In a typical total return equity swap, payments made by a Select Sector SPDR Fund or the counterparty are based on the total return of a particular reference asset or assets (such as an equity security, a combination of such securities, or an index). That is, one party agrees to pay another party the return on a stock, basket of stocks, or stock index in return for a specified interest rate. By entering into an equity index swap, for example, the index receiver can gain exposure to stocks making up the index of securities without actually purchasing those stocks. Total return swaps involve not only the risk associated with the investment in the underlying securities, but also the risk of the counterparty not fulfilling its obligations under the agreement.

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<u>Credit Default Swaps:</u> Each Select Sector SPDR Fund may enter into credit default swap transactions for investment purposes. A credit default swap transaction may have as reference obligations one or more securities that are not currently held by a Select Sector SPDR Fund. A Select Sector SPDR Fund may be either the protection buyer or protection seller in the transaction. Credit default swaps may also be structured based on the debt of a basket of issuers, rather than a single issuer, and may be customized with respect to the default event that triggers purchase or other factors. As a protection seller, a Select Sector SPDR Fund would generally receive an upfront payment or a fixed rate of income throughout the term of the swap, which typically is between six months and three years, provided that there is no credit event. If a credit event occurs, generally the protection seller must pay the protection buyer the full face amount of the reference obligations that may have little or no value. If a Select Sector SPDR Fund were a protection buyer and no credit event occurred during the term of the swap, the Select Sector SPDR Fund would recover nothing if the swap were held through its termination date. However, if a credit event occurred, the protection buyer may elect to receive the full notional value of the swap in exchange for an equal face amount of the reference obligation that may have little or no value. Where a Select Sector SPDR Fund is the protection buyer, credit default swaps involve the risk that the seller may fail to satisfy its payment obligations to the Select Sector SPDR Fund in the event of a default. The purchase of credit default swaps involves costs, which will reduce a Select Sector SPDR Fund's return.

<u>Currency Swaps:</u> Each Select Sector SPDR Fund may enter into currency swap transactions for investment purposes. Currency swaps are similar to interest rate swaps, except that they involve multiple currencies. Each Select Sector SPDR Fund may enter into a currency swap when it has exposure to one currency and desires exposure to a different currency. Typically, the interest rates that determine the currency swap payments are fixed, although occasionally one or both parties may pay a floating rate of interest. Unlike an interest rate swap, however, the principal amounts are exchanged at the beginning of the contract and returned at the end of the contract. In addition to paying and receiving amounts at the beginning and end of the transaction, both sides will have to pay in full on a periodic basis based upon the currency they have borrowed. Change in foreign exchange rates and changes in interest rates, as described above, may negatively affect currency swaps.

<u>Interest Rate Swaps:</u> Each Select Sector SPDR Fund may enter into an interest rate swap in an effort to protect against declines in the value of fixed income securities held by the Select Sector SPDR Fund. In such an instance, a Select Sector SPDR Fund may agree to pay a fixed rate (multiplied by a notional amount) while a counterparty agrees to pay a floating rate (multiplied by the same notional amount). If interest rates rise, resulting in a diminution in the value of a Select Sector SPDR Fund's portfolio, the Select Sector SPDR Fund would receive payments under the swap that would offset, in whole or in part, such diminution in value.

<u>Options on Swaps:</u> An option on a swap agreement, or a "swaption," is a contract that gives a counterparty the right (but not the obligation) to enter into a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at some designated future time on specified terms. In return, the purchaser pays a "premium" to the seller of the contract. The seller of the contract receives the premium and bears the risk of unfavorable changes on the underlying swap. Each Select Sector SPDR Fund may write (sell) and purchase put and call swaptions. Each Select Sector SPDR Fund may also enter into swaptions on either an asset-based or liability-based basis, depending on whether the Select Sector SPDR Fund is hedging its assets or its liabilities. Each Select Sector SPDR Fund may write (sell) and purchase put and call swaptions to the same extent it may make use of standard options on securities or other instruments. Each Select Sector SPDR Fund may enter into these transactions primarily to preserve a return or spread on a particular investment or portion of its holdings, as a duration management technique, to protect against an increase in the price of securities the Select Sector SPDR Fund anticipates purchasing at a later date, or for any other purposes, such as for speculation to increase returns. Swaptions are generally subject to the same risks involved in a Select Sector SPDR Fund's use of options.

Depending on the terms of the particular option agreement, a Select Sector SPDR Fund will generally incur a greater degree of risk when it writes a swaption than it will incur when it purchases a swaption. When a Select Sector SPDR Fund purchases a swaption, it risks losing only the amount of the premium it has paid should it decide to let the option expire unexercised. However, when a Select Sector SPDR Fund writes a swaption, upon exercise of the option the Select Sector SPDR Fund will become obligated according to the terms of the underlying agreement.

<u>Government Regulation:</u> The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") that was signed into law on July 21, 2010 created a new statutory framework that comprehensively regulated the over-the-counter ("OTC") derivatives markets for the first time. Prior to the Dodd-Frank Act, the OTC derivatives markets were traditionally traded on a bilateral basis (so-called "bilateral OTC transactions"). Under the Dodd-Frank Act, certain OTC derivatives transactions are now required to be centrally cleared and traded on SEFs.

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On October 28, 2020, the SEC adopted Rule 18f-4 (the "Derivatives Rule") under the 1940 Act which replaced prior SEC and staff guidance with an updated, comprehensive framework for registered funds' use of derivatives. The Derivatives Rule permits a Select Sector SPDR Fund to enter into derivatives transactions and certain other transactions notwithstanding the restrictions on the issuance of "senior securities" under Section 18 of the 1940 Act. The Derivatives Rule requires the Select Sector SPDR Funds to trade derivatives and certain other instruments that create future payment or delivery obligations subject to a value-at-risk ("VaR") leverage limit, develop and implement a derivatives risk management program and new testing requirements, and comply with new requirements related to board and SEC reporting. These requirements apply unless a Select Sector SPDR Fund qualifies as a "limited derivatives user," as defined in the Derivatives Rule. To the extent a Select Sector SPDR Fund uses derivatives, complying with the Derivatives Rule may increase the cost of a Select Sector SPDR Fund's investments and cost of doing business, which could adversely affect investors. Other new regulations could adversely affect the value, availability and performance of certain derivative instruments, may make them more costly, and may limit or restrict their use by the Select Sector SPDR Funds.

<u>Regulation Under the Commodity Exchange Act:</u> Each Select Sector SPDR Fund intends to use commodity interests, such as futures, swaps and options on futures in accordance with Rule 4.5 of the Commodity Exchange Act ("CEA"). A Select Sector SPDR Fund may use exchange-traded futures and options on futures, together with positions in cash and money market instruments, to simulate full investment in the Index. Exchange-traded futures and options on futures contracts may not be currently available for the Index. Under such circumstances, the Adviser may seek to utilize other instruments that it believes to be correlated to the applicable Index components or a subset of the components. An exclusion from the definition of the term "commodity pool operator" has been claimed with respect to each series of the Trust in accordance with Rule 4.5 such that registration or regulation as a commodity pool operator under the CEA is not necessary.

<u>Restrictions on Trading in Commodity Interests:</u> Each Select Sector SPDR Fund reserves the right to engage in transactions involving futures, options thereon and swaps to the extent allowed by the CFTC regulations in effect from time to time and in accordance with the Select Sector SPDR Funds' policies. A Select Sector SPDR Fund would take steps to prevent its futures positions from "leveraging" its securities holdings. When it has a long futures position, it will maintain with its custodian bank assets substantially identical to those underlying the contract or cash and equivalents (or a combination of the foregoing) having a value equal to the net obligation of the Select Sector SPDR Fund under the contract (less the value of any margin deposits in connection with the position. When it has a short futures position, it will maintain with its custodian bank assets substantially identical to those underlying the contract or cash and equivalents (or a combination of the foregoing) having a value equal to the net obligation of the Select Sector SPDR Fund under the contract (less the value of any margin deposits in connection with the position).

Certain additional risk factors related to derivatives are discussed below:

<u>Derivatives Risk:</u> Under recently adopted rules by the CFTC, transactions in some types of interest rate swaps and index credit default swaps on North American and European indices are required to be cleared. In addition, the CFTC may promulgate additional regulations that require clearing of other classes of swaps. In a cleared derivatives transaction (which includes futures, options on futures, and cleared swaps transactions), a Select Sector SPDR Fund's counterparty is a clearing house (such as CME, ICE Clear Credit or LCH.Clearnet), rather than a bank or broker. Since the Select Sector SPDR Funds are not members of a clearing house and only members of a clearing house can participate directly in the clearing house, each Select Sector SPDR Fund holds cleared derivatives through accounts at clearing members, who are futures commission merchants that are members of the clearing houses and who have the appropriate regulatory approvals to engage in cleared derivatives transactions. Each Select Sector SPDR Fund makes and receives payments owed under cleared derivatives transactions (including margin payments) through its accounts at clearing members. Clearing members guarantee performance of their clients' obligations to the clearing house. In contrast to bilateral OTC transactions, clearing members generally can require termination of existing cleared derivatives transactions at any time and increases in margin above the margin that it required at the beginning of a transaction. Clearing houses also have broad rights to increase margin requirements for existing transactions and to terminate transactions in accordance with their rules. Any such increase or termination could interfere with the ability of a Select Sector SPDR Fund to pursue its investment strategy. Also, each Select Sector SPDR Fund is subject to execution risk if it enters into a derivatives transaction that is required to be cleared (or that the Advisor expects to be cleared), and no clearing member is willing or able to clear the transaction on a Select Sector SPDR Fund's behalf. While the documentation in place between a Select Sector SPDR Fund and their clearing members generally provides that the clearing members will accept for clearing all transactions submitted for clearing that are within credit limits specified by the clearing members in advance, the Select Sector SPDR Fund could be

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subject to this execution risk if the Select Sector SPDR Fund submits for clearing transactions that exceed such credit limits, if the clearing house does not accept the transactions for clearing, or if the clearing members do not comply with their agreement to clear such transactions. In that case, the transaction might have to be terminated, and a Select Sector SPDR Fund could lose some or all of the benefit of any increase in the value of the transaction after the time of the transaction. In addition, new regulations could, among other things, restrict a Select Sector SPDR Fund's ability to engage in, or increase the cost to the Select Sector SPDR Fund of, derivatives transactions, for example, by making some types of derivatives no longer available to the Select Sector SPDR Fund or increasing margin or capital requirements. If a Select Sector SPDR Fund is not able to enter into a particular derivatives transaction, the Select Sector SPDR Fund's investment performance and risk profile could be adversely affected as a result.

<u>Counterparty Risk:</u> Counterparty risk with respect to OTC derivatives may be affected by new regulations promulgated by the CFTC and SEC affecting the derivatives market. As described under "Derivatives Risk" above, all futures and options on futures and some swap transactions are required to be cleared, and a party to a cleared derivatives transaction is subject to the credit risk of the clearing house and the clearing member through which it holds its cleared derivatives position, rather than the credit risk of its original counterparty to the derivative transaction. Clearing members are required to segregate all funds received from customers with respect to cleared derivatives transactions from the clearing member's proprietary assets. However, all funds and other property received by a clearing broker from its customers are generally held by the clearing broker on a commingled basis in an omnibus account, and the clearing broker may also invest those funds in certain instruments permitted under the applicable regulations. Also, the clearing member transfers to the clearing house the amount of margin required by the clearing house for cleared derivatives transactions, which amounts are generally held in the relevant omnibus account at the clearing house for all customers of the clearing member.

For commodities futures positions, the clearing house may use all of the collateral held in the clearing member's omnibus account to meet a loss in that account, without regard to which customer in fact supplied that collateral. Accordingly, in addition to bearing the credit risk of its clearing member, each customer to a futures transaction also bears "fellow customer" risk from other customers of the clearing member. However, with respect to cleared swaps positions, recent regulations promulgated by the CFTC require that the clearing member notify the clearing house of the amount of initial margin provided by the clearing member to the clearing house that is attributable to each customer. Because margin in respect of cleared swaps must be earmarked for specific clearing member customers, the clearing house may not use the collateral of one customer to cover the obligations of another customer. However, if the clearing member does not provide accurate reporting, a Select Sector SPDR Fund is subject to the risk that a clearing house will use the Select Sector SPDR Fund's assets held in an omnibus account at the clearing house to satisfy payment obligations of a defaulting customer of the clearing member to the clearing house. In addition, clearing members may generally choose to provide to the clearing house the net amount of variation margin required for cleared swaps for all of its customers in the aggregate, rather than the gross amount for each customer.

**ILLIQUID INVESTMENTS**

Each Fund may invest in illiquid investments. A Fund may not acquire any illiquid investment if, immediately after the acquisition, the Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment means any investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. If illiquid investments exceed 15% of a Fund's net assets, certain remedial actions will be taken as required by Rule 22e-4 under the 1940 Act and the Funds' policies and procedures.

**Special Considerations and Risks**

A discussion of the risks associated with an investment in each Fund is contained in the Prospectus. The discussion below supplements, and should be read in conjunction with, the Prospectus.

**GENERAL**

Investment in a Select Sector SPDR Fund should be made with an understanding that the value of a Select Sector SPDR Fund's portfolio securities may fluctuate in accordance with changes in the financial condition of the issuers of the portfolio securities, the value of securities generally and other factors.

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An investment in a Select Sector SPDR Fund should also be made with an understanding of the risks inherent in an investment in equity securities, including the risk that the financial condition of issuers may become impaired or that the general condition of the securities markets may deteriorate (either of which may cause a decrease in the value of the portfolio securities and thus in the value of Shares). Securities are susceptible to general market fluctuations and to volatile increases and decreases in value as market confidence in and perceptions of their issuers change. These investor perceptions are based on various and unpredictable factors, including expectations regarding government, economic, monetary and fiscal policies, inflation and interest rates, economic expansion or contraction, and global or regional political, economic and banking crises. Securities of issuers traded on exchanges may be suspended on certain exchanges by the issuers themselves, by an exchange or by government authorities. Trading suspensions may be applied from time to time to the securities of individual issuers for reasons specific to that issuer, or may be applied broadly by exchanges or governmental authorities in response to market events. Suspensions may last for significant periods of time, during which trading in the securities and instruments that reference the securities, such as derivative instruments, may be halted.

While S&P DJI often chooses a replacement company for the S&P 500 with some characteristics in common with a company or companies removed from the index, it is not uncommon for a replacement company to have little in common with the company it replaces. Consequently, the removal of one company and its replacement by another may affect two Select Sector Indices and two Select Sector SPDR Funds, one of which included a company now removed from the S&P 500 and another which may have a company added to it.

Although most of the securities in the Select Sector Indices are listed on a national securities exchange, the principal trading market for some of the securities in a Select Sector Index may be in the over-the-counter market. The existence of a liquid trading market for certain securities may depend on whether dealers will make a market in such securities. There can be no assurance that a market will be made or maintained or that any such market will be or remain liquid. The price at which securities may be sold and the value of a Select Sector SPDR Fund's Shares will be adversely affected if trading markets for a Select Sector SPDR Fund's portfolio securities are limited or absent or if bid/ask spreads are wide.

**FUTURES AND OPTIONS TRANSACTIONS** 

There can be no assurance that a liquid secondary market will exist for any particular futures contract or option at any specific time. Thus, it may not be possible to close a futures or options position. In the event of adverse price movements, a Select Sector SPDR Fund would continue to be required to make daily cash payments to maintain its required margin. In such situations, if a Select Sector SPDR Fund has insufficient cash, it may have to sell portfolio securities to meet daily margin requirements at a time when it may be disadvantageous to do so. In addition, a Select Sector SPDR Fund may be required to make delivery of the instruments underlying futures contracts it has sold.

Each Select Sector SPDR Fund will minimize the risk that it will be unable to close out a futures or options contract by only entering into futures and options for which there appears to be a liquid secondary market.

The risk of loss in trading futures contracts or uncovered call options in some strategies (e.g., selling uncovered index futures contracts) is potentially unlimited. The Select Sector SPDR Funds do not plan to use futures and options contracts, when available, in this manner. The risk of a futures position may still be large as traditionally measured due to the low margin deposits required. In many cases, a relatively small price movement in a futures contract may result in immediate and substantial loss or gain to the investor relative to the size of a required margin deposit. A Select Sector SPDR Fund, however, may utilize futures and options contracts in a manner designed to limit its risk exposure to that which is comparable to what it would have incurred through direct investment in securities.

Utilization of futures transactions by a Select Sector SPDR Fund involves the risk of imperfect or even negative correlation to its Select Sector Index if the index underlying the futures contracts differs from the Select Sector Index or if the futures contracts do not track the Select Sector Index as expected. There is also the risk of loss by a Select Sector SPDR Fund of margin deposits in the event of bankruptcy of a broker with whom a Select Sector SPDR Fund has an open position in the futures contract or option.

Certain financial futures exchanges limit the amount of fluctuation permitted in futures contract prices during a single trading day. The "daily price fluctuation limit" or "daily limit" establishes the maximum amount that the price of a futures contract may vary either up or down from the previous day's settlement price at the end of a trading session. Once the daily limit has been reached in a particular type of contract, generally no trades may be made on that day at a price beyond that limit. The daily limit governs only price movement during a particular trading day and therefore does not limit

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potential losses, because the limit may prevent the liquidation of unfavorable positions. Futures contract prices have occasionally moved to the daily limit for several consecutive trading days with little or no trading, thereby preventing prompt liquidation of futures positions and subjecting some futures traders to substantial losses.

**RISKS OF SWAP AGREEMENTS** 

Swap agreements are subject to the risk that the swap counterparty will default on its obligations. If such a default occurs, a Select Sector SPDR Fund will have contractual remedies pursuant to the agreements related to the transaction, but such remedies may be subject to bankruptcy and insolvency laws which could affect the Select Sector SPDR Fund's rights as a creditor.

The use of interest-rate and index swaps is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio security transactions. The use of a swap requires an understanding not only of the referenced asset, reference rate, or index, but also of the swap itself, without the benefit of observing the performance of the swap under all possible market conditions. These transactions generally do not involve the delivery of securities or other underlying assets or principal.

The absence of a regulated execution facility or contract market and lack of liquidity for swap transactions has led, in some instances, to difficulties in trading and valuation, especially in the event of market disruptions. Under recently adopted rules and regulations, transactions in some types of swaps are required to be centrally cleared. In a cleared derivatives transaction, a Select Sector SPDR Fund's counterparty to the transaction is a central derivatives clearing organization, or clearing house, rather than a bank or broker. Because the Select Sector SPDR Funds are not members of a clearing house, and only members of a clearing house can participate directly in the clearing house, each Select Sector SPDR Fund holds cleared derivatives through accounts at clearing members. In cleared derivatives transactions, a Select Sector SPDR Fund will make payments (including margin payments) to and receive payments from a clearing house through its accounts at clearing members. Clearing members guarantee performance of their clients' obligations to the clearing house. Centrally cleared derivative arrangements may be less favorable to a Select Sector SPDR Fund than bilateral (non-cleared) arrangements. For example, a Select Sector SPDR Fund may be required to provide greater amounts of margin for cleared derivatives transactions than for bilateral derivatives transactions. Also, in contrast to bilateral derivatives transactions, in some cases following a period of notice to a Select Sector SPDR Fund, a clearing member generally can require termination of existing cleared derivatives transactions at any time or an increase in margin requirements above the margin that the clearing member required at the beginning of a transaction. Clearing houses also have broad rights to increase margin requirements for existing transactions or to terminate transactions at any time in accordance with their rules. A Select Sector SPDR Fund is subject to risk if it enters into a derivatives transaction that is required to be cleared (or which SSGA FM expects to be cleared), and no clearing member is willing or able to clear the transaction on the Select Sector SPDR Fund's behalf. In that case, the transaction might have to be terminated, and the Select Sector SPDR Fund could lose some or all of the benefit of the transaction, including loss of an increase in the value of the transaction and loss of hedging protection. In addition, the documentation governing the relationship between a Select Sector SPDR Fund and clearing members is drafted by the clearing members and generally is less favorable to the Select Sector SPDR Fund than typical bilateral derivatives documentation.

These clearing rules and other new rules and regulations could, among other things, restrict a Select Sector SPDR Fund's ability to engage in, or increase the cost to the Select Sector SPDR Fund of, derivatives transactions, for example, by making some types of derivatives no longer available to the Select Sector SPDR Fund, increasing margin or capital requirements, or otherwise limiting liquidity or increasing transaction costs. These regulations, as applicable to swaps, are relatively new and evolving, so their potential impact on a Select Sector SPDR Fund and the financial system are not yet known.

Because they are two party contracts that may be subject to contractual restrictions on transferability and termination and because they may have terms of greater than seven days, swap agreements may be considered to be illiquid and subject to a Select Sector SPDR Fund's limitation on investments in illiquid investments. To the extent that a swap is not liquid, it may not be possible to initiate a transaction or liquidate a position at an advantageous time or price, which may result in significant losses. Like most other investments, swap agreements are subject to the risk that the market value of the instrument will change in a way detrimental to a Select Sector SPDR Fund's interest.

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If a Select Sector SPDR Fund uses a swap as a hedge against, or as a substitute for, a portfolio investment, the Select Sector SPDR Fund will be exposed to the risk that the swap will have or will develop imperfect or no correlation with the portfolio investment. This could cause substantial losses for the Select Sector SPDR Fund. While hedging strategies involving swap instruments can reduce the risk of loss, they can also reduce the opportunity for gain or even result in losses by offsetting favorable price movements in other Select Sector SPDR Fund investments. Many swaps are complex and often valued subjectively.

**CYBER SECURITY RISK**

With the increased use of technologies such as the Internet and the dependence on computer systems to perform business and operational functions, investment companies (such as the Funds) and their service providers (including the Adviser) may be prone to operational and information security risks resulting from cyber-attacks and/or technological malfunctions. In general, cyber-attacks are deliberate, but unintentional events may have similar effects. Cyber-attacks include, among others, stealing or corrupting data maintained online or digitally, preventing legitimate users from accessing information or services on a website, releasing confidential information without authorization, and causing operational disruption. Successful cyber-attacks against, or security breakdowns of, a Fund, the Adviser, or a custodian, transfer agent, or other affiliated or third-party service provider may adversely affect a Fund or its shareholders. For instance, cyber-attacks may interfere with the processing of shareholder transactions, affect a Fund's ability to calculate its NAV, cause the release of private shareholder information or confidential Fund information, impede trading, cause reputational damage, and subject the Fund to regulatory fines, penalties or financial losses, reimbursement or other compensation costs, and additional compliance costs. Cyber-attacks may render records of Fund assets and transactions, shareholder ownership of Fund Shares, and other data integral to the functioning of the Fund inaccessible or inaccurate or incomplete. The Funds may also incur substantial costs for cyber security risk management in order to prevent cyber incidents in the future. The Funds and their shareholders could be negatively impacted as a result. While the Adviser has established business continuity plans and systems designed to minimize the risk of cyber-attacks through the use of technology, processes and controls, there are inherent limitations in such plans and systems, including the possibility that certain risks have not been identified given the evolving nature of this threat. The Funds rely on third-party service providers for many of their day-to-day operations, and will be subject to the risk that the protections and protocols implemented by those service providers will be ineffective to protect the Fund from cyber-attack. Similar types of cyber security risks also are present for issuers of securities in which the Funds invest, which could result in material adverse consequences for such issuers, and may cause a Fund's investment in such securities to lose value.

**CONTINUOUS OFFERING** 

The method by which Creation Units are purchased and traded may raise certain issues under applicable securities laws. Because new Creation Units are issued and sold by each Fund on an ongoing basis, at any point a "distribution," as such term is used in the Securities Act, may occur.

Broker-dealers and other persons are cautioned that some activities on their part may, depending on the circumstances, result in their being deemed participants in a distribution in a manner which could render them statutory underwriters and subject them to the prospectus delivery and liability provisions of the Securities Act. For example, a broker-dealer firm or its client may be deemed a statutory underwriter if it takes Creation Units after placing an order with the principal underwriter, breaks them down into individual Fund Shares, and sells such Fund Shares directly to customers, or if it chooses to couple the creation of a supply of new Fund Shares with an active selling effort involving solicitation of secondary market demand for Fund Shares. A determination of whether one is an underwriter for purposes of the Securities Act must take into account all the facts and circumstances pertaining to the activities of the broker-dealer or its client in the particular case, and the examples mentioned above should not be considered a complete description of all the activities that could lead to categorization as an underwriter.

Broker-dealer firms should also note that dealers who are not "underwriters" but are effecting transactions in Fund Shares, whether or not participating in the distribution of Shares, are generally required to deliver a prospectus or summary prospectus. This is because the prospectus delivery exemption in Section 4(a)(3) of the Securities Act is not available with respect to such transactions as a result of Section 24(d) of the 1940 Act. Firms that incur a prospectus-delivery obligation with respect to Fund Shares are reminded that under Securities Act Rule 153, a prospectus-delivery obligation under Section 5(b)(2) of the Securities Act owed to an exchange member in connection with a sale on the Exchange is satisfied by the fact that a Fund's Prospectus is available at the Exchange upon request. The prospectus delivery mechanism provided in Rule 153 is only available with respect to transactions on an exchange.

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SSGA or its affiliates (the "Selling Shareholder") may purchase Creation Units through a broker-dealer to "seed" (in whole or in part) Select Sector SPDR Funds as they are launched, or may purchase shares from broker-dealers or other investors that have previously provided "seed" for Select Sector SPDR Funds when they were launched or otherwise in secondary market transactions, and because the Selling Shareholder may be deemed an affiliate of such Select Sector SPDR Funds, the Fund Shares are being registered to permit the resale of these shares from time to time after purchase. The Select Sector SPDR Funds will not receive any of the proceeds from the resale by the Selling Shareholders of these Fund Shares.

The Selling Shareholder intends to sell all or a portion of the Fund Shares owned by it and offered hereby from time to time directly or through one or more broker-dealers, and may also hedge such positions. The Fund Shares may be sold on any national securities exchange on which the Fund Shares may be listed or quoted at the time of sale, in the over-the-counter market or in transactions other than on these exchanges or systems at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may involve cross or block transactions.

The Selling Shareholder may also loan or pledge Fund Shares to broker-dealers that in turn may sell such Fund Shares, to the extent permitted by applicable law. The Selling Shareholder may also enter into options or other transactions with broker-dealers or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution of Fund Shares, which Fund Shares such broker-dealer or other financial institution may resell.

The Selling Shareholder and any broker-dealer or agents participating in the distribution of Fund Shares may be deemed to be "underwriters" within the meaning of Section 2(11) of the Securities Act in connection with such sales. In such event, any commissions paid to any such broker-dealer or agent and any profit on the resale of the Fund Shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. The Selling Shareholder who may be deemed an "underwriter" within the meaning of Section 2(11) of the Securities Act will be subject to the applicable prospectus delivery requirements of the Securities Act.

**EUROPE – RECENT EVENTS** 

A number of countries in Europe, including Greece, Spain, Ireland, Italy, and Portugal, have experienced rising government debt levels. The concern over these debt levels has led to volatility in the European financial markets, which has adversely affected the exchange rate of the euro and may continue to significantly affect every country in Europe. For some countries, the ability to repay sovereign debt is in question, and default is possible, which could affect their ability to borrow in the future. Several countries have agreed to multi-year bailout loans from the European Central Bank, the IMF, and other institutions. A default or debt restructuring by any European country can adversely impact holders of that country's debt and can affect exposures to other European Union ("EU") countries and their financial companies as well. These financial difficulties may continue, worsen or spread within or outside Europe. Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences.

Uncertainties regarding the viability of the EU have impacted and may continue to impact markets in the United States and around the world. On January 31, 2020, the United Kingdom formally withdrew from the EU (commonly referred to as "Brexit") and entered an 11-month transition period. The transition period concluded on December 31, 2020, and the United Kingdom left the EU single market and customs union under the terms of a new trade agreement. The agreement governs the new relationship between the United Kingdom and EU with respect to trading goods and services, but critical aspects of the relationship remain unresolved and subject to further negotiation and agreement. The full scope and nature of the consequences of the exit are not at this time known and are unlikely to be known for a significant period of time. It is also unknown whether the United Kingdom's exit will increase the likelihood of other countries also departing the EU. Any additional exits from the EU, or the possibility of such exits, may have a significant impact on the United Kingdom, Europe, and global economies, which may result in increased volatility and illiquidity, new legal and regulatory uncertainties and potentially lower economic growth for such economies that could potentially have an adverse effect on the value of a Select Sector SPDR Fund's investments.

**MARKET TURBULENCE RESULTING FROM COVID-19**

An outbreak of a respiratory disease caused by a novel coronavirus (known as COVID-19) first detected in China in December 2019 has spread globally. In an organized attempt to contain and mitigate the effects of the spread of COVID-19, governments and businesses world-wide took and may continue to take aggressive measures, including closing

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borders, restricting international and domestic travel, and the imposition of prolonged quarantines of large populations. COVID-19 has resulted in and may continue to result in the disruption of and delays in the delivery of healthcare services and processes, the cancellation of organized events and educational institutions, the disruption of production and supply chains, a decline in consumer demand for certain goods and services, and general concern and uncertainty, all of which have contributed to increased volatility in global markets. The effects of COVID-19 will likely affect certain sectors and industries more dramatically than others, which may adversely affect the value of a Select Sector SPDR Fund's investments in those sectors or industries. COVID-19, and other epidemics and pandemics that may arise in the future, could adversely affect the economies of many nations, the global economy, individual companies and capital markets in ways that cannot be foreseen at the present time. In addition, the impact of infectious diseases in developing or emerging market countries may be greater due to limited health care resources. Political, economic and social stresses caused by COVID-19 also may exacerbate other pre-existing political, social and economic risks in certain countries. The duration of COVID-19 and its effects cannot be determined at this time, but the effects could be present for an extended period of time.

**RUSSIA SANCTIONS RISK**

Sanctions threatened or imposed by a number of jurisdictions, including the United States, the European Union and the United Kingdom, and other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or Russian individuals, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or a Fund. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on a Fund. Sanctions, or the threat of new or modified sanctions, could impair the ability of a Fund to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of a Fund, even if a Fund does not have direct exposure to securities of Russian issuers. As a collective result of the imposition of sanctions, Russian government countermeasures and the impact that they have had on the trading markets for Russian securities, certain Funds have used, and may in the future use, fair valuation procedures approved by the Fund's Board to value certain Russian securities, which could result in such securities being deemed to have a zero value.

A reduction in liquidity of certain Fund holdings as a result of sanctions and related actions may cause a Fund to experience increased premiums or discounts to its NAV and/or wider bid-ask spreads. Additionally, if it becomes impracticable or unlawful for a Fund to hold securities subject to, or otherwise affected by, sanctions, or if deemed appropriate by the Fund's investment adviser, the Fund may prohibit in-kind deposits of the affected securities in connection with creation transactions and instead require a cash deposit, which may also increase the Fund's transaction costs.

**Investment Restrictions**

The Trust has adopted the following investment restrictions as fundamental policies with respect to each Select Sector SPDR Fund. These restrictions cannot be changed with respect to a Select Sector SPDR Fund without the approval of the holders of a majority of such Select Sector SPDR Fund's outstanding voting securities. For purposes of the 1940 Act, a majority of the outstanding voting securities of a Select Sector SPDR Fund means the vote, at an annual or a special meeting of the security holders of the Trust, of the lesser of (1) 67% or more of the voting securities of the Select Sector SPDR Fund present at such meeting, if the holders of more than 50% of the outstanding voting securities of such Select Sector SPDR Fund are present or represented by proxy, or (2) more than 50% of the outstanding voting securities of the Select Sector SPDR Fund. Except with the approval of a majority of the outstanding voting securities, a Select Sector SPDR Fund may not:

&nbsp;&nbsp;&nbsp;&nbsp;1. Change its investment objective;

&nbsp;&nbsp;&nbsp;&nbsp;2. Lend any funds or other assets except through the purchase of all or a portion of an issue of securities or obligations of the type in which it is permitted to invest (including participation interests in such securities or obligations) and except that a Select Sector SPDR Fund may lend its portfolio securities in an amount not to exceed 33 1/3% of the value of its total assets;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;3. Issue senior securities or borrow money, except borrowings from banks for temporary or emergency purposes in an amount up to 10% of the value of the Select Sector SPDR Fund's total assets (including the amount borrowed), valued at market, less liabilities (not including the amount borrowed) valued at the time the borrowing is made, and the Select Sector SPDR Fund will not purchase securities while borrowings in excess of 5% of the Select Sector SPDR Fund's total assets are outstanding, provided, that for purposes of this restriction, short-term credits necessary for the clearance of transactions are not considered borrowings (this limitation on purchases does not apply to acceptance by the Select Sector SPDR Fund of a deposit principally of securities included in the relevant Select Sector Index for creation of Creation Units);

&nbsp;&nbsp;&nbsp;&nbsp;4. Pledge, hypothecate, mortgage or otherwise encumber its assets, except to secure permitted borrowings. (The deposit of underlying securities and other assets in escrow and collateral arrangements with respect to initial or variation margin for futures contracts or options contracts will not be deemed to be pledges of the Select Sector SPDR Fund's assets);

&nbsp;&nbsp;&nbsp;&nbsp;5. Purchase, hold or deal in real estate, or oil, gas or mineral interests or leases, but a Select Sector SPDR Fund may purchase and sell securities that are issued by companies that invest or deal in such assets;

&nbsp;&nbsp;&nbsp;&nbsp;6. Act as an underwriter of securities of other issuers, except to the extent the Select Sector SPDR Fund may be deemed an underwriter in connection with the sale of securities in its portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;7. Purchase securities on margin, except for such short-term credits as are necessary for the clearance of transactions, except that a Select Sector SPDR Fund may make margin deposits in connection with transactions in options, futures and options on futures;

&nbsp;&nbsp;&nbsp;&nbsp;8. Sell securities short;

&nbsp;&nbsp;&nbsp;&nbsp;9. Invest in commodities or commodity contracts, except that a Select Sector SPDR Fund may transact in exchange traded futures contracts on securities, stock indexes and options on such futures contracts and make margin deposits in connection with such contracts.; or

&nbsp;&nbsp;&nbsp;&nbsp;10. Concentrate its investments in securities of issuers in the same industry or group of industries, except that a Select Sector SPDR Fund will be concentrated in an industry or group of industries to the extent that such Fund's underlying index concentrates in a particular industry or group of industries.<sup>(1)</sup>

In addition to the investment restrictions adopted as fundamental policies as set forth above, each Select Sector SPDR Fund observes the following restrictions, which may be changed by the Board without a shareholder vote. A Select Sector SPDR Fund:

&nbsp;&nbsp;&nbsp;&nbsp;1. Will not invest in the securities of a company for the purpose of exercising management or control, provided that the Trust may vote the investment securities owned by each Select Sector SPDR Fund in accordance with its views.

&nbsp;&nbsp;&nbsp;&nbsp;2. Will, under normal circumstances, invest at least 95% of its total assets in common stocks that compose its relevant Select Sector Index. Prior to any change in a Fund's 95% investment policy, a Fund will provide shareholders with at least 60 days' written notice.

&nbsp;&nbsp;&nbsp;&nbsp;3. Will not invest in securities issued by other investment companies so that, as determined immediately after a purchase of such securities is made: (i) not more than 5% of the value of the Fund's total assets will be invested in the securities of any one investment company; (ii) not more than 10% of the value of its total assets will be invested in the aggregate in securities of investment companies as a group; and (iii) not more than 3% of the outstanding voting stock of any one investment company will be owned by the Fund.

If a percentage limitation is adhered to at the time of investment or contract, a later increase or decrease in percentage resulting from any change in value or total or net assets will not result in a violation of such restriction, except that the percentage limitations with respect to the borrowing of money will be observed continuously.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>(1)</sup>

The SEC Staff considers concentration to involve the investment of more than 25% of a fund's assets in an industry or group of industries.

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**Exchange Listing and Trading**

A discussion of exchange listing and trading matters associated with an investment in the Select Sector SPDR Funds is contained in the Prospectus under "PURCHASE AND SALE INFORMATION" and "ADDITIONAL PURCHASE AND SALE INFORMATION." The discussion below supplements, and should be read in conjunction with, the Prospectus.

The Shares of each Select Sector SPDR Fund are approved for listing and trading on the Exchange. Shares trade on the Exchange at prices that may differ to some degree from their net asset value. There can be no assurance that the requirements of the Exchange necessary to maintain the listing of Shares of a Select Sector SPDR Fund will continue to be met.

The Exchange may consider the suspension of trading in, and may initiate delisting proceedings of, the Shares of a Select Sector SPDR Fund under any of the following circumstances: (i) if the Exchange becomes aware that the Select Sector SPDR Fund is no longer eligible to operate in reliance on Rule 6c-11 under the 1940 Act; (ii) if the Select Sector SPDR Fund no longer complies with the applicable listing requirements set forth in the Exchange's rules; (iii) if, following the initial twelve-month period after commencement of trading on the Exchange of the Select Sector SPDR Fund, there are fewer than 50 beneficial holders of the Select Sector SPDR Fund; or (iv) if such other event shall occur or condition exists which, in the opinion of the Exchange, makes further dealings on the Exchange inadvisable. The Exchange will remove the Shares from listing and trading upon termination of a Select Sector SPDR Fund.

The Trust reserves the right to adjust the Share price of a Select Sector SPDR Fund in the future to maintain convenient trading ranges for investors. Any adjustments would be accomplished through stock splits or reverse stock splits, which would have no effect on the net assets of the Select Sector SPDR Fund or an investor's equity interest in the Select Sector SPDR Fund.

As in the case of other publicly traded securities, brokers' commissions on transactions will be based on negotiated commission rates at customary levels.

**Management of the Trust**

The following information supplements and should be read in conjunction with the section in the Prospectus entitled "MANAGEMENT."

The Board has responsibility for the oversight of the management, operations and business affairs of the Trust, including general oversight of its investment activities. The Trustees elect the officers of the Trust who are responsible for administering the day-to-day operations of the Trust and the Select Sector SPDR Funds.

The Trustees and executive officers of the Trust, along with their year of birth, principal occupations over the past five years, length of time served, total number of portfolios overseen in the fund complex, public and fund directorships held over the past five years and other positions and their affiliations, if any, with the Adviser, are listed below:

**TRUSTEES** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address**<br> **and Year of Birth**<br>| **Position(s)**<br> **With**<br> **Trust**<br>| **Term of**<br> **Office and**<br> **Length of**<br> **Time Served**<br>| **Principal**<br> **Occupation(s)**<br> **During Past**<br> **Five Years**<br>| **Number of**<br> **Portfolios**<br> **in Fund**<br> **Complex**<br> **Overseen**<br> **by Trustee†**<br>| **Other**<br> **Directorships**<br> **Held by**<br> **Trustee**<br> **During Past**<br> **Five Years**<br>|
| **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** |
| ASHLEY T. RABUN<br> c/o The Select Sector<br> SPDR Trust<br> One Iron Street<br> Boston, MA 02210<br> 1952<br>| &nbsp;&nbsp; Trustee, Chair <br> of the Board; <br> Member of the <br> Audit <br> Committee, <br> Member of the <br> Nominating and <br> Governance <br> Committee<br>| &nbsp;&nbsp; Term: <br> Indefinite <br> Appointed: <br> October <br> 2015<br> Elected: <br> October <br> 2021<br>| &nbsp;&nbsp; Retired; President and <br> Founder, InvestorReach, <br> Inc., a financial services <br> consulting firm (1996 - <br> 2015).<br>| 11 | &nbsp;&nbsp; Chairperson of the <br> Board and Member of <br> the Audit, Nominating <br> and Valuation <br> Committees, Investment <br> Managers Series Trust <br> (2007 - present).<br>|
| ALLISON GRANT WILLIAMS<br> c/o The Select Sector<br> SPDR Trust<br>| &nbsp;&nbsp; Trustee; <br> Member of the <br> Audit<br>| &nbsp;&nbsp; Term: <br> Indefinite <br> Elected:<br>| &nbsp;&nbsp; Retired; Practice <br> Executive, Global <br> Strategic Relationship<br>| 11 | &nbsp;&nbsp; Leadership Advisory <br> Committee (2019 - <br> present) and <br>|

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address**<br> **and Year of Birth**<br>| **Position(s)**<br> **With**<br> **Trust**<br>| **Term of**<br> **Office and**<br> **Length of**<br> **Time Served**<br>| **Principal**<br> **Occupation(s)**<br> **During Past**<br> **Five Years**<br>| **Number of**<br> **Portfolios**<br> **in Fund**<br> **Complex**<br> **Overseen**<br> **by Trustee†**<br>| **Other**<br> **Directorships**<br> **Held by**<br> **Trustee**<br> **During Past**<br> **Five Years**<br>|
| One Iron Street<br> Boston, MA 02210<br> 1956<br>| &nbsp;&nbsp; Committee, <br> Member of the <br> Nominating and <br> Governance <br> Committee<br>| &nbsp;&nbsp; October <br> 2021<br>| &nbsp;&nbsp; Management/Asset <br> Management - <br> Corporate & Institutional <br> Services (C&IS) <br> Division, Northern Trust <br> Corporation (2017 - <br> 2021); and Chief <br> Operating Officer & <br> Chief Administrative <br> Officer, Institutional <br> Investor Group, N.A., <br> C&IS Division, Northern <br> Trust Corporation (2016 <br> - 2017).<br>|  | &nbsp;&nbsp; Membership Committee <br> Chair (2021 - present), <br> Art Institute of Chicago; <br> Academic Affairs Chair <br> and Executive <br> Committee Member <br> (2018 - Present) and <br> Board of Trustees and <br> Investment Committee <br> Member (2012 - <br> present), Columbia <br> College Chicago.<br>|
| SHEILA HARTNETT-DEVLIN<br> c/o The Select Sector<br> SPDR Trust<br> One Iron Street<br> Boston, MA 02210<br> 1958<br>| &nbsp;&nbsp; Trustee; <br> Member of the <br> Audit <br> Committee, <br> Member of the <br> Nominating and <br> Governance <br> Committee<br>| &nbsp;&nbsp; Term: <br> Indefinite <br> Elected: <br> October <br> 2021<br>| &nbsp;&nbsp; Retired; Senior Vice <br> President and Head of <br> the U.S. Institutional <br> Business, American <br> Century Investments, <br> Inc. (2008 - 2017).<br>| 11 | &nbsp;&nbsp; Director, South Jersey <br> Industries, Inc. (energy <br> services) (1999 - <br> present) and Director, <br> Mannington Mills <br> (flooring products) (2005 <br> - present).<br>|
| JAMES JESSEE<br> c/o The Select Sector<br> SPDR Trust<br> One Iron Street<br> Boston, MA 02210<br> 1958<br>| &nbsp;&nbsp; Trustee; <br> Member of the <br> Audit <br> Committee, <br> Member of the <br> Nominating and <br> Governance <br> Committee<br>| &nbsp;&nbsp; Term: <br> Indefinite <br> Elected: <br> October <br> 2021<br>| &nbsp;&nbsp; Retired; Strategic <br> Advisor, MFS Investment <br> Management (2018); <br> and Co-Head, Global <br> Distribution and <br> President MFS Fund <br> Distributors, Inc. (2011 - <br> 2017).<br>| 11 | &nbsp;&nbsp; Trustee, Yieldstreet <br> Prism Fund (investment <br> company) (2019 - <br> present); Board Member, <br> Board of Governors, <br> Investment Company <br> Institute (2014 - 2018); <br> Director, Waddell & <br> Reed Financial, Inc. <br> (investment <br> management) (2019 - <br> 2021).<br>|
| TERESA POLLEY<br> c/o The Select Sector<br> SPDR Trust<br> One Iron Street<br> Boston, MA 02210<br> 1960<br>| &nbsp;&nbsp; Trustee; Chair <br> of the Audit <br> Committee, <br> Member of the <br> Nominating and <br> Governance <br> Committee<br>| &nbsp;&nbsp; Term: <br> Indefinite <br> Elected: <br> October <br> 2021<br>| &nbsp;&nbsp; Retired. Terri Polley <br> Consulting (2019 to <br> 2021); President and <br> Chief Executive Officer <br> of the Financial <br> Accounting Foundation <br> (FAF) (2008 - 2019).<br>| 11 | &nbsp;&nbsp; Director, Fairfield County <br> Band (2023 – Present); <br> Trustee (2018 to <br> present), Academic <br> Affairs Committee <br> Member (2018 - <br> present), Audit <br> Committee Chair (2021 - <br> present), Executive <br> Committee Member <br> (2021 - present), <br> Finance and Operations <br> Committee Member <br> (2018 - present), St. <br> Francis University.<br>|
| R. CHARLES TSCHAMPION<br> c/o The Select Sector<br> SPDR Trust<br> One Iron Street<br> Boston, MA 02210<br> 1946<br>| &nbsp;&nbsp; Trustee, <br> Member of the <br> Audit <br> Committee, <br> Chair of the <br> Nominating and <br> Governance <br> Committee<br>| &nbsp;&nbsp; Term: <br> Indefinite <br> Elected: <br> October <br> 1998<br>| Retired. | 11 | &nbsp;&nbsp; Trustee Emeritus of <br> Lehigh University.<br>|

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address**<br> **and Year of Birth**<br>| **Position(s)**<br> **With**<br> **Trust**<br>| **Term of**<br> **Office and**<br> **Length of**<br> **Time Served**<br>| **Principal**<br> **Occupation(s)**<br> **During Past**<br> **Five Years**<br>| **Number of**<br> **Portfolios**<br> **in Fund**<br> **Complex**<br> **Overseen**<br> **by Trustee†**<br>| **Other**<br> **Directorships**<br> **Held by**<br> **Trustee**<br> **During Past**<br> **Five Years**<br>|
| **INTERESTED TRUSTEES** | **INTERESTED TRUSTEES** | **INTERESTED TRUSTEES** | **INTERESTED TRUSTEES** | **INTERESTED TRUSTEES** | **INTERESTED TRUSTEES** |
| JAMES E. ROSS\*<br> c/o The Select Sector <br> SPDR Trust<br> One Iron Street<br> Boston, MA 02210<br> 1965<br>| Trustee | &nbsp;&nbsp; Term: <br> Indefinite <br> Appointed: <br> November <br> 2005<br> Elected: <br> October <br> 2021<br>| &nbsp;&nbsp; President, Winnisquam <br> Capital LLC (December <br> 2022 – present); <br> Non-Executive <br> Chairman, Fusion <br> Acquisition Corp. (June <br> 2020 - September <br> 2021); Non-Executive <br> Chairman, Fusion <br> Acquisition Corp II <br> (February 2020 - <br> present): Retired <br> Chairman and Director, <br> SSGA Funds <br> Management, Inc. (2005 <br> - March 2020); Retired <br> Executive Vice <br> President, State Street <br> Global Advisors (2012 - <br> March 2020); Retired <br> Chief Executive Officer <br> and Manager, State <br> Street Global Advisors <br> Funds Distributors, LLC <br> (May 2017 - March <br> 2020); Director, State <br> Street Global Markets, <br> LLC (2013 - April 2017); <br> President, SSGA Funds <br> Management, Inc. (2005 <br> - 2012); Principal, State <br> Street Global Advisors <br> (2000 - 2005).<br>| 136 | &nbsp;&nbsp; Investment Managers <br> Series Trust (December <br> 2022 – present); SSGA <br> SPDR ETFs Europe I <br> plc (Director) (November <br> 2016 – March 2020); <br> SSGA SPDR ETFs <br> Europe II plc (Director) <br> (November 2016 – <br> March 2020); State <br> Street Navigator <br> Securities Lending Trust <br> (July 2016 – March <br> 2020); SSGA Funds <br> (January 2014 – March <br> 2020); SSGA Active <br> Trust (2011 - March <br> 2020); State Street <br> Institutional Investment <br> Trust (February 2007 – <br> March 2020); State <br> Street Master Funds <br> (February 2007 – March <br> 2020); SPDR Series <br> Trust (November 2005 - <br> December 2009; April <br> 2010 - March 2020); <br> SPDR Index Shares <br> Funds (November 2005 <br> - December 2009; April <br> 2010 - March 2020); <br> Elfun Funds (July 2016 – <br> December 2018).<br>|
| RORY TOBIN\*<br> c/o The Select Sector<br> SPDR Trust<br> One Iron Street<br> Boston, MA 02210<br> 1965<br>| Trustee | &nbsp;&nbsp; Term: <br> Indefinite <br> Elected: <br> October <br> 2021<br>| &nbsp;&nbsp; Executive Vice President <br> and Head of Business <br> EMEA, Head of Global <br> SPDR ETF, Member of <br> the SSGA Global <br> Executive Management <br> Group (2014 - present).<br>| 11 |  |

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†

For the purpose of determining the number of portfolios overseen by the Trustees, "Fund Complex" comprises registered investment companies for which SSGA Funds Management, Inc. serves as investment adviser.

\*

Mr. Ross and Mr. Tobin are each an "interested person" of the Trust, as defined in the 1940 Act. Mr. Ross is an "interested person" because of his ownership interest in an affiliate of the Adviser. Mr. Tobin is an "interested person" because of his position with an affiliate of the Adviser.

**OFFICERS** 

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| | | | |
|:---|:---|:---|:---|
| **Name, Address**<br> **and Year of Birth**<br>| **Position(s)**<br> **With Trust**<br>| **Term of**<br> **Office and**<br> **Length of**<br> **Time Served**<br>| **Principal Occupation(s)**<br> **During Past Five Years**<br>|
| ELLEN M. NEEDHAM<br> SSGA Funds Management, Inc.<br> One Iron Street<br> Boston, MA 02210<br> 1967<br>| &nbsp;&nbsp; President and <br> Principal Executive <br> Officer<br>| &nbsp;&nbsp; Term: Indefinite <br> Served: since <br> May 2013<br>| &nbsp;&nbsp; Chairman, SSGA Funds Management, Inc. (March 2020 <br> - present); President and Director, SSGA Funds <br> Management, Inc. (2001 - present)\*; Senior Managing <br> Director, State Street Global Advisors (1992 - present)\*; <br> Manager, State Street Global Advisors Funds <br> Distributors, LLC (May 2017 - present).<br>|

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| | | | |
|:---|:---|:---|:---|
| **Name, Address**<br> **and Year of Birth**<br>| **Position(s)**<br> **With Trust**<br>| **Term of**<br> **Office and**<br> **Length of**<br> **Time Served**<br>| **Principal Occupation(s)**<br> **During Past Five Years**<br>|
| MICHAEL P. RILEY<br> SSGA Funds Management, Inc.<br> One Iron Street<br> Boston, MA 02210<br> 1969<br>| Vice President | &nbsp;&nbsp; Term: Indefinite <br> Served: since <br> February 2005<br>| &nbsp;&nbsp; Managing Director, State Street Global Advisors (2005 - <br> present).\*<br>|
| CHAD C. HALLETT<br> SSGA Funds Management, Inc.<br> One Iron Street<br> Boston, MA 02210<br> 1969<br>| &nbsp;&nbsp; Treasurer and <br> Principal Financial <br> Officer<br>| &nbsp;&nbsp; Term: Indefinite <br> Served: since <br> November 2007<br>| &nbsp;&nbsp; Vice President, State Street Global Advisors and SSGA <br> Funds Management, Inc. (November 2014 - present).<br>|
| ANN M. CARPENTER<br> SSGA Funds Management, Inc.<br> One Iron Street<br> Boston, MA 02210<br> 1966<br>| Deputy Treasurer | &nbsp;&nbsp; Term: Indefinite <br> Served: since <br> April 2015<br>| &nbsp;&nbsp; Chief Operating Officer, SSGA Funds Management, Inc. <br> (April 2005 - present)\*; Managing Director, State Street <br> Global Advisors (April 2005 - present).\*<br>|
| BRUCE S. ROSENBERG<br> SSGA Funds Management, Inc.<br> One Iron Street<br> Boston, MA 02210<br> 1961<br>| Deputy Treasurer | &nbsp;&nbsp; Term: Indefinite <br> Served: since <br> February 2016<br>| &nbsp;&nbsp; Managing Director, State Street Global Advisors and <br> SSGA Funds Management, Inc. (July 2015 - present); <br> Director, Credit Suisse (April 2008 - July 2015).<br>|
| DARLENE ANDERSON-VASQUEZ<br> SSGA Funds Management, Inc.<br> One Iron Street<br> Boston, MA 02210<br> 1968<br>| Deputy Treasurer | &nbsp;&nbsp; Term: Indefinite <br> Served: since <br> February 2017<br>| &nbsp;&nbsp; Managing Director, State Street Global Advisors and <br> SSGA Funds Management, Inc. (May 2016 - present); <br> Senior Vice President, John Hancock Investments <br> (September 2007 - May 2016).<br>|
| ARTHUR A. JENSEN<br> SSGA Funds Management, Inc.<br> 1600 Summer Street<br> Stamford, CT 06905<br> 1966<br>| Deputy Treasurer | &nbsp;&nbsp; Term: Indefinite <br> Served: since <br> November 2017<br>| &nbsp;&nbsp; Vice President, State Street Global Advisors and SSGA <br> Funds Management, Inc. (July 2016 - present); Mutual <br> Funds Controller, GE Asset Management Incorporated <br> (April 2011 - July 2016).<br>|
| DAVID LANCASTER<br> SSGA Funds Management, Inc.<br> One Iron Street<br> Boston, MA 02210<br> 1971<br>| Assistant Treasurer | &nbsp;&nbsp; Term: Indefinite <br> Served: since <br> November 2020<br>| &nbsp;&nbsp; Vice President, State Street Global Advisors and SSGA <br> Funds Management, Inc. (July 2017 – present); <br> Assistant Vice President, State Street Bank and Trust <br> Company (November 2011 – July 2017).\*<br>|
| RYAN HILL<br> SSGA Funds Management, Inc. <br> One Iron Street<br> Boston, MA 02210<br> 1982<br>| Assistant Treasurer | &nbsp;&nbsp; Term: Indefinite <br> Served: since <br> May 2022<br>| &nbsp;&nbsp; Vice President, State Street Global Advisors and SSGA <br> Funds Management Inc. (May 2017 – present); <br> Assistant Vice President, State Street Bank and Trust <br> Co. (May 2014 – May 2017).<br>|
| JOHN BETTENCOURT<br> SSGA Funds Management, Inc. <br> One Iron Street<br> Boston, MA 02210<br> 1976<br>| Assistant Treasurer | &nbsp;&nbsp; Term: Indefinite <br> Served: since <br> May 2022<br>| &nbsp;&nbsp; Vice President, State Street Global Advisors and SSGA <br> Funds Management Inc. (March 2020 – present); <br> Assistant Vice President, State Street Global Advisors <br> (June 2007 – March 2020).<br>|
| SEAN O'MALLEY<br> SSGA Funds Management, Inc.<br> One Iron Street<br> Boston, MA 02210<br> 1969<br>| Chief Legal Officer  | &nbsp;&nbsp; Term: Indefinite <br> Served: since <br> August 2019<br>| &nbsp;&nbsp; Senior Vice President and Deputy General Counsel, <br> State Street Global Advisors (November 2013 – <br> present).<br>|
| DAVID BARR<br> SSGA Funds Management, Inc.<br> One Iron Street<br> Boston, MA 02210<br> 1974<br>| Assistant Secretary | &nbsp;&nbsp; Term: Indefinite <br> Served: since <br> November 2020<br>| &nbsp;&nbsp; Vice President and Senior Counsel, State Street Global <br> Advisors (October 2019 - present); Vice President and <br> Counsel, Eaton Vance Corp. (October 2010 - October <br> 2019).<br>|
| DAVID URMAN<br> SSGA Funds Management, Inc.<br> One Iron Street<br> Boston, MA 02210<br> 1985<br>| Secretary | &nbsp;&nbsp; Term: Indefinite <br> Served: since <br> August 2022<br>| &nbsp;&nbsp; Vice President and Senior Counsel, State Street Global <br> Advisors (April 2019 - present); Vice President and <br> Counsel, State Street Global Advisors (August 2015 - <br> April 2019); Associate, Ropes & Gray LLP (November <br> 2012 - August 2015).<br>|

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| | | | |
|:---|:---|:---|:---|
| **Name, Address**<br> **and Year of Birth**<br>| **Position(s)**<br> **With Trust**<br>| **Term of**<br> **Office and**<br> **Length of**<br> **Time Served**<br>| **Principal Occupation(s)**<br> **During Past Five Years**<br>|
| BRIAN HARRIS<br> SSGA Funds Management, Inc.<br> One Iron Street<br> Boston, MA 02210<br> 1973<br>| &nbsp;&nbsp; Chief Compliance <br> Officer, Anti-Money <br> Laundering Officer <br> and Code of Ethics <br> Compliance Officer<br>| &nbsp;&nbsp; Term: Indefinite <br> Served: since <br> November 2013<br>| &nbsp;&nbsp; Managing Director, State Street Global Advisors and <br> SSGA Funds Management, Inc. (June 2013 - present).\*<br>|

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\*

Served in various capacities and/or with various affiliated entities during the noted time period.

**LEADERSHIP STRUCTURE AND BOARD OF TRUSTEES** 

The Board has general oversight responsibility with respect to the business and affairs of the Trust. The Board is responsible for overseeing the operations of the Funds in accordance with the provisions of the 1940 Act, other applicable laws and the Trust's Declaration of Trust. The Board is composed of six Independent Trustees and two Interested Trustees. In accordance with the Board Governance Policies, the Board has appointed an Independent Trustee to serve as Chairman of the Board. Generally, the Board acts by majority vote of all of the Trustees, including a majority vote of the Independent Trustees if required by applicable law. The Trust's day-to-day operations are managed by the Adviser and other service providers who have been approved by the Board. The Board meets periodically throughout the year to oversee the Trust's activities, review contractual arrangements with service providers, oversee compliance with regulatory requirements, and review performance. The Board has determined that its leadership structure is appropriate given the size of the Board, the experience of each Trustee and the number and nature of Funds within the Trust.

The Trustees were selected to serve and continue on the Board based upon their skills, experience, judgment, analytical ability, diligence, ability to work effectively with other Trustees and a commitment to the interests of shareholders and, with respect to the Independent Trustees, a demonstrated willingness to take an independent and questioning view of management. Each Trustee also has familiarity with the Funds, the Adviser, the Administrator, the Sub-Administrator and the Distributor, and their operations. The Independent Trustees also have experience with the special regulatory requirements governing regulated investment companies and the special responsibilities of investment company directors as a result of his or her service as a Trustee of the Trust and/or as a director of other investment companies. In addition to those qualifications, the following is a brief summary of the specific experience, qualifications or skills that led to the conclusion that, as of the date of this SAI, each person identified below should serve as a Trustee for the Trust. References to the qualifications, attributes and skills of the Trustees are pursuant to requirements of the SEC, and do not constitute a representation that the Board or any Trustee has any special expertise and do not impose any greater responsibility or liability on any such person or on the Board by reason thereof. As required by rules the SEC has adopted under the 1940 Act, the Trust's Independent Trustees select and nominate all candidates for Independent Trustee positions.

**Ashley T. Rabun**. Ms. Rabun has served as a Trustee of the Trust since October 2015 and has served as Chair of the Board since June 2021. Ms. Rabun also serves on the Nominating and Governance Committee and the Audit Committee. Since 2007, she has also served as Chairperson of the Board and Member of the Audit Committee, Valuation Committee and Nominating Committee of Investment Managers Series Trust. From 1996 to 2015, Ms. Rabun served as President and Chief Executive Officer of InvestorReach, Inc., a financial services consulting firm. She served as Partner and President of Mutual Funds advised by Nicholas Applegate Capital Management from 1992 to 1996. From 1990 to 1992, Ms. Rabun served as Marketing Director at InterInvest, Inc. Prior thereto, she was employed as a registered representative for several brokerage firms.

**Allison Grant Williams**. Ms. Williams has served as a Trustee of the Trust since October 2021. Ms. Williams also serves on the Nominating and Governance Committee and the Audit Committee. Ms. Williams previously served as Senior Vice President in the Global Strategic Relationship Management Group at Northern Trust/Corporate & Institutional Services (C&IS) Division from 2017 to 2021. Prior to that, Ms. Williams served as Chief Operating Officer of Northern Trust's Global Funds Services Group from 2014 to 2017, where she also served as Chief Administrative Officer of Northern Trust's Institutional Investor Services Group from 2016 to 2017. In addition, Ms. Williams served as Chief Administrative Officer and Chief Marketing Strategy Officer in Northern Trust's Exchange-Traded Funds Group/Asset Management Division from 2011 to 2014. Prior to that, Ms. Williams held several positions with UBS O'Connor.

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**Sheila Hartnett-Devlin**. Ms. Hartnett-Devlin has served as a Trustee of the Trust since October 2021. Ms. Hartnett-Devlin also serves on the Nominating and Governance Committee and the Audit Committee. Ms. Hartnett-Devlin previously served as a Vice President and Client Portfolio Manager from 2008 to 2011 and a Senior Vice President and Head of U.S. Institutional Business from 2011 to 2017 for American Century Investments, a large investment product provider. From 2005 to 2008, she served as Managing Director and Global Portfolio Manager at Cohen, Klingenstein & Marks, Inc., a small investment management firm and from 2002 to 2008, as Director at Mercy Investment Services, a ministry of the Sisters of Mercy. Prior to 2002, Ms. Hartnett-Devlin served in several roles, including Chief Global Equity Strategist for Fiduciary Trust Company International. Additionally, she has served on the board of directors of South Jersey Industries since 1999, where she chairs the Environmental Social and Governance Committee and sits on the Audit Committee (Chair from 2007 to 2017) and Strategy and Finance Committees. Ms. Hartnett-Devlin also serves on the board of directors of Mannington Mills since 2005 and is the Chair of the Personnel and Compensation Committee.

**James Jessee**. Mr. Jesse has served as a Trustee of the Trust since October 2021. Mr. Jessee also serves on the Nominating and Governance Committee and the Audit Committee. From 1987 to 2018, Mr. Jessee served in numerous senior leadership roles in the intermediary distribution space at MFS Investment Management, including as President of MFS Funds Distributors, Inc. and Co-Head of Global Distribution. Prior to 1987, Mr. Jessee served as an insurance wholesaler. Since October 2019, Mr. Jessee has served as member of the Board of Trustees of the Yieldstreet Prism Fund. From 2019-2021, Mr. Jessee served on the Board of Directors for Waddell and Reed. From 2014-2018, Mr. Jessee served as a Board Member to the Board of Governors of the Investment Company Institute.

**Teresa Polley**. Ms. Polley has served as a Trustee of the Trust since October 2021 and has been designated by the Board as an "audit committee financial expert," as defined in SEC rules. Ms. Polley previously served as President and Chief Executive Officer of the Financial Accounting Foundation (FAF) from 2008 until her retirement in 2019. As President/CEO of FAF, Ms. Polley advised and collaborated with FAF's governing body and committees on audit, finance, investments, compensation, governance, and nominations, including appointments to its standard-setting bodies, the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). She is a certified public accountant licensed by the Commonwealth of Pennsylvania and is an experienced audit committee chair.

**James E. Ross**. Mr. Ross has served as a Trustee of the Trust since 2005 and served as President from November 2010 to May 2013. Mr. Ross served in various executive capacities at the Adviser and its affiliates from 2005 until his retirement in 2020. Mr. Ross also serves as a Trustee of SPDR Series Trust, SPDR Index Shares Funds and SSGA Active Trust, for which SSGA FM serves as investment adviser. Since June 2010, Mr. Ross has chaired the Investment Company Institute's Exchange-Traded Funds Committee. Mr. Ross is also on the Board of Governors of the Investment Company Institute.

**R. Charles Tschampion**, CFA. Mr. Tschampion has served as a Trustee of the Trust since inception in 1998. He also serves as Chair to the Nominating and Governance Committee and as a member of the Audit Committee. Mr. Tschampion is a CFA charterholder and served on the staff at the CFA Institute beginning in 2005 until August 2014. He retired from General Motors after a 37-year career, including 28 years at General Motors Asset Management, where his last position was Managing Director of Investment Research and of Defined Contribution Plans. Mr. Tschampion sat on the AIMR Board of Governors from 1995 to 2001 and served as Chairman from 1999 to 2000. Mr. Tschampion was a Trustee of Lehigh University from 1998 to 2010 and served as Chair of the Investment Sub-Committee for the Lehigh University Endowment Fund from 1998 to 2008; he currently is Trustee Emeritus of Lehigh University. Mr. Tschampion also served as a Director, Chairman of the Audit Committee and a member of the Nominating Committee of db-X Exchange-Traded Funds Inc. (formerly known as TDX Independence Funds, Inc.) from 2007 to 2015.

**Rory Tobin**. Mr. Tobin has served as a Trustee of the Trust since October 2021. He currently serves as Executive Vice President and Head of Business in Europe, the Middle East and Africa (EMEA) and head of the Global SPDR Exchange Traded Fund (ETF) business at SSGA since 2014. In addition. Mr. Tobin is a member of the SSGA Global Executive Management Group. Prior to joining SSGA, Mr. Tobin served as CEO and Global Head of the Investments and Solutions business at Barclays Asset Management. From 2004 to 2014, Mr. Tobin held several roles at BlackRock/Barclays Global Investors (BGI), including as co-CEO of the Global iShares ETF business and as head of the Global Index and Markets Group. Prior to joining BGI, Mr. Tobin spent 14 years at Goldman Sachs where he held numerous roles, including in equity capital markets, equity derivative distribution, and distribution leadership.

**RISK OVERSIGHT**

The day-to-day operations of the Funds, including the management of risk, are performed by third party service providers, such as the Adviser, Distributor, Administrator and Sub-Administrator. The Trustees are responsible for overseeing the Trust's service providers and thus have oversight responsibilities with respect to risk management performed by those

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service providers. Risk management seeks to identify and address risks, i.e., events or circumstances that could have material adverse effects on the business, operations, shareholder services, investment performance or reputation of the Funds. The Trust and its service providers employ a variety of processes, procedures and controls to identify certain of those possible events or circumstances, to lessen the probability of their occurrence and/or to mitigate the effects of such events or circumstances if they do occur.

Not all risks that may affect the Funds can be identified nor can controls be developed to eliminate or mitigate their occurrence or effects. It may not be practical or cost effective to eliminate or mitigate certain risks, the processes and controls employed to address certain risks may be limited in their effectiveness, and some risks are simply beyond the reasonable control of the Funds or the Adviser or other service providers. Moreover, it is necessary to bear certain risks (such as investment-related risks) to achieve a Fund's goals. As a result of the foregoing and other factors, the Funds' ability to manage risk is subject to substantial limitations.

Risk oversight forms part of the Board's general oversight of the Funds and is addressed as part of various Board and Committee activities. As part of its regular oversight of the Funds, the Board, directly or through a Committee, interacts with and reviews reports from, among others, the Adviser, the Trust's Chief Compliance Officer and the independent registered public accounting firm, as appropriate, regarding risks faced by the Funds. The Board is responsible for overseeing the nature, extent and quality of the services provided to the Funds by the Adviser and receives information about those services at its regular meetings. The Board has met with the Adviser's Chief Risk Officer to review the Adviser's approach to addressing risks. In addition, on an annual basis, in connection with its consideration of whether to renew the Advisory Agreement, the Board meets with the Adviser to review the services provided. Among other things, the Board regularly considers the Adviser's adherence to the Funds' investment restrictions and compliance with various Fund policies and procedures and with applicable securities regulations. The Board has appointed a Chief Compliance Officer who oversees the implementation and testing of the Trust's compliance program and reports to the Board regarding compliance matters for the Trust and its service providers. The Board, with the assistance of the Adviser, reviews investment policies and risks in connection with its review of the Funds' performance. In addition, as part of the Board's oversight of the Funds' advisory and other service provider agreements, the Board may periodically consider risk management aspects of their operations and the functions for which they are responsible.

The Board has established the following Committees and the membership of each Committee to assist in its oversight functions, including its oversight of the risks the Funds face. Committee membership is identified below. Each Committee must report its activities to the Board on a regular basis.

<u>Audit Committee:</u> The Board has an Audit Committee consisting of all Trustees who are not "interested persons" (as defined by the 1940 Act) of the Trust. Ms. Polley serves as the Chairman. The primary purpose of the Committee is to assist the Board in fulfilling certain of its responsibilities. The Audit Committee serves as an independent and objective party to monitor the Funds' accounting policies, financial reporting and internal control system, as well as the work of the independent registered public accounting firm. The Audit Committee assists Board oversight of (1) the quality and integrity of the Funds' financial statements and the independent audit thereof; (2) the Funds' accounting and financial reporting processes and internal control over financial reporting; (3) the Funds' compliance with legal and regulatory requirements that relate to the Funds' accounting and financial reporting, internal control over financial reporting and independent audits; and (4) the qualifications, independence and performance of the Funds' independent registered public accounting firm. The Audit Committee meets with the Trust's independent auditors to review and approve the scope and results of their professional services; to review the procedures for evaluating the adequacy of the Trust's accounting controls; to consider the range of audit fees; and to make recommendations to the Board regarding the engagement of the Trust's independent auditors. The Audit Committee met three (3) times during the fiscal year ended September 30, 2022.

<u>Nominating and Governance Committee:</u> The Board has a Nominating and Governance Committee consisting of all Trustees who are not "interested persons" (as defined by the 1940 Act) of the Trust. Mr. Tschampion serves as Chairman. The Nominating and Governance Committee oversees administration of the Board Governance Policies and will consider proposals for candidates to serve as independent Trustees. Any such proposals should be sent to the Trust in care of the Nominating and Governance Committee Chairman. The final recommendation of a prospective independent Trustee rests solely with the Nominating and Governance Committee. The Nominating and Governance Committee also periodically reviews Independent Trustee compensation. The Nominating and Governance Committee met two (2) times during the fiscal year ended September 30, 2022.

When evaluating a person as a potential nominee to serve as an independent Trustee, the Committee will generally consider, among other factors: age; education; relevant business experience; geographical factors; whether the person is "independent" and otherwise qualified under applicable laws and regulations to serve as a Trustee; and whether the

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person is willing to serve, and willing and able to commit the time necessary for attendance at meetings and the performance of the duties of an independent Trustee. The Committee also meets personally with the nominees and conducts a reference check. The final decision is based on a combination of factors, including the strengths and the experience an individual may bring to the Board. The Committee believes the Board generally benefits from diversity of background, experience and views among its members, and considers this a factor in evaluating the composition of the Board, but has not adopted any specific policy in this regard.

**REMUNERATION OF TRUSTEES**

The Trust pays each Trustee an annual retainer plus a per meeting fee for each regularly scheduled meeting of the Board attended by the Trustee (whether in person or telephonically) and any other telephonic meeting. The Chairman of the Board (who is an Independent Trustee) receives an additional fee. Audit Committee and Nominating and Governance Committee members receive per meeting fees and the Chairman of the Audit Committee and the Chairman of the Nominating and Governance Committee also receive an additional fee. The Trust may also reimburse each Trustee for travel and other out-of-pocket expenses incurred by him/her in connection with attending such meetings and in connection with attending industry seminars and meetings.

The following table sets forth the total fees accrued with respect to the remuneration of Trustees of the Trust for the fiscal year ended September 30, 2022:

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|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Name of**<br> **Trustee**<br>| **Aggregate**<br> **Compensation**<br> **from the Trust**<br>| **Pension or**<br> **Retirement**<br> **Benefits**<br> **Accrued**<br> **as Part**<br> **of Trust**<br> **Expenses**<br>| **Estimated**<br> **Annual**<br> **Benefits**<br> **Upon**<br> **Retirement**<br>| **Total**<br> **Compensation**<br> **from the**<br> **Trust and**<br> **Fund Complex**<br> **Paid to**<br> **Trustees**<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Independent Trustees:* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Independent Trustees:* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Independent Trustees:* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Independent Trustees:* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Independent Trustees:* |
| Cheryl Burgermeister<sup>(1)</sup> | $327000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | $327000 |
| Allison Grant Williams<sup>(2)</sup> | $292000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | $292000 |
| Sheila Hartnett-Devlin<sup>(2)</sup> | $292000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | $292000 |
| James Jessee<sup>(2)</sup> | $292000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | $292000 |
| Teresa Polley<sup>(2)</sup> | $304500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | $304500 |
| Ashley T. Rabun | $352000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | $352000 |
| Ernest J. Scalberg<sup>(3)</sup> | $55750 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | $55750 |
| R. Charles Tschampion | $302500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | $302500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Interested Trustees:* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Interested Trustees:* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Interested Trustees:* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Interested Trustees:* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Interested Trustees:* |
| James E. Ross | $272000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | $272000 |
| Rory Tobin<sup>(2),(4)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A |

---

<sup>(1)</sup>

Effective December 31, 2022, Ms. Burgermeister resigned from her position as Trustee and no longer serves as a trustee to the Trust.

<sup>(2)</sup>

Commenced serving as Trustee of the Trust on October 29, 2021.

<sup>(3)</sup>

Effective December 31, 2021, Dr. Scalberg resigned from his position as Trustee and no longer serves as a trustee to the Trust.

<sup>(4)</sup>

As an officer of SSGA, Mr. Tobin does not receive any compensation from the Trust for serving as a Trustee of the Trust.

No officers receive compensation from the Trust and no Trustee or officer is entitled to any pension or retirement benefits from the Trust.

The Trustee fees with respect to the remuneration are allocated among the Funds based on net assets. For the fiscal year ended September 30, 2022, the Funds contributed the following amounts:

---

| | |
|:---|:---|
| **Fund** | **Amount** |
| The Communication Services Select Sector SPDR Fund | $132457 |
| The Consumer Discretionary Select Sector SPDR Fund | $202874 |
| The Consumer Staples Select Sector SPDR Fund | $143894 |
| The Energy Select Sector SPDR Fund | $318933 |
| The Financial Select Sector SPDR Fund | $427784 |

---

------

---

| | |
|:---|:---|
| **Fund** | **Amount** |
| The Health Care Select Sector SPDR Fund | $353026 |
| The Industrial Select Sector SPDR Fund | $172079 |
| The Materials Select Sector SPDR Fund | $80387 |
| The Real Estate Select Sector SPDR Fund | $52456 |
| The Technology Select Sector SPDR Fund | $465129 |
| The Utilities Select Sector SPDR Fund | $140731 |

---

**OWNERSHIP OF FUND SHARES**

As of December 31, 2022, neither the Independent Trustees nor their immediate family members owned beneficially or of record any securities in the Adviser, principal underwriter of the Funds or any person (other than a registered investment company) directly or indirectly controlling, controlled by, or under common control with the Adviser or principal underwriter of the Funds.

The following table sets forth information describing the dollar range of equity securities beneficially owned by each Trustee in the Trust as of December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Name of Trustee** | **Fund** | **Dollar Range of Equity**<br> **Securities in the Trust**<br>| **Aggregate Dollar Range of Equity**<br> **Securities in All**<br> **Funds Overseen**<br> **by Trustee in Family of**<br> **Investment Companies**<br>|
| *Independent Trustees:* |  |  |  |
| Allison Grant Williams | The Financial Select Sector SPDR Fund | $1 - $10000 | $1 - $10000 |
| Sheila Hartnett-Devlin | The Technology Select Sector SPDR Fund | Over $100,000 | Over $100,000 |
| James Jessee | The Energy Select Sector SPDR Fund | $10001 - $50000 | $10001 - $50000 |
| Teresa Polley | The Communication Services Select Sector SPDR Fund | $1 - $10000 | $10001 - $50000 |
|  | The Consumer Discretionary Select Sector SPDR Fund | $1 - $10000 |  |
|  | The Consumer Staples Select Sector SPDR Fund | $1 - $10000 |  |
|  | The Energy Select Sector SPDR Fund | $1 - $10000 |  |
|  | The Financial Select Sector SPDR Fund | $1 - $10000 |  |
|  | The Health Care Select Sector SPDR Fund | $1 - $10000 |  |
|  | The Industrial Select Sector SPDR Fund | $1 - $10000 |  |
|  | The Materials Select Sector SPDR Fund | $1 - $10000 |  |
| Ashley T. Rabun |  |  |  |
| R. Charles Tschampion | The Utilities Select Sector SPDR Fund | Over $100,000 | Over $100,000 |
| *Interested Trustees:* |  |  |  |
| James E. Ross | The Consumer Discretionary Select Sector SPDR Fund | Over $100,000 | Over $100,000 |
|  | The Energy Select Sector SPDR Fund | $10001 - $50000 |  |
|  | The Financial Select Sector SPDR Fund | Over $100,000 |  |
|  | The Health Care Select Sector SPDR Fund | $50001 - $100000 |  |
|  | The Technology Select Sector SPDR Fund | $50001 - $100000 |  |
| Rory Tobin |  |  |  |

---

**CODES OF ETHICS**

The Trust, the Adviser and the Distributor each have adopted a Code of Ethics pursuant to Rule 17j-1 of the 1940 Act, which is designed to prevent affiliated persons of the Trust, the Adviser and the Distributor from engaging in deceptive, manipulative or fraudulent activities in connection with securities held or to be acquired by the Funds (which may also be held by persons subject to the Codes of Ethics). Each Code of Ethics permits personnel, subject to that Code of Ethics, to invest in securities for their personal investment accounts, subject to certain limitations, including securities that may be purchased or held by the Funds.

There can be no assurance that the Codes of Ethics will be effective in preventing such activities. Each Code of Ethics, filed as exhibits to the Trust's registration statement, may be examined at the office of the SEC in Washington, D.C. or on the Internet at the SEC's website at https://www.sec.gov.

------

**PROXY VOTING POLICIES** 

The Board believes that the voting of proxies on securities held by the Funds is an important element of the overall investment process. As such, the Board has delegated the responsibility to vote such proxies to the Adviser for all Funds. The Trust's proxy voting policy and the Adviser's proxy voting policy are attached to this SAI as Appendix A and Appendix B, respectively. Information regarding how a Fund voted proxies relating to its portfolio securities during the most recent 12-month period ended June 30 is available: (1) without charge by calling 1-866-732-8673; (2) on the Funds' website at https://www.sectorspdr.com; and (3) on the SEC's website at https://www.sec.gov.

**DISCLOSURE OF PORTFOLIO HOLDINGS POLICY** 

The Trust has adopted a policy regarding the disclosure of information about the Trust's portfolio holdings. The Board must approve all material amendments to this policy. The Funds' portfolio holdings are publicly disseminated each day a Fund is open for business through financial reporting and news services including publicly accessible Internet web sites. In addition, a basket composition file, which includes the security names and share quantities to deliver in exchange for Shares, together with estimates and actual cash components, is publicly disseminated daily prior to the opening of the Exchange via the National Securities Clearing Corporation ("NSCC"). The basket represents one Creation Unit of a Fund. The Trust, the Adviser or State Street will not disseminate non-public information concerning the Trust, except information may be made available prior to its public availability: (i) to a party for a legitimate business purpose related to the day-to-day operations of the Funds, including (a) a service provider, (b) the stock exchanges upon which an ETF is listed, (c) the NSCC, (d) the Depository Trust Company, and (e) financial data/research companies such as Morningstar, Bloomberg L.P., and Reuters, or (ii) to any other party for a legitimate business or regulatory purpose, upon waiver or exception, with the consent of an applicable Trust officer.

**Investment Advisory and Other Services**

**THE INVESTMENT ADVISER**

SSGA FM acts as investment adviser to the Trust and, subject to the oversight of the Board, is responsible for the investment management of each Select Sector SPDR Fund. As of September 30, 2022, the Adviser managed approximately $768.42 billion in assets. The Adviser's principal address is One Iron Street, Boston, Massachusetts 02210. The Adviser, a Massachusetts corporation, is a wholly-owned subsidiary of State Street Global Advisors, Inc., which itself is a wholly-owned subsidiary of State Street Corporation, a publicly held financial holding company. State Street Global Advisors ("SSGA"), consisting of the Adviser and other investment advisory affiliates of State Street Corporation, is the investment management arm of State Street Corporation.

The Adviser serves as investment adviser to each Select Sector SPDR Fund pursuant to an investment advisory agreement ("Investment Advisory Agreement") between the Trust and the Adviser. Under the Investment Advisory Agreement, the Adviser, subject to the oversight of the Board and in conformity with the stated investment policies of each Select Sector SPDR Fund, manages the investment of each Select Sector SPDR Fund's assets. The Adviser is responsible for placing purchase and sale orders and providing continuous supervision of the investment portfolio of each Select Sector SPDR Fund.

Pursuant to the Investment Advisory Agreement, the Adviser is not liable for certain liabilities, including certain liabilities arising under the federal securities laws, unless such loss or liability results from willful misfeasance, bad faith or gross negligence in the performance of its duties or the reckless disregard of its obligations and duties.

The Investment Advisory Agreement with respect to each Select Sector SPDR Fund continues in effect for one year from its effective date, and thereafter is subject to annual approval by (1) the Board or (2) vote of a majority of the outstanding voting securities (as defined in the 1940 Act) of a Select Sector SPDR Fund, provided that in either event such continuance also is approved by a majority of the Trustees who are not interested persons (as defined in the 1940 Act) of the Trust by a vote cast in person at a meeting called for the purpose of voting on such approval. The Investment Advisory Agreement with respect to each Select Sector SPDR Fund is terminable without penalty, on 60 days' notice, by the Board or by a vote of the holders of a majority of the applicable Select Sector SPDR Fund's outstanding voting securities (as defined in the 1940 Act). The Investment Advisory Agreement is also terminable upon 60 days' notice by the Adviser and will terminate automatically in the event of its assignment (as defined in the 1940 Act).

A discussion regarding the basis for the Board's approval of the continuation of the Investment Advisory Agreement regarding all Funds is available in the Trust's Annual Report to Shareholders for the period ended September 30, 2022.

------

For the services provided to each Fund under the Investment Advisory Agreement, each Fund pays the Adviser a fee accrued daily and payable monthly based on the Trust's average daily net assets at the following annual rates: 0.05% of the first $12.5 billion of average daily net assets of the Trust, 0.04% of the next $17.5 billion of average daily net assets of the Trust, 0.035% of the next $20.0 billion of average daily net assets of the Trust, 0.03% of the next $50 billion of average daily net assets of the Trust, 0.0285% of the next $50.0 billion of average daily net assets of the Trust, 0.0271% of the next $50 billion of average daily net assets of the Trust, and 0.0256% of average daily net assets on the remainder of net assets of the Trust. The advisory fee is allocated to each series of the Trust pro rata based upon the net assets of each series of the Trust. For the fiscal year ended September 30, 2022, the fee pursuant to the Investment Advisory Agreement was equivalent to an effective rate of 0.0305% of average daily net assets for each Fund.

From time to time, the Adviser may waive all or a portion of its management fee, although it does not currently intend to do so. The Adviser did not waive any fees during the periods noted in the table below.

For the past three fiscal years ended September 30, the Funds paid the following amounts to the Adviser:

---

| | | | |
|:---|:---|:---|:---|
| **Fund** | **2022** | **2021** | **2020** |
| The Communication Services Select Sector SPDR Fund | $3566909 | $4078380 | $2652472 |
| The Consumer Discretionary Select Sector SPDR Fund | $5742805 | $5961510 | $4577683 |
| The Consumer Staples Select Sector SPDR Fund | $4473735 | $3852682 | $4565846 |
| The Energy Select Sector SPDR Fund | $10297847 | $6014735 | $3255205 |
| The Financial Select Sector SPDR Fund | $11983348 | $10617796 | $6718402 |
| The Health Care Select Sector SPDR Fund | $10951801 | $8480719 | $7131363 |
| The Industrial Select Sector SPDR Fund | $4688537 | $5560310 | $3298512 |
| The Materials Select Sector SPDR Fund | $2194112 | $2225224 | $1231222 |
| The Real Estate Select Sector SPDR Fund | $1635946 | $909394 | $1181266 |
| The Technology Select Sector SPDR Fund | $13589572 | $12433163 | $9334180 |
| The Utilities Select Sector SPDR Fund | $4476805 | $3803234 | $3779441 |

---

**PORTFOLIO MANAGERS**

The Adviser manages the Select Sector SPDR Funds using a team of investment professionals. The professionals primarily responsible for the day-to-day portfolio management of each Fund are:

---

| | |
|:---|:---|
| **Portfolio Management Team** | **Fund** |
| Michael Feehily<sup>1</sup>, Karl Schneider and Amy Cheng | The Real Estate Select Sector SPDR Fund |
| Karl Schneider, David Chin and Kala O'Donnell | The Technology Select Sector SPDR Fund |
| Michael Feehily<sup>1</sup>, Karl Schneider and Dwayne Hancock | &nbsp;&nbsp;&nbsp;&nbsp; The Consumer Staples Select Sector SPDR Fund<br> The Health Care Select Sector SPDR Fund<br> The Utilities Select Sector SPDR Fund<br>|
| Michael Feehily<sup>1</sup>, Karl Schneider and Ted Janowsky | &nbsp;&nbsp;&nbsp;&nbsp; The Energy Select Sector SPDR Fund<br> The Materials Select Sector SPDR Fund<br>|
| Karl Schneider, Dwayne Hancock and Kala O'Donnell | The Financial Select Sector SPDR Fund |
| Michael Feehily<sup>1</sup>, Karl Schneider and Kala O'Donnell | &nbsp;&nbsp;&nbsp;&nbsp; The Communication Services Select Sector SPDR Fund<br> The Consumer Discretionary Select Sector SPDR Fund<br>|
| Michael Feehily<sup>1</sup>, Karl Schneider, Emiliano Rabinovich and <br> Amy Cheng<br>| The Industrial Select Sector SPDR Fund |

---

<sup>1</sup>

Effective March 1, 2023, Mr. Feehily will no longer serve as a portfolio manager of the Funds.

The following table lists the number and types of accounts managed by each of the key professionals involved in the day-to-day portfolio management for the Funds and assets under management in those accounts. The total number of accounts and assets have been allocated to each respective manager. Therefore, some accounts and assets have been counted twice.

------

**Other Accounts Managed as of September 30, 2022** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Manager** | **Registered**<br> **Investment**<br> **Company**<br> **Accounts**<br>| **Assets**<br> **Managed**<br> **(billions)\***<br>| **Other Pooled**<br> **Investment**<br> **Vehicle** <br> **Accounts**<br>| **Assets**<br> **Managed**<br> **(billions)\***<br>| **Other**<br> **Accounts**<br>| **Assets**<br> **Managed**<br> **(billions)\***<br>| **Total**<br> **Assets**<br> **Managed**<br> **(billions)**<br>|
| Michael Feehily\*\* | 123 | $550.00 | 379 | $633.69 | 517 | $420.11 | $1603.80 |
| Karl Schneider | 123 | $550.00 | 379 | $633.69 | 517 | $420.11 | $1603.80 |
| Amy Cheng | 123 | $550.00 | 379 | $633.69 | 517 | $420.11 | $1603.80 |
| David Chin | 123 | $550.00 | 379 | $633.69 | 517 | $420.11 | $1603.80 |
| Dwayne Hancock | 123 | $550.00 | 379 | $633.69 | 517 | $420.11 | $1603.80 |
| Ted Janowsky | 123 | $550.00 | 379 | $633.69 | 517 | $420.11 | $1603.80 |
| Kala O'Donnell | 123 | $550.00 | 379 | $633.69 | 517 | $420.11 | $1603.80 |
| Emiliano Rabinovich | 123 | $550.00 | 379 | $633.69 | 517 | $420.11 | $1603.80 |

---

<sup>\*</sup>

There are no performance-based fees associated with these accounts.

<sup>\*\*</sup>

Effective March 1, 2023, Mr. Feehily will no longer serve as a portfolio manager for the Funds.

None of the portfolio managers listed above beneficially owned Fund Shares as of September 30, 2022, except as noted in the table below:

---

| | | |
|:---|:---|:---|
| **Portfolio Manager** | **Fund** | **Dollar Range of Fund**<br> **Shares**<br> **Beneficially Owned**<br>|
| Dwayne Hancock | The Utilities Select Sector SPDR Fund | $50001 - $100000 |

---

A portfolio manager that has responsibility for managing more than one account may be subject to potential conflicts of interest because he or she is responsible for other accounts in addition to the Funds. Those conflicts could include preferential treatment of one account over others in terms of: (a) the portfolio manager's execution of different investment strategies for various accounts; or (b) the allocation of resources or of investment opportunities.

Portfolio managers may manage numerous accounts for multiple clients. These accounts may include registered investment companies, other types of pooled accounts (e.g., collective investment funds), and separate accounts (i.e., accounts managed on behalf of individuals or public or private institutions). Portfolio managers make investment decisions for each account based on the investment objectives and policies and other relevant investment considerations applicable to that portfolio. A potential conflict of interest may arise as a result of a portfolio manager's responsibility for multiple accounts with similar investment guidelines. Under these circumstances, a potential investment may be suitable for more than one of the portfolio manager's accounts, but the quantity of the investment available for purchase is less than the aggregate amount the accounts would ideally devote to the opportunity. Similar conflicts may arise when multiple accounts seek to dispose of the same investment. The portfolio managers may also manage accounts whose objectives and policies differ from that of the Funds. These differences may be such that under certain circumstances, trading activity appropriate for one account managed by the portfolio manager may have adverse consequences for another account managed by the portfolio manager. For example, an account may sell a significant position in a security, which could cause the market price of that security to decrease, while a Fund maintained its position in that security.

A potential conflict may arise when the portfolio managers are responsible for accounts that have different advisory fees—the difference in fees could create an incentive for the portfolio manager to favor one account over another, for example, in terms of access to investment opportunities. This conflict may be heightened if an account is subject to a performance-based fee, as applicable. Another potential conflict may arise when the portfolio manager has an investment in one or more accounts that participate in transactions with other accounts. His or her investment(s) may create an incentive for the portfolio manager to favor one account over another. The Adviser has adopted policies and procedures reasonably designed to address these potential material conflicts. For instance, portfolio managers are normally responsible for all accounts within a certain investment discipline, and do not, absent special circumstances, differentiate among the various accounts when allocating resources. Additionally, the Adviser and its advisory affiliates have processes and procedures for allocating investment opportunities among portfolios that are designed to provide a fair and equitable allocation. With respect to conflicts arising from personal investments, all employees, including portfolio managers, must comply with personal trading controls established by each of the Adviser's and Trust's Code of Ethics.

SSGA's culture is complemented and reinforced by a total rewards strategy that is based on a pay for performance philosophy which seeks to offer a competitive pay mix of base salary, benefits, cash incentives and deferred compensation.

------

Salary is based on a number of factors, including external benchmarking data and market trends, and performance both at the business and individual level. SSGA's Global Human Resources department regularly participates in compensation surveys in order to provide SSGA with market-based compensation information that helps support individual pay decisions.

Additionally, subject to State Street and SSGA business results, an incentive pool is allocated to SSGA to reward its employees. The size of the incentive pool for most business units is based on the firm's overall profitability and other factors, including performance against risk-related goals. For most SSGA investment teams, SSGA recognizes and rewards performance by linking annual incentive decisions for investment teams to the firm's or business unit's profitability and business unit investment performance over a multi-year period.

Incentive pool funding for most active investment teams is driven in part by the post-tax investment performance of fund(s) managed by the team versus the return levels of the benchmark index(es) of the fund(s) on a one-, three- and, in some cases, five-year basis. For most active investment teams, a material portion of incentive compensation for senior staff is deferred over a four-year period into the SSGA Long-Term Incentive ("SSGA LTI") program. For these teams, The SSGA LTI program indexes the performance of these deferred awards against the post-tax investment performance of fund(s) managed by the team. This is intended to align our investment team's compensation with client interests, both through annual incentive compensation awards and through the long-term value of deferred awards in the SSGA LTI program.

For the index equity investment team, incentive pool funding is driven in part by the post-tax 1 and 3-year tracking error of the funds managed by the team against the benchmark indexes of the funds.

The discretionary allocation of the incentive pool to the business units within SSGA is influenced by market-based compensation data, as well as the overall performance of each business unit. Individual compensation decisions are made by the employee's manager, in conjunction with the senior management of the employee's business unit. These decisions are based on the overall performance of the employee and, as mentioned above, on the performance of the firm and business unit. Depending on the job level, a portion of the annual incentive may be awarded in deferred compensation, which may include cash and/or Deferred Stock Awards (State Street stock), which typically vest over a four-year period. This helps to retain staff and further aligns SSGA employees' interests with SSGA clients' and shareholders' long-term interests.

SSGA recognizes and rewards outstanding performance by:

• Promoting employee ownership to connect employees directly to the company's success.

• Using rewards to reinforce mission, vision, values and business strategy.

• Seeking to recognize and preserve the firm's unique culture and team orientation.

• Providing all employees the opportunity to share in the success of SSGA.

**THE ADMINISTRATOR, SUB-ADMINISTRATOR, CUSTODIAN AND TRANSFER AGENT**

<u>The Administrator:</u> SSGA FM serves as the administrator to each series of the Trust, pursuant to an Administration Agreement dated June 1, 2015, as amended, between SSGA FM and the Trust (the "SSGA Administration Agreement"). Pursuant to the SSGA Administration Agreement, SSGA FM is obligated to continuously provide business management services to the Trust and its series and will generally, subject to the general oversight of the Trustees and, except as otherwise provided in the SSGA Administration Agreement, manage all of the business and affairs of the Trust. For its administration services to the Funds, each Fund pays SSGA FM a fee accrued daily and paid monthly at a rate of 0.0006% of its average daily net assets.

The amount of fees paid by each Fund to SSGA FM pursuant to the SSGA Administration Agreement for the three most recently completed fiscal years is set forth in the table below:

---

| | | | |
|:---|:---|:---|:---|
| **Fund** | **2022** | **2021** | **2020** |
| The Communication Services Select Sector SPDR Fund | $70172 | $78057 | $47992 |
| The Consumer Discretionary Select Sector SPDR Fund | $112998 | $113971 | $82800 |
| The Consumer Staples Select Sector SPDR Fund | $87921 | $73490 | $82500 |
| The Energy Select Sector SPDR Fund | $202367 | $115529 | $58867 |
| The Financial Select Sector SPDR Fund | $235848 | $203874 | $121464 |
| The Health Care Select Sector SPDR Fund | $215215 | $162257 | $128932 |
| The Industrial Select Sector SPDR Fund | $92235 | $106453 | $59675 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| **Fund** | **2022** | **2021** | **2020** |
| The Materials Select Sector SPDR Fund | $43164 | $42706 | $22262 |
| The Real Estate Select Sector SPDR Fund | $32167 | $17449 | $21330 |
| The Technology Select Sector SPDR Fund | $267272 | $237786 | $168852 |
| The Utilities Select Sector SPDR Fund | $87939 | $72645 | $68295 |

---

<u>The Sub-Administrator, Custodian and Transfer Agent:</u> State Street serves as the sub-administrator to each series of the Trust, pursuant to a Sub-Administration Agreement dated June 1, 2015, as amended (the "Sub-Administration Agreement"). Under the Sub-Administration Agreement, State Street is obligated to provide certain sub-administrative services to the Trust and its series. State Street is a wholly-owned subsidiary of State Street Corporation, a publicly held financial holding company, and is affiliated with SSGA FM. State Street's mailing address is State Street Financial Center, One Lincoln Street, Boston, Massachusetts 02111.

State Street also serves as Custodian for the Trust's series pursuant to a custodian agreement ("Custodian Agreement"). As Custodian, State Street holds the Funds' assets, calculates the net asset value of each Select Sector SPDR Fund's Shares and calculates net income and realized capital gains or losses. State Street and the Trust will comply with the self-custodian provisions of Rule 17f-2 under the 1940 Act.

State Street also serves as Transfer Agent for each series of the Trust pursuant to a transfer agency agreement ("Transfer Agency Agreement").

<u>Compensation:</u> A "unitary" fee is paid by each Select Sector SPDR Fund to State Street for custody, sub-administration and transfer agency services provided to the Select Sector SPDR Funds. The unitary fee is calculated based upon the average daily net assets of the Trust and allocated pro rata to each Select Sector SPDR Fund based upon the relative net assets of each Select Sector SPDR Fund. The unitary fee is calculated as follows: 0.015% for the first $50 billion of net assets of the Trust, 0.0125% for the next $25 billion of net assets of the Trust, 0.01% for the next $25 billion of net assets of the Trust, 0.0040% for the next $300 billion of net assets of the Trust, and 0.0025% thereafter. In addition, State Street shall receive global safekeeping and transaction fees, which are calculated on a per-country basis, in-kind creation (purchase) and redemption transaction fees (as described below) and revenue on certain cash balances. State Street may be reimbursed by the series of the Trust for its out-of-pocket expenses.

<u>Additional Sub-Administration Services:</u> Also under the Sub-Administration Agreement, each Select Sector SPDR Fund pays a fee to State Street for certain services required in the preparation (including preparing a schedule of quarterly portfolio investments) and filing of Form N-PORT and Form N-CEN with the SEC ("N-PORT Related Services"). Additionally, each Select Sector SPDR Fund pays a fee to State Street for services regarding certain liquidity analytics ("Liquidity Risk Measurement Services") under the Sub-Administration Agreement. For N-PORT Related Services, each Select Sector SPDR Fund pays State Street a fee of $10,300 per year. For Liquidity Risk Measurement Services, each Select Sector SPDR Fund pays State Street a fee of $1,800 per year.

**SECURITIES LENDING ACTIVITIES**

The Trust's Board has approved each Fund's participation in a securities lending program. Under the securities lending program, each Fund has retained State Street to serve as the securities lending agent.

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For the fiscal year ended September 30, 2022, the income earned by each Fund as well as the fees and/or compensation paid by each Fund (in dollars) pursuant to the Amended and Restated Securities Lending Authorization Agreement between the Trust, on behalf of its series, and State Street (the "Securities Lending Authorization Agreement") were as follows:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Gross**<br> **income**<br> **earned by**<br> **the Fund**<br> **from**<br> **securities**<br> **lending**<br> **activities** | ***Fees and/or compensation paid by the Fund for securities lending activities and***<br> ***related services*** | ***Fees and/or compensation paid by the Fund for securities lending activities and***<br> ***related services*** | ***Fees and/or compensation paid by the Fund for securities lending activities and***<br> ***related services*** | ***Fees and/or compensation paid by the Fund for securities lending activities and***<br> ***related services*** | ***Fees and/or compensation paid by the Fund for securities lending activities and***<br> ***related services*** | ***Fees and/or compensation paid by the Fund for securities lending activities and***<br> ***related services*** | **Aggregate**<br> **fees**<br> **and/or**<br> **compensation**<br> **paid by**<br> **the Fund**<br> **for**<br> **securities**<br> **lending**<br> **activities**<br> **and related**<br> **services** | **Net income**<br> **from**<br> **securities**<br> **lending**<br> **activities** |
|  | **Gross**<br> **income**<br> **earned by**<br> **the Fund**<br> **from**<br> **securities**<br> **lending**<br> **activities** | **Fees**<br> **paid**<br> **to State**<br> **Street**<br> **from a**<br> **revenue**<br> **split**<br>| **Fees**<br> **paid for**<br> **any cash**<br> **collateral**<br> **management**<br> **service**<br> **(including**<br> **fees**<br> **deducted**<br> **from a**<br> **pooled cash**<br> **collateral**<br> **reinvestment**<br> **vehicle)**<br> **that are not**<br> **included in a**<br> **revenue split**<br>| **Admini-**<br> **strative**<br> **fees not**<br> **included**<br> **in a**<br> **revenue**<br> **split**<br>| **Indemnifi-**<br> **cation**<br> **fees**<br> **not**<br> **included in**<br> **a revenue**<br> **split**<br>| **Rebate**<br> **(paid to**<br> **borrower)**<br>| **Other**<br> **fees**<br> **not**<br> **included**<br> **in a**<br> **revenue**<br> **split**<br>| **Aggregate**<br> **fees**<br> **and/or**<br> **compensation**<br> **paid by**<br> **the Fund**<br> **for**<br> **securities**<br> **lending**<br> **activities**<br> **and related**<br> **services** | **Net income**<br> **from**<br> **securities**<br> **lending**<br> **activities** |
| The <br> Communication <br> Services <br> Select Sector <br> SPDR Fund<br>| $1145275 | $54144 | $45833 | $0 | $0 | $738469 | $0 | $838446 | $306829 |
| The Consumer <br> Discretionary <br> Select Sector <br> SPDR Fund<br>| $1266292 | $65885 | $41988 | $0 | $0 | $785032 | $0 | $892905 | $373387 |
| The Consumer <br> Staples Select <br> Sector SPDR <br> Fund<br>| $176623 | $6861 | $7341 | $0 | $0 | $123543 | $0 | $137745 | $38878 |
| The Energy <br> Select Sector <br> SPDR Fund<br>| $971436 | $28409 | $28707 | $0 | $0 | $753331 | $0 | $810448 | $160988 |
| The Financial <br> Select Sector <br> SPDR Fund<br>| $917840 | $32870 | $23922 | $0 | $0 | $674775 | $0 | $731567 | $186273 |
| The Health Care <br> Select Sector <br> SPDR Fund<br>| $872870 | $28940 | $24241 | $0 | $0 | $655684 | $0 | $708865 | $164005 |
| The Industrial <br> Select Sector <br> SPDR Fund<br>| $2198989 | $174199 | $34647 | $0 | $0 | $1002998 | $0 | $1211845 | $987144 |
| The Materials <br> Select Sector <br> SPDR Fund<br>| $167777 | $15419 | $3629 | $0 | $0 | $61350 | $0 | $80398 | $87379 |
| The Real Estate <br> Select Sector <br> SPDR Fund<br>| $27362 | $2328 | $3170 | $0 | $0 | $8667 | $0 | $14166 | $13196 |
| The Technology <br> Select Sector <br> SPDR Fund<br>| $1636764 | $95336 | $38919 | $0 | $0 | $962261 | $0 | $1096517 | $540247 |
| The Utilities <br> Select Sector <br> SPDR Fund<br>| $722628 | $19048 | $22444 | $0 | $0 | $573178 | $0 | $614671 | $107957 |

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For the fiscal year ended September 30, 2022, State Street, acting as agent of the Funds, provided the following services to the Funds in connection with the Funds' securities lending activities: (i) locating borrowers among an approved list of prospective borrowers; (ii) causing the delivery of loaned securities from a Fund to borrowers; (iii) monitoring the value of loaned securities, the value of collateral received, and other lending parameters; (iv) seeking additional collateral, as

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necessary, from borrowers; (v) receiving and holding collateral from borrowers, and facilitating the investment and reinvestment of all or substantially all cash collateral in an investment vehicle designated by the Funds; (vi) returning collateral to borrowers; (vii) facilitating substitute dividend, interest, and other distribution payments to the Funds from borrowers; (viii) negotiating the terms of each loan of securities, including but not limited to the amount of any loan premium, and monitoring the terms of securities loan agreements with prospective borrowers for consistency with the requirements of the Funds' Securities Lending Authorization Agreement; (ix) selecting securities, including amounts (percentages), to be loaned; (x) recordkeeping and accounting services; and (xi) arranging for return of loaned securities to a Fund in accordance with the terms of the Securities Lending Authorization Agreement.

**THE DISTRIBUTOR**

ALPS Portfolio Solutions Distributor, Inc. (the "Distributor") is the principal underwriter and Distributor of Shares. Its principal address is 1290 Broadway, Suite 1000, Denver, Colorado 80203. Investor information can be obtained by calling 1-866-732-8673. The Distributor has entered into a distribution agreement ("Distribution Agreement") with the Trust pursuant to which it distributes Shares of each Select Sector SPDR Fund. The Distribution Agreement will continue for one year from its effective date and is renewable annually thereafter. Shares will be continuously offered for sale by the Trust through the Distributor only in Creation Units, as described in the Prospectus and below under "PURCHASE AND REDEMPTION OF CREATION UNITS." Shares in less than Creation Units are not distributed by the Distributor. The Distributor will deliver the Prospectus to persons purchasing Creation Units and will maintain records of both orders placed with it and confirmations of acceptance furnished by it. The Distributor is a broker-dealer registered under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Distributor has no role in determining the investment policies of the Trust or which securities are to be purchased or sold by the Trust.

The Adviser or Distributor, or an affiliate of the Adviser or Distributor, may directly or indirectly make cash payments to certain broker-dealers for participating in activities that are designed to make registered representatives and other professionals more knowledgeable about exchange traded products, including the SPDR funds, or for other activities, such as participation in marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems.

The Board has adopted a distribution and service plan pursuant to Rule 12b-1 under the 1940 Act (each, a "Plan") for each Select Sector SPDR Fund. The terms of each Plan are described in the Prospectus.

Under its terms, each Select Sector SPDR Fund's Plan remains in effect from year to year, provided such continuance is approved annually by vote of the Board, including a majority of the Independent Trustees who have no direct or indirect financial interest in the operation of the Plan or any agreement related to the Plan. The Plan may not be amended to increase materially the amount to be spent for the services provided by the Distributor without approval by the shareholders of the Select Sector SPDR Fund to which the Plan applies, and all material amendments of the Plan also require Board approval (as described above). Each Plan may be terminated at any time, without penalty, by vote of a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of such Select Sector SPDR Fund (as such vote is defined in the 1940 Act). Pursuant to the Distribution Agreement, the Distributor will provide the Board with periodic reports of any amounts expended under the Plan and the purpose for which such expenditures were made.

The Distribution Agreement provides that it may be terminated at any time, without the payment of any penalty, as to each Select Sector SPDR Fund: (i) by vote of a majority of the Independent Trustees or (ii) by vote of a majority (as defined in the 1940 Act) of the outstanding voting securities of the Select Sector SPDR Fund, on at least 60 days written notice to the Distributor. The Distribution Agreement is also terminable upon 60 days' notice by the Distributor and will terminate automatically in the event of its assignment (as defined in the 1940 Act).

Pursuant to agreements entered into with such persons, the Distributor will make payments under each Select Sector SPDR Fund's Plan to certain broker-dealers or other persons ("Investor Services Organizations") that enter into agreements with the Distributor in the form approved by the Board to provide distribution assistance and shareholder support, account maintenance and educational and promotional services (which may include compensation and sales incentives to the registered brokers or other sales personnel of the broker-dealer or other financial entity that is a party to an investor services agreement) ("Investor Services Agreements"). Each Investor Services Agreement will be a "related agreement" under the Plan of the relevant Select Sector SPDR Fund. No Investor Services Agreement will provide for annual fees of more than 0.10% of a Select Sector SPDR Fund's average daily net assets per annum attributable to Shares subject to such agreement.

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Subject to an aggregate limitation of 0.25% of a Select Sector SPDR Fund's average net assets per annum, the fees paid by a Select Sector SPDR Fund under its Plan will be compensation for distribution, investor services or marketing services for that Fund. To the extent the Plan fees aggregate less than 0.25% per annum of the average daily net assets of a Select Sector SPDR Fund, each Fund may also reimburse the Distributor and other persons for their respective costs incurred in printing prospectuses and producing advertising or marketing material prepared at the request of the Fund. The aggregate payments under each Plan will not exceed, on an annualized basis, 0.25% of average daily net assets of any Select Sector SPDR Fund. Notwithstanding the foregoing, the Board has voted to limit payments under each Plan to an annual rate of 0.02% of a Fund's average daily net assets, effective February 1, 2022. This limitation is in effect through at least January 31, 2024. Prior to February 1, 2022, the Board had voted to limit payments under each Plan to an annual rate of 0.03% of a Fund's average daily net assets.

For the fiscal year ended September 30, 2022, each Select Sector SPDR Fund paid the following amount under its Plan:

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| | | | |
|:---|:---|:---|:---|
| **Fund** | **Distributor's Fee**<br> **(including 12b-1**<br> **Administration Fee)**<br>| **Advertising** | **Other\*** |
| The Communication Services Select Sector SPDR Fund | $1720171 | $922459 | $60440 |
| The Consumer Discretionary Select Sector SPDR Fund | $2764559 | $1474745 | $97699 |
| The Consumer Staples Select Sector SPDR Fund | $2110677 | $1016137 | $78682 |
| The Energy Select Sector SPDR Fund | $4847200 | $2387016 | $181585 |
| The Financial Select Sector SPDR Fund | $5746975 | $3031548 | $202921 |
| The Health Care Select Sector SPDR Fund | $5185455 | $2576251 | $192899 |
| The Industrial Select Sector SPDR Fund | $2250717 | $1200793 | $79855 |
| The Materials Select Sector SPDR Fund | $1051185 | $562869 | $37439 |
| The Real Estate Select Sector SPDR Fund | $777366 | $386359 | $28463 |
| The Technology Select Sector SPDR Fund | $6499081 | $3353897 | $234175 |
| The Utilities Select Sector SPDR Fund | $2112888 | $1032262 | $79454 |

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\*

Aggregate amount paid for printing and mailing of prospectuses and other expenses.

The continuation of the Distribution Agreement, any Investor Services Agreements and any other related agreements is subject to annual approval of the Board, including by a majority of the Independent Trustees, as described above.

Each of the Investor Services Agreements will provide that it may be terminated at any time, without the payment of any penalty, (i) by vote of a majority of the Independent Trustees or (ii) by vote of a majority of the outstanding voting securities (as defined in the 1940 Act) of the Select Sector SPDR Fund, on at least 60 days' written notice to the other party. Each of the Distribution Agreement and the Investor Services Agreements is also terminable upon 60 days' notice by the Distributor and will terminate automatically in the event of its assignment (as defined in the 1940 Act). Each Investor Services Agreement is also terminable by the applicable Investor Service Organization upon 60 days' notice to the other party thereto.

The allocation among the Trust's series of fees and expenses payable under the Distribution Agreement and the Investor Services Agreements will be made pro rata in accordance with the daily net assets of the respective series.

The Distributor may also enter into agreements with securities dealers ("Soliciting Dealers") who will solicit purchases of Creation Unit aggregations of Select Sector SPDR Fund Shares. Such Soliciting Dealers may also be Participating Parties (as defined in the "Book Entry Only System" section below), DTC Participants (as defined below) and/or Investor Services Organizations.

Pursuant to the Distribution Agreement, the Trust has agreed to indemnify the Distributor, and may indemnify Soliciting Dealers and Authorized Participants (as described below) entering into agreements with the Distributor, for certain liabilities, including certain liabilities arising under the federal securities laws, unless such loss or liability results from willful misfeasance, bad faith or gross negligence in the performance of its duties or the reckless disregard of its obligations and duties under the Distribution Agreement or other agreement, as applicable.

**INDEX LICENSE**

S&P Opco, LLC, a subsidiary of S&P DJI and S&P Global ("S&P") and NYSE Arca, Inc. (either directly or through affiliates) have entered into a license agreement with respect to each Fund's Select Sector Index. The Trust has entered into a sublicense agreement with S&P whereby each Fund pays an annual sub-license fee to S&P based on a percentage of the Fund's total expense ratio for the most recent fiscal year and applied to the Fund's average daily net assets.

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**Brokerage Transactions**

All portfolio transactions are placed on behalf of the Funds by the Adviser. Purchases and sales of securities on a securities exchange are affected through brokers who charge a commission for their services. Ordinarily commissions are not charged on over the counter orders (e.g., fixed income securities) because the Funds pay a spread which is included in the cost of the security and represents the difference between the dealer's quoted price at which it is willing to sell the security and the dealer's quoted price at which it is willing to buy the security. When a Fund executes an over the counter order with an electronic communications network or an alternative trading system, a commission is charged by such electronic communications networks and alternative trading systems as they execute such orders on an agency basis. Securities may be purchased from underwriters at prices that include underwriting fees.

In placing a portfolio transaction, the Adviser seeks to achieve best execution. The Adviser's duty to seek best execution requires the Adviser to take reasonable steps to obtain for the client as favorable an overall result as possible for Fund portfolio transactions under the circumstances, taking into account various factors that are relevant to the particular transaction.

The Adviser refers to and selects from the list of approved trading counterparties maintained by the Adviser's Credit Risk Management team. In selecting a trading counterparty for a particular trade, the Adviser seeks to weigh relevant factors including, but not limited to the following:

• Prompt and reliable execution;

• The competitiveness of commission rates and spreads, if applicable;

• The financial strength, stability and/or reputation of the trading counterparty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The willingness and ability of the executing trading counterparty to execute transactions (and commit capital) of size in liquid and illiquid markets without disrupting the market for the security;

• Local laws, regulations or restrictions;

• The ability of the trading counterparty to maintain confidentiality;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The availability and capability of execution venues, including electronic communications networks for trading and execution management systems made available to Adviser;

• Market share;

• Liquidity;

• Price;

• Execution related costs;

• History of execution of orders;

• Likelihood of execution and settlement;

• Order size and nature;

• Clearance and settlement capabilities, especially in high volatility market environments;

• Availability of lendable securities;

• Sophistication of the trading counterparty's trading capabilities and infrastructure/facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The operational efficiency with which transactions are processed and cleared, taking into account the order size and complexity;

• Speed and responsiveness to the Adviser;

• Access to secondary markets;

• Counterparty exposure; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Depending upon the circumstances, the Adviser may take other relevant factors into account if the Adviser believes that these are important in taking all sufficient steps to obtain the best possible result for execution of the order.

In selecting a trading counterparty, the price of the transaction and costs related to the execution of the transaction typically merit a high relative importance, depending on the circumstances. The Adviser does not necessarily select a trading counterparty based upon price and costs but may take other relevant factors into account if it believes that these are important in taking reasonable steps to obtain the best possible result for a Fund under the circumstances.

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Consequently, the Adviser may cause a client to pay a trading counterparty more than another trading counterparty might have charged for the same transaction in recognition of the value and quality of the brokerage services provided. The following matters may influence the relative importance that the Adviser places upon the relevant factors:

&nbsp;&nbsp;&nbsp;&nbsp;(i) The nature and characteristics of the order or transaction. For example, size of order, market impact of order, limits, or other instructions relating to the order;

&nbsp;&nbsp;&nbsp;&nbsp;(ii) The characteristics of the financial instrument(s) or other assets which are the subject of that order. For example, whether the order pertains to an equity, fixed income, derivative or convertible instrument;

&nbsp;&nbsp;&nbsp;&nbsp;(iii) The characteristics of the execution venues to which that order can be directed, if relevant. For example, availability and capabilities of electronic trading systems;

&nbsp;&nbsp;&nbsp;&nbsp;(iv) Whether the transaction is a 'delivery versus payment' or 'over the counter' transaction. The creditworthiness of the trading counterparty, the amount of existing exposure to a trading counterparty and trading counterparty settlement capabilities may be given a higher relative importance in the case of 'over the counter' transactions; and/or

&nbsp;&nbsp;&nbsp;&nbsp;(v) Any other circumstances that the Adviser believes are relevant at the time.

The process by which trading counterparties are selected to effect transactions is designed to exclude consideration of the sales efforts conducted by broker-dealers in relation to the Funds.

The Adviser does not currently use the Funds' assets in connection with third party soft dollar arrangements. While the Adviser does not currently use "soft" or commission dollars paid by the Funds for the purchase of third party research, the Adviser reserves the right to do so in the future.

The Select Sector SPDR Funds will not deal with affiliates in principal transactions unless permitted by exemptive order or applicable rule or regulation.

The table below shows the aggregate dollar amount of brokerage commissions paid by the Funds for the past three fiscal years ended September 30. Brokerage commissions paid by a Fund may be substantially different from year to year for multiple reasons, including market volatility, the demand for a particular Fund, or increases or decreases in trading volume.

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| | | | |
|:---|:---|:---|:---|
| **Fund** | **2022** | **2021** | **2020** |
| The Communication Services Select Sector SPDR Fund | $225060 | $174492 | $203941 |
| The Consumer Discretionary Select Sector SPDR Fund | $172216 | $300700 | $143858 |
| The Consumer Staples Select Sector SPDR Fund | $96695 | $54167 | $79167 |
| The Energy Select Sector SPDR Fund | $431232 | $471073 | $306342 |
| The Financial Select Sector SPDR Fund | $98086 | $90945 | $104833 |
| The Health Care Select Sector SPDR Fund | $28774 | $38252 | $72955 |
| The Industrial Select Sector SPDR Fund | $53171 | $29059 | $30014 |
| The Materials Select Sector SPDR Fund | $13546 | $26817 | $17786 |
| The Real Estate Select Sector SPDR Fund | $58817 | $14078 | $17394 |
| The Technology Select Sector SPDR Fund | $217884 | $123255 | $67103 |
| The Utilities Select Sector SPDR Fund | $113818 | $44356 | $42091 |

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<u>Securities of</u> <u>"</u><u>Regular Broker-Dealers</u><u>"</u><u>:</u> The Select Sector SPDR Funds are required to identify any securities of their "regular brokers and dealers" (as such term is defined in the 1940 Act) which they may hold at the close of their most recent fiscal year. "Regular brokers or dealers" of the Trust are the ten brokers or dealers that, during the most recent fiscal year: (i) received the greatest dollar amounts of brokerage commissions from the Trust's portfolio transactions; (ii) engaged as principal in the largest dollar amounts of portfolio transactions of the Trust; or (iii) sold the largest dollar amounts of the Trust's Shares.

The Trust's holdings in Securities of Regular Broker-Dealers as of September 30, 2022:

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| | |
|:---|:---|
| JPMorgan Chase & Co. | $4741969166 |
| Bank of America Corp. | $3047492759 |
| Citigroup, Inc. | $1378967592 |
| Morgan Stanley | $1377012694 |
| Goldman Sachs Group, Inc. | $1235361591 |

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The Financial Select Sector SPDR Fund invests in the shares of some of the Funds' regular broker-dealers because those issuers are components in the Financial Select Sector Index. In addition, a holding in The Financial Select Sector SPDR Fund is a security of an issuer affiliated with the Adviser and State Street.

<u>Portfolio Turnover:</u> Portfolio turnover may vary from year to year, as well as within a year. High turnover rates are likely to result in comparatively greater brokerage expenses or transaction costs. The overall reasonableness of brokerage commissions and transaction costs is evaluated by the Adviser based upon its knowledge of available information as to the general level of commissions and transaction costs paid by other institutional investors for comparable services.

**Book Entry Only System**

The following information supplements and should be read in conjunction with the section in the Prospectus entitled "ADDITIONAL PURCHASE AND SALE INFORMATION."

DTC acts as securities depositary for the Shares. Shares of each Select Sector SPDR Fund are represented by securities registered in the name of DTC or its nominee, Cede & Co., and deposited with, or on behalf of, DTC. Except in the limited circumstance provided below, certificates will not be issued for Shares.

DTC, a limited-purpose trust company, was created to hold securities of its participants (the "DTC Participants") and to facilitate the clearance and settlement of securities transactions among the DTC Participants in such securities through electronic book-entry changes in accounts of the DTC Participants, thereby eliminating the need for physical movement of securities certificates. DTC Participants include securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations, some of whom (and/or their representatives) own DTC. More specifically, DTC is owned by a number of its DTC Participants and by the New York Stock Exchange ("NYSE") and FINRA. Access to the DTC system is also available to others such as banks, brokers, dealers and trust companies that clear through or maintain a custodial relationship with a DTC Participant, either directly or indirectly (the "Indirect Participants").

Beneficial ownership of Shares is limited to DTC Participants, Indirect Participants and persons holding interests through DTC Participants and Indirect Participants. Ownership of beneficial interests in Shares (owners of such beneficial interests are referred to herein as "Beneficial Owners") is shown on, and the transfer of ownership is effected only through, records maintained by DTC (with respect to DTC Participants) and on the records of DTC Participants (with respect to Indirect Participants and Beneficial Owners that are not DTC Participants). Beneficial Owners will receive from or through the DTC Participant a written confirmation relating to their purchase of Shares.

**Conveyance of all notices, statements and other communications to Beneficial Owners is effected as follows.** Pursuant to the Depositary Agreement between the Trust and DTC, DTC is required to make available to the Trust upon request and for a fee to be charged to the Trust a listing of the Shares of each Fund held by each DTC Participant. The Trust, either directly or through a third party service, shall inquire of each such DTC Participant as to the number of Beneficial Owners holding Shares, directly or indirectly, through such DTC Participant. The Trust, either directly or through a third party service, shall provide each such DTC Participant with copies of such notice, statement or other communication, in such form, number and at such place as such DTC Participant may reasonably request, in order that such notice, statement or communication may be transmitted by such DTC Participant, directly or indirectly, to such Beneficial Owners. In addition, the Trust shall pay to each such DTC Participant and/or third party service a fair and reasonable amount as reimbursement for the expenses attendant to such transmittal, all subject to applicable statutory and regulatory requirements.

Share distributions shall be made to DTC or its nominee, Cede & Co., as the registered holder of all Shares. DTC or its nominee, upon receipt of any such distributions, shall credit immediately DTC Participants' accounts with payments in amounts proportionate to their respective beneficial interests in Shares of a Fund as shown on the records of DTC or its nominee. Payments by DTC Participants to Indirect Participants and Beneficial Owners of Shares held through such DTC Participants will be governed by standing instructions and customary practices, as is now the case with securities held for the accounts of customers in bearer form or registered in a "street name," and will be the responsibility of such DTC Participants.

The Trust has no responsibility or liability for any aspects of the records relating to or notices to Beneficial Owners, or payments made on account of beneficial ownership interests in such Shares, or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests or for any other aspect of the relationship between DTC and the DTC Participants or the relationship between such DTC Participants and the Indirect Participants and Beneficial Owners owning through such DTC Participants.

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DTC may determine to discontinue providing its service with respect to Shares at any time by giving reasonable notice to the Trust and discharging its responsibilities with respect thereto under applicable law. Under such circumstances, the Trust shall take action either to find a replacement for DTC to perform its functions at a comparable cost or, if such a replacement is unavailable, to issue and deliver printed certificates representing ownership of Shares, unless the Trust makes other arrangements with respect thereto satisfactory to the Exchange.

**Control Persons and Principal Holders of Securities**

Although the Select Sector SPDR Funds do not have information concerning their beneficial ownership held in the names of DTC Participants, as of January 6, 2023, the names, addresses and percentage ownership of each DTC Participant that owned of record 5% or more of the outstanding Shares of the Select Sector SPDR Funds were as follows:

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| | | |
|:---|:---|:---|
| **Fund** | **Name and Address** | **% Ownership** |
| THE COMMUNICATION SERVICES SELECT SECTOR <br> SPDR FUND<br>| &nbsp;&nbsp; Merrill Lynch, Pierce, Fenner & Smith Incorporated<br> 4803 Deer Lake Drive W<br> Jacksonville, FL 32246<br>| 25.49% |
|  | &nbsp;&nbsp; National Financial Services Corporation<br> 200 Liberty Street<br> New York, NY 10281<br>| 7.59% |
|  | &nbsp;&nbsp; Charles Schwab & Co., Inc.<br> 101 Montgomery Street<br> San Francisco, CA 94104<br>| 5.93% |
|  | &nbsp;&nbsp; Morgan Stanley Smith Barney LLC<br> 1 Harborside Financial Center, Plaza II<br> Jersey City, NJ 07311<br>| 5.66% |
| THE CONSUMER DISCRETIONARY SELECT SECTOR <br> SPDR FUND<br>| &nbsp;&nbsp; Merrill Lynch, Pierce, Fenner & Smith Incorporated<br> 4803 Deer Lake Drive W<br> Jacksonville, FL 32246<br>| 23.00% |
|  | &nbsp;&nbsp; Charles Schwab & Co., Inc.<br> 101 Montgomery Street<br> San Francisco, CA 94104<br>| 8.51% |
|  | &nbsp;&nbsp; National Financial Services Corporation<br> 200 Liberty Street<br> New York, NY 10281<br>| 8.34% |
|  | &nbsp;&nbsp; Morgan Stanley Smith Barney LLC<br> 1 Harborside Financial Center, Plaza II<br> Jersey City, NJ 07311<br>| 5.15% |
| THE CONSUMER STAPLES SELECT SECTOR SPDR FUND | &nbsp;&nbsp; Merrill Lynch, Pierce, Fenner & Smith Incorporated<br> 4803 Deer Lake Drive W<br> Jacksonville, FL 32246<br>| 13.81% |
|  | &nbsp;&nbsp; Charles Schwab & Co., Inc.<br> 101 Montgomery Street<br> San Francisco, CA 94104<br>| 10.59% |
|  | &nbsp;&nbsp; National Financial Services Corporation<br> 200 Liberty Street<br> New York, NY 10281<br>| 10.42% |
|  | &nbsp;&nbsp; Morgan Stanley Smith Barney LLC<br> 1 Harborside Financial Center, Plaza II<br> Jersey City, NJ 07311<br>| 7.27% |

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| | | |
|:---|:---|:---|
| **Fund** | **Name and Address** | **% Ownership** |
|  | &nbsp;&nbsp; TD Ameritrade Clearing, Inc.<br> 4211 South 102nd Street <br> Omaha, NE 68127<br>| 5.42% |
| THE ENERGY SELECT SECTOR SPDR FUND | &nbsp;&nbsp; Charles Schwab & Co., Inc.<br> 101 Montgomery Street<br> San Francisco, CA 94104<br>| 11.35% |
|  | &nbsp;&nbsp; Merrill Lynch, Pierce, Fenner & Smith Incorporated<br> 4803 Deer Lake Drive W<br> Jacksonville, FL 32246<br>| 10.53% |
|  | &nbsp;&nbsp; National Financial Services Corporation<br> 200 Liberty Street<br> New York, NY 10281<br>| 9.93% |
|  | &nbsp;&nbsp; JPMorgan Chase Bank, National Association<br> 14201 Dallas Parkway<br> Chase International Plaza<br> Dallas, TX 75254<br>| 8.17% |
|  | &nbsp;&nbsp; TD Ameritrade Clearing, Inc.<br> 4211 South 102nd Street <br> Omaha, NE 68127<br>| 5.45% |
| THE FINANCIAL SELECT SECTOR SPDR FUND | &nbsp;&nbsp; Merrill Lynch, Pierce, Fenner & Smith Incorporated<br> 4803 Deer Lake Drive W<br> Jacksonville, FL 32246<br>| 8.97% |
|  | &nbsp;&nbsp; Charles Schwab & Co., Inc.<br> 101 Montgomery Street<br> San Francisco, CA 94104<br>| 8.84% |
|  | &nbsp;&nbsp; National Financial Services Corporation<br> 200 Liberty Street<br> New York, NY 10281<br>| 8.29% |
|  | &nbsp;&nbsp; Citibank, N.A.<br> 3800 Citigroup Center Tampa<br> Tampa, FL 33610<br>| 6.43% |
|  | &nbsp;&nbsp; Morgan Stanley Smith Barney LLC<br> 1 Harborside Financial Center, Plaza II<br> Jersey City, NJ 07311<br>| 5.71% |
| THE HEALTH CARE SELECT SECTOR SPDR FUND | &nbsp;&nbsp; Merrill Lynch, Pierce, Fenner & Smith Incorporated<br> 4803 Deer Lake Drive W<br> Jacksonville, FL 32246<br>| 14.43% |
|  | &nbsp;&nbsp; National Financial Services Corporation<br> 200 Liberty Street<br> New York, NY 10281<br>| 9.12% |
|  | &nbsp;&nbsp; Charles Schwab & Co., Inc.<br> 101 Montgomery Street<br> San Francisco, CA 94104<br>| 8.92% |
|  | &nbsp;&nbsp; Morgan Stanley Smith Barney LLC<br> 1 Harborside Financial Center, Plaza II<br> Jersey City, NJ 07311<br>| 6.19% |

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| | | |
|:---|:---|:---|
| **Fund** | **Name and Address** | **% Ownership** |
|  | &nbsp;&nbsp; JPMorgan Chase Bank, National Association<br> 14201 Dallas Parkway<br> Chase International Plaza<br> Dallas, TX 75254<br>| 5.90% |
|  | &nbsp;&nbsp; Citibank, N.A.<br> 3800 Citigroup Center Tampa<br> Tampa, FL 33610<br>| 5.02% |
| THE INDUSTRIAL SELECT SECTOR SPDR FUND | &nbsp;&nbsp; Merrill Lynch, Pierce, Fenner & Smith Incorporated<br> 4803 Deer Lake Drive W<br> Jacksonville, FL 32246<br>| 12.76% |
|  | &nbsp;&nbsp; Charles Schwab & Co., Inc.<br> 101 Montgomery Street<br> San Francisco, CA 94104<br>| 10.81% |
|  | &nbsp;&nbsp; National Financial Services Corporation<br> 200 Liberty Street<br> New York, NY 10281<br>| 8.39% |
|  | &nbsp;&nbsp; JPMorgan Chase Bank, National Association<br> 14201 Dallas Parkway<br> Chase International Plaza<br> Dallas, TX 75254<br>| 7.46% |
|  | &nbsp;&nbsp; Morgan Stanley Smith Barney LLC<br> 1 Harborside Financial Center, Plaza II<br> Jersey City, NJ 07311<br>| 6.44% |
|  | &nbsp;&nbsp; TD Ameritrade Clearing, Inc.<br> 4211 South 102nd Street <br> Omaha, NE 68127<br>| 5.64% |
| THE MATERIALS SELECT SECTOR SPDR FUND | &nbsp;&nbsp; Charles Schwab & Co., Inc.<br> 101 Montgomery Street<br> San Francisco, CA 94104<br>| 12.44% |
|  | &nbsp;&nbsp; Merrill Lynch, Pierce, Fenner & Smith Incorporated<br> 4803 Deer Lake Drive W<br> Jacksonville, FL 32246<br>| 9.91% |
|  | &nbsp;&nbsp; National Financial Services Corporation<br> 200 Liberty Street<br> New York, NY 10281<br>| 8.10% |
|  | &nbsp;&nbsp; Morgan Stanley Smith Barney LLC<br> 1 Harborside Financial Center, Plaza II<br> Jersey City, NJ 07311<br>| 6.37% |
|  | &nbsp;&nbsp; TD Ameritrade Clearing, Inc.<br> 4211 South 102nd Street <br> Omaha, NE 68127<br>| 5.59% |
|  | &nbsp;&nbsp; Wells Fargo Clearing Services, LLC <br> 1 North Jefferson Avenue <br> St. Louis, MO 63103<br>| 5.20% |
| THE REAL ESTATE SELECT SECTOR SPDR FUND | &nbsp;&nbsp; Merrill Lynch, Pierce, Fenner & Smith Incorporated<br> 4803 Deer Lake Drive W<br> Jacksonville, FL 32246<br>| 16.48% |

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| | | |
|:---|:---|:---|
| **Fund** | **Name and Address** | **% Ownership** |
|  | &nbsp;&nbsp; Charles Schwab & Co., Inc.<br> 101 Montgomery Street<br> San Francisco, CA 94104<br>| 12.06% |
|  | &nbsp;&nbsp; National Financial Services Corporation<br> 200 Liberty Street<br> New York, NY 10281<br>| 9.44% |
|  | &nbsp;&nbsp; TD Ameritrade Clearing, Inc.<br> 4211 South 102nd Street <br> Omaha, NE 68127<br>| 6.48% |
|  | &nbsp;&nbsp; LPL Financial Corporation<br> 4707 Executive Drive <br> San Diego, CA 92121<br>| 6.15% |
|  | &nbsp;&nbsp; Citibank, N.A.<br> 3800 Citigroup Center Tampa<br> Tampa, FL 33610<br>| 5.51% |
| THE TECHNOLOGY SELECT SECTOR SPDR FUND | &nbsp;&nbsp; Charles Schwab & Co., Inc.<br> 101 Montgomery Street<br> San Francisco, CA 94104<br>| 12.58% |
|  | &nbsp;&nbsp; National Financial Services Corporation<br> 200 Liberty Street<br> New York, NY 10281<br>| 10.96% |
|  | &nbsp;&nbsp; Merrill Lynch, Pierce, Fenner & Smith Incorporated<br> 4803 Deer Lake Drive W<br> Jacksonville, FL 32246<br>| 6.60% |
|  | &nbsp;&nbsp; TD Ameritrade Clearing, Inc.<br> 4211 South 102nd Street <br> Omaha, NE 68127<br>| 5.58% |
|  | &nbsp;&nbsp; Wells Fargo Clearing Services, LLC <br> 1 North Jefferson Avenue <br> St. Louis, MO 63103<br>| 5.27% |
| THE UTILITIES SELECT SECTOR SPDR FUND | &nbsp;&nbsp; JPMorgan Chase Bank, National Association<br> 14201 Dallas Parkway<br> Chase International Plaza<br> Dallas, TX 75254<br>| 16.60% |
|  | &nbsp;&nbsp; National Financial Services Corporation<br> 200 Liberty Street<br> New York, NY 10281<br>| 11.75% |
|  | &nbsp;&nbsp; Charles Schwab & Co., Inc.<br> 101 Montgomery Street<br> San Francisco, CA 94104<br>| 9.92% |
|  | &nbsp;&nbsp; Morgan Stanley Smith Barney LLC<br> 1 Harborside Financial Center, Plaza II<br> Jersey City, NJ 07311<br>| 8.48% |
|  | &nbsp;&nbsp; Merrill Lynch, Pierce, Fenner & Smith Incorporated<br> 4803 Deer Lake Drive W<br> Jacksonville, FL 32246<br>| 8.43% |
|  | &nbsp;&nbsp; TD Ameritrade Clearing, Inc.<br> 4211 South 102nd Street <br> Omaha, NE 68127<br>| 5.28% |

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An Authorized Participant (as defined below) may hold of record more than 25% of the outstanding Shares of a Fund. From time to time, Authorized Participants may be a beneficial and/or legal owner of certain Funds, may be affiliated with an index provider, may be deemed to have control of the applicable Fund and may be able to affect the outcome of matters presented for a vote of the shareholders of such Fund(s). Authorized Participants may execute an irrevocable proxy granting the Distributor, State Street or an affiliate (the "Agent") power to vote or abstain from voting such Authorized Participant's beneficially or legally owned Shares of the applicable Fund. In such cases, the Agent shall mirror vote (or abstain from voting) such Shares in the same proportion as all other beneficial owners of the applicable Fund.

As of January 6, 2023, to the knowledge of the Trust, the following persons held of record or beneficially through one or more accounts 25% or more of the outstanding shares of the Fund:

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| | | |
|:---|:---|:---|
| **Fund** | **Name and Address** | **% Ownership** |
| THE COMMUNICATION SERVICES SELECT SECTOR <br> SPDR FUND<br>| &nbsp;&nbsp; Merrill Lynch, Pierce, Fenner & Smith Incorporated<br> 4803 Deer Lake Drive W<br> Jacksonville, FL 32246<br>| 25.49% |

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As of December 31, 2022, the Trustees and officers of the Trust, as a group, owned less than 1% of each Fund's outstanding Shares.

**Purchase and Redemption of Creation Units**

**PURCHASE (CREATION)**

The Trust issues and sells Shares of each Select Sector SPDR Fund only in Creation Units on a continuous basis through the Distributor, without a sales load (but subject to transaction fees), at their NAV per share next determined after receipt, on any Business Day (as defined below), of an order in proper form pursuant to the terms of the Authorized Participant Agreement ("Participant Agreement"). A "Business Day" with respect to each Select Sector SPDR Fund is generally any day on which the NYSE is open for business.

The consideration for purchase of a Creation Unit of a Select Sector SPDR Fund generally consists of the Deposit Securities and the Cash Component, computed as described below. Together, the Deposit Securities and the Cash Component constitute the "Fund Deposit," which represents the minimum initial and subsequent investment amount for a Creation Unit of any Select Sector SPDR Fund. The Cash Component is an amount equal to the Dividend Equivalent Payment (as defined below), plus or minus, as the case may be, a Balancing Amount (as defined below). The "Dividend Equivalent Payment" enables each Fund to make a complete distribution of dividends on the day preceding the next dividend payment date, and is an amount equal, on a per Creation Unit basis, to the dividends on all the portfolio securities of the Fund ("Dividend Securities") with ex-dividend dates within the accumulation period for such distribution (the "Accumulation Period"), net of expenses and liabilities for such period, as if all of the Dividend Securities had been held by the Fund for the entire Accumulation Period. The Accumulation Period begins on the ex-dividend date for each Fund and ends on the day preceding the next ex-dividend date. The "Balancing Amount" is an amount equal to the difference between the net asset value of the Shares (per Creation Unit) and the "Deposit Amount" — an amount equal to the sum of the market value of the Deposit Securities and the Dividend Equivalent Payment. If the Balancing Amount is a positive number (i.e., the net asset value per Creation Unit exceeds the Deposit Amount), the Cash Component shall be increased by such positive amount. If the Balancing Amount is a negative number (i.e., the net asset value per Creation Unit is less than the Deposit Amount), the Cash Component shall be decreased by such negative amount. If the negative number is greater than the Dividend Equivalent Payment, the creator will be entitled to receive cash in an amount equal to the differential. The Balancing Amount serves the function of compensating for any differences between the net asset value per Creation Unit and the Deposit Amount.

The Custodian, through the NSCC, makes available on each Business Day, prior to the opening of business on the Exchange (currently 9:30 a.m., Eastern time), the list of the names and the required number of shares of each Deposit Security to be included in the current standard Fund Deposit (based on information at the end of the previous Business Day) for each Select Sector SPDR Fund. Such standard Fund Deposit is subject to any applicable adjustments as described below, in order to effect purchases of Creation Units of a given Select Sector SPDR Fund until such time as the next-announced composition of the Deposit Securities is made available.

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The identity and number of shares of the Deposit Securities required for a Fund Deposit for each Select Sector SPDR Fund may be changed from time to time with a view to the investment objective of the applicable Select Sector SPDR Fund. Information regarding the Fund Deposit necessary for the purchase of a Creation Unit is made available to Authorized Participants and other market participants seeking to transact in Creation Unit aggregations.

In addition, the Trust reserves the right to permit or require the substitution of an amount of cash — i.e., a "cash in lieu" amount — to be added to the Cash Component to replace any Deposit Security which may not be available in sufficient quantity for delivery or which may not be eligible for transfer through the Clearing Process (discussed below), or which may not be eligible for trading by an Authorized Participant (as defined below) or the investor for which it is acting (a "non-standard order"). Brokerage commissions incurred in connection with acquisition of Deposit Securities not eligible for transfer through the systems of DTC and hence not eligible for transfer through the Clearing Process (discussed below) will be at the expense of the Fund and will affect the value of all Shares; but the Adviser, subject to the approval of the Board, may adjust the transaction fee within the parameters described above to protect ongoing shareholders. The Trust also reserves the right to include or remove Deposit Securities from the basket in anticipation of portfolio changes. The adjustments described above will reflect changes, known to the Adviser on the date of announcement to be in effect by the time of delivery of the Fund Deposit, in the composition of the subject Select Sector Index being tracked by the relevant Select Sector SPDR Fund or resulting from certain corporate actions.

**PROCEDURES FOR PURCHASE OF CREATION UNITS**

To be eligible to place orders with the Distributor, as facilitated via the Transfer Agent, to purchase a Creation Unit of a Select Sector SPDR Fund, an entity must be (i) a "Participating Party", i.e., a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the NSCC (the "Clearing Process"), a clearing agency that is registered with the SEC; or (ii) a DTC Participant (see "BOOK ENTRY ONLY SYSTEM"). In addition, each Participating Party or DTC Participant (each, an "Authorized Participant") must execute a Participant Agreement that has been agreed to by the Distributor and the Transfer Agent, and that has been accepted by the Trust, with respect to purchases and redemptions of Creation Units. Each Authorized Participant will agree, pursuant to the terms of the Participant Agreement, on behalf of itself or any investor on whose behalf it will act, to certain conditions, including that it will pay to the Trust, an amount of cash sufficient to pay the Cash Component together with all applicable fees and taxes. All Shares of Select Sector SPDR Funds, however created, will be entered on the records of DTC in the name of Cede & Co. for the account of a DTC Participant.

All orders to purchase Shares directly from the Select Sector SPDR Funds, including non-standard orders, must be placed for one or more Creation Unit size aggregations of Shares and in the manner set forth in the Participant Agreement and/or applicable order form, which sets for specific procedures associated with purchases through the Clearing Process and outside the Clearing Process. Those placing orders through an Authorized Participant should allow sufficient time to permit proper submission of the purchase order by the cut-off time. SSGM may assist Authorized Participants in assembling shares to purchase Creation Units (or upon redemption), for which it may receive commissions or other fees from such Authorized Participants.

Investors should be aware that an Authorized Participant may require orders for purchases of Shares placed with it to be in the particular form required by the individual Authorized Participant. In addition, the Authorized Participant may request the investor to make certain representations or enter into agreements with respect to the order, e.g., to provide for payments of cash, when required. Investors should also be aware that their particular broker may not have executed a Participant Agreement, and that, therefore, orders to purchase Creation Units of Select Sector SPDR Funds have to be placed by the investor's broker through an Authorized Participant that has executed a Participant Agreement. At any given time there may be only a limited number of broker-dealers that have executed a Participant Agreement.

Creation Units may be purchased in advance of receipt by the Trust of all or a portion of the applicable Deposit Securities as described below. In these circumstances, the initial deposit will have a value greater than the net asset value of the Shares of a Select Sector SPDR Fund on the date the order is placed in proper form since in addition to available Deposit Securities, cash must be deposited in an amount equal to the sum of (i) the Cash Component, plus (ii) 115% of the market value of the undelivered Deposit Securities (the "Additional Cash Deposit"), which shall be maintained in a separate non-interest bearing collateral account, in accordance with the terms of the Participant Agreement. An additional amount of cash shall be required to be deposited with the Trust, pending delivery of the missing Deposit Securities to the extent necessary to maintain the Additional Cash Deposit with the Trust in an amount at least equal to 115% of the daily marked to market value of the missing Deposit Securities, in accordance with the terms of the Participant Agreement. The Participant Agreement will permit the Trust to buy the missing Deposit Securities at any time. Authorized Participants will

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be liable to the Trust for all costs, expenses, dividends, income and taxes associated with missing Deposit Securities, including the costs incurred by the Trust in connection with any such purchases. These costs will be deemed to include the amount by which the actual purchase price of the Deposit Securities exceeds the market value of such Deposit Securities on the day the purchase order was deemed received by the Distributor plus the brokerage and related transaction costs associated with such purchases. The Trust will return any unused portion of the Additional Cash Deposit once all of the missing Deposit Securities have been properly received by the Custodian or purchased by the Trust and deposited into the Trust. The delivery of Creation Units so purchased will occur no later than the second Business Day following the day on which the purchase order is deemed received by the Distributor. A creation request is considered to be in "proper form" if all procedures set forth in the Participant Agreement, order form and this SAI are properly followed.

**ACCEPTANCE OF ORDERS OF CREATION UNITS**

The Trust reserves the right to reject an order for Creation Units in respect of any Select Sector SPDR Fund at its discretion, including, without limitation, if (a) the order is not in proper form or the Deposit Securities delivered do not consist of the securities that the Custodian specified; (b) the investor(s), upon obtaining the Shares ordered, would own 80% or more of the currently outstanding Shares of any Select Sector SPDR Fund; (c) the Deposit Securities delivered are not as disseminated through the facilities of the NSCC for that date by the Custodian, as described above; (d) the acceptance of the Fund Deposit would, in the opinion of counsel, be unlawful; (e) the acceptance or receipt of the order for a Creation Unit would, in the opinion of counsel to the Trust, be unlawful; or (f) in the event that circumstances outside the control of the Trust, the Custodian, the Transfer Agent, the Distributor and/or the Adviser make it for all practical purposes not feasible to process orders for Creation Units. Examples of such circumstances include acts of God or public service or utility problems such as fires, floods, extreme weather conditions and power outages resulting in telephone, telecopy and computer failures; market conditions or activities causing trading halts; systems failures involving computer or other information systems affecting the Trust, the Custodian, the Transfer Agent, the Adviser, the Distributor, DTC, NSCC or any other participant in the creation process, and similar extraordinary events. The Distributor shall communicate to the Authorized Participant its rejection of the order. The Trust, the Transfer Agent, the Custodian and the Distributor are under no duty, however, to give notification of any defects or irregularities in the delivery of Fund Deposits nor shall either of them incur any liability for the failure to give any such notification. The Trust, the Transfer Agent, the Custodian and the Distributor shall not be liable for the rejection of any purchase order for Creation Units. Given the importance of the ongoing issuance of Creation Units to maintaining a market price that is at or close to the underlying net asset value of a Fund, the Trust does not intend to suspend acceptance of orders for Creation Units.

All questions as to the number of shares of each security in the Deposit Securities and the validity, form, eligibility and acceptance for deposit of any securities to be delivered shall be determined by the Trust, and the Trust's determination shall be final and binding.

**CREATION TRANSACTION FEE**

Investors will be required to pay a fixed creation transaction fee of $500 for each Fund except The Communication Services Select Sector SPDR Fund. For The Communication Services Select Sector SPDR Fund, the fixed creation transaction fee is $250. An additional charge of up to three (3) times the fixed transaction fee (expressed as a percentage of the value of the Deposit Securities) may be imposed for (i) creations effected outside the Clearing Process; (ii) non-standard orders; and (iii) cash creations, for a total charge of up to $2,000 for each Fund except The Communication Services Select Sector SPDR Fund, and a total of up to $1,000 for The Communication Services Select Sector SPDR Fund. Investors are responsible for the costs of transferring the securities constituting the Deposit Securities to the account of the Trust.

**REDEMPTION**

Shares may be redeemed only in Creation Units at their net asset value next determined after receipt of a redemption request in proper form by the Select Sector SPDR Fund through the Transfer Agent and only on a Business Day. EXCEPT UPON LIQUIDATION OF A FUND, THE TRUST WILL NOT REDEEM SHARES IN AMOUNTS LESS THAN CREATION UNITS.

Investors must accumulate enough Shares in the secondary market to constitute a Creation Unit in order to have such Shares redeemed by the Trust. There can be no assurance, however, that there will be sufficient liquidity in the public trading market at any time to permit assembly of a Creation Unit. Investors should expect to incur brokerage and other costs in connection with assembling a sufficient number of Shares to constitute a redeemable Creation Unit.

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With respect to each Select Sector SPDR Fund, the Custodian, through the NSCC, makes available prior to the opening of business on the Exchange (currently 9:30 a.m., Eastern time) on each Business Day, the list of the names and share quantities of securities designated by the Fund that will be applicable (subject to possible amendment or correction) to redemption requests received in proper form (as defined below) on that day ("Redemption Securities"). Redemption Securities received on redemption may not be identical to Deposit Securities which are applicable to purchases of Creation Units. The identity and number of shares of the Redemption Securities or the Cash Redemption Amount (defined below) may be changed from time to time with a view to the investment objective of a Select Sector SPDR Fund.

Unless cash redemptions are available or specified for a Select Sector SPDR Fund, the redemption proceeds for a Creation Unit generally consist of Redemption Securities plus cash in an amount equal to the difference between the net asset value of the Shares being redeemed, as next determined after a receipt of a request in proper form, and the value of the Redemption Securities (the "Cash Redemption Amount"), less a fixed redemption transaction fee of $500. In the event that the Redemption Securities have a value greater than the net asset value of the Shares, a compensating cash payment equal to the differential is required to be made by or through an Authorized Participant by the redeeming shareholder.

**REDEMPTION TRANSACTION FEE**

A fixed transaction fee of $500 is applicable to each redemption transaction regardless of the number of Creation Units redeemed in the transaction for each Fund except The Communication Services Select Sector SPDR Fund. For The Communication Services Select Sector SPDR Fund, the fixed redemption transaction fee is $250. An additional charge of up to three (3) times the fixed transaction fee (for a total charge of up to $2,000 for each Fund except The Communication Services Select Sector SPDR Fund, and a total of up to $1,000 for The Communication Services Select Sector SPDR Fund) may be charged with respect to (i) transactions effected outside the Clearing Process; (ii) non-standard orders; and (iii) in the limited circumstances specified in which any cash may be used in lieu of securities to redeem Creation Units.

**PROCEDURES FOR REDEMPTION OF CREATION UNITS**

Orders to redeem Creation Units must be submitted in proper form to the Transfer Agent prior to the time as set forth in the Participant Agreement and/or applicable order form. A redemption request is considered to be in "proper form" if all procedures set forth in the Participant Agreement, order form and this SAI are properly followed. If the Transfer Agent does not receive the investor's Shares through DTC's facilities by the times and pursuant to the other terms and conditions set forth in the Participant Agreement, the redemption request shall be rejected.

The Authorized Participant must transmit the request for redemption, in the form required by the Trust, to the Transfer Agent in accordance with procedures set forth in the Participant Agreement and in accordance with the applicable order form. Investors should be aware that their particular broker may not have executed a Participant Agreement, and that, therefore, requests to redeem Creation Units may have to be placed by the investor's broker through an Authorized Participant who has executed a Participant Agreement. Investors making a redemption request should be aware that such request must be in the form specified by such Authorized Participant. Investors making a request to redeem Creation Units should allow sufficient time to permit proper submission of the request by an Authorized Participant and transfer of the Shares to the Trust's Transfer Agent; such investors should allow for the additional time that may be required to effect redemptions through their banks, brokers or other financial intermediaries if such intermediaries are not Authorized Participants.

An Authorized Participant submitting a redemption request is deemed to represent to the Trust that, as of the close of that Business Day, it (or its client) will own (within the meaning of Rule 200 of Regulation SHO) or has arranged to borrow for delivery to the Trust on or prior to the settlement date of the redemption request, the requisite number of Shares of the relevant Fund to be redeemed as a Creation Unit. In either case, the Authorized Participant is deemed to acknowledge that: (i) it (or its client) has full legal authority and legal right to tender for redemption the requisite number of Shares of the applicable Fund and to receive the entire proceeds of the redemption; and (ii) if such Shares submitted for redemption have been loaned or pledged to another party or are the subject of a repurchase agreement, securities lending agreement or any other arrangement affecting legal or beneficial ownership of such Shares being tendered, there are no restrictions precluding the tender and delivery of such Shares (including borrowed shares, if any) for redemption, free and clear of liens, on the redemption settlement date. The Trust reserves the right to verify these representations at its discretion, but will typically require verification with respect to a redemption request from a Fund in connection with higher levels of

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redemption activity and/or short interest in the Fund. If the Authorized Participant, upon receipt of a verification request, does not provide sufficient verification of its representations as determined by the Trust, the redemption request will not be considered to have been received in proper form and may be rejected by the Trust.

Deliveries of redemption proceeds generally will be made within two business days.

In addition, a Shareholder may request a redemption in cash which the Select Sector SPDR Fund may, in its sole discretion, permit. In either case, the Shareholder will receive a cash payment equal to the net asset value of its Shares based on the net asset value of Shares of the relevant Select Sector SPDR Fund next determined after the redemption request is received in proper form (minus a redemption transaction fee and additional charge for requested cash redemptions specified above, to offset the Trust's brokerage and other transaction costs associated with the disposition of Redemption Securities). The Select Sector SPDR Fund may also, in its sole discretion, upon request of a shareholder, provide such redeemer a portfolio of securities that differs from the exact composition of the Redemption Securities but does not differ in net asset value.

Redemptions of Shares for Redemption Securities will be subject to compliance with applicable federal and state securities laws and each Select Sector SPDR Fund (whether or not it otherwise permits cash redemptions) reserves the right to redeem Creation Units for cash to the extent that the Trust could not lawfully deliver specific Redemption Securities upon redemptions or could not do so without first registering the Redemption Securities under such laws. An Authorized Participant or an investor for which it is acting subject to a legal restriction with respect to a particular security included in the Redemption Securities applicable to the redemption of a Creation Unit may be paid an equivalent amount of cash. The Authorized Participant may request the redeeming Shareholder to complete an order form or to enter into agreements with respect to such matters as compensating cash payment, beneficial ownership of Shares or delivery instructions.

The right of redemption may be suspended or the date of payment postponed with respect to any Select Sector SPDR Fund (1) for any period during which the NYSE is closed (other than customary weekend and holiday closings); (2) for any period during which trading on the NYSE is suspended or restricted; (3) for any period during which an emergency exists as a result of which disposal of the Shares of the Select Sector SPDR Fund or determination of the net asset value of the Shares is not reasonably practicable; or (4) in such other circumstance as is permitted by the SEC.

**REQUIRED EARLY ACCEPTANCE OF ORDERS**

The Trust may, but is not required to, accept orders until 4:00 p.m., Eastern time, or until the market close (in the event the Exchange closes early). Notwithstanding the foregoing, as described in the Participant Agreement and the applicable order form, Authorized Participants may be notified that the cut-off time for an order may be earlier on a particular Business Day.

**Determination of Net Asset Value**

The following information supplements and should be read in conjunction with the sections in the Prospectus entitled "PURCHASE AND SALE INFORMATION" and "ADDITIONAL PURCHASE AND SALE INFORMATION."

Net asset value per Share for each Fund of the Trust is computed by dividing the value of the net assets of such Select Sector SPDR Fund (i.e., the value of its total assets less total liabilities) by the total number of Shares outstanding. Expenses and fees, including the management, administration and distribution fees, are accrued daily and taken into account for purposes of determining net asset value. The net asset value of each Fund is calculated by the Custodian and determined as of the close of the regular trading session on the NYSE (ordinarily 4:00 p.m. Eastern time) on each day that such exchange is open.

In calculating a Select Sector SPDR Fund's net asset value per Share, the Select Sector SPDR Fund's investments are generally valued using market valuations. A market valuation generally means a valuation (i) obtained from an exchange, a pricing service, or a major market maker (or dealer) or (ii) based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service, or a major market maker (or dealer). Each Select Sector SPDR Fund relies on a third-party service provider for assistance with the daily calculation of the Select Sector SPDR Fund's NAV. The third-party service provider, in turn, relies on other parties for certain pricing data and other inputs used in the calculation of the Select Sector SPDR Fund's NAV. Therefore, each Select Sector SPDR Fund is subject to certain operational risks associated with reliance on its service provider and that service provider's sources of pricing and other data. NAV calculation may be adversely affected by operational risks arising from factors such as errors or failures in systems and technology. Such errors or failures may result in inaccurately calculated NAVs, delays in the calculation of

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NAVs and/or the inability to calculate NAV over extended time periods. A Select Sector SPDR Fund may be unable to recover any losses associated with such failures. In the case of shares of other funds that are not traded on an exchange, a market valuation means such fund's published net asset value per share. Each Select Sector SPDR Fund may use various pricing services, or discontinue the use of any pricing service.

Pursuant to Board approved valuation procedures, the Board has designated the Adviser as the valuation designee for each Select Sector SPDR Fund. These procedures address, among other things, (i) determining (a) when market quotations are not readily available or reliable and (b) the methodologies to be used for determining the fair value of investments, and (ii) the use and oversight of third-party pricing services for fair valuation. The Adviser is responsible for periodically reviewing the procedures, and the selected methodologies used, for their continuing appropriateness and accuracy, and making any changes or adjustments to the procedures and methodologies as appropriate.

In the event that current market valuations are not readily available or are deemed unreliable, the Trust's procedures require the Adviser to determine a security's fair value. In determining a fair value, the Adviser may consider, among other things, (i) price comparisons among multiple sources, (ii) a review of corporate actions and news events, and (iii) a review of relevant financial indicators (e.g., movement in interest rates, market indices, and prices from the Index Provider). In these cases, a Select Sector SPDR Fund's net asset value may reflect certain portfolio securities' fair values rather than their market prices. The fair value of a portfolio instrument is generally the price which a Select Sector SPDR Fund might reasonably expect to receive upon its current sale in an orderly market between market participants. Ascertaining fair value requires a determination of the amount that an arm's-length buyer, under the circumstances, would currently pay for the portfolio instrument. Fair value pricing involves subjective judgments and it is possible that the fair value determination for a security is materially different than the value that could be realized upon the sale of the security. In addition, fair value pricing could result in a difference between the prices used to calculate a Select Sector SPDR Fund's net asset value and the prices used by the Select Sector SPDR Index. This may result in a difference between a Select Sector SPDR Fund's performance and the performance of the Select Sector SPDR Index.

**Dividends and Distributions**

The following information supplements and should be read in conjunction with the section in the Prospectus entitled "DISTRIBUTIONS."

**GENERAL POLICIES**

Dividends from net investment income, if any, are declared and paid quarterly for each Select Sector SPDR Fund. Distributions of net realized securities gains, if any, generally are declared and paid once a year, but the Trust may make distributions on a more frequent basis for certain Select Sector SPDR Funds to improve index tracking or to comply with the distribution requirements of the Internal Revenue Code, in all events in a manner consistent with the provisions of the 1940 Act. In addition, the Trust intends to distribute at least annually amounts representing the full dividend yield on the underlying portfolio securities of each Fund, net of expenses of such Fund, as if such Fund owned such underlying portfolio securities for the entire dividend period. As a result, some portion of each distribution may result in a return of capital for tax purposes for shareholders.

Dividends and other distributions on Shares are distributed, as described below, on a pro rata basis to Beneficial Owners of such Shares. Dividend payments are made through DTC Participants and Indirect Participants to Beneficial Owners then of record with proceeds received from the Trust.

The Trust makes additional distributions to the extent necessary (i) to distribute the entire annual taxable income of the Trust, plus any net capital gains and (ii) to avoid imposition of the excise tax imposed by Section 4982 of the Internal Revenue Code. Management of the Trust reserves the right to declare special dividends if, in its reasonable discretion, such action is necessary or advisable to preserve the status of each Select Sector SPDR Fund as a RIC or to avoid imposition of income or excise taxes on undistributed income.

**DIVIDEND REINVESTMENT** 

Broker dealers, at their own discretion, may offer a dividend reinvestment service under which Shares are purchased in the secondary market at current market prices. Investors should consult their broker dealer for further information regarding any dividend reinvestment service offered by such broker dealer.

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**Taxes**

The following is a summary of certain federal income tax considerations generally affecting the Funds and their shareholders that supplements the discussions in the Prospectus. No attempt is made to present a comprehensive explanation of the federal, state, local or foreign tax treatment of the Funds or their shareholders, and the discussion here and in the Prospectus is not intended to be a substitute for careful tax planning.

The following general discussion of certain federal income tax consequences is based on the Internal Revenue Code and the regulations issued thereunder as in effect on the date of this SAI. New legislation, as well as administrative changes or court decisions, may significantly change the conclusions expressed herein, and may have a retroactive effect with respect to the transactions contemplated herein.

The following information should be read in conjunction with the section in the Prospectus entitled "ADDITIONAL TAX INFORMATION."

**TAXATION OF THE FUNDS**

Each Fund is treated as a separate corporation for federal income tax purposes. A Fund therefore is considered to be a separate entity in determining its treatment under the rules for RICs described herein and in the Prospectus. Losses in one series of the Trust do not offset gains in any other series of the Trust and the requirements (other than certain organizational requirements) for qualifying for treatment as a RIC are determined at the Fund level rather than at the Trust level. Each Fund has elected or will elect and intends to qualify each year to be treated as a separate RIC under Subchapter M of the Internal Revenue Code. As such, each Fund should not be subject to federal income tax on its net investment income and capital gains, if any, to the extent that it timely distributes such income and capital gains to its shareholders. In order to qualify for treatment as a RIC, a Fund must distribute annually to its shareholders at least the sum of 90% of its taxable net investment income (generally including the excess of net short-term capital gains over net long-term capital losses) and 90% of its net tax exempt interest income, if any (the "Distribution Requirement") and also must meet several additional requirements. Among these requirements are the following: (i) at least 90% of a Fund's gross income each taxable year must be derived from dividends, interest, payments with respect to certain securities loans, gains from the sale or other disposition of stock, securities or foreign currencies, or other income derived with respect to its business of investing in such stock, securities or currencies, and net income derived from interests in qualified publicly traded partnerships (the "Qualifying Income Requirement"); and (ii) at the end of each quarter of a Fund's taxable year, its assets must be diversified so that (a) at least 50% of the market value of its total assets must be represented by cash and cash items, U.S. government securities, securities of other RICs and other securities, with such other securities limited, in respect to any one issuer, to an amount not greater in value than 5% of the value of the Fund's total assets and to not more than 10% of the outstanding voting securities of such issuer, and (b) not more than 25% of the value of its total assets is invested in the securities (other than U.S. government securities or securities of other RICs) of any one issuer, the securities (other than securities of other RICs) of two or more issuers that it controls and that are engaged in the same, similar, or related trades or businesses, or the securities of one or more qualified publicly traded partnerships (the "Diversification Requirement").

If a Fund fails to satisfy the Qualifying Income Requirement or the Diversification Requirement in any taxable year, such Fund may be eligible for relief provisions if the failures are due to reasonable cause and not willful neglect and if a penalty tax is paid with respect to each failure to satisfy the applicable requirements. Additionally, relief is provided for certain de minimis failures of the Diversification Requirement where the Fund corrects the failure within a specified period of time. In order to be eligible for the relief provisions with respect to a failure to meet the Diversification Requirement, a Fund may be required to dispose of certain assets. If these relief provisions were not available to a Fund and it were to fail to qualify for treatment as a RIC for a taxable year, all of its taxable income would be subject to tax at the applicable corporate rate without any deduction for distributions to shareholders, and its distributions (including capital gains distributions) generally would be taxable as ordinary income dividends to its shareholders, subject to the dividends-received deduction for corporate shareholders and the lower tax rates on qualified dividend income received by noncorporate shareholders. To requalify for treatment as a RIC in a subsequent taxable year, the Fund would be required to satisfy the RIC qualification requirements for that year and to distribute any earnings and profits from any year in which the Fund failed to qualify for tax treatment as a RIC. If a Fund failed to qualify as a RIC for a period greater than two taxable years, it would generally be required to pay a Fund-level tax on certain net built-in gains recognized with respect to certain of its assets upon a disposition of such assets within five years of qualifying as a RIC in a subsequent year. The Board reserves the right not to maintain the qualification of a Fund for treatment as a RIC if it determines such course of action to be beneficial to shareholders.

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As discussed more fully below, each Fund intends to distribute substantially all of its net investment income and its capital gains for each taxable year.

If a Fund meets the Distribution Requirement but retains some or all of its income or gains, it will be subject to federal income tax to the extent any such income or gains are not distributed. A Fund may designate certain amounts retained as undistributed net capital gain in a notice to its shareholders, who (i) will be required to include in income for U.S. federal income tax purposes, as long-term capital gain, their proportionate shares of the undistributed amount so designated, (ii) will be entitled to credit their proportionate shares of the income tax paid by the Fund on that undistributed amount against their federal income tax liabilities and to claim refunds to the extent such credits exceed their liabilities and (iii) will be entitled to increase their tax basis, for federal income tax purposes, in their Fund Shares by an amount equal to the excess of the amount of undistributed net capital gain included in their respective income over their respective income tax credits. If a Fund failed to satisfy the Distribution Requirement for any taxable year, it would be taxed as a regular corporation, with consequences generally similar to those described in the preceding paragraph.

Given the concentration of certain of the Indexes in a relatively small number of securities, it may not be possible for certain Funds to fully implement sampling methodologies while satisfying the Diversification Requirement. A Fund's efforts to satisfy the Diversification Requirement may affect the Fund's execution of its investment strategy and may cause the Fund's return to deviate from that of the applicable Index, and the Fund's efforts to track the applicable Index may cause it inadvertently to fail to satisfy the Diversification Requirement.

A Fund will be subject to a 4% excise tax on certain undistributed income if it does not distribute to its shareholders in each calendar year an amount at least equal to 98% of its ordinary income for the calendar year plus 98.2% of its capital gain net income for the twelve months ended October 31 of such year, subject to an increase for any shortfall in the prior year's distribution. Each Fund intends to declare and distribute dividends and distributions in the amounts and at the times necessary to avoid the application of this 4% excise tax.

A Fund may elect to treat part or all of any "qualified late year loss" as if it had been incurred in the succeeding taxable year in determining the Fund's taxable income, net capital gain, net short-term capital gain, and earnings and profits. The effect of this election is to treat any such "qualified late year loss" as if it had been incurred in the succeeding taxable year in characterizing Fund distributions for any calendar year. A "qualified late year loss" generally includes net capital loss, net long-term capital loss, or net short-term capital loss incurred after October 31 of the current taxable year (commonly referred to as "post-October losses") and certain other late-year losses.

Capital losses in excess of capital gains ("net capital losses") are not permitted to be deducted against a RIC's net investment income. Instead, for U.S. federal income tax purposes, potentially subject to certain limitations, a Fund may carry a net capital loss from any taxable year forward indefinitely to offset its capital gains, if any, in years following the year of the loss. To the extent subsequent capital gains are offset by such losses, they will not result in U.S. federal income tax liability to the Fund and may not be distributed as capital gains to its shareholders. Generally, the Funds may not carry forward any losses other than net capital losses.

**TAXATION OF SHAREHOLDERS—DISTRIBUTIONS**

Each Fund intends to distribute annually to its shareholders substantially all of its investment company taxable income (computed without regard to the deduction for dividends paid), its net tax-exempt income, if any, and any net capital gain (net recognized long-term capital gains in excess of net recognized short-term capital losses, taking into account any capital loss carryforwards). Each Fund will report to shareholders annually the amounts of dividends paid from ordinary income, the amount of distributions of net capital gain, the portion of dividends which may qualify for the dividends-received deduction, and the portion of dividends which may qualify for treatment as qualified dividend income.

Subject to certain limitations, dividends reported by a Fund as qualified dividend income will be taxable to noncorporate shareholders at reduced rates. Dividends may be reported by a Fund as qualified dividend income if they are attributable to qualified dividend income received by the Fund. Qualified dividend income includes, in general, subject to certain holding period requirements and other requirements, dividend income from certain U.S. and foreign corporations. Subject to certain limitations, eligible foreign corporations include those incorporated in possessions of the United States, those incorporated in certain countries with comprehensive tax treaties with the United States and other foreign corporations if the stock with respect to which the dividends are paid is tradable on an established securities market in the United States. A dividend generally will not be treated as qualified dividend income to the extent that (i) the shareholder has not held the stock on which the dividend was paid for more than 60 days during the 121-day period that begins on the date that is 60 days before the date on which the stock becomes ex-dividend with respect to such dividend or, in the case of certain

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preferred stock, for more than 90 days during the 181-day period beginning 90 days before such date, (ii) the shareholder is under an obligation (whether pursuant to a short sale or otherwise) to make related payments with respect to substantially similar or related property, or (iii) the shareholder elects to treat such dividend as investment income under section 163(d)(4)(B) of the Internal Revenue Code. The holding period requirements described in this paragraph apply to shareholders' investments in the Funds and to the Funds' investments in underlying dividend-paying stocks. Dividends treated as received by a Fund from a REIT or another RIC may be treated as qualified dividend income generally only to the extent the dividend distributions are attributable to qualified dividend income received by such REIT or RIC. It is expected that any dividends received by a Fund from a REIT and distributed by that Fund to a shareholder generally will be taxable to the shareholder as ordinary income. Additionally, income derived in connection with a Fund's securities lending activities will, in general, not be treated as qualified dividend income. If 95% or more of a Fund's gross income (calculated without taking into account net capital gain derived from sales or other dispositions of stock or securities) consists of qualified dividend income, that Fund may report all distributions of such income as qualified dividend income.

Certain dividends received by a Fund from U.S. corporations (generally, dividends received by a Fund in respect of any share of stock (1) with a tax holding period of at least 46 days during the 91-day period beginning on the date that is 45 days before the date on which the stock becomes ex-dividend as to that dividend and (2) that is held in an unleveraged position) when distributed and appropriately so reported by the Fund may be eligible for the 50% dividends-received deduction generally available to corporations under the Internal Revenue Code. Dividends received by a Fund from REITs will not be eligible for that deduction. In order to qualify for the deduction, corporate shareholders must meet the minimum holding period requirement stated above with respect to their Fund Shares, taking into account any holding period reductions from certain hedging or other transactions or positions that diminish their risk of loss with respect to their Fund Shares, and, if they borrow to acquire or otherwise incur debt attributable to Fund Shares, they may be denied a portion of the dividends-received deduction with respect to those Fund Shares. Any corporate shareholder should consult its tax adviser regarding the possibility that its tax basis in its Fund Shares may be reduced, for U.S. federal income tax purposes, by reason of "extraordinary dividends" received with respect to the Fund Shares and, to the extent such basis would be reduced below zero, current recognition of income may be required.

Distributions from a Fund's net short-term capital gains will generally be taxable to shareholders as ordinary income. Distributions from a Fund's net capital gain will be taxable to shareholders at long-term capital gains rates, regardless of how long shareholders have held their Shares. Long-term capital gains are generally taxed to noncorporate shareholders at reduced rates. Certain capital gain dividends attributable to dividends a Fund receives from REITs may be taxable to noncorporate shareholders at a rate other than the reduced rates generally applicable to long-term capital gains.

Although dividends generally will be treated as distributed when paid, any dividend declared by a Fund in October, November or December and payable to shareholders of record in such a month that is paid during the following January will be treated for U.S. federal income tax purposes as received by shareholders on December 31 of the calendar year in which it was declared.

If a Fund's distributions exceed its earnings and profits, all or a portion of the distributions made in the taxable year may be treated as a return of capital to shareholders. A return of capital distribution generally will not be taxable but will reduce the shareholder's cost basis and result in a higher capital gain or lower capital loss when the Fund Shares on which the distribution was received are sold. After a shareholder's basis in the Fund Shares has been reduced to zero, distributions in excess of earnings and profits will be treated as gain from the sale of the shareholder's Fund Shares.

Under Section 163(j) of the Code, a taxpayer's business interest expense is generally deductible to the extent of its business interest income plus certain other amounts. If a Fund earns business interest income, it may report a portion of its dividends as "Section 163(j) interest dividends," which its shareholders may be able to treat as business interest income for purposes of Section 163(j) of the Code. The Fund's "Section 163(j) interest dividend" for a tax year will be limited to the excess of its business interest income over the sum of its business interest expense and other deductions properly allocable to its business interest income. In general, a Fund's shareholders may treat a distribution reported as a Section 163(j) interest dividend as interest income only to the extent the distribution exceeds the sum of the portions of the distribution reported as other types of tax-favored income. To be eligible to treat a Section 163(j) interest dividend as interest income, a shareholder may need to meet certain holding period requirements in respect of Fund Shares and must not have hedged its position in Fund Shares in certain ways.

Distributions that are reinvested in additional Fund Shares through the means of a dividend reinvestment service, if offered by your broker-dealer, will nevertheless be taxable dividends to the same extent as if such dividends had been received in cash.

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A 3.8% Medicare contribution tax generally applies to all or a portion of the net investment income of a shareholder who is an individual and not a nonresident alien for federal income tax purposes and who has adjusted gross income (subject to certain adjustments) that exceeds a threshold amount ($250,000 if married filing jointly or if considered a "surviving spouse" for federal income tax purposes, $125,000 if married filing separately, and $200,000 in other cases). This 3.8% tax also applies to all or a portion of the undistributed net investment income of certain shareholders that are estates and trusts. For these purposes, dividends, interest and certain capital gains (generally including capital gain distributions and capital gains realized on the sale of Fund Shares) are generally taken into account in computing a shareholder's net investment income.

Distributions of ordinary income and capital gains may also be subject to foreign, state and local taxes depending on a shareholder's circumstances.

**TAXATION OF SHAREHOLDERS – SALE OF FUND SHARES**

In general, a sale of Fund Shares results in capital gain or loss, and for individual shareholders, is taxable at a federal rate dependent upon the length of time the Fund Shares were held. A sale of Fund Shares held for a period of one year or less at the time of such sale will, for tax purposes, generally result in short-term capital gains or losses, and a sale of those held for more than one year will generally result in long-term capital gains or losses. Long-term capital gains are generally taxed to noncorporate shareholders at reduced rates.

Gain or loss on the sale of Fund Shares is measured by the difference between the amount received and the adjusted tax basis of the Fund Shares. Shareholders should keep records of investments made (including Fund Shares acquired through reinvestment of dividends and distributions) so they can compute the tax basis of their Fund Shares.

A loss realized on a sale of Fund Shares may be disallowed if substantially identical Fund Shares are acquired (whether through the reinvestment of dividends or otherwise) within a sixty-one (61) day period beginning thirty (30) days before and ending thirty (30) days after the date that the Fund Shares are disposed of. In such a case, the basis of the Fund Shares acquired must be adjusted to reflect the disallowed loss. Any loss upon the sale of Fund Shares held for six (6) months or less is treated as long-term capital loss to the extent of any amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the shareholder as undistributed capital gains).

**COST BASIS REPORTING**

The cost basis of Fund Shares acquired by purchase will generally be based on the amount paid for the Fund Shares and then may be subsequently adjusted for other applicable transactions as required by the Internal Revenue Code. The difference between the selling price and the cost basis of Fund Shares generally determines the amount of the capital gain or loss realized on the sale or exchange of Fund Shares. Contact the broker through whom you purchased your Fund Shares to obtain information with respect to the available cost basis reporting methods and elections for your account.

**TAXATION OF FUND INVESTMENTS**

Dividends and interest received by a Fund on foreign securities may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes. No Fund expects to satisfy the requirements for passing through to its shareholders any share of any foreign taxes paid by the Fund, with the result that shareholders will not include such taxes in their gross incomes and will not be entitled to a tax deduction or credit for such taxes on their own returns.

Certain of the Funds' investments may be subject to complex provisions of the Internal Revenue Code (including provisions relating to hedging transactions, straddles, integrated transactions, foreign currency contracts, forward foreign currency contracts, and notional principal contracts) that, among other things, may affect the character of gains and losses realized by a Fund (e.g., may affect whether gains or losses are ordinary or capital), accelerate recognition of income to the Fund and defer losses. These rules could therefore affect the character, amount and timing of distributions to shareholders. These provisions also may require a Fund to mark-to-market certain types of positions in its portfolio (i.e., treat them as if they were closed out) which may cause the Fund to recognize income without receiving cash with which to make distributions to its shareholders in amounts necessary to satisfy the RIC distribution requirements for avoiding income and excise taxes. The Funds intend to monitor their transactions, intend to make appropriate tax elections, and intend to make appropriate entries in their books and records in order to mitigate the effect of these rules and preserve the Funds' qualification for treatment as RICs.

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Each Fund is required for federal income tax purposes to mark-to-market and recognize as income for each taxable year its net unrealized gains and losses on certain futures contracts as of the end of the year as well as those actually realized during the year. Gain or loss from futures and options contracts on broad-based indexes required to be marked to market will be 60% long-term and 40% short-term capital gain or loss. Application of this rule may alter the timing and character of distributions to shareholders. A Fund may be required to defer the recognition of losses on futures contracts, options contracts and swaps to the extent of any unrecognized gains on offsetting positions held by the Fund. It is anticipated that certain net gain realized from the closing out of futures or options contracts will be considered gain from the sale of securities and therefore will be qualifying income for purposes of the Qualifying Income Requirement.

For tax years beginning after December 31, 2017 and before January 1, 2026, a non-corporate taxpayer is generally eligible for a deduction of up to 20% of the taxpayer's "qualified REIT dividends." If a Fund receives a dividend (other than a capital gain dividend) in respect of any share of U.S. REIT stock, the Fund may report its own dividends as eligible for the 20% deduction, to the extent the Fund's income is derived from such qualified REIT dividends, as reduced by allocable Fund expenses. In order for a Fund's dividends to be eligible for this deduction when received by a non-corporate shareholder, the Fund must meet certain holding period requirements with respect to the U.S. REIT shares on which the Fund received the eligible dividends, and the non-corporate shareholder must meet certain holding period requirements with respect to the Shares.

**TAX-EXEMPT SHAREHOLDERS**

Certain tax-exempt shareholders, including qualified pension plans, individual retirement accounts, salary deferral arrangements, 401(k) plans, and other tax-exempt entities, generally are exempt from federal income taxation except with respect to their unrelated business taxable income ("UBTI"). Under current law, a Fund generally serves to block UBTI from being realized by its tax-exempt shareholders. However, notwithstanding the foregoing, tax-exempt shareholders could realize UBTI by virtue of their investment in a Fund where, for example, (i) the Fund invests in REITs that hold residual interests in real estate mortgage investment conduits ("REMICs") or (ii) Fund Shares constitute debt-financed property in the hands of the tax-exempt shareholders within the meaning of section 514(b) of the Internal Revenue Code. Charitable remainder trusts are subject to special rules and should consult their tax advisors. There are no restrictions preventing a Fund from holding investments in REITs that hold residual interests in REMICs, and a Fund may do so. The IRS has issued guidance with respect to these issues and prospective shareholders, especially charitable remainder trusts, are strongly encouraged to consult with their tax advisors regarding these issues.

Certain tax-exempt educational institutions will be subject to a 1.4% tax on net investment income. For these purposes, certain dividends and capital gain distributions, and certain gains from the disposition of Fund Shares (among other categories of income), are generally taken into account in computing a shareholder's net investment income.

**FOREIGN SHAREHOLDERS**

Dividends, other than capital gains dividends, "short-term capital gain dividends" and "interest-related dividends" (described below), paid by a Fund to shareholders who are nonresident aliens or foreign entities will be subject to a 30% United States withholding tax unless a reduced rate of withholding or a withholding exemption is provided under applicable treaty law to the extent derived from investment income and short-term capital gain or unless such income is effectively connected with a U.S. trade or business carried on through a permanent establishment in the United States. Nonresident shareholders are urged to consult their own tax advisors concerning the applicability of the United States withholding tax and the proper withholding form(s) to be submitted to a Fund. A non-U.S. shareholder who fails to provide an appropriate IRS Form W-8 may be subject to backup withholding at the appropriate rate.

Dividends reported by a Fund as (i) interest-related dividends, to the extent such dividends are derived from the Fund's "qualified net interest income," or (ii) short-term capital gain dividends, to the extent such dividends are derived from the Fund's "qualified short-term gain," are generally exempt from this 30% withholding tax. "Qualified net interest income" is a Fund's net income derived from U.S.-source interest and original issue discount, subject to certain exceptions and limitations. "Qualified short-term gain" generally means the excess of a Fund's net short-term capital gain for the taxable year over its net long-term capital loss, if any. In the case of Fund Shares held through an intermediary, the intermediary may withhold even if a Fund reports the payment as an interest-related dividend or as a short-term capital gain dividend. Non-U.S. shareholders should contact their intermediaries with respect to the application of these rules to their accounts.

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Unless certain non-U.S. entities that hold Fund Shares comply with IRS requirements that will generally require them to report information regarding U.S. persons investing in, or holding accounts with, such entities, a 30% withholding tax may apply to Fund distributions payable to such entities. A non-U.S. shareholder may be exempt from the withholding described in this paragraph under an applicable intergovernmental agreement between the U.S. and a foreign government, provided that the shareholder and the applicable foreign government comply with the terms of such agreement.

Non-U.S. persons are subject to U.S. tax on disposition of a "United States real property interest" (a "USRPI"). Gain on such a disposition is sometimes referred to as "FIRPTA gain." The Internal Revenue Code provides a look-through rule for distributions of "FIRPTA gain" if certain requirements are met. If the look-through rule applies, certain distributions attributable to income treated as received by a Fund from REITs may be treated as gain from the disposition of a USRPI, causing distributions to be subject to U.S. withholding taxes, and requiring non-U.S. investors to file nonresident U.S. income tax returns. Also, FIRPTA gain may be subject to a 30% branch profits tax in the hands of a non-U.S. shareholder that is treated as a corporation for federal income tax purposes. Under certain circumstances, Fund Shares may qualify as USRPIs, which could result in 15% withholding on certain distributions and gross redemption proceeds paid to certain non-U.S. investors.

**BACKUP WITHHOLDING**

A Fund will be required in certain cases to withhold (as "backup withholding") on amounts payable to any shareholder who (1) has provided the Fund either an incorrect tax identification number or no number at all, (2) is subject to backup withholding by the IRS for failure to properly report payments of interest or dividends, (3) has failed to certify to the Fund that such shareholder is not subject to backup withholding, or (4) has not certified that such shareholder is a U.S. person (including a U.S. resident alien). The backup withholding rate is currently 24%. Backup withholding will not be applied to payments that have been subject to the 30% withholding tax on shareholders who are neither citizens nor permanent residents of the U.S.

**CREATION UNITS**

An Authorized Participant who exchanges securities for Creation Units generally will recognize a gain or a loss. The gain or loss will be equal to the difference between the market value of the Creation Units at the time and the sum of the exchanger's aggregate basis in the securities surrendered plus the amount of cash paid for such Creation Units. A person who redeems Creation Units will generally recognize a gain or loss equal to the difference between the exchanger's basis in the Creation Units and the sum of the aggregate market value of any securities received plus the amount of any cash received for such Creation Units. The IRS, however, may assert that a loss realized upon an exchange of securities for Creation Units cannot be deducted currently under the rules governing "wash sales," or on the basis that there has been no significant change in economic position.

Any gain or loss realized upon a creation of Creation Units will be treated as capital gain or loss if the Authorized Participant holds the securities exchanged therefor as capital assets, and otherwise will be ordinary income or loss. Similarly, any gain or loss realized upon a redemption of Creation Units will be treated as capital gain or loss if the Authorized Participant holds the Fund Shares comprising the Creation Units as capital assets, and otherwise will be ordinary income or loss. Any capital gain or loss realized upon the creation of Creation Units will generally be treated as long-term capital gain or loss if the securities exchanged for such Creation Units have been held for more than one year, and otherwise will be short-term capital gain or loss. Any capital gain or loss realized upon the redemption of Creation Units will generally be treated as long-term capital gain or loss if the Fund Shares comprising the Creation Units have been held for more than one year, and otherwise, will generally be short-term capital gain or loss. Any capital loss realized upon a redemption of Creation Units held for six (6) months or less will be treated as a long-term capital loss to the extent of any amounts treated as distributions to the applicable Authorized Participant of long-term capital gains with respect to the Creation Units (including any amounts credited to the Authorized Participant as undistributed capital gains).

A Fund has the right to reject an order for Creation Units if the purchaser (or a group of purchasers) would, upon obtaining the Fund Shares so ordered, own 80% or more of the outstanding shares of the Fund and if, pursuant to section 351 of the Internal Revenue Code, the Fund would have a basis in any deposit securities different from the market value of such securities on the date of deposit. A Fund also has the right to require information necessary to determine beneficial Fund Share ownership for purposes of the 80% determination. If a Fund does issue Creation Units to a purchaser (or a group of purchasers) that would, upon obtaining the Fund Shares so ordered, own 80% or more of the outstanding shares of the Fund, the purchaser (or a group of purchasers) may not recognize gain or loss upon the exchange of securities for Creation Units.

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If a Fund redeems Creation Units in cash, it may bear additional costs and recognize more capital gains than it would if it redeems Creation Units in-kind.

Persons purchasing or redeeming Creation Units should consult their own tax advisors with respect to the tax treatment of any creation or redemption transaction.

**CERTAIN POTENTIAL TAX REPORTING REQUIREMENTS**

Under promulgated Treasury regulations, if a shareholder recognizes a loss on disposition of a Fund's shares of $2 million or more for an individual shareholder or $10 million or more for a corporate shareholder (or certain greater amounts over a combination of years), the shareholder must file with the IRS a disclosure statement on IRS Form 8886. Direct shareholders of portfolio securities are in many cases excepted from this reporting requirement, but under current guidance, shareholders of a RIC are not excepted. A shareholder who fails to make the required disclosure to the IRS may be subject to adverse tax consequences, including significant penalties. The fact that a loss is reportable under these regulations does not affect the legal determination of whether the taxpayer's treatment of the loss is proper. Shareholders should consult their tax advisers to determine the applicability of these regulations in light of their individual circumstances.

The foregoing discussion is a summary only and is not intended as a substitute for careful tax planning. Purchasers of Fund Shares should consult their own tax advisors as to the tax consequences of investing in such Fund Shares, including under state, local and other tax laws. Finally, the foregoing discussion is based on applicable provisions of the Internal Revenue Code, regulations, judicial authority and administrative interpretations in effect on the date hereof. Changes in applicable authority could materially affect the conclusions discussed above, and such changes often occur.

**Capital Stock and Other Securities**

Each Select Sector SPDR Fund issues Shares of beneficial interest, par value $0.01 per Share. The Board may designate additional Select Sector SPDR Funds.

Each Share issued by the Trust has a pro rata interest in the assets of the corresponding Select Sector SPDR Fund. Shares have no preemptive, exchange, subscription or conversion rights and are freely transferable. Each Share is entitled to participate equally in dividends and distributions declared by the Board with respect to the relevant Select Sector SPDR Fund, and in the net distributable assets of such Select Sector SPDR Fund on liquidation.

Each Share has one vote with respect to matters upon which a shareholder vote is required consistent with the requirements of the 1940 Act and the rules promulgated thereunder. Shares of all Select Sector SPDR Funds vote together as a single class, except that if the matter being voted on affects only a particular Select Sector SPDR Fund, it will be voted on only by that Select Sector SPDR Fund, and if a matter affects a particular Select Sector SPDR Fund differently from other Select Sector SPDR Funds, that Select Sector SPDR Fund will vote separately on such matter. Under Massachusetts law, the Trust is not required to hold an annual meeting of shareholders unless required to do so under the 1940 Act. The policy of the Trust is not to hold an annual meeting of shareholders unless required to do so under the 1940 Act. All Shares of the Trust (regardless of the Select Sector SPDR Fund) have noncumulative voting rights for the election of Trustees. Under Massachusetts law, Trustees of the Trust may be removed by vote of the shareholders.

Under Massachusetts law, shareholders of a business trust may, under certain circumstances, be held personally liable as partners for obligations of the Trust. However, the Declaration of Trust contains an express disclaimer of shareholder liability for acts or obligations of the Trust, requires that Trust obligations include such disclaimer, and provides for indemnification and reimbursement of expenses out of the Trust's property for any shareholder held personally liable for the obligations of the Trust. Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances in which the Trust itself would be unable to meet its obligations. Given the above limitations on shareholder personal liability, and the nature of each Fund's assets and operations, the risk to shareholders of personal liability is believed to be remote.

Shareholder inquiries may be made by writing to the Trust, c/o the Distributor, ALPS Portfolio Solutions Distributor, Inc., at 1290 Broadway, Suite 1000, Denver, Colorado 80203.

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**Counsel and Independent Registered Public Accounting Firm**

Morgan, Lewis & Bockius LLP, located at 1111 Pennsylvania Avenue NW, Washington, DC 20004, serves as counsel to the Trust. Ernst & Young LLP, located at 200 Clarendon Street, Boston, MA 02116, serves as the independent registered public accounting firm of the Trust. Ernst & Young LLP performs annual audits of the Funds' financial statements and provides other audit, tax and related services.

**Financial Statements**

The financial statements for the Funds and the independent registered public accounting firm report thereon dated November 23, 2022, which is contained in the Trust's Annual Report for the fiscal year ended September 30, 2022 (as filed with the SEC on December 7, 2022 pursuant to Section 30(b) of the 1940 Act and Rule 30b2-1 thereunder), are incorporated herein by reference.

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**Appendix A**

**<u>The Select Sector SPDR</u>**<sup>®</sup> **<u>Trust (the</u> <u>"</u><u>Trust</u><u>"</u><u>)</u>**

**<u>PROXY VOTING POLICY AND PROCEDURES</u>**

The Board of Trustees of the Trust has adopted the following policy and procedures with respect to voting proxies relating to portfolio securities held by the Trust's investment portfolios.

**1.** **Proxy Voting Policy** 

The policy of the Trust is to delegate the responsibility for voting proxies relating to portfolio securities held by the Trust to SSgA Funds Management, Inc., the Trust's investment adviser (the "Adviser"), subject to the Trustees' continuing oversight.

**2.** **Fiduciary Duty** 

The right to vote proxies with respect to portfolio securities held by the Trust is an asset of the Trust. The Adviser acts as a fiduciary of the Trust and must vote proxies in a manner consistent with the best interest of the Trust and its shareholders.

**3.** **Proxy Voting Procedures** 

&nbsp;&nbsp;&nbsp;&nbsp;A. At least annually, the Adviser shall present to the Board its policies, procedures and other guidelines for voting proxies ("Policy"). (See attached <u>Schedule A</u>) In addition, the Adviser shall notify the Trustees of material changes to its Policy promptly and no later than at the next regular meeting of the Board of Trustees after such amendment is implemented.

&nbsp;&nbsp;&nbsp;&nbsp;B. At least annually, the Adviser shall present to the Board its policy for managing the conflicts of interests that may arise through the Adviser's proxy voting activities. In addition, the Adviser shall report any Policy overrides involving portfolio securities held by the Trust to the Trustees at the next regular meeting of the Board of Trustees after such override(s) occur.

&nbsp;&nbsp;&nbsp;&nbsp;C. At least annually, the Adviser shall inform the Trustees that a record is available with respect to each proxy voted with respect to portfolio securities of the Trust during the year. Also see Section 5 below.

**4.** **Revocation of Authority to Vote** 

The delegation by the Trustees of the authority to vote proxies relating to portfolio securities of the Trust may be revoked by the Trustees, in whole or in part, at any time.

**5.** **Annual Filing of Proxy Voting Record** 

The Adviser shall provide the required data for each proxy voted with respect to portfolio securities of the Trust to the Trust or its designated service provider in a timely manner and in a format acceptable to be filed in the Trust's annual proxy voting report on Form N-PX for the twelve-month period ended June 30. Form N-PX is required to be filed not later than August 31 of each year.

**6.** **Retention and Oversight of Proxy Advisory Firms** 

&nbsp;&nbsp;&nbsp;&nbsp;A. In considering whether to retain or continue retaining a particular proxy advisory firm, the Adviser will ascertain whether the proxy advisory firm has the capacity and competency to adequately analyze proxy issues, act as proxy voting agent as requested, and implement the Policy. In this regard, the Adviser will consider, at least annually, among other things, the adequacy and quality of the proxy advisory firm's staffing and personnel and the robustness of its policies and procedures regarding its ability to identify and address any conflicts of interest. The Adviser shall, at least annually, report to the Board regarding the results of this review.

&nbsp;&nbsp;&nbsp;&nbsp;B. The Adviser will request quarterly and annual reporting from any proxy advisory firm retained by the Adviser, and hold ad hoc meetings with such proxy advisory firm, in order to determine whether there has been any business changes that might impact the proxy advisory firm's capacity or competency to provide proxy voting advice or services or changes to the proxy advisory firm's conflicts policies or procedures. The Adviser will also take reasonable steps to investigate any material factual error, notified to the Adviser by the proxy advisory firm or identified by the Adviser, made by the proxy advisory firm in providing proxy voting services.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**7.** **Periodic Sampling** 

The Adviser will periodically sample proxy votes to review whether they complied with the Policy. The Adviser shall, at least annually, report to the Board regarding the frequency and results of the sampling performed.

**8.** **Disclosures** 

&nbsp;&nbsp;&nbsp;&nbsp;A. The Trust shall include in its registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. A description of this policy and of the policies and procedures used by the Adviser to determine how to vote proxies relating to portfolio securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. A statement disclosing that information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available without charge, upon request, by calling the Trust's toll-free telephone number; or through a specified Internet address; or both; and on the Securities and Exchange Commission's (the "SEC") website.

&nbsp;&nbsp;&nbsp;&nbsp;B. The Trust shall include in its annual and semi-annual reports to shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. A statement disclosing that a description of the policies and procedures used by or on behalf of the Trust to determine how to vote proxies relating to portfolio securities of the Trust is available without charge, upon request, by calling the Trust's toll-free telephone number; through a specified Internet address, if applicable; and on the SEC's website; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. A statement disclosing that information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available without charge, upon request, by calling the Trust's toll-free telephone number; or through a specified Internet address; or both; and on the SEC's website.

**9.** **Review of Policy** 

The Trustees shall review this policy to determine its continued sufficiency as necessary from time to time.

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|:---|:---|
| Adopted: | May 1, 2006 |
| Amended: | May 12, 2009 |
| Amended: | November 9, 2010 |
| Amended: | February 9, 2016 |

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**APPENDIX B**

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| **December 2022** |
| &nbsp;&nbsp; **Global Proxy Voting and** <br> **Engagement Principles**<br>|
| &nbsp;&nbsp; State Street Global Advisors, one of the industry's <br> largest institutional asset managers, is the investment <br> management arm of State Street Corporation, a leading <br> provider of financial services to institutional investors. As <br> an investment manager, State Street Global Advisors <br> has discretionary proxy voting authority over most of its <br> client accounts, and State Street Global Advisors votes <br> these proxies in the manner that we believe will most <br> likely protect and promote the long-term economic value <br> of client investments, as described in this document.<sup>i</sup> <br>|

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i

These Global Proxy Voting and Engagement Principles (the "Principles") are also applicable to SSGA Funds Management, Inc., State Street Global Advisors Trust Company, and other advisory affiliates of State Street Corporation. Additionally, State Street Global Advisors maintains Proxy Voting and Engagement Guidelines for select markets, including: Australia, continental Europe, Japan, New Zealand, North America (Canada and the US), the UK and Ireland, and emerging markets. International markets not covered by our market-specific guidelines are reviewed and voted in a manner that is consistent with the Principles; however, State Street Global Advisors also endeavors to show sensitivity to local market practices when voting in these various markets.

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| **State Street Global** <br> **Advisors' Authority and** <br> **Duties to Vote Client and** <br> **Fund Securities**<br>| &nbsp;&nbsp; Where State Street Global Advisors' clients have asked it to vote their shares on their <br> behalf or where a commingled fund fiduciary has delegated the responsibility to vote the <br> fund's securities to State Street Global Advisors, State Street Global Advisors votes those <br> client and fund-owned securities in a unified manner, consistent with the Principles <br> described in this document. Exceptions to this unified voting policy are: (1) where State <br> Street Global Advisors has made proxy voting choices (i.e., the proxy voting program) <br> available to investors within a commingled fund, in which case a pro rata portion of shares <br> held by the fund attributable to investors who choose to participate in the proxy voting <br> program would be voted consistent with the third-party proxy voting policies selected by <br> the investors, and (2) in the limited circumstances where a pooled investment vehicle <br> managed by State Street Global Advisors utilizes a third party proxy voting guideline as set <br> forth in that fund's organizational and/or offering documents. With respect to such funds <br> utilizing third-party proxy voting guidelines, the terms of the applicable third-party proxy <br> voting guidelines shall apply in place of the Principles described herein and the proxy <br> votes implemented with respect to such a fund may differ from and be contrary to those <br> votes implemented for other portfolios managed by State Street Global Advisors pursuant <br> to its proprietary proxy voting guidelines.<br>|
| **The Principles - State** <br> **Street Global Advisors'** <br> **Approach to Proxy Voting** <br> **and Issuer Engagement**<br>| &nbsp;&nbsp; At State Street Global Advisors, we take our fiduciary duties as an asset manager very <br> seriously. We have a dedicated team of corporate governance professionals who help us <br> carry out our duties as a responsible investor. These duties include engaging with <br> companies, developing and enhancing in-house corporate governance guidelines, <br> analyzing corporate governance issues on a case-by-case basis at the company level, and <br> exercising voting rights. The underlying goal is to maximize shareholder value.<br>|
|  | &nbsp;&nbsp; The Principles may take different perspectives on common governance issues that vary <br> from one market to another. Similarly, engagement activity may take different forms in <br> order to best achieve long-term engagement goals. Rather than divesting from portfolio <br> companies, our approach is to engage with such companies. We believe that proxy voting <br> and engagement with portfolio companies is often the most direct and productive way for <br> shareholders to exercise their ownership rights. This comprehensive toolkit is an integral <br> part of the overall investment process.<br>|
|  | &nbsp;&nbsp; We believe engagement and voting activity have a direct relationship. As a result, the <br> integration of our engagement activities, while leveraging the exercise of voting rights, <br> provides a meaningful shareholder tool that we believe protects and enhances the <br> long-term economic value of the holdings in our clients' accounts. We maximize voting <br> power and engagement by maintaining a centralized proxy voting and active ownership <br> process covering all holdings, regardless of strategy. Despite the vast array of investment <br> strategies and objectives across State Street Global Advisors, the fiduciary responsibilities <br> of share ownership and voting for which State Street Global Advisors has voting discretion <br> are carried out with a single voice and objective.<br>|
|  | &nbsp;&nbsp; The Principles support governance structures that we believe add to, or maximize, <br> shareholder value for the companies held in our clients' portfolios. We conduct issuer <br> specific engagements with companies to discuss our principles, including sustainability-<br> related risks. In addition, we encourage issuers to find ways to increase the amount of <br> direct communication board members have with shareholders. Direct communication with <br> executive board members and independent non-executive directors is critical to helping <br> companies understand shareholder concerns.<br>|

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|  | &nbsp;&nbsp; In conducting our engagements, we also evaluate the various factors that influence the <br> corporate governance framework of a country, including the macroeconomic conditions <br> and broader political system, the quality of regulatory oversight, the enforcement of <br> property and shareholder rights, and the independence of the judiciary. We understand <br> that regulatory requirements and investor expectations relating to governance practices <br> and engagement activities differ from country to country. As a result, we engage with <br> issuers, regulators, or a combination of the two depending upon the market. We are also a <br> member of various investor associations that seek to address broader corporate <br> governance-related policy at the country level.<br>|
|  | &nbsp;&nbsp; The State Street Global Advisors Asset Stewardship Team may consult with members of <br> various investment teams to engage with companies on corporate governance issues and <br> to address any specific concerns. This facilitates our comprehensive approach to <br> information gathering as it relates to shareholder items that are to be voted upon at <br> upcoming shareholder meetings. We also conduct issuer-specific engagements with <br> companies, covering various corporate governance and sustainability-related topics <br> outside of proxy season.<br>|
|  | &nbsp;&nbsp; The Asset Stewardship Team employs a blend of quantitative and qualitative research, <br> analysis and data in order to support screens that identify issuers where active <br> engagement may be necessary to protect and promote shareholder value. Issuer <br> engagement may also be event driven, focusing on issuer-specific corporate governance, <br> sustainability concerns, or broader industry-related trends. We also consider the size of <br> our total position in the issuer in question and/or the potential negative governance, <br> performance profile, and circumstance at hand. As a result, we believe issuer engagement <br> can take many forms and be triggered by numerous circumstances. The following <br> approaches represent how we define engagement methods:<br>|
| Active | &nbsp;&nbsp; We use screening tools designed to capture a mix of company-specific data, including <br> governance and sustainability profiles, to help us focus our voting and engagement activity.<br>|
|  | &nbsp;&nbsp; We will actively seek direct dialogue with the board and management of companies that <br> we have identified through our screening processes. Such engagements may lead to <br> further monitoring to ensure that the company improves its governance or sustainability <br> practices. In these cases, the engagement process represents the most meaningful <br> opportunity for us to protect long-term shareholder value from excessive risk due to poor <br> governance and sustainability practices.<br>|
| Reactive | &nbsp;&nbsp; Reactive engagement is initiated by issuers. We routinely discuss specific voting issues <br> and items with the issuer community. Reactive engagement is an opportunity to address <br> not only voting items, but also a wide range of governance and sustainability issues.<br>|
|  | &nbsp;&nbsp; We have established an engagement protocol that further describes our approach to <br> issuer engagement.<br>|

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| Measurement | &nbsp;&nbsp; Assessing the effectiveness of our issuer engagement process is often difficult. In order to <br> limit the subjectivity of effectiveness measurement, we actively seek issuer feedback and <br> monitor the actions issuers take post-engagement in order to identify tangible changes. <br> Thus, we are able to establish indicators to gauge how issuers respond to our concerns <br> and to what degree these responses satisfy our requests. It is also important to note that <br> successful engagement activity can be measured over differing time periods depending <br> upon the relevant facts and circumstances. Engagements can last as briefly as a single <br> meeting or span multiple years.<br>|
|  | &nbsp;&nbsp; Depending upon the issue and whether the engagement activity is reactive, active, <br> one-time, or recurring, engagement with issuers can take the form of written <br> communication, conference calls, or in-person meetings. We believe active engagement is <br> best conducted directly with company management or board members.<br>|
| **Proxy Voting Procedure** |  |
| Oversight | &nbsp;&nbsp; The Asset Stewardship Team is responsible for developing and implementing State Street <br> Global Advisors' proprietary Proxy Voting and Engagement Guidelines (the "Guidelines"), <br> the implementation of third-party proxy voting guidelines where applicable, case-by-case <br> voting items, issuer engagement activities, and research and analysis of governance-<br> related issues. The Asset Stewardship Team's activities are overseen by the State Street <br> Global Advisors ESG Committee. The ESG Committee is responsible for reviewing State <br> Street Global Advisors' stewardship strategy, engagement priorities, and proxy voting <br> guidelines and monitoring the delivery of voting objectives.<br>|
| Proxy Voting Process | &nbsp;&nbsp; In order to facilitate our proxy voting process, we retain Institutional Shareholder Services <br> Inc. ("ISS"), a firm with expertise in proxy voting and corporate governance. We utilize ISS <br> to: (1) act as our proxy voting agent (providing State Street Global Advisors with vote <br> execution and administration services), (2) assist in applying the Guidelines, (3) provide <br> research and analysis relating to general corporate governance issues and specific proxy <br> items, and (4) provide proxy voting guidelines in limited circumstances.<br>|
|  | &nbsp;&nbsp; The Asset Stewardship Team reviews with ISS its Guidelines and the services that ISS <br> provides to State Street Global Advisors on an annual or case-by-case basis. As part of its <br> role as proxy agent and prior to providing vote execution services, ISS pre-populates on an <br> electronic platform certain preliminary proxy votes in accordance with the proxy voting <br> guidelines identified by State Street Global Advisors. On most routine proxy voting items <br> (e.g., ratification of auditors), ISS will shortly before applicable submission deadlines use <br> an automated process to affect the pre-populated proxy votes. To the extent the Asset <br> Stewardship Team becomes aware of material new information within a reasonable period <br> of time before ISS affects such votes, the Asset Stewardship Team will assess whether the <br> pre-populated votes should be updated.<br>|
|  | &nbsp;&nbsp; In other cases, the Asset Stewardship Team will evaluate the proxy solicitation to <br> determine how to vote based upon the facts and circumstances, consist with our Principles <br> and accompanying Guidelines.<br>|

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|  | &nbsp;&nbsp; In some instances, the Asset Stewardship Team may refer significant issues to the ESG <br> Committee for a determination of the proxy vote. In addition, in determining whether to <br> refer a proxy vote to the ESG Committee, the Asset Stewardship Team will consider <br> whether a material conflict of interest exists between the interests of our client and those <br> of State Street Global Advisors or its affiliates (as explained in greater detail in our Conflict <br> Mitigation Guidelines).<br>|
|  | &nbsp;&nbsp; We vote in all markets where it is feasible; however, we may refrain from voting when <br> power of attorney documentation is required, where voting will have a material impact on <br> our ability to trade the security, where voting is not permissible due to sanctions affecting a <br> company or an individual, where issuer-specific special documentation is required, or <br> where various market or issuer certifications are required. We are unable to vote proxies <br> when certain custodians, used by our clients, do not offer proxy voting in a jurisdiction or <br> when they charge a meeting specific fee in excess of the typical custody service <br> agreement.<br>|
| Conflict of Interest | See our standalone Conflict Mitigation Guidelines. |
| **Proxy Voting and** <br> **Engagement Principles**<br>|  |
| Directors and Boards | &nbsp;&nbsp; The election of directors is one of the most important fiduciary duties we perform on <br> behalf of our clients. We believe that well-governed companies can protect and pursue <br> shareholder interests better and withstand the challenges of an uncertain economic <br> environment. As such, we seek to vote director elections in a way that we believe will <br> maximize long-term value.<br>|
|  | &nbsp;&nbsp; Principally, a board acts on behalf of shareholders by protecting their interests and <br> preserving their rights. This concept establishes the standard by which board and director <br> performance is measured. In order to achieve this fundamental principle, the role of the <br> board is to carry out its responsibilities in the best long-term interest of the company and <br> its shareholders. An independent and effective board oversees management, provides <br> guidance on strategic matters, selects the CEO and other senior executives, creates a <br> succession plan for the board and management, provides risk oversight, and assesses the <br> performance of the CEO and management. In contrast, management implements the <br> business and capital allocation strategies and runs the company's day-to-day operations. <br> As part of our engagement process, we routinely discuss the importance of these <br> responsibilities with the boards of issuers.<br>|
|  | &nbsp;&nbsp; We believe the quality of a board is a measure of director independence, director <br> succession planning, board diversity, evaluations and refreshment, and company <br> governance practices. In voting to elect nominees, we consider many factors. We believe <br> independent directors are crucial to good corporate governance; they help management <br> establish sound corporate governance policies and practices. A sufficiently independent <br> board will effectively monitor management, maintain appropriate governance practices, <br> and perform oversight functions necessary to protect shareholder interests. We also <br> believe the right mix of skills, independence, diversity, and qualifications among directors <br> provides boards with the knowledge and direct experience to manage risks and operating <br> structures that are often complex and industry-specific.<br>|

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| Accounting and <br> Audit-Related Issues<br>| &nbsp;&nbsp; We believe audit committees are critical and necessary as part of the board's risk <br> oversight role. The audit committee is responsible for setting out an internal audit function <br> that provides robust audit and internal control systems designed to effectively manage <br> potential and emerging risks to the company's operations and strategy. We believe audit <br> committees should have independent directors as members, and we will hold the members <br> of the audit committee responsible for overseeing the management of the audit function.<br>|
|  | &nbsp;&nbsp; The disclosure and availability of reliable financial statements in a timely manner is <br> imperative for the investment process. As a result, board oversight of the internal controls <br> and the independence of the audit process are essential if investors are to rely upon <br> financial statements. It is important for the audit committee to appoint external auditors <br> who are independent from management; we expect auditors to provide assurance of a <br> company's financial condition.<br>|
| Capital Structure, <br> Reorganization and Mergers<br>| &nbsp;&nbsp; The ability to raise capital is critical for companies to carry out strategy, to grow, and to <br> achieve returns above their cost of capital. The approval of capital raising activities is <br> fundamental to a shareholder's ability to monitor the amounts of proceeds and to ensure <br> capital is deployed efficiently. Altering the capital structure of a company is a critical <br> decision for boards. When making such a decision, we believe the company should <br> disclose a comprehensive business rationale that is consistent with corporate strategy and <br> not overly dilutive to its shareholders.<br>|
|  | &nbsp;&nbsp; Mergers or reorganization of the structure of a company often involve proposals relating to <br> reincorporation, restructurings, liquidations, and other major changes to the corporation.<br>|
|  | &nbsp;&nbsp; Proposals that are in the best interests of shareholders, demonstrated by enhancing share <br> value or improving the effectiveness of the company's operations, will be supported. In <br> evaluating mergers and acquisitions, we consider the impact of the corporate governance <br> provisions to shareholders. In all cases, we use our discretion in order to maximize <br> shareholder value.<br>|
|  | &nbsp;&nbsp; Occasionally, companies add anti-takeover provisions that reduce the chances of a <br> potential acquirer to make an offer, or to reduce the likelihood of a successful offer. We do <br> not support proposals that reduce shareholders' rights, entrench management, or reduce <br> the likelihood of shareholders' right to vote on reasonable offers.<br>|
| Compensation | &nbsp;&nbsp; We consider it the board's responsibility to identify the appropriate level of executive <br> compensation. Despite the differences among the types of plans and the awards possible, <br> there is a simple underlying philosophy that guides our analysis of executive <br> compensation: we believe that there should be a direct relationship between executive <br> compensation and company performance over the long term.<br>|
|  | &nbsp;&nbsp; Shareholders should have the opportunity to assess whether pay structures and levels are <br> aligned with business performance. When assessing remuneration reports, we consider <br> factors such as adequate disclosure of various remuneration elements, absolute and <br> relative pay levels, peer selection and benchmarking, the mix of long-term and short-term <br> incentives, alignment of pay structures with shareholder interests, as well as with <br> corporate strategy and performance. We may oppose remuneration reports where pay <br> seems misaligned with shareholders' interests. We may also consider executive <br> compensation practices when re-electing members of the remuneration committee.<br>|

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|  | &nbsp;&nbsp; We recognize that compensation policies and practices are unique from market to market; <br> often there are significant differences between the level of disclosures, the amount and <br> forms of compensation paid, and the ability of shareholders to approve executive <br> compensation practices. As a result, our ability to assess the appropriateness of executive <br> compensation is often dependent on market practices and laws.<br>|
| Environmental and Social <br> Issues<br>| &nbsp;&nbsp; As a fiduciary, State Street Global Advisors takes a comprehensive approach to engaging <br> with our portfolio companies about material environmental and social (together, "sustain-<br> ability") issues. Our Asset Stewardship program prioritization process allows us to <br> proactively identify companies for engagement and voting in order to mitigate sustainability <br> risks in our portfolio. Through engagement, we address a broad range of topics relating to <br> the promotion of long-term shareholder value creation that are designed to build long-term <br> relationships with the issuers in which our clients invest. When voting, we fundamentally <br> consider whether the adoption of a shareholder proposal addressing a material sustain-<br> ability issue would promote long-term shareholder value in the context of the company's <br> existing practices and disclosures as well as existing market practice.<br>|
|  | &nbsp;&nbsp; For more information on our approach to environmental and social issues, please see our <br> Global Proxy Voting and Engagement Guidelines for Environmental and Social Issues and <br> our Frameworks for Voting Environmental and Social Shareholder Proposals, both <br> available at ssga.com/about-us/asset-stewardship.html.<br>|
| General/Routine | &nbsp;&nbsp; Although we do not seek involvement in the day-to-day operations of an organization, we <br> recognize the need for conscientious oversight and input into management decisions that <br> may affect a company's value. We support proposals that encourage economically <br> advantageous corporate practices and governance, while leaving decisions that are <br> deemed to be routine or constitute ordinary business to management and the board of <br> directors.<br>|
| Fixed Income Stewardship | The two elements of our fixed income stewardship program are: |
|  | **Proxy Voting:** |
|  | &nbsp;&nbsp; While matters that arise for a vote at bondholder meetings vary by jurisdiction, examples of <br> common proxy voting resolutions at bondholder meetings include:<br>|
|  | •Approving amendments to debt covenants and/or terms of issuance |
|  | •Authorizing procedural matters, such as filing of required documents/other formalities |
|  | •Approving debt restructuring plans |
|  | •Abstaining from challenging the bankruptcy trustees |
|  | •Authorizing repurchase of issued debt security |
|  | •Approving the placement of unissued debt securities under the control of directors |
|  | •Approving spin-off/absorption proposals |
|  | &nbsp;&nbsp; Given the nature of the items that arise for vote at bondholder meetings, we take a <br> case-by-case approach to voting bondholder resolutions. Where necessary, we will engage <br> with issuers on voting matters prior to arriving at voting decisions. All voting decisions will <br> be made in the best interest of our clients.<br>|

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|  | **Issuer Engagement:** |
|  | &nbsp;&nbsp; We recognize that debt holders have limited leverage with companies on a day-to-day <br> basis. Our guidelines for engagement with fixed income issuers broadly follow the <br> engagement guidelines for our equity holdings as described above.<br>|
| Securities on Loan | &nbsp;&nbsp; For funds in which we act as trustee, we may recall securities in instances where we <br> believe that a particular vote will have a material impact on the fund(s). Several factors <br> shape this process. First, we must receive notice of the vote in sufficient time to recall the <br> shares on or before the record date. In many cases, we do not receive timely notice, and <br> we are unable to recall the shares on or before the record date. Second, State Street <br> Global Advisors may exercise its discretion and recall shares if it believes that the benefit <br> of voting shares will outweigh the foregone lending income. This determination requires <br> State Street Global Advisors, with the information available at the time, to form judgments <br> about events or outcomes that are difficult to quantify. Given our expertise and vast <br> experience, we believe that the recall of securities will rarely provide an economic benefit <br> that outweighs the cost of the foregone lending income.<br>|
| Reporting | &nbsp;&nbsp; Any client who wishes to receive information on how its proxies were voted should contact <br> its State Street Global Advisors relationship manager.<br>|
| **About State Street Global** <br> **Advisors**<br>| &nbsp;&nbsp; For four decades, State Street Global Advisors has served the world's governments, <br> institutions and financial advisors. With a rigorous, risk-aware approach built on research, <br> analysis and market-tested experience, we build from a breadth of index and active <br> strategies to create cost-effective solutions. And, as pioneers in index, ETF, and ESG <br> investing, we are always inventing new ways to invest. As a result, we have become the <br> world's fourth-largest asset manager\* with US $3.26 trillion† under our care.<br>|

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\*

Pensions & Investments Research Center, as of December 31, 2021.

†

This figure is presented as of September 30, 2022 and includes approximately $55.12 billion USD of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated. Please note all AUM is unaudited.

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**ssga.com** 

**State Street Global Advisors Worldwide Entities** 

**Australia:** State Street Global Advisors, Australia, Limited (ABN 42 003 914 225) is the holder of an Australian Financial Services Licence (AFSL Number 238276). Registered Office: Level 17, 420 George Street, Sydney, NSW 2000, Australia. T: +612 9240 7600. F: +612 9240 7611. **Belgium:** State Street Global Advisors Belgium, Chausse de La

Hulpe 120, 1000 Brussels, Belgium. T: +32 2 663 2036, F: +32 2 672 2077. SSGA Belgium is a branch office of State Street Global Advisors Limited. State Street Global Advisors Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom. **Canada:** State Street Global Advisors, Ltd., 770 Sherbrooke Street West, Suite 1200 Montreal, Quebec, H3A 1G1, T: +514 282 2400 and 30 Adelaide Street East Suite 500, Toronto, Ontario M5C 3G6. T:

+647 775 5900. **Dubai:** State Street Bank and Trust Company (Representative Office), Boulevard Plaza 1, 17th Floor, Office 1703 Near Dubai Mall & Burj Khalifa, P.O Box 26838, Dubai, United Arab Emirates. T: +971 (0)4 4372800. F: +971 (0)4 4372818. **France:** State Street Global Advisors France. Authorised and regulated by the Autorité des Marchés Financiers. Registered with the Register of Commerce and Companies of Nanterre under the number: 412 052 680.

Registered Office: Immeuble Défense Plaza, 23-25 rue Delarivière-Lefoullon, 92064 Paris La Défense Cedex, France. T: +33 1 44 45 40 00. F: +33 1 44 45 41 92. **Germany:** State Street Global Advisors GmbH, Brienner Strasse 59, D-80333 Munich. T: +49 (0)89 55878 100. F: +49 (0)89 55878 440. **Hong Kong:** State Street Global Advisors Asia Limited, 68/F, Two International Finance Centre, 8 Finance Street, Central, Hong Kong. T: +852 2103 0288. F: +852 2103 0200. **Ireland:** State

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Street Global Advisors Ireland Limited is regulated by the Central Bank of Ireland. Incorporated and registered in Ireland at Two Park Place, Upper Hatch Street, Dublin 2. Registered Number: 145221. Member of the Irish Association of Investment Managers. T: +353 (0)1 776 3000. F: +353 (0)1 776 3300. **Italy:** State Street Global Advisors Limited, Milan Branch (Sede Secondaria di Milano) is a branch of State Street Global Advisors Limited, a company registered in the UK, authorised and regulated by the Financial Conduct Authority (FCA), with a capital of GBP 71'650'000.00, and whose registered office is at 20 Churchill Place, London E14 5HJ. State Street Global Advisors Limited, Milan Branch (Sede Secondaria di Milano), is registered in Italy with company

number 06353340968 - R.E.A. 1887090 and VAT number 06353340968 and whose office is at Via dei Bossi, 4 - 20121 Milano, Italy. T: 39 02 32066 100. F: 39 02 32066 155. **Japan:** State Street Global Advisors (Japan) Co., Ltd., 9-7-1 Akasaka, Minato-ku, Tokyo 107-6239. T: +813 4530 7380. Financial Instruments Business Operator, Kanto Local Financial Bureau (Kinsho #345). Japan Investment Advisers Association, Investment Trusts Association Japan, Japan Securities Dealers Association. **Netherlands:** State Street Global Advisors Netherlands, Adam Smith Building, Thomas Malthusstraat 1-3, 1066 JR Amsterdam, Netherlands. T: +31 (0)20 7181701. State Street Global Advisors Netherlands is a branch office of State Street Global

Advisors Limited. State Street Global Advisors Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Singapore: State Street Global Advisors Singapore Limited, 168, Robinson Road, #33-01 Capital Tower, Singapore 068912 (Company Registered Number: 200002719D). T: +65 6826 7500. F: +65 6826 7501. **Switzerland:** State Street Global Advisors AG, Beethovenstr. 19, CH-8027 Zurich. T: +41 (0)44 245 70 00. F: +41 (0)44 245 70 16. **United Kingdom:** State Street Global Advisors Limited. Authorised and regulated by the Financial Conduct Authority. Registered in England. Registered Number: 2509928. VAT Number: 5776591 81. Registered Office: 20 Churchill Place, Canary Wharf, London, E14 5HJ. T: +020 3395

&nbsp;&nbsp;&nbsp;&nbsp;

6000. F: +020 3395 6350. **United States:** State Street Global Advisors, One Lincoln Street, Boston, MA 02111-2900. T: +617 786 3000.

Investing involves risk including the risk of loss of principal.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without State Street Global Advisors' express written consent.© 2022 State Street Corporation.

All Rights Reserved.

ID1317003-3479888.5.1.GBL.RTL 1222

Exp. Date: 12/31/2023

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| **November 2022** |
| &nbsp;&nbsp; **Managing Conflicts of Interest** <br> **Arising From State Street** <br> **Global Advisors' Proxy** <br> **Voting and Engagement** <br> **Activity**<br>|
| &nbsp;&nbsp; State Street Corporation has a comprehensive <br> standalone Conflicts of Interest Policy and other policies <br> that address a range of identified conflicts of interests. <br> In addition, State Street Global Advisors, the asset <br> management business of State Street Corporation, <br> maintains a conflicts register that identifies key conflicts <br> and describes systems in place to mitigate the conflicts. <br> This document<sup>i</sup> is designed to act in conjunction with <br> related policies and practices employed by other groups <br> within the organization. Further, it complements those <br> policies and practices by providing information about <br> managing the conflicts of interests that may arise <br> through State Street Global Advisors' proxy voting and <br> engagement activities.<br>|

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i

These Managing Conflicts of Interest Arising From State Street Global Advisors' Proxy Voting and Engagement Activity Guidelines are also applicable to SSGA Funds Management, Inc. SSGA Funds Management, Inc. is an SEC-registered investment adviser. SSGA Funds Management, Inc., State Street Global Advisors Trust Company, and other advisory affiliates of State Street make up State Street Global Advisors, the investment management arm of State Street Corporation.

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| **Managing Conflicts of** <br> **Interest Related to Proxy** <br> **Voting and Engagement**<br>| &nbsp;&nbsp; State Street Global Advisors has implemented processes designed to prevent undue <br> influence on State Street Global Advisors' voting and engagement activities that may arise <br> from relationships between proxy issuers or companies and State Street Corporation, <br> State Street Global Advisors, State Street Global Advisors affiliates, State Street Global <br> Advisors Funds or State Street Global Advisors Fund affiliates.<br>|
|  | &nbsp;&nbsp; State Street Global Advisors assigns sole responsibility for the implementation of proxy <br> voting guidelines to members of its Asset Stewardship Team, a team that is independent <br> from other functions within the organization, such as sales and marketing, investment, or <br> client facing teams. Proxy voting is undertaken in accordance with the Proxy Voting <br> Guidelines, which are reviewed and overseen by our internal governance body, State <br> Street Global Advisors' ESG Committee (the "ESG Committee"). Any changes to the <br> guidelines are communicated to Asset Stewardship employees in a timely manner to <br> ensure that they understand the potential impact to their proxy voting activities. In rare <br> circumstances where nuances within specific resolutions fall outside of the scope of <br> existing voting guidelines, requiring case-by-case analysis, such resolutions are escalated <br> to the head of Asset Stewardship and reported to the ESG Committee. Voting consistently <br> with guidelines helps mitigate potential conflicts of interest, as the guidelines are <br> determined without reference to any specific entities or relationships.<br>|
|  | &nbsp;&nbsp; Members of the Asset Stewardship Team may from time to time discuss views on proxy <br> voting matters, company performance, strategy, etc. with other State Street Corporation or <br> State Street Global Advisors employees, including portfolio managers, senior executives, <br> and relationship managers. However, final voting decisions are made solely by the Asset <br> Stewardship Team, in accordance with the Proxy Voting Guidelines and in a manner <br> consistent with the best interest of its clients, taking into account various perspectives on <br> risks and opportunities with the goal of maximizing the value of client assets. Furthermore, <br> Asset Stewardship employees are prohibited from disclosing voting decisions prior to the <br> meetings. In addition, State Street Global Advisors generally exercises a singular vote <br> decision for each ballot item regardless of investment strategy.<sup>ii</sup> In certain cases, where a <br> material conflict of interest is identified, the matter may be referred to the ESG Committee, <br> for review.<br>|

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ii

State Street Global Advisors believes such an approach is generally in our clients' best interest as our proxy voting principles are focused on enhancing long-term shareholder value and a unified voting approach maximizes our clients' voice and promotes firm-wide integration and sharing of insights between teams to the benefit of clients. In limited circumstances, certain pooled investment vehicles for which State Street Global Advisors acts as investment manager may, pursuant to their governing documents, utilize proxy voting guidelines developed by third-party advisors.

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Other protocols designed to help mitigate potential conflicts of interest include:

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| | | |
|:---|:---|:---|
| **Types of Potential Conflict** | **Stewardship Conflict of Interest Description** | &nbsp;&nbsp; **Typical Conflict Mitigation** <br> **Protocols That We Employ**<br>|
| Business Relationships | &nbsp;&nbsp; A conflict of interest may arise where, for example, we hold <br> investments in companies with which we, or our affiliates, <br> have material business relationships.<br>| &nbsp;&nbsp; Assigning sole responsibility <br> for the implementation of <br> proxy voting guidelines to <br> members of Asset <br> Stewardship Team and <br> voting in accordance with <br> the Proxy Voting Guidelines <br> are our primary conflict <br> mitigation protocols. <br> Furthermore, the voting <br> rationale is recorded to <br> provide transparency.<br>|
|  |  | &nbsp;&nbsp; Additional mitigation steps <br> may be implemented on a <br> case-by-case basis. This <br> may include, for example, <br> blackout periods for <br> communications with <br> issuers/clients.<br>|
| Equity Investments | &nbsp;&nbsp; A conflict of interest may arise where client accounts <br> and/or State Street Global Advisors pooled funds, where <br> State Street Global Advisors acts as trustee, may hold <br> shares in State Street Corporation or other State Street <br> Global Advisors affiliated entities, such as mutual funds <br> affiliated with State Street Global Advisors Funds <br> Management, Inc.<br>| &nbsp;&nbsp; Mitigants may include, for <br> example, outsourcing voting <br> decisions relating to a <br> shareholder meeting of <br> State Street Corporation or <br> other State Street Global <br> Advisors affiliated entities to <br> independent outside third <br> parties. In such cases, <br> delegated third parties <br> exercise vote decisions <br> based upon State Street <br> Global Advisors' Proxy <br> Voting and Engagement <br> Guidelines.<br>|

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|:---|:---|:---|
| Outside Business Interest | &nbsp;&nbsp; A conflict of interest may arise where an Asset <br> Stewardship employee or a key employee in the firm has <br> an outside business interest (such as a director role in a <br> company we invest in, or in the same industry as we <br> invest).<br>| &nbsp;&nbsp; State Street Global Advisors <br> maintains an Outside <br> Activities Policy and <br> employees must submit a <br> request requiring approval <br> before undertaking any <br> outside activities that are <br> captured by the Outside <br> Activities Policy. The request <br> will be reviewed by the <br> employee's manager and <br> the Conduct Risk <br> Management Office to <br> ensure compliance with <br> applicable policies and <br> procedures (such as the <br> Global Anti-Corruption <br> Policy and the Standard of <br> Conduct) and ensure <br> potential conflicts are <br> mitigated.<br>|
|  |  | &nbsp;&nbsp; Additional mitigation steps <br> may be implemented on a <br> case-by-case basis. This <br> may include, for example, <br> retaining an independent <br> fiduciary to make a voting <br> decision where we believe <br> we may be conflicted from <br> voting due to an outside <br> business interest.<br>|
| Other Personal Conflicts | &nbsp;&nbsp; A conflict of interest may arise where a family member or <br> other personal contact of an employee is employed by a <br> company in which we invest.<br>| &nbsp;&nbsp; Mitigation steps may be <br> implemented for personal <br> conflicts on a case-by-case <br> basis. This may include, for <br> example, filing a Personal <br> Conflicts declaration with a <br> mitigation strategy to <br> document how the conflict <br> will be avoided. Such <br> strategies may include, for <br> example, a member of the <br> Asset Stewardship Team <br> with a conflict recusing <br> him/herself from voting and <br> participating in engagement <br> activities at the relevant <br> company, and implementing <br> blackout periods for <br> communications with <br> issuers/clients.<br>|

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| Securities Lending | &nbsp;&nbsp; We may lend securities that we hold in one of our portfolios <br> to another financial counterparty. This may create a conflict <br> of interest when deciding whether to recall those securities <br> to enable us to vote in a shareholder resolution, which may <br> impact the intended securities lending income.<br>| &nbsp;&nbsp; Our approach to securities <br> lending, and any potential <br> conflicts that may be <br> created through our <br> securities lending activity, is <br> governed by the Proxy <br> Voting/Securities Lending <br> Recall Procedure, which is <br> owned by the Asset <br> Stewardship Team and <br> Proxy Operations Group. <br> The conflict mitigation <br> protocols include periodical <br> review of the procedure by <br> relevant stakeholders, <br> designating Asset <br> Stewardship Team to make <br> the final decision whether or <br> not to recall shares, and <br> escalation of any overrides <br> to the procedure.<br>|

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|:---|:---|
| **About State Street Global** <br> **Advisors**<br>| &nbsp;&nbsp; For four decades, State Street Global Advisors has served the world's governments, <br> institutions and financial advisors. With a rigorous, risk-aware approach built on research, <br> analysis and market-tested experience, we build from a breadth of index and active <br> strategies to create cost-effective solutions. As stewards, we help portfolio companies see <br> that what is fair for people and sustainable for the planet can deliver long-term <br> performance. And, as pioneers in index, ETF, and ESG investing, we are always inventing <br> new ways to invest. As a result, we have become the world's fourth-largest asset manager\* <br> with US $3.26 trillion† under our care.<br>|

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\*

Pensions & Investments Research Center, as of December 31, 2021.

†

This figure is presented as of September 30, 2022 and includes approximately $55.12 billion USD of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated. Please note all AUM is unaudited.

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**ssga.com**

**Marketing Communication**

**State Street Global Advisors Worldwide Entities**

**Abu Dhabi**: State Street Global Advisors Limited, ADGM Branch, Al Khatem Tower, Suite 42801, Level 28, ADGM Square, Al Maryah Island, P.O Box 76404,

Abu Dhabi, United Arab Emirates. Regulated by the ADGM Financial Services Regulatory Authority. T: +971 2 245 9000. **Australia**: State Street Global Advisors, Australia, Limited (ABN 42 003 914 225) is the holder of an Australian Financial Services License (AFSL Number 238276). Registered office: Level 14, 420 George Street, Sydney, NSW 2000,

Australia. T: +612 9240-7600. F: +612 9240-7611. **Belgium**: State Street Global Advisors Belgium, Chaussée de La Hulpe 185, 1170 Brussels, Belgium. T: +32 2 663 2036. State Street Global Advisors Belgium is a branch office of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorised and

regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. **Canada**: State Street Global Advisors, Ltd., 1981 McGill College Avenue, Suite 500, Montreal, Qc, H3A 3A8, T: +514 282 2400 and 30 Adelaide Street East Suite 800, Toronto, Ontario M5C 3G6. T: +647 775 5900. **France**: State Street Global

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Advisors Europe Limited, France Branch ("State Street Global Advisors France") is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorised and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. State Street Global Advisors France is registered in France with company number RCS Nanterre 899 183 289, and its office is located at Coeur Défense — Tour A — La Défense 4, 33e étage, 100, Esplanade du Général de Gaulle, 92 931 Paris La Défense Cedex, France. T: +33 1 44 45 40 00. F: +33 1 44 45 41 92. **Germany**: State Street Global Advisors Europe Limited, Branch in Germany, Brienner Strasse 59, D-80333 Munich, Germany ("State Street Global Advisors Germany"). T: +49 (0)89 55878 400. State Street Global Advisors Germany is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934,

authorised and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. **Hong Kong**: State Street Global Advisors Asia Limited, 68/F, Two International Finance Centre, 8 Finance Street, Central, Hong Kong. T: +852 2103-0288. F: +852 2103-0200. **Ireland**: State Street Global Advisors Europe Limited is regulated by the Central Bank of Ireland. Registered office address 78 Sir John Rogerson's Quay, Dublin 2. Registered Number: 49934. T: +353 (0)1 776 3000. F: +353 (0)1 776 3300. **Italy**: State Street Global Advisors Europe Limited, Italy Branch ("State Street Global Advisors Italy") is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorised and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. State Street Global Advisors Italy is registered in Italy with company number 11871450968 — REA: 2628603

and VAT number 11871450968, and its office is located at Via Ferrante Aporti, 10 -20125 Milan, Italy. T: +39 02 32066 100. F: +39 02 32066 155. **Japan**: State Street Global Advisors (Japan) Co., Ltd., Toranomon Hills Mori Tower 25F 1-23-1 Toranomon, Minato-ku, Tokyo 105-6325 Japan. T: +81-3-4530-7380. Financial Instruments Business Operator, Kanto Local Financial Bureau (Kinsho #345), Membership: Japan Investment Advisers Association, The Investment Trust Association, Japan, Japan Securities Dealers' Association. **Netherlands**: State Street Global Advisors Netherlands, Apollo Building 7th floor, Herikerbergweg 29, 1101 CN Amsterdam, Netherlands. T: +31 20 7181 000. State Street Global Advisors Netherlands is a branch office of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorised and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay,

Dublin 2. **Singapore**: State Street Global Advisors Singapore Limited, 168, Robinson Road, #33-01 Capital Tower, Singapore 068912 (Company Reg. No: 200002719D, regulated by the Monetary Authority of Singapore). T: +65 6826-7555. F: +65 6826-7501. **Switzerland**: State Street Global Advisors AG, Beethovenstr. 19, CH-8027 Zurich. Registered with the Register of Commerce Zurich CHE-105.078.458. T: +41 (0)44 245 70 00. F: +41 (0)44 245 70 16. **United Kingdom**: State Street Global Advisors Limited. Authorised and regulated by the Financial Conduct Authority. Registered in England. Registered No. 2509928. VAT No. 5776591 81. Registered office: 20 Churchill Place, Canary Wharf, London, E14 5HJ. T: 020 3395 6000. F: 020 3395 6350. **United States**: State Street Global Advisors, 1 Iron Street, Boston, MA 02210-1641. T: +1 617 786 3000.

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**Important Risk Information**

Investing involves risk including the risk of loss of principal.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA's express written consent.

All information is from SSGA unless otherwise noted and has been obtained from sources

believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to

sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.

**The information contained in this communication is not a research recommendation or 'investment research' and is classified as a 'Marketing Communication' in accordance with the Markets in Financial** 

**Instruments Directive (2014/65/ EU) or applicable Swiss regulation. This means that this marketing communication**

**(a)** **has not been prepared in accordance with legal requirements designed to promote the independence of investment research**

**(b)** **is not subject to any prohibition on dealing** 

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**ahead of the dissemination of investment research.**

This communication is directed at professional clients (this includes eligible counterparties as defined by the appropriate the EU regulator) who are deemed both knowledgeable and experienced in matters relating to investments. The products and services to which this communication relates

are only available to such persons and persons of any other description (including retail clients) should not rely on this communication.

The returns on a portfolio of securities which exclude companies that do not meet the portfolio's specified ESG criteria may trail the returns on a portfolio of securities which include such companies. A portfolio's ESG

criteria may result in the portfolio investing in industry sectors or securities which underperform the market as a whole.© 2022 State Street Corporation.

All Rights Reserved.

ID1282151-3479898.3.1.GBL.RTL 1122 Exp. Date: 11/30/2023

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| **March 2022** |
| &nbsp;&nbsp; **Global Proxy Voting and** <br> **Engagement Guidelines for** <br> **Environmental and Social** <br> **Issues**<br>|

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| **Overview** | &nbsp;&nbsp; Our primary fiduciary obligation to our clients is to maximize the long-term returns of their <br> investments. It is our view that material environmental and social (sustainability) issues can <br> present risks and/or opportunities that impact long-term value creation. This philosophy <br> provides the foundation for our value-based approach to Asset Stewardship.<br>|
|  | &nbsp;&nbsp; We use our voice and our vote through engagement, proxy voting, and thought leadership <br> in order to communicate with issuers and educate market participants about our <br> perspective on important sustainability topics.<br>|
|  | &nbsp;&nbsp; Our stewardship efforts are rooted in the three pillars of ESG and their intersections. We <br> regularly identify E, S, and G focus areas that guide our proxy voting and engagement <br> efforts. Within these focus areas, we elevate outcome-oriented stewardship priorities each <br> year based on factors including client demand, stakeholder interest, market trends, <br> financial materiality, and portfolio impact.<br>|
|  | &nbsp;&nbsp; In limited circumstances, State Street Global Advisors may act as investment manager to <br> pooled investment vehicles that, pursuant to their governing documents, utilize guidelines <br> developed by a third-party advisor. With respect to such funds utilizing third-party <br> guidelines, the voting practices described in the applicable third-party guidelines will apply <br> in place of the voting practices described herein.<br>|
| **Our Approach to** <br> **Assessing Materiality and** <br> **Relevance of Sustain-**<br> **ability Issues**<br>| &nbsp;&nbsp; While we believe that sustainability-related factors can expose potential investment risks <br> as well as drive long-term value creation, the materiality of specific sustainability issues <br> varies from industry to industry and company by company. With this in mind, we leverage <br> several distinct frameworks as well as additional resources to inform our views on the <br> materiality of a sustainability issue at a given company, including:<br>|
|  | •The Sustainability Accounting Standards Board's (SASB) Industry Standards |
|  | •The Task Force on Climate-related Financial Disclosures (TCFD) Framework |
|  | •Disclosure expectations in a company's given regulatory environment |
|  | •Market expectations for the sector and industry |
|  | &nbsp;&nbsp; •Other existing third party frameworks, such as the CDP (formally the Carbon <br> Disclosure Project) or the Global Reporting Initiative<br>|
|  | •Our proprietary R-Factor<sup>TM1</sup> score |
|  | &nbsp;&nbsp; We expect companies to disclose information regarding their approach to identifying <br> material sustainability-related risks and the management policies and practices in place to <br> address such issues. We support efforts by companies to demonstrate the ways in which <br> sustainability is incorporated into operations, business activities, and most importantly, <br> long-term business strategy.<br>|

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State Street Global Advisors' proprietary scoring model, which aligns with SASB's Sustainability Accounting Standards, and measures the performance of a company's business operations and governance as it relates to financially material ESG factors facing the company's industry.

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|:---|:---|
| **Our Approach to Sustain-**<br> **ability Through** <br> **Engagements**<br>| &nbsp;&nbsp; Our Asset Stewardship program prioritization process allows us to proactively identify <br> companies for engagement and voting in order to mitigate sustainability risks in our <br> portfolio. Our approach is driven by:<br>|
|  | **1.Proprietary Screens** |
|  | &nbsp;&nbsp; We have developed proprietary in-house sustainability screens to help identify companies <br> for proactive engagement. These screens leverage our proprietary R-Factor<sup>TM</sup> score to <br> identify sector and industry outliers for engagement and voting on sustainability issues.<br>|
|  | **2.Thematic Prioritization** |
|  | &nbsp;&nbsp; As part of our annual stewardship planning process we identify thematic sustainability <br> priorities that will be addressed during most engagement meetings. We develop our <br> priorities based upon several factors, including client feedback, emerging sustainability <br> trends, developing macroeconomic conditions, and evolving regulations. These <br> engagements not only inform our voting decisions but also allow us to monitor <br> improvement over time and to contribute to our evolving perspectives on priority areas.<br>|
|  | &nbsp;&nbsp; During the 'voting season,' we prioritize conversations with companies that have triggered <br> our E&S director voting policies or have received an E&S shareholder proposal on their <br> proxy. In the 'off-season,' we discuss our thematic focus areas and stewardship priorities <br> with companies for which these topics are most material.<br>|
|  | &nbsp;&nbsp; Through engagement, we address a broad range of topics that align with our thematic <br> priorities and seek to build long-term relationships with issuers. We view engagements as <br> part of an ongoing dialogue, versus a series of one-off conversations. During <br> conversations with issuers, we share expectations and perspectives on of key dimensions <br> of E&S, and seek to understand how companies and their boards manage and oversee <br> related risks.<br>|
|  | &nbsp;&nbsp; We also pursue proactive, targeted engagement campaigns with companies for which our <br> focus areas are most material, and/or where improvement is most needed. Through these <br> campaigns, we might make specific asks of companies and measure their progress <br> against our expectations. If we feel a company is making insufficient progress on effective <br> E&S risk management, we will consider taking voting action through relevant shareholder <br> proposals or by targeting directors responsible for oversight.<br>|
| **Analyzing Sustainability** <br> **Proposals**<br>| &nbsp;&nbsp; We take a case-by-case approach to analyzing shareholder proposals related to sustain-<br> ability topics and consider the following factors:<br>|
|  | &nbsp;&nbsp; •The materiality of the sustainability topic in the proposal to the company's business <br> and sector (see "Our Approach to Assessing Materiality and Relevance of Sustain-<br> ability Issues" above)<br>|
|  | •The content and intent of the proposal |
|  | &nbsp;&nbsp; •Whether the adoption of such a proposal would promote long-term shareholder value <br> in the context of the company's disclosure and practices<br>|
|  | •The strength of board oversight of the company's relevant sustainability practices |
|  | •Quality of public disclosures on the topic |

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|  | •Quality of engagement and responsiveness to our feedback |
|  | •Binding nature of proposal or prescriptiveness of proposal |
|  | &nbsp;&nbsp; We also leverage frameworks to analyze certain E&S shareholder proposals. These <br> frameworks, which are not considered formal voting guidelines, can be found on our <br> website.<br>|
| **Vote Options for Sustain-**<br> **ability Proposals**<br>| &nbsp;&nbsp; •For (support for proposal) if the issue is material and the company has poor disclosure <br> and/or practices relative to our expectations<br>|
|  | &nbsp;&nbsp; •Abstain (some reservations) if the issue is material and the company's disclosure <br> and/or practices could be improved relative to our expectations.<br>|
|  | &nbsp;&nbsp; •Against (no support for proposal) if the issue is non-material and/or the company's <br> disclosure and/or practices meet our expectations.<br>|
| **About State Street Global** <br> **Advisors**<br>| &nbsp;&nbsp; For four decades, State Street Global Advisors has served the world's governments, <br> institutions and financial advisors. With a rigorous, risk-aware approach built on research, <br> analysis and market-tested experience, we build from a breadth of active and index <br> strategies to create cost-effective solutions. As stewards, we help portfolio companies see <br> that what is fair for people and sustainable for the planet can deliver long-term <br> performance. And, as pioneers in index, ETF, and ESG investing, we are always inventing <br> new ways to invest. As a result, we have become the world's fourth-largest asset manager\* <br> with US $4.14 trillion† under our care.<br>|

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\*

Pensions & Investments Research Center, as of December 31, 2020.

†

This figure is presented as of December 31, 2021 and includes approximately $61.43 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

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**ssga.com**

**State Street Global Advisors Worldwide Entities** 

**Abu Dhabi:** State Street Global Advisors Limited, ADGM Branch, Al Khatem Tower, Suite 42801, Level 28, ADGM Square, Al Maryah Island, P.O Box 76404, Abu Dhabi, United Arab Emirates. Regulated by the ADGM Financial Services Regulatory Authority. T: +971 2 245 9000. **Australia:** State Street Global Advisors, Australia, Limited (ABN 42 003 914 225) is the holder of an Australian Financial Services License (AFSL Number 238276). Registered office: Level 14, 420 George Street, Sydney, NSW 2000, Australia. T: +612 9240-

&nbsp;&nbsp;&nbsp;&nbsp;7600. F: +612 9240-7611. **Belgium:** State Street Global Advisors Belgium, Chaussée de La Hulpe 185, 1170 Brussels, Belgium. T: +32 2 663 2036. State Street Global Advisors Belgium is a branch office of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorized and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. **Canada:** State Street Global Advisors, Ltd., 1981 McGill College Avenue, Suite 500, Montreal, Qc, H3A 3A8, T: +514 282 2400 and 30 Adelaide Street East Suite 800, Toronto, Ontario M5C 3G6. T: +647 775 5900. **France:** State Street Global

Advisors Europe Limited, France Branch ("State Street Global Advisors France") is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorized and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. State Street Global Advisors France is registered in France with company number RCS Nanterre 899 183 289, and its office is located at Coeur Défense — Tour A — La Défense 4, 33e étage, 100, Esplanade du Général de Gaulle, 92 932 Paris La Défense Cedex, France. T: +33 1 44 45 40 00. F: +33 1 44 45 41 92. **Germany:** State Street Global

Advisors Europe Limited, Branch in Germany, Brienner Strasse 59, D-80333 Munich, Germany ("State Street Global Advisors Germany"). T: +49 (0)89 55878 400. State Street Global Advisors Germany is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorized and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. **Hong Kong:** State Street Global Advisors Asia Limited, 68/F, Two International Finance Centre, 8 Finance Street, Central, Hong Kong. T: +852 2103-0288. F: +852 2103-0200. **Ireland:** State Street Global Advisors Europe

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Limited is regulated by the Central Bank of Ireland. Registered office address 78 Sir John Rogerson's Quay, Dublin 2. Registered Number: 49934. T: +353 (0)1 776 3000. F: +353 (0)1 776 3300. **Italy:** State Street Global Advisors Europe Limited, Italy Branch ("State Street Global Advisors Italy") is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorized and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. State Street Global Advisors Italy is registered in Italy with company number 11871450968 — REA: 2628603 and VAT number 11871450968, and its office is located at Via Ferrante Aporti, 10 - 20125 Milan,

Italy. T: +39 02 32066 100. F: +39 02 32066 155. **Japan:** State Street Global Advisors (Japan) Co., Ltd., Toranomon Hills Mori Tower 25F 1-23-1 Toranomon, Minato-ku, Tokyo 105-6325 Japan. T: +81-3-4530-7380. Financial Instruments Business Operator, Kanto Local Financial Bureau (Kinsho #345), Membership: Japan Investment Advisers Association, The Investment Trust Association, Japan, Japan Securities Dealers' Association. **Netherlands:** State Street Global Advisors Netherlands, Apollo Building 7th floor, Herikerbergweg 29, 1101 CN Amsterdam, Netherlands. T: +31 20 7181 000. State Street Global Advisors Netherlands is a branch office of State Street Global Advisors Europe Limited, registered in

Ireland with company number 49934, authorized and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. **Singapore:** State Street Global Advisors Singapore Limited, 168, Robinson Road, #33-01 Capital Tower, Singapore 068912 (Company Reg. No: 200002719D, regulated by the Monetary Authority of Singapore). T: +65 6826-7555. F: +65 6826-7501. **Switzerland:** State Street Global Advisors AG, Beethovenstr. 19, CH-8027 Zurich. Registered with the Register of Commerce Zurich CHE-105.078.458. T: +41 (0)44 245 70 00. F: +41 (0)44 245 70 16. **United Kingdom:** State Street Global Advisors Limited. Authorized and regulated by the Financial Conduct Authority.

Registered in England. Registered No. 2509928. VAT No. 5776591 81. Registered office: 20 Churchill Place, Canary Wharf, London, E14 5HJ. T: 020 3395 6000. F: 020 3395 6350. **United States:** State Street Global Advisors, 1 Iron Street, Boston, MA 02210-1641. T: +1 617 786 3000.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without State Street Global Advisors' express written consent.© 2022 State Street Corporation.

All Rights Reserved.

ID949700-3479887.3.1.GBL.RTL 0322

Exp. Date: 03/31/2023

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| **March 2022** |
| Australia and New Zealand |
| &nbsp;&nbsp; **Proxy Voting and** <br> **Engagement Guidelines**<br>|
| &nbsp;&nbsp; State Street Global Advisors' Australia and New Zealand <br> Proxy Voting and Engagement Guidelines<sup>i</sup> outline our <br> expectations of companies listed on stock exchanges in <br> Australia and New Zealand. These Guidelines <br> complement and should be read in conjunction with <br> State Street Global Advisors' Global Proxy Voting and <br> Engagement Principles, which provide a detailed <br> explanation of our approach to voting and engaging with <br> companies, and State Street Global Advisors' Conflict <br> Mitigation Guidelines.<br>|

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i

These Proxy Voting and Engagement Guidelines are also applicable to SSGA Funds Management, Inc. SSGA Funds Management, Inc. is an SEC-registered investment adviser. SSGA Funds Management, Inc., State Street Global Advisors Trust Company, and other advisory affiliates of State Street make up State Street Global Advisors, the investment management arm of State Street Corporation.

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|  | &nbsp;&nbsp; State Street Global Advisors' Australia and New Zealand Proxy Voting and Engagement <br> Guidelines address areas including board structure, audit related issues, capital structure, <br> remuneration, environmental, social, and other governance related issues.<br>|
|  | &nbsp;&nbsp; When voting and engaging with companies in global markets, we consider market specific <br> nuances in the manner that we believe will best protect and promote the long-term <br> economic value of client investments. We expect companies to observe the relevant laws <br> and regulations of their respective markets as well as country specific best practice <br> guidelines, and corporate governance codes. We may hold companies in such markets to <br> our global standards when we feel that a country's regulatory requirements do not address <br> some of the key philosophical principles that we believe are fundamental to our global <br> voting guidelines.<br>|
|  | &nbsp;&nbsp; In our analysis and research into corporate governance issues in Australia and New <br> Zealand, we expect all companies at a minimum to comply with the ASX Corporate <br> Governance Principles and proactively monitor companies' adherence to the principles. <br> Consistent with the 'comply or explain' expectations established by the Principles, we <br> encourage companies to proactively disclose their level of compliance with the Principles. <br> In instances of non-compliance when companies cannot explain the nuances of their <br> governance structure effectively, either publicly or through engagement, we may vote <br> against the independent board leader.<br>|
| **State Street Global** <br> **Advisors' Proxy Voting** <br> **and Engagement** <br> **Philosophy**<br>| &nbsp;&nbsp; In our view, corporate governance and sustainability issues are an integral part of the <br> investment process. The Asset Stewardship Team consists of investment professionals <br> with expertise in corporate governance and company law, remuneration, accounting, and <br> environmental and social issues. We have established robust corporate governance <br> principles and practices that are backed with extensive analytical expertise in order to <br> understand the complexities of the corporate governance landscape. We engage with <br> companies to provide insight on the principles and practices that drive our voting decisions. <br> We also conduct proactive engagement to address significant shareholder concerns and <br> environmental, social and governance ("ESG") issues in a manner consistent with <br> maximizing shareholder value.<br>|
|  | &nbsp;&nbsp; The team works alongside members of State Street Global Advisors' Active Fundamental <br> and Asia-Pacific ("APAC") investment teams, collaborating on issuer engagement and <br> providing input on company specific fundamentals. We are also a member of various <br> investor associations that seek to address broader corporate governance related policy <br> issues in the region.<br>|
|  | &nbsp;&nbsp; State Street Global Advisors is a signatory to the United Nations Principles of Responsible <br> Investment ("UNPRI"). We are committed to sustainable investing and are working to <br> further integrate ESG principles into investment and corporate governance practices where <br> applicable and consistent with our fiduciary duty.<br>|

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| **Directors and Boards** | &nbsp;&nbsp; Principally we believe the primary responsibility of the board of directors is to preserve and <br> enhance shareholder value and protect shareholder interests. In order to carry out their <br> primary responsibilities, directors have to undertake activities that range from setting <br> strategy and overseeing executive management to monitoring the risks that arise from a <br> company's business, including risks related to sustainability issues. Further, good <br> corporate governance necessitates the existence of effective internal controls and risk <br> management systems, which should be governed by the board.<br>|
|  | &nbsp;&nbsp; State Street Global Advisors believes that a well constituted board of directors with a good <br> balance of skills, expertise, and independence provides the foundations for a well <br> governed company. We view board quality as a measure of director independence, director <br> succession planning, board diversity, evaluations and refreshment, and company <br> governance practices. We vote for the (re-)election of directors on a case-by-case basis <br> after considering various factors including board quality, general market practice, and <br> availability of information on director skills and expertise.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br> In our analysis of boards, we consider whether board members have adequate skills to <br> provide effective oversight of corporate strategy, operations, and risks, including <br> environmental and social issues. Boards should also have a regular evaluation process in <br> place to assess the effectiveness of the board and the skills of board members to address <br> issues, such as emerging risks, changes to corporate strategy, and diversification of <br> operations and geographic footprint.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> We may also consider board performance and directors who appear to be remiss in the <br> performance of their oversight responsibilities when analyzing their suitability for <br> reappointment (e.g. fraud, criminal wrongdoing and breach of fiduciary responsibilities).<br>|
|  | **Board Independence** |
|  | &nbsp;&nbsp; In principle, we believe independent directors are crucial to corporate governance and help <br> management establish sound ESG policies and practices. A sufficiently independent board <br> will most effectively monitor management and perform oversight functions necessary to <br> protect shareholder interests. We expect boards of ASX 300 and New Zealand listed <br> companies to be comprised of at least a majority of independent directors. At all other <br> Australian listed companies, we expect boards to be comprised of at least one-third <br> independent directors.<br>|
|  | &nbsp;&nbsp; Our broad criteria for director independence in Australia and New Zealand include factors <br> such as:<br>|
|  | &nbsp;&nbsp; •Participation in related-party transactions and other business relations with the <br> company<br>|
|  | •Employment history with company |
|  | •Relations with controlling shareholders |
|  | Family ties with any of the company's advisers, directors, or senior employees |

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| &nbsp;&nbsp; While we are generally supportive of having the roles of chairman and CEO separated in <br> the Australian and New Zealand markets, we assess the division of responsibilities <br> between chairman and CEO on a case-by-case basis, giving consideration to factors such <br> as company-specific circumstances, overall level of independence on the board and <br> general corporate governance standards in the company. Similarly, we will monitor for <br> circumstances in which a combined chairman/CEO is appointed or where a former CEO <br> becomes chairman.<br>|
| **Director Time Commitments** |
| &nbsp;&nbsp; When voting on the election or re-election of a director, we also consider the number of <br> outside board directorships that a non-executive and an executive may undertake. Thus, <br> State Street Global Advisors may take voting action against a director who exceeds the <br> number of board mandates listed below:<br>|
| &nbsp;&nbsp; •Named Executive Officers (NEOs) of a public company who sit on more than two <br> public company boards<br>|
| &nbsp;&nbsp; •Non-executive board chairs or lead independent directors who sit on more than three <br> public company boards<br>|
| •Director nominees who sit on more than four public company boards |
| &nbsp;&nbsp; For non-executive board chairs/lead independent directors and director nominees who hold <br> excessive commitments, as defined above, we may consider waiving our policy and vote in <br> support of a director if a company discloses its director commitment policy in a publicly <br> available manner (e.g., corporate governance guidelines, proxy statement, company <br> website). This policy or associated disclosure must include:<br>|
| •A numerical limit on public company board seats a director can serve on |
| •This limit cannot exceed our policy by more than one seat |
| •Consideration of public company board leadership positions (e.g., Committee Chair) |
| •Affirmation that all directors are currently compliant with the company policy |
| &nbsp;&nbsp; •Description of an annual policy review process undertaken by the Nominating <br> Committee to evaluate outside director time commitments<br>|
| &nbsp;&nbsp; If a director is imminently leaving a board and this departure is disclosed in a written, <br> time-bound and publicly-available manner, we may consider waiving our withhold vote <br> when evaluating the director for excessive time commitments.<br>|
| &nbsp;&nbsp; Service on a mutual fund board, the board of a UK investment trust or a Special Purpose <br> Acquisition Company (SPAC) board is not considered when evaluating directors for <br> excessive commitments. However, we do expect these roles to be considered by <br> nominating committees when evaluating director time commitments.<br>|
| **Director Attendance at Board Meetings** |
| &nbsp;&nbsp; We also consider attendance at board meetings and may withhold votes from directors <br> who attend less than 75 percent of board meetings without appropriate explanation or <br> providing reason for their failure to meet the attendance threshold. In addition, we monitor <br> other factors that may influence the independence of a non-executive director, such as <br> performance-related pay, cross-directorships, significant shareholdings, and tenure. We <br> support the annual election of directors and encourage Australian and New Zealand <br> companies to adopt this practice.<br>|

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| **Board Committees** |
| &nbsp;&nbsp; We believe companies should have committees for audit, remuneration, and nomination <br> oversight. The audit committee is responsible for monitoring the integrity of the financial <br> statements of the company, appointing external auditors, monitoring their qualifications <br> and independence, and their effectiveness and resource levels. ASX Corporate <br> Governance Principles requires listed companies to have an audit committee of at least <br> three members all of whom are non-executive directors and a majority of whom are <br> independent directors. It also requires that the committee be chaired by an independent <br> director who is not the chair of the board. We hold Australian and New Zealand companies <br> to our global standards for developed financial markets by requiring that all members of <br> the audit committee be independent directors.<br>|
| &nbsp;&nbsp; The nomination committee is responsible for evaluating and reviewing the balance of <br> skills, knowledge, and experience of the board. It also ensures that adequate succession <br> plans are in place for directors and the CEO. We may vote against the re-election of <br> members of the nomination committee if the board has failed to address concerns over <br> board structure or succession.<br>|
| **Board Gender Diversity** |
| &nbsp;&nbsp; We expect boards of all listed companies to have at least one female board member. If a <br> company fails to meet this expectation, State Street Global Advisors may vote against the <br> Chair of the board's nominating committee or the board leader in the absence of a <br> nominating committee, if necessary. Additionally, if a company fails to meet this <br> expectation for three consecutive years, State Street Global Advisors may vote against all <br> incumbent members of the nominating committee.<br>|
| **Board Responsiveness to High Dissent against Pay** |
| **Proposals** |
| &nbsp;&nbsp; Executive pay is another important aspect of corporate governance. We believe that <br> executive pay should be determined by the board of directors. We expect companies to <br> have in place remuneration committees to provide independent oversight over executive <br> pay. ASX Corporate Governance Principles require listed companies to have a <br> remuneration committee of at least three members all of whom are non-executive <br> directors and a majority of whom are independent directors. Since Australia has a <br> non-binding vote on pay with a two-strike rule requiring a board spill vote in the event of a <br> second strike, we believe that the vote provides investors a mechanism to address <br> concerns they may have on the quality of oversight provided by the board on remuneration <br> issues. Accordingly, our voting guidelines accommodate local market practice.<br>|
| &nbsp;&nbsp; Poorly structured executive compensation plans pose increasing reputational risk to <br> companies. Ongoing high level of dissent against a company's compensation proposals <br> may indicate that the company is not receptive to investor concerns. If the level of dissent <br> against a company's remuneration report and/or remuneration policy is consistently high, <br> and we have determined that a vote against a pay-related proposal is warranted in the <br> third consecutive year, we will vote against the Chair of the remuneration committee.<br>|

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|  | **Incorporating R-Factor™ into Director Votes** |

|  | **Climate-related Disclosure** |
|  | We believe climate change poses a systemic risk to all companies in our portfolio. |
|  | &nbsp;&nbsp; State Street Global Advisors has publicly supported the global regulatory efforts to <br> establish a mandatory baseline of climate risk disclosures for all companies. Until these <br> consistent disclosure standards are established, we find that the recommendations of the <br> Taskforce on Climate-related Financial Disclosures (TCFD) provide the most effective <br> framework by which companies can develop strategies to plan for climate-related risks and <br> make their businesses more resilient to the impacts of climate change.<br>|
|  | &nbsp;&nbsp; As such, we may vote against the independent board leader at companies in the ASX 100 <br> that fail to provide sufficient disclosure in accordance with the TCFD framework, including:<br>|
|  | •Board oversight of climate-related risks and opportunities |
|  | •Total Scope 1 and Scope 2 greenhouse gas emissions |
|  | •Targets for reducing greenhouse gas emissions |
|  | **Indemnification and Limitations on Liability** |
|  | &nbsp;&nbsp; Generally, State Street Global Advisors supports proposals to limit directors' liability and/or <br> expand indemnification and liability protection up to the limit provided by law, if he or she <br> has not acted in bad faith, gross negligence, or reckless disregard of the duties involved in <br> the conduct of his or her office.<br>|
| **Audit-Related Issues** | &nbsp;&nbsp; Companies should have robust internal audit and internal control systems designed for <br> effective management of any potential and emerging risks to company operations and <br> strategy. The responsibility of setting out an internal audit function lies with the audit <br> committee, which should have independent non-executive directors designated as <br> members.<br>|

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Bottom 10 percent of scores relative to industry peers.

Have consistently underperformed their peers over the last two years; bottom 30 percent of scores relative to industry peers.

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|  | **Appointment of External Auditors** |
|  | &nbsp;&nbsp; State Street Global Advisors believes that a company's auditor is an essential feature of <br> an effective and transparent system of external supervision. Shareholders should be given <br> the opportunity to vote on their appointment or to re-appoint at the annual meeting. When <br> appointing external auditors and approving audit fees, we will take into consideration the <br> level of detail in company disclosures. We will generally not support resolutions if <br> adequate breakdown is not provided and if non-audit fees are more than 50 percent of <br> audit fees. In addition, we may vote against members of the audit committee if we have <br> concerns with audit-related issues or if the level of non-audit fees to audit fees is <br> significant. In certain circumstances, we may consider auditor tenure when evaluating the <br> audit process.<br>|
|  | **Approval of Financial Statements** |
|  | &nbsp;&nbsp; The disclosure and availability of reliable financial statements in a timely manner is <br> imperative for the investment process. We expect external auditors to provide assurance of <br> a company's financial condition. Hence, we will vote against the approval of financial <br> statements if i) they have not been disclosed or audited; ii) the auditor opinion is qualified/ <br> adverse, or the auditor has issued a disclaimer of opinion; or iii) the auditor opinion is not <br> disclosed.<br>|
| **Shareholder Rights and** <br> **Capital-Related Issues**<br>| **Share Issuances** |
|  | &nbsp;&nbsp; The ability to raise capital is critical for companies to carry out strategy, to grow, and to <br> achieve returns above their cost of capital. The approval of capital raising activities is <br> fundamental to shareholders' ability to monitor the returns and to ensure capital is <br> deployed efficiently. State Street Global Advisors supports capital increases that have <br> sound business reasons and are not excessive relative to a company's existing capital <br> base.<br>|
|  | &nbsp;&nbsp; Pre-emption rights are a fundamental right for shareholders to protect their investment in a <br> company. Where companies seek to issue new shares without pre-emption rights, we may <br> vote against if such authorities are greater than 20 percent of the issued share capital. We <br> may also vote against resolutions seeking authority to issue capital with pre-emption rights <br> if the aggregate amount allowed seems excessive and is not justified by the board. <br> Generally, we are against capital issuance proposals greater than 100 percent of the <br> issued share capital when the proceeds are not intended for specific purpose.<br>|
|  | **Share Repurchase Programs** |
|  | &nbsp;&nbsp; We generally support proposals to repurchase shares, unless the issuer does not clearly <br> state the business purpose for the program, a definitive number of shares to be <br> repurchased, and the timeframe for the repurchase. We may vote against share <br> repurchase requests that allow share repurchases during a takeover period.<br>|
|  | **Dividends** |
|  | &nbsp;&nbsp; We generally support dividend payouts that constitute 30 percent or more of net income. <br> We may vote against the dividend payouts if the dividend payout ratio has been <br> consistently below 30 percent without adequate explanation. We may also vote against if <br> the payout is excessive given the company's financial position. Particular attention will be <br> warranted when the payment may damage the company's long-term financial health.<br>|

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|  | **Mergers and Acquisitions** |
|  | &nbsp;&nbsp; Mergers or reorganization of the company structure often involve proposals relating to <br> reincorporation, restructurings, liquidations, and other major changes to the corporation. <br> Proposals that are in the best interests of shareholders, demonstrated by enhancing share <br> value or improving the effectiveness of the company's operations, will be supported. In <br> general, provisions that are not viewed as financially sound or are thought to be destructive <br> to shareholders' rights are not supported. We will generally support transactions that <br> maximize shareholder value. Some of the considerations include:<br>|
|  | •Offer premium |
|  | •Strategic rationale |
|  | &nbsp;&nbsp; •Board oversight of the process for the recommended transaction, including, director <br> and/ or management conflicts of interest<br>|
|  | •Offers made at a premium and where there are no other higher bidders |
|  | &nbsp;&nbsp; •Offers in which the secondary market price is substantially lower than the net asset <br> value<br>|
|  | We may vote against a transaction considering the following: |
|  | &nbsp;&nbsp; •Offers with potentially damaging consequences for minority shareholders because of <br> illiquid stock<br>|
|  | &nbsp;&nbsp; •Offers where we believe there is a reasonable prospect for an enhanced bid or other <br> bidders<br>|
|  | •The current market price of the security exceeds the bid price at the time of voting |
|  | **Anti-Takeover Measures** |
|  | &nbsp;&nbsp; We oppose anti-takeover defenses, such as authorities for the board to issue warrants <br> convertible into shares to existing shareholders during a hostile takeover.<br>|
| **Remuneration** | **Executive Pay** |
|  | &nbsp;&nbsp; There is a simple underlying philosophy that guides State Street Global Advisors' analysis <br> of executive pay; there should be a direct relationship between remuneration and company <br> performance over the long term. Shareholders should have the opportunity to assess <br> whether pay structures and levels are aligned with business performance. When assessing <br> remuneration reports, we consider various factors, such as adequate disclosure of <br> different remuneration elements, absolute and relative pay levels, peer selection and <br> benchmarking, the mix of long-term and short-term incentives, alignment of pay structures <br> with shareholder interests as well as with corporate strategy and performance. SSGA may <br> oppose remuneration reports in which there seems to be a misalignment between pay and <br> shareholders' interests and where incentive policies and schemes have a re-test option or <br> feature. We may also vote against the re-election of members of the remuneration <br> committee if we have serious concerns about remuneration practices and if the company <br> has not been responsive to shareholder pressure to review its approach.<br>|

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|  | **Equity Incentive Plans** |
|  | &nbsp;&nbsp; We may not support proposals on equity-based incentive plans where insufficient <br> information is provided on matters, such as grant limits, performance metrics, <br> performance, and vesting periods and overall dilution. Generally, we do not support options <br> under such plans being issued at a discount to market price nor plans that allow for <br> re-testing of performance metrics.<br>|
|  | **Non-Executive Director Pay** |
|  | &nbsp;&nbsp; Authorities that seek shareholder approval for non-executive directors' fees generally are <br> not controversial. We generally support resolutions regarding directors' fees unless <br> disclosure is poor and we are unable to determine whether the fees are excessive relative <br> to fees paid by other comparable companies. We will evaluate any non-cash or <br> performance-related pay to non-executive directors on a company-by-company basis.<br>|
| **Risk Management** | &nbsp;&nbsp; State Street Global Advisors believes that risk management is a key function of the board, <br> which is responsible for setting the overall risk appetite of a company and for providing <br> oversight on the risk management process established by senior executives at a company. <br> We allow boards to have discretion over the ways in which they provide oversight in this <br> area. However, we expect companies to disclose ways in which the board provides <br> oversight on its risk management system and to identify key risks facing the company. <br> Boards should also review existing and emerging risks that evolve in tandem with the <br> political and economic landscape or as companies diversify or expand their operations into <br> new areas.<br>|
|  | **Environmental and Social Issues** |
|  | &nbsp;&nbsp; As a fiduciary, State Street Global Advisors takes a comprehensive approach to engaging <br> with our portfolio companies about material environmental and social (sustainability) <br> issues. We use our voice and our vote through engagement, proxy voting, and thought <br> leadership in order to communicate with issuers and educate market participants about <br> our perspective on important sustainability topics. Our Asset Stewardship program <br> prioritization process allows us to proactively identify companies for engagement and <br> voting in order to mitigate sustainability risks in our portfolio. Through engagement, we <br> address a broad range of topics that align with our stewardship priorities and build <br> long-term relationships with issuers. When voting, we fundamentally consider whether the <br> adoption of a shareholder proposal addressing a material sustainability issue would <br> promote long-term shareholder value in the context of the company's existing practices <br> and disclosures as well as existing market practice.<br>|
|  | &nbsp;&nbsp; For more information on our approach to environmental and social issues, please see our <br> Global Proxy Voting and Engagement Guidelines for Environmental and Social Issues and <br> our Frameworks for Voting Environmental and Social Shareholder Proposals available at <br> ssga.com/about-us/asset-stewardship.html.<br>|
| **More Information** | &nbsp;&nbsp; Any client who wishes to receive information on how its proxies were voted should contact <br> its State Street Global Advisors relationship manager.<br>|

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| **About State Street Global** <br> **Advisors**<br>| &nbsp;&nbsp; For four decades, State Street Global Advisors has served the world's governments, <br> institutions and financial advisors. With a rigorous, risk-aware approach built on research, <br> analysis and market-tested experience, we build from a breadth of active and index <br> strategies to create cost-effective solutions. As stewards, we help portfolio companies see <br> that what is fair for people and sustainable for the planet can deliver long-term <br> performance. And, as pioneers in index, ETF, and ESG investing, we are always inventing <br> new ways to invest. As a result, we have become the world's fourth-largest asset manager\* <br> with US $4.14 trillion† under our care.<br>|

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\*

Pensions & Investments Research Center, as of December 31, 2020.

†

This figure is presented as of December 31, 2021 and includes approximately $61.43 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

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**ssga.com** 

**State Street Global Advisors Worldwide Entities** 

**Australia:** State Street Global Advisors, Australia, Limited (ABN 42 003 914 225) is the holder of an Australian Financial Services Licence (AFSL Number 238276). Registered Office: Level 17, 420 George Street, Sydney, NSW 2000, Australia. T: +612 9240 7600. F: +612 9240 7611. **Belgium:** State Street Global Advisors Belgium, Chausse de La Hulpe 120, 1000 Brussels, Belgium. T: +32 2 663 2036, F: +32 2 672 2077. SSGA Belgium is a branch office of State Street Global Advisors Limited. State Street Global Advisors Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom. **Canada:** State Street Global Advisors, Ltd., 770 Sherbrooke Street West, Suite 1200 Montreal, Quebec, H3A 1G1, T: +514 282 2400 and 30 Adelaide Street East Suite 500, Toronto, Ontario M5C 3G6. T: +647 775 5900. **Dubai:** State Street Bank and Trust Company (Representative Office), Boulevard

Plaza 1, 17th Floor, Office 1703 Near Dubai Mall & Burj Khalifa, P.O Box 26838, Dubai, United Arab Emirates. T: +971 (0)4 4372800. F: +971 (0)4 4372818. **France:** State Street Global Advisors France. Authorised and regulated by the Autorité des Marchés Financiers. Registered with the Register of Commerce and Companies of Nanterre under the number: 412 052 680. Registered Office: Immeuble Défense Plaza, 23-25 rue Delarivière-Lefoullon, 92064 Paris La Défense Cedex, France. T: +33 1 44 45 40 00. F: +33 1 44 45 41 92. **Germany:** State Street Global Advisors GmbH, Brienner Strasse 59, D-80333 Munich. T: +49 (0)89 55878 100. F: +49 (0)89 55878 440. **Hong Kong:** State Street Global Advisors Asia Limited, 68/F, Two International Finance Centre, 8 Finance Street, Central, Hong Kong. T: +852 2103 0288. F: +852 2103 0200. **Ireland:** State Street Global Advisors Ireland Limited is regulated by the Central Bank of Ireland. Incorporated and registered in Ireland at Two Park Place, Upper Hatch Street, Dublin 2. Registered Number: 145221.

Member of the Irish Association of Investment Managers. T: +353 (0)1 776 3000. F: +353 (0)1 776 3300. **Italy:** State Street Global Advisors Limited, Milan Branch (Sede Secondaria di Milano) is a branch of State Street Global Advisors Limited, a company registered in the UK, authorised and regulated by the Financial Conduct Authority (FCA), with a capital of GBP 71'650'000.00, and whose registered office is at 20 Churchill Place, London E14 5HJ. State Street Global Advisors Limited, Milan Branch (Sede Secondaria di Milano), is registered in Italy with company number 06353340968 - R.E.A. 1887090 and VAT number 06353340968 and whose office is at Via dei Bossi, 4 -20121 Milano, Italy. T: 39 02 32066 100. F: 39 02 32066 155. **Japan:** State Street Global Advisors (Japan) Co., Ltd., 9-7-1 Akasaka, Minato-ku, Tokyo 107-6239. T: +813 4530 7380. Financial Instruments Business Operator, Kanto Local Financial Bureau (Kinsho #345). Japan Investment Advisers Association, Investment Trusts Association Japan, Japan Securities Dealers

Association. **Netherlands:** State Street Global Advisors Netherlands, Adam Smith Building, Thomas Malthusstraat 1-3, 1066 JR Amsterdam, Netherlands. T: +31 (0)20 7181701. State Street Global Advisors Netherlands is a branch office of State Street Global Advisors Limited. State Street Global Advisors Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Singapore: State Street Global Advisors Singapore Limited, 168, Robinson Road, #33-01 Capital Tower, Singapore 068912 (Company Registered Number: 200002719D). T: +65 6826 7500. F: +65 6826 7501. **Switzerland:** State Street Global Advisors AG, Beethovenstr. 19, CH-8027 Zurich. T: +41 (0)44 245 70 00. F: +41 (0)44 245 70 16. **United Kingdom:** State Street Global Advisors Limited. Authorised and regulated by the Financial Conduct Authority. Registered in England. Registered Number: 2509928. VAT Number: 5776591 81. Registered Office: 20 Churchill Place, Canary Wharf, London, E14 5HJ. T: +020 3395

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6000. F: +020 3395 6350. **United States:** State Street Global Advisors, One Lincoln Street, Boston, MA 02111-2900. T: +617 786 3000.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without State Street Global Advisors' express written consent.© 2022 State Street Corporation.

All Rights Reserved.

ID949706-3479907.2.1.GBL.RTL 0322

Exp. Date: 03/31/2023

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| **March 2022** |
| Europe |
| &nbsp;&nbsp; **Proxy Voting and** <br> **Engagement Guidelines**<br>|
| &nbsp;&nbsp; State Street Global Advisors' European Proxy Voting <br> and Engagement Guidelines<sup>i</sup> cover different corporate <br> governance frameworks and practices in European <br> markets, excluding the United Kingdom and Ireland. <br> These guidelines complement and should be read in <br> conjunction with State Street Global Advisors' Global <br> Proxy Voting and Engagement Principles, which provide <br> a detailed explanation of our approach to voting and <br> engaging with companies, and State Street Global <br> Advisors' Conflict Mitigation Guidelines.<br>|

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i

These Proxy Voting and Engagement Guidelines are also applicable to SSGA Funds Management, Inc. SSGA Funds Management, Inc. is an SEC-registered investment adviser. SSGA Funds Management, Inc., State Street Global Advisors Trust Company, and other advisory affiliates of State Street make up State Street Global Advisors, the investment management arm of State Street Corporation.

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|  | &nbsp;&nbsp; State Street Global Advisors' Proxy Voting and Engagement Guidelines in European <br> markets address areas such as board structure, audit-related issues, capital structure, <br> remuneration, as well as environmental, social and other governance-related issues.<br>|
|  | &nbsp;&nbsp; When voting and engaging with companies in European markets, we consider <br> market-specific nuances in the manner that we believe will most likely protect and promote <br> the long-term financial value of client investments. We expect companies to observe the <br> relevant laws and regulations of their respective markets, as well as country-specific best <br> practice guidelines and corporate governance codes. We may hold companies in some <br> markets to our global standards when we feel that a country's regulatory requirements do <br> not address some of the key philosophical principles that we believe are fundamental to <br> our global voting guidelines.<br>|
|  | &nbsp;&nbsp; In our analysis and research into corporate governance issues in European companies, we <br> also consider guidance issued by the European Commission and country-specific <br> governance codes. We proactively monitor companies' adherence to applicable guidance <br> and requirements. Consistent with the diverse "comply-or-explain" expectations <br> established by guidance and codes, we encourage companies to proactively disclose their <br> level of compliance with applicable provisions and requirements. In cases of <br> non-compliance, when companies cannot explain the nuances of their governance <br> structures effectively, either publicly or through engagement, we may vote against the <br> independent board leader. <br>|
| **State Street Global** <br> **Advisors' Proxy Voting** <br> **and Engagement** <br> **Philosophy**<br>| &nbsp;&nbsp; Corporate governance and sustainability issues are an integral part of the investment <br> process. The Asset Stewardship Team consists of investment professionals with expertise <br> in corporate governance and company law, remuneration, accounting, and environmental <br> and social issues. We have established robust corporate governance principles and <br> practices that are backed with extensive analytical expertise in order to understand the <br> complexities of the corporate governance landscape. We engage with companies to <br> provide insight on the principles and practices that drive our voting decisions. We also <br> conduct proactive engagements to address significant shareholder concerns and <br> environmental, social, and governance ("ESG") issues in a manner consistent with <br> maximizing shareholder value.<br>|
|  | &nbsp;&nbsp; The team works alongside members of State Street Global Advisors' Active Fundamental <br> and Europe, Middle East and Africa ("EMEA") investment teams, collaborating on issuer <br> engagements and providing input on company-specific fundamentals.<br>|
|  | &nbsp;&nbsp; State Street Global Advisors is a signatory to the United Nations Principles for <br> Responsible Investment ("UNPRI"). We are committed to sustainable investing, and are <br> working to further integrate ESG principles into investment and corporate governance <br> practices where applicable and consistent with our fiduciary duty.<br>|

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| **Directors and Boards** | &nbsp;&nbsp; Principally, we believe the primary responsibility of the board of directors is to preserve <br> and enhance shareholder value, and to protect shareholder interests. In order to carry out <br> their primary responsibilities, directors have to undertake activities that range from setting <br> strategy and overseeing executive management, to monitoring the risks that arise from a <br> company's business, including risks related to sustainability issues. Further, good <br> corporate governance necessitates the existence of effective internal controls and risk <br> management systems, which should be governed by the board.<br>|
|  | &nbsp;&nbsp; We believe that a well-constituted board of directors with a balance of skills, expertise and <br> independence, provides the foundations for a well governed company. We view board <br> quality as a measure of director independence, director succession planning, board <br> diversity, evaluations and refreshment, and company governance practices. We vote for the <br> (re-)election of directors on a case-by-case basis after considering various factors, <br> including board quality, general market practice, and availability of information on director <br> skills and expertise.<br>|
|  | &nbsp;&nbsp; In our analysis of boards, we consider whether board members have adequate skills to <br> provide effective oversight of corporate strategy, operations, and risks, including <br> environmental and social issues. Boards should also have a regular evaluation process in <br> place to assess the effectiveness of the board and the skills of board members to address <br> issues such as emerging risks, changes to corporate strategy, and diversification of <br> operations and geographic footprint.<br>|
|  | &nbsp;&nbsp; We may also consider factors such as board performance and directors who appear to be <br> remiss in the performance of their oversight responsibilities (e.g. fraud, criminal <br> wrongdoing and/or breach of fiduciary responsibilities).<br>|
| Board Independence | &nbsp;&nbsp; In principle, we believe independent directors are crucial to good corporate governance <br> and help management establish sound corporate governance policies and practices. A <br> sufficiently independent board will most effectively monitor management and perform <br> oversight functions necessary to protect shareholder interests.<br>|
|  | &nbsp;&nbsp; Our broad criteria for director independence in European companies include factors such <br> as:<br>|
|  | &nbsp;&nbsp; •Participation in related–party transactions and other business relations with the <br> company<br>|
|  | •Employment history with the company |
|  | •Relations with controlling shareholders |
|  | •Family ties with any of the company's advisers, directors or senior employees |
|  | •Serving as an employee or government representative |
|  | &nbsp;&nbsp; •Overall average board tenure and individual director tenure at issuers with classified <br> and de-classified boards, respectively, and<br>|
|  | •Company classification of a director as non-independent |

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|  | &nbsp;&nbsp; While overall board independence requirements and board structures differ from market to <br> market, we consider voting against directors we deem non-independent if overall board <br> independence is below 33 percent or if overall independence level is below 50 percent <br> after excluding employee representatives and/or directors elected in accordance with local <br> laws who are not elected by shareholders. We may withhold support for a proposal to <br> discharge the board if a company fails to meet adequate governance standards or board <br> level independence.<br>|
|  | &nbsp;&nbsp; We also assess the division of responsibilities between chair and CEO on a case-by-case <br> basis, giving consideration to factors such as overall level of independence on the board <br> and general corporate governance standards in the company. However, we may take voting <br> action against the chair or members of the nominating committee at the STOXX Europe <br> 600 companies that have combined the roles of chair and CEO and have not appointed an <br> independent deputy chair or a lead independent director.<br>|
| Director Time Commitments | &nbsp;&nbsp; When voting on the election or re-election of a director, we also consider the number of <br> outside board directorships a non-executive and an executive may undertake. Thus, State <br> Street Global Advisors may take voting action against a director who exceeds the number <br> of board mandates listed below:<br>|
|  | &nbsp;&nbsp; •Named Executive Officers (NEOs) of a public company who sit on more than two <br> public company boards<br>|
|  | &nbsp;&nbsp; •Non-executive board chairs or lead independent directors who sit on more than three <br> public company boards<br>|
|  | •Director nominees who sit on more than four public company boards |
|  | &nbsp;&nbsp; For non-executive board chairs/lead independent directors and director nominees who hold <br> excessive commitments, as defined above, we may consider waiving our policy and vote in <br> support of a director if a company discloses its director commitment policy in a publicly <br> available manner (e.g., corporate governance guidelines, proxy statement, company <br> website). This policy or associated disclosure must include:<br>|
|  | •A numerical limit on public company board seats a director can serve on |
|  | •This limit cannot exceed our policy by more than one seat |
|  | •Consideration of public company board leadership positions (e.g., Committee Chair) |
|  | •Affirmation that all directors are currently compliant with the company policy |
|  | &nbsp;&nbsp; •Description of an annual policy review process undertaken by the Nominating <br> Committee to evaluate outside director time commitments<br>|
|  | &nbsp;&nbsp; If a director is imminently leaving a board and this departure is disclosed in a written, <br> time-bound and publicly-available manner, we may consider waiving our withhold vote <br> when evaluating the director for excessive time commitments.<br>|
|  | &nbsp;&nbsp; Service on a mutual fund board, the board of a UK investment trust or a Special Purpose <br> Acquisition Company (SPAC) board is not considered when evaluating directors for <br> excessive commitments. However, we do expect these roles to be considered by <br> nominating committees when evaluating director time commitments.<br>|

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| Director Attendance at <br> Board Meetings<br>| &nbsp;&nbsp; We also consider attendance at board meetings and may withhold votes from directors <br> who attend less than 75 percent of board meetings without appropriate explanation or <br> providing reason for their failure to meet the attendance threshold. In addition, we monitor <br> other factors that may influence the independence of a non-executive director, such as <br> performance-related pay, cross-directorships and significant shareholdings. Moreover, we <br> may vote against the election of a director whose biographical disclosures are insufficient <br> to assess his or her role on the board and/or independence.<br>|
| Board Gender Diversity | &nbsp;&nbsp; We expect boards of all listed companies to have at least one female board member. If a <br> company fails to meet this expectation, State Street Global Advisors may vote against the <br> Chair of the board's nominating committee or the board leader in the absence of a <br> nominating committee, if necessary. Additionally, if a company fails to meet this <br> expectation for three consecutive years, State Street Global Advisors may vote against all <br> incumbent members of the nominating committee.<br>|
| Length of Board Terms | &nbsp;&nbsp; Although we generally are in favour of the annual election of directors, we recognise that <br> director terms vary considerably in different European markets. We may vote against <br> article/bylaw changes that seek to extend director terms. In addition, we may vote against <br> directors in certain markets if their terms extend beyond four years.<br>|
| Board Committees | &nbsp;&nbsp; We believe companies should have relevant board level committees for audit, <br> remuneration and nomination oversight. The audit committee is responsible for monitoring <br> the integrity of the financial statements of the company, appointing external auditors, <br> monitoring their qualifications and independence, and assessing effectiveness and <br> resource levels. Similarly, executive pay is an important aspect of corporate governance, <br> and it should be determined by the board of directors. We expect companies to have <br> remuneration committees to provide independent oversight of executive pay. We may vote <br> against nominees who are executive members of audit or remuneration committees.<br>|
|  | &nbsp;&nbsp; In certain European markets, it is not uncommon for the election of directors to be <br> presented in a single slate. In these cases, where executives serve on the audit or the <br> remuneration committees, we may vote against the entire slate.<br>|
| Board Responsiveness to <br> High Dissent Against Pay <br> Proposals<br>| &nbsp;&nbsp; Poorly-structured executive remuneration plans pose increasing reputational risk to <br> companies. Ongoing high levels of dissent against a company's remuneration proposals <br> may indicate that the company is not receptive to investor concerns. If the level of dissent <br> against a company's remuneration report and/or remuneration policy is consistently high, <br> and we have determined that a vote against a remuneration-related proposal is warranted <br> in the third consecutive year, we will vote against the Chair of the remuneration committee.<br>|

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| Climate-related Disclosure | We believe climate change poses a systemic risk to all companies in our portfolio. |
|  | &nbsp;&nbsp; State Street Global Advisors has publicly supported the global regulatory efforts to <br> establish a mandatory baseline of climate risk disclosures for all companies. Until these <br> consistent disclosure standards are established, we find that the recommendations of the <br> Task Force on Climate-related Financial Disclosures (TCFD) provide the most effective <br> framework (with?) which companies can develop strategies to plan for climate-related risks <br> and make their businesses more resilient to the impacts of climate change.<br>|
|  | &nbsp;&nbsp; As such, we may vote against the independent board leader at companies in the STOXX <br> 600 that fail to provide sufficient disclosure in accordance with the TCFD framework, <br> including:<br>|
|  | •Board oversight of climate-related risks and opportunities |
|  | •Total Scope 1 and Scope 2 greenhouse gas emissions |
|  | •Targets for reducing greenhouse gas emissions |
| Indemnification and <br> Limitations on Liability<br>| &nbsp;&nbsp; Generally, we support proposals to limit directors' liability and/or expand indemnification <br> and liability protection up to the limit provided by law if a director has not acted in bad faith, <br> with gross negligence, or with reckless disregard of the duties involved in the conduct of <br> his or her office.<br>|
| **Audit-Related Issues** | &nbsp;&nbsp; Companies should have robust internal audit and internal control systems designed for <br> effective management of any potential and emerging risks to company operations and <br> strategy. The responsibility of setting up an internal audit function lies with the audit <br> committee, which should have as members independent non-executive directors.<br>|

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Bottom 10 percent of scores relative to industry peers.

Have consistently underperformed their peers over the last two years; bottom 30 percent of scores relative to industry peers.

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| Appointment of External <br> Auditors<br>| &nbsp;&nbsp; We believe that a company's auditor is an essential feature of an effective and transparent <br> system of external supervision. Shareholders should be given the opportunity to vote on <br> their appointment or re-appoint them at the annual meeting. When appointing external <br> auditors and approving audit fees, we consider the level of detail in company disclosures; <br> we will generally not support such resolutions if adequate breakdown is not provided and if <br> non-audit fees are more than 50 percent of audit fees. In addition, we may vote against <br> members of the audit committee if we have concerns with audit-related issues or if the <br> level of non-audit fees to audit fees is significant. We may consider auditor tenure when <br> evaluating the audit process in certain circumstances.<br>|
| Limit Legal Liability of <br> External Auditors<br>| &nbsp;&nbsp; We generally oppose limiting the legal liability of audit firms as we believe this could create <br> a negative impact on the quality of the audit function. <br>|
|  | **Approval of Financial Statements** |
|  | &nbsp;&nbsp; The disclosure and availability of reliable financial statements in a timely manner is <br> imperative for the investment process. We expect external auditors to provide assurance of <br> a company's financial condition. Hence, we will vote against the approval of financial <br> statements if i) they have not been disclosed or audited; ii) the auditor opinion is qualified/ <br> adverse, or the auditor has issued a disclaimer of opinion; or iii) the auditor opinion is not <br> disclosed. <br>|
| **Shareholder Rights and** <br> **Capital-Related Issues**<br>| &nbsp;&nbsp; In some European markets, differential voting rights continue to exist. State Street Global <br> Advisors supports the one-share, one-vote policy and favors a share structure where all <br> shares have equal voting rights. We believe pre-emption rights should be introduced for <br> shareholders in order to provide adequate protection from excessive dilution from the <br> issuance of new shares or convertible securities to third parties or a small number of <br> select shareholders.<br>|
| Unequal Voting Rights | &nbsp;&nbsp; We generally oppose proposals authorizing the creation of new classes of common stock <br> with superior voting rights. We will generally oppose the creation of new classes of <br> preferred stock with unspecified voting, conversion, dividend distribution and other rights. <br> In addition, we will not support capitalization changes that add classes of stock with <br> undefined voting rights or classes that may dilute the voting interests of existing <br> shareholders. We support proposals to abolish voting caps and capitalization changes that <br> eliminate other classes of stock and/or unequal voting rights.<br>|
| Increase in Authorized <br> Capital<br>| &nbsp;&nbsp; The ability to raise capital is critical for companies to carry out strategy, to grow, and to <br> achieve returns above their cost of capital. The approval of capital raising activities is <br> fundamental to shareholders' ability to monitor returns and to ensure capital is deployed <br> efficiently. We support capital increases that have sound business reasons and are not <br> excessive relative to a company's existing capital base.<br>|

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|  | &nbsp;&nbsp; Pre-emption rights are a fundamental right for shareholders to protect their investment in a <br> company. Where companies seek to issue new shares whilst disapplying pre-emption <br> rights, we may vote against if such authorities are greater than 20 percent of the issued <br> share capital. We may also vote against resolutions that seek authority to issue capital with <br> pre-emption rights if the aggregate amount allowed seems excessive and is not justified by <br> the board. Generally, we oppose capital issuance proposals greater than 100 percent of <br> the issued share capital when the proceeds are not intended for a specific purpose.<br>|
| Share Repurchase <br> Programs<br>| &nbsp;&nbsp; We typically support proposals to repurchase shares; however, there are exceptions in <br> some cases. We do not support repurchases if the issuer does not clearly state the <br> business purpose for the program, a definitive number of shares to be repurchased, the <br> range of premium/discount to market price at which the company can repurchase shares, <br> and the timeframe for the repurchase. We may vote against share repurchase requests <br> that allow share repurchases during a takeover period.<br>|
| Dividends | &nbsp;&nbsp; We generally support dividend payouts that constitute 30 percent or more of net income. <br> We may vote against the dividend payouts if the dividend payout ratio has been <br> consistently below 30 percent without adequate explanation or the payout is excessive <br> given the company's financial position. Particular attention will be paid to cases in which <br> the payment may damage the company's long-term financial health.<br>|
| Related-Party Transactions | &nbsp;&nbsp; Some companies in European markets have a controlled ownership structure and complex <br> cross-shareholdings between subsidiaries and parent companies ("related companies"). <br> Such structures may result in the prevalence of related-party transactions between the <br> company and its various stakeholders, such as directors and management, subsidiaries <br> and shareholders. In markets where shareholders are required to approve such <br> transactions, we expect companies to provide details of the transaction, such as the <br> nature, the value and the purpose of such a transaction. We also encourage independent <br> directors to ratify such transactions. Further, we encourage companies to describe the level <br> of independent board oversight and the approval process, including details of any <br> independent valuations provided by financial advisors on related-party transactions.<br>|
| Mergers and Acquisitions | &nbsp;&nbsp; Mergers or restructurings often involve proposals relating to reincorporation, restructurings, <br> mergers, liquidation and other major changes to the corporation. Proposals will be <br> supported if they are in the best interest of the shareholders, which is demonstrated by <br> enhancing share value or improving the effectiveness of the company's operations. In <br> general, provisions that are not viewed as financially sound or are thought to be destructive <br> to shareholders' rights are not supported.<br>|
|  | &nbsp;&nbsp; We will generally support transactions that maximize shareholder value. Some of the <br> considerations include:<br>|
|  | •Offer premium |
|  | •Strategic rationale |
|  | &nbsp;&nbsp; •Board oversight of the process for the recommended transaction, including director <br> and/ or management conflicts of interest<br>|
|  | •Offers made at a premium and where there are no other higher bidders |

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|  | &nbsp;&nbsp; •Offers in which the secondary market price is substantially lower than the net asset <br> value<br>|
|  | We may vote against a transaction considering the following: |
|  | &nbsp;&nbsp; •Offers with potentially damaging consequences for minority shareholders because of <br> illiquid stock<br>|
|  | &nbsp;&nbsp; •Offers where we believe there is a reasonable prospect for an enhanced bid or other <br> bidders<br>|
|  | •The current market price of the security exceeds the bid price at the time of voting |
| Anti–Takeover Measures | &nbsp;&nbsp; European markets have diverse regulations concerning the use of share issuances as <br> takeover defenses, with legal restrictions lacking in some markets. We support the <br> one-share, one-vote policy. For example, dual-class capital structures entrench certain <br> shareholders and management, insulating them from possible takeovers. We oppose <br> unlimited share issuance authorizations because they can be used as anti-takeover <br> devices. They have the potential for substantial voting and earnings dilution. We also <br> monitor the duration of time for authorities to issue shares, as well as whether there are <br> restrictions and caps on multiple issuance authorities during the specified time periods. We <br> oppose antitakeover defenses, such as authorities for the board when subject to a hostile <br> takeover to issue warrants convertible into shares to existing shareholders.<br>|
| **Remuneration** |  |
| Executive Pay | &nbsp;&nbsp; Despite the differences among the various types of plans and awards, there is a simple <br> underlying philosophy that guides our analysis of executive pay: there should be a direct <br> relationship between remuneration and company performance over the long term.<br>|
|  | &nbsp;&nbsp; Shareholders should have the opportunity to assess whether pay structures and levels are <br> aligned with business performance. When assessing remuneration reports, we consider <br> factors such as adequate disclosure of remuneration elements, absolute and relative pay <br> levels, peer selection and benchmarking, the mix of long-term and short-term incentives, <br> alignment of pay structures with shareholder interests, corporate strategy and <br> performance. We may oppose remuneration reports where pay seems misaligned with <br> shareholders' interests. We may also vote against the re-election of members of the <br> remuneration committee if we have serious concerns about remuneration practices and if <br> the company has not been responsive to shareholder pressure to review its approach.<br>|
| Equity Incentives Plans | &nbsp;&nbsp; We may not support proposals regarding equity-based incentive plans where insufficient <br> information is provided on matters, including grant limits, performance metrics, <br> performance and vesting periods, and overall dilution. Generally, we do not support options <br> under such plans being issued at a discount to market price or plans that allow for <br> retesting of performance metrics.<br>|

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| Non–Executive Director Pay | &nbsp;&nbsp; In European markets, proposals seeking shareholder approval for non-executive directors' <br> fees are generally not controversial. We typically support resolutions regarding directors' <br> fees unless disclosure is poor and we are unable to determine whether the fees are <br> excessive relative to fees paid by comparable companies. We will evaluate any non-cash <br> or performance-related pay to non-executive directors on a company-by-company basis.<br>|
| **Risk Management** | &nbsp;&nbsp; We believe that risk management is a key function of the board, which is responsible for <br> setting the overall risk appetite of a company and for providing oversight on the risk <br> management process established by senior executives at a company. We allow boards to <br> have discretion regarding the ways in which they provide oversight in this area. However, <br> we expect companies to disclose how the board provides oversight on its risk management <br> system and risk identification. Boards should also review existing and emerging risks, as <br> they can change with a changing political and economic landscape or as companies <br> diversify or expand their operations into new areas.<br>|
| Environmental and Social <br> Issues<br>| &nbsp;&nbsp; As a fiduciary, State Street Global Advisors takes a comprehensive approach to engaging <br> with our portfolio companies about material environmental and social (sustainability) <br> issues. We use our voice and our vote through engagement, proxy voting and thought <br> leadership in order to communicate with issuers and educate market participants about <br> our perspective on important sustainability topics. Our Asset Stewardship program <br> prioritization process allows us to proactively identify companies for engagement and <br> voting in order to mitigate sustainability risks in our portfolio. Through engagement, we <br> address a broad range of topics that align with our stewardship priorities and build <br> long-term relationships with issuers. When voting, we fundamentally consider whether the <br> adoption of a shareholder proposal addressing a material sustainability issue would <br> promote long-term shareholder value in the context of the company's existing practices <br> and disclosures as well as existing market practice.<br>|
|  | &nbsp;&nbsp; For more information on our approach to environmental and social issues, please see our <br> Global Proxy Voting and Engagement Guidelines for Environmental and Social Issues and <br> our Frameworks for Voting Environmental and Social Shareholder Proposals, both <br> available at ssga.com/about-us/asset-stewardship.html.<br>|
| **More Information** | &nbsp;&nbsp; Any client who wishes to receive information on how its proxies were voted should contact <br> its State Street Global Advisors relationship manager.<br>|

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| **About State Street Global** <br> **Advisors**<br>| &nbsp;&nbsp; For four decades, State Street Global Advisors has served the world's governments, <br> institutions and financial advisors. With a rigorous, risk-aware approach built on research, <br> analysis and market-tested experience, we build from a breadth of active and index <br> strategies to create cost-effective solutions. As stewards, we help portfolio companies see <br> that what is fair for people and sustainable for the planet can deliver long-term <br> performance. And, as pioneers in index, ETF, and ESG investing, we are always inventing <br> new ways to invest. As a result, we have become the world's fourth-largest asset manager\* <br> with US $4.14 trillion† under our care.<br>|

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\*

Pensions & Investments Research Center, as of December 31, 2020.

†

This figure is presented as of December 31, 2021 and includes approximately $61.43 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

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**ssga.com**

**State Street Global Advisors Worldwide Entities** 

**Abu Dhabi:** State Street Global Advisors Limited, ADGM Branch, Al Khatem Tower, Suite 42801, Level 28, ADGM Square, Al Maryah Island, P.O Box 76404, Abu Dhabi, United Arab Emirates. Regulated by the ADGM Financial Services Regulatory Authority. T: +971 2 245 9000. **Australia:** State Street Global Advisors, Australia, Limited (ABN 42 003 914 225) is the holder of an Australian Financial Services License (AFSL Number 238276). Registered office: Level 14, 420 George Street, Sydney, NSW 2000, Australia. T: +612 9240-7600. F: +612 9240-7611. **Belgium:** State Street Global Advisors Belgium, Chaussée de La Hulpe 185, 1170 Brussels, Belgium. T: +32 2 663 2036. State Street Global Advisors Belgium is a branch office of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorized and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. **Canada:** State Street Global Advisors, Ltd., 1981

McGill College Avenue, Suite 500, Montreal, Qc, H3A 3A8, T: +514 282 2400 and 30 Adelaide Street East Suite 800, Toronto, Ontario M5C 3G6. T: +647 775 5900. **France:** State Street Global Advisors Europe Limited, France Branch ("State Street Global Advisors France") is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorized and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. State Street Global Advisors France is registered in France with company number RCS Nanterre 899 183 289, and its office is located at Coeur Défense — Tour A — La Défense 4, 33e étage, 100, Esplanade du Général de Gaulle, 92 932 Paris La Défense Cedex, France. T: +33 1 44 45 40 00. F: +33 1 44 45 41 92. **Germany:** State Street Global Advisors Europe Limited, Branch in Germany, Brienner Strasse 59, D-80333 Munich, Germany ("State Street Global Advisors Germany"). T: +49 (0)89 55878 400. State Street Global Advisors Germany is a branch of State Street Global Advisors Europe Limited, registered in Ireland with

company number 49934, authorized and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. **Hong Kong:** State Street Global Advisors Asia Limited, 68/F, Two International Finance Centre, 8 Finance Street, Central, Hong Kong. T: +852 2103-0288. F: +852 2103-0200. **Ireland:** State Street Global Advisors Europe Limited is regulated by the Central Bank of Ireland. Registered office address 78 Sir John Rogerson's Quay, Dublin 2. Registered Number: 49934. T: +353 (0)1 776 3000. F: +353 (0)1 776 3300. **Italy:** State Street Global Advisors Europe Limited, Italy Branch ("State Street Global Advisors Italy") is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorized and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. State Street Global Advisors Italy is registered in Italy with company number 11871450968 — REA: 2628603 and VAT number 11871450968, and its office is located at Via Ferrante Aporti, 10 -20125 Milan, Italy. T: +39 02 32066 100. F: +39

02 32066 155. **Japan:** State Street Global Advisors (Japan) Co., Ltd., Toranomon Hills Mori Tower 25F 1-23-1 Toranomon, Minato-ku, Tokyo 105-6325 Japan. T: +81-3-4530-7380. Financial Instruments Business Operator, Kanto Local Financial Bureau (Kinsho #345), Membership: Japan Investment Advisers Association, The Investment Trust Association, Japan, Japan Securities Dealers' Association. **Netherlands:** State Street Global Advisors Netherlands, Apollo Building 7th floor, Herikerbergweg 29, 1101 CN Amsterdam, Netherlands. T: +31 20 7181 000. State Street Global Advisors Netherlands is a branch office of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorized and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. **Singapore:** State Street Global Advisors Singapore Limited, 168, Robinson Road, #33-01 Capital Tower, Singapore 068912 (Company Reg. No: 200002719D, regulated by the Monetary Authority of Singapore). T: +65 6826-7555. F: +65 6826-7501. **Switzerland:** State Street

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Global Advisors AG, Beethovenstr. 19, CH-8027 Zurich. Registered with the Register of Commerce Zurich CHE-105.078.458. T: +41 (0)44 245 70 00. F: +41 (0)44 245 70 16. **United Kingdom:** State Street Global Advisors Limited. Authorized and regulated by the Financial Conduct Authority. Registered in England. Registered No. 2509928. VAT No. 5776591

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81. Registered office: 20 Churchill Place, Canary Wharf, London, E14 5HJ. T: 020 3395 6000. F: 020 3395 6350. **United States:** State Street Global Advisors, 1 Iron Street, Boston, MA 02210-1641. T: +1 617 786 3000.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents

disclosed to third parties without State Street Global Advisors' express written consent.© 2022 State Street Corporation.

All Rights Reserved.

ID949708-3479909.2.1.GBL.RTL 0322

Exp. Date: 03/31/2023

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| **March 2022** |
| Japan |
| &nbsp;&nbsp; **Proxy Voting and** <br> **Engagement Guidelines**<br>|
| &nbsp;&nbsp; State Street Global Advisors' Japan Proxy Voting and <br> Engagement Guidelines<sup>i</sup> outline our expectations of <br> companies listed on stock exchanges in Japan. These <br> Guidelines complement and should be read in <br> conjunction with State Street Global Advisors' <br> overarching Global Proxy Voting and Engagement <br> Guidelines, which provide a detailed explanation of our <br> approach to voting and engaging with companies, and <br> State Street Global Advisors' Conflict Mitigation <br> Guidelines.<br>|

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i

These Proxy Voting and Engagement Guidelines are also applicable to SSGA Funds Management, Inc. SSGA Funds Management, Inc. is an SEC-registered investment adviser. SSGA Funds Management, Inc., State Street Global Advisors Trust Company, and other advisory affiliates of State Street make up State Street Global Advisors, the investment management arm of State Street Corporation.

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|  | &nbsp;&nbsp; State Street Global Advisors' Proxy Voting and Engagement Guidelines in Japan address <br> areas including: board structure, audit related issues, capital structure, remuneration, <br> environmental, social, and other governance-related issues.<br>|
|  | &nbsp;&nbsp; When voting and engaging with companies in Japan, State Street Global Advisors takes <br> into consideration the unique aspects of Japanese corporate governance structures. We <br> recognize that under Japanese corporate law, companies may choose between two <br> structures of corporate governance: the statutory auditor system or the committee <br> structure. Most Japanese boards predominantly consist of executives and <br> non-independent outsiders affiliated through commercial relationships or <br> cross-shareholdings. Nonetheless, when evaluating companies, State Street Global <br> Advisors expects Japanese companies to address conflicts of interest and risk <br> management and to demonstrate an effective process for monitoring management. In our <br> analysis and research regarding corporate governance issues in Japan, we expect all <br> companies at a minimum to comply with Japan's Corporate Governance Principles and <br> proactively monitor companies' adherence to the principles. Consistent with the 'comply or <br> explain' expectations established by the Principles, we encourage companies to proactively <br> disclose their level of compliance with the Principles. In instances of non-compliance when <br> companies cannot explain the nuances of their governance structure effectively, either <br> publicly or through engagement, we may vote against the board leader.<br>|
| **State Street Global** <br> **Advisors' Proxy Voting** <br> **and Engagement** <br> **Philosophy**<br>| &nbsp;&nbsp; In our view, corporate governance and sustainability issues are an integral part of the <br> investment process. The Asset Stewardship Team consists of investment professionals <br> with expertise in corporate governance and company law, remuneration, accounting, and <br> environmental and social issues. We have established robust corporate governance <br> principles and practices that are backed with extensive analytical expertise to understand <br> the complexities of the corporate governance landscape. We engage with companies to <br> provide insight on the principles and practices that drive our voting decisions. We also <br> conduct proactive engagement to address significant shareholder concerns and <br> environmental, social, and governance ("ESG") issues in a manner consistent with <br> maximizing shareholder value.<br>|
|  | &nbsp;&nbsp; The team works alongside members of State Street Global Advisors' Active Fundamental <br> and Asia-Pacific ("APAC") Investment Teams; the teams collaborate on issuer engagement <br> and provide input on company specific fundamentals. We are also a member of various <br> investor associations that seek to address broader corporate governance related policy <br> issues in Japan.<br>|
|  | &nbsp;&nbsp; State Street Global Advisors is a signatory to the United Nations Principles of Responsible <br> Investment ("UNPRI") and is compliant with Japan's Stewardship Code and Corporate <br> Governance Code. We are committed to sustainable investing and are working to further <br> integrate ESG principles into investment and corporate governance practices where <br> applicable and consistent with our fiduciary duty.<br>|

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| **Directors and Boards** | &nbsp;&nbsp; Principally, we believe the primary responsibility of the board of directors is to preserve <br> and enhance shareholder value and protect shareholder interests. In order to carry out <br> their primary responsibilities, directors have to undertake activities that range from setting <br> strategy and overseeing executive management to monitoring the risks that arise from a <br> company's business, including risks related to sustainability issues. Further, good <br> corporate governance necessitates the existence of effective internal controls and risk <br> management systems, which should be governed by the board.<br>|
|  | &nbsp;&nbsp; State Street Global Advisors believes that a well constituted board of directors with a <br> balance of skills, expertise, and independence, provides the foundation for a well governed <br> company. We view board quality as a measure of director independence, director <br> succession planning, board diversity, evaluations and refreshment, and company <br> governance practices. We vote for the (re-)election of directors on a case-by-case basis <br> after considering various factors, including board quality, general market practice, and <br> availability of information on director skills and expertise. In principle, we believe <br> independent directors are crucial to robust corporate governance and help management <br> establish sound corporate governance policies and practices. A sufficiently independent <br> board will most effectively monitor management and perform oversight functions that are <br> necessary to protect shareholder interests.<br>|
|  | &nbsp;&nbsp; Japanese companies have the option of having a traditional board of directors with <br> statutory auditors, a board with a committee structure, or a hybrid board with a board level <br> audit committee. We will generally support companies that seek shareholder approval to <br> adopt a committee or hybrid board structure.<br>|
|  | &nbsp;&nbsp; Most Japanese issuers prefer the traditional statutory auditor structure. Statutory auditors <br> act in a quasi-compliance role, as they are not involved in strategic decision-making nor <br> are they part of the formal management decision process. Statutory auditors attend board <br> meetings but do not have voting rights at the board; however, they have the right to seek an <br> injunction and conduct broad investigations of unlawful behavior in the company's <br> operations.<br>|
|  | &nbsp;&nbsp; State Street Global Advisors will support the election of statutory auditors, unless the <br> outside statutory auditor nominee is regarded as non-independent based on our criteria, <br> the outside statutory auditor has attended less than 75 percent of meetings of the board of <br> directors or board of statutory auditors during the year under review, or the statutory <br> auditor has been remiss in the performance of their oversight responsibilities (fraud, <br> criminal wrong doing, and breach of fiduciary responsibilities).<br>|
|  | &nbsp;&nbsp; For companies with a statutory auditor structure there is no legal requirement that boards <br> have outside directors; however, we believe there should be a transparent process of <br> independent and external monitoring of management on behalf of shareholders.<br>|
|  | &nbsp;&nbsp; •We believe that boards of TOPIX 500 companies should have at least three <br> independent directors or be at least one-third independent, whichever requires fewer <br> independent directors. Otherwise, we may oppose the board leader who is responsible <br> for the director nomination process.<br>|
|  | &nbsp;&nbsp; •For controlled, non-TOPIX 500 companies with a statutory auditor structure or hybrid <br> structure, we may oppose the board leader if the board does not have at least two <br> independent directors.<br>|

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| &nbsp;&nbsp; •For non-controlled, non-TOPIX 500 companies with a statutory auditor structure or <br> hybrid structure, State Street Global Advisors may oppose the board leader if the <br> board does not have at least two independent directors.<br>|
| &nbsp;&nbsp; For companies with a committee structure or a hybrid board structure, we also take into <br> consideration the overall independence level of the committees. In determining director <br> independence, we consider the following factors:<br>|
| &nbsp;&nbsp; •Participation in related-party transactions and other business relations with the <br> company<br>|
| •Past employment with the company |
| •Professional services provided to the company |
| •Family ties with the company |
| &nbsp;&nbsp; Regardless of board structure, we may oppose the election of a director for the following <br> reasons:<br>|
| •Failure to attend board meetings |
| •In instances of egregious actions related to a director's service on the board |
| **Board Gender Diversity** |
| &nbsp;&nbsp; We expect boards of all listed companies to have at least one female board member. If a <br> company fails to meet this expectation, State Street Global Advisors may vote against the <br> Chair of the board's nominating committee or the board leader in the absence of a <br> nominating committee, if necessary. Additionally, if a company fails to meet this <br> expectation for three consecutive years, State Street Global Advisors may vote against all <br> incumbent members of the nominating committee or those persons deemed responsible <br> for the nomination process.<br>|
| **Incorporating R-Factor™ into Director Votes** |

| **Indemnification and Limitations on Liability** |
| &nbsp;&nbsp; Generally, State Street Global Advisors supports proposals to limit directors' and statutory <br> auditors' liability and/or expand indemnification and liability protection up to the limit <br> provided by law, if he or she has not acted in bad faith, gross negligence, or reckless <br> disregard of the duties involved in the conduct of his or her office. We believe limitations <br> and indemnification are necessary to attract and retain qualified directors.<br>|

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Bottom 10 percent of scores relative to industry peers.

Have consistently underperformed their peers over the last two years; bottom 30 percent of scores relative to industry peers.

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| **Audit-Related Items** | &nbsp;&nbsp; State Street Global Advisors believes that a company's auditor is an essential feature of <br> an effective and transparent system of external supervision. Shareholders should have the <br> opportunity to vote on the appointment of the auditor at the annual meeting.<br>|
|  | **Ratifying External Auditors** |
|  | &nbsp;&nbsp; We generally support the appointment of external auditors unless the external auditor is <br> perceived as being non-independent and there are concerns about the accounts presented <br> and the audit procedures followed.<br>|
|  | **Approval of Financial Statements** |
|  | &nbsp;&nbsp; The disclosure and availability of reliable financial statements in a timely manner is <br> imperative for the investment process. We expect external auditors to provide assurance of <br> a company's financial condition. Hence, we will vote against the approval of financial <br> statements if i) they have not been disclosed or audited; ii) the auditor opinion is qualified/<br> adverse, or the auditor has issued a disclaimer of opinion; or iii) the auditor opinion is not <br> disclosed.<br>|
|  | **Limiting Legal Liability of External Auditors** |
|  | &nbsp;&nbsp; We generally oppose limiting the legal liability of audit firms as we believe this could create <br> a negative impact on the quality of the audit function.<br>|
| **Capital Structure,** <br> **Reorganization, and** <br> **Mergers**<br>| &nbsp;&nbsp; State Street Global Advisors supports the "one share one vote" policy and favors a share <br> structure where all shares have equal voting rights. We support proposals to abolish voting <br> caps or multiple voting rights and will oppose measures to introduce these types of <br> restrictions on shareholder rights.<br>|
|  | &nbsp;&nbsp; We believe pre-emption rights should be introduced for shareholders. This can provide <br> adequate protection from excessive dilution due to the issuance of new shares or <br> convertible securities to third parties or a small number of select shareholders.<br>|
|  | **Unequal Voting Rights** |
|  | &nbsp;&nbsp; We generally oppose proposals authorizing the creation of new classes of common stock <br> with superior voting rights. We will generally oppose new classes of preferred stock with <br> unspecified voting, conversion, dividend distribution, and other rights. In addition, we will <br> not support capitalization changes that add classes of stock with undefined voting rights or <br> classes that may dilute the voting interests of existing shareholders.<br>|
|  | &nbsp;&nbsp; However, we will support capitalization changes that eliminate other classes of stock and/ <br> or unequal voting rights.<br>|
|  | **Increase in Authorized Capital** |
|  | &nbsp;&nbsp; We generally support increases in authorized capital where the company provides an <br> adequate explanation for the use of shares. In the absence of an adequate explanation, <br> we may oppose the request if the increase in authorized capital exceeds 100 percent of <br> the currently authorized capital. Where share issuance requests exceed our standard <br> threshold, we will consider the nature of the specific need, such as mergers, acquisitions <br> and stock splits.<br>|

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| **Dividends** |
| &nbsp;&nbsp; We generally support dividend payouts that constitute 30 percent or more of net income. <br> We may vote against the dividend payouts if the dividend payout ratio has been <br> consistently below 30 percent without adequate explanation; or, the payout is excessive <br> given the company's financial position. Particular attention will be paid where the payment <br> may damage the company's long-term financial health.<br>|
| **Share Repurchase Programs** |
| &nbsp;&nbsp; Companies are allowed under Japan Corporate Law to amend their articles to authorize <br> the repurchase of shares at the board's discretion. We will oppose an amendment to <br> articles allowing the repurchase of shares at the board's discretion. We believe the <br> company should seek shareholder approval for a share repurchase program at each year's <br> AGM, providing shareholders the right to evaluate the purpose of the repurchase.<br>|
| &nbsp;&nbsp; We generally support proposals to repurchase shares, unless the issuer does not clearly <br> state the business purpose for the program, a definitive number of shares to be <br> repurchased, and the timeframe for the repurchase. We may vote against share <br> repurchase requests that allow share repurchases during a takeover period.<br>|
| **Mergers and Acquisitions** |
| &nbsp;&nbsp; Mergers or reorganizing the structure of a company often involve proposals relating to <br> reincorporation, restructurings, mergers, liquidations, and other major changes to the <br> corporation. We will support proposals that are in the best interests of the shareholders, <br> demonstrated by enhancing share value or improving the effectiveness of the company's <br> operations. In general, provisions that are deemed to be destructive to shareholders' rights <br> or financially detrimental are not supported.<br>|
| &nbsp;&nbsp; We evaluate mergers and structural reorganizations on a case-by-case basis. We will <br> generally support transactions that maximize shareholder value. Some of the <br> considerations include, but are not limited to the following:<br>|
| •Offer premium |
| •Strategic rationale |
| &nbsp;&nbsp; •Board oversight of the process for the recommended transaction, including director <br> and/or management conflicts of interest<br>|
| •Offers made at a premium and where there are no other higher bidders |
| &nbsp;&nbsp; •Offers in which the secondary market price is substantially lower than the net asset <br> value<br>|
| We may vote against a transaction considering the following: |
| &nbsp;&nbsp; •Offers with potentially damaging consequences for minority shareholders because of <br> illiquid stock<br>|
| &nbsp;&nbsp; •Offers where we believe there is a reasonable prospect for an enhanced bid or other <br> bidders<br>|
| &nbsp;&nbsp; •Offers in which the current market price of the security exceeds the bid price at the <br> time of voting<br>|

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|  | **Anti-Takeover Measures** |
|  | &nbsp;&nbsp; In general, State Street Global Advisors believes that adoption of poison pills that have <br> been structured to protect management and to prevent takeover bids from succeeding is <br> not in shareholders' interest. A shareholder rights plan may lead to management <br> entrenchment. It may also discourage legitimate tender offers and acquisitions. Even if the <br> premium paid to companies with a shareholder rights plan is higher than that offered to <br> unprotected firms, a company's chances of receiving a takeover offer in the first place may <br> be reduced by the presence of a shareholder rights plan.<br>|
|  | &nbsp;&nbsp; Proposals that reduce shareholders' rights or have the effect of entrenching incumbent <br> management will not be supported.<br>|
|  | &nbsp;&nbsp; Proposals that enhance the right of shareholders to make their own choices as to the <br> desirability of a merger or other proposal are supported.<br>|
|  | **Shareholder Rights Plans** |
|  | &nbsp;&nbsp; In evaluating the adoption or renewal of a Japanese issuer's shareholder rights plans <br> ("poison pill"), we consider the following conditions: (i) release of proxy circular with details <br> of the proposal with adequate notice in advance of meeting, (ii) minimum trigger of over 20 <br> percent, (iii) maximum term of three years, (iv) sufficient number of independent directors, <br> (v) presence of an independent committee, (vi) annual election of directors, and (vii) lack <br> of protective or entrenchment features. Additionally, we consider the length of time that a <br> shareholder rights plan has been in effect.<br>|
|  | &nbsp;&nbsp; In evaluating an amendment to a shareholder rights plan ("poison pill"), in addition to the <br> conditions above, we will also evaluate and consider supporting proposals where the terms <br> of the new plans are more favorable to shareholders' ability to accept unsolicited offers.<br>|
| **Compensation** | &nbsp;&nbsp; In Japan, excessive compensation is rarely an issue. Rather, the problem is the lack of <br> connection between pay and performance. Fixed salaries and cash retirement bonuses <br> tend to comprise a significant portion of the compensation structure while <br> performance-based pay is generally a small portion of the total pay. State Street Global <br> Advisors, where possible, seeks to encourage the use of performance-based <br> compensation in Japan as an incentive for executives and as a way to align interests with <br> shareholders.<br>|
|  | **Adjustments to Aggregate Compensation Ceiling for Directors** |
|  | &nbsp;&nbsp; Remuneration for directors is generally reasonable. Typically, each company sets the <br> director compensation parameters as an aggregate thereby limiting the total pay to all <br> directors. When requesting a change, a company must disclose the last time the ceiling <br> was adjusted, and management provides the rationale for the ceiling increase. We will <br> generally support proposed increases to the ceiling if the company discloses the rationale <br> for the increase. We may oppose proposals to increase the ceiling if there has been <br> corporate malfeasance or sustained poor performance.<br>|
|  | **Annual Bonuses for Directors/Statutory Auditors** |
|  | &nbsp;&nbsp; In Japan, since there are no legal requirements that mandate companies to seek <br> shareholder approval before awarding a bonus, we believe that existing shareholder <br> approval of the bonus should be considered best practice. As a result, we support <br> management proposals on executive compensation where there is a strong relationship <br> between executive pay and performance over a five-year period.<br>|

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|  | **Retirement Bonuses for Directors/Statutory Auditors** |
|  | &nbsp;&nbsp; Retirement bonuses make up a sizeable portion of directors' and auditors' lifetime <br> compensation and are based upon board tenure. While many companies in Japan have <br> abolished this practice, there remain many proposals seeking shareholder approval for the <br> total amounts paid to directors and statutory auditors as a whole. In general, we support <br> these payments unless the recipient is an outsider or in instances where the amount is not <br> disclosed.<br>|
|  | **Stock Plans** |
|  | &nbsp;&nbsp; Most option plans in Japan are conservative, particularly at large companies. Japanese <br> corporate law requires companies to disclose the monetary value of the stock options for <br> directors and/or statutory auditors. Some companies do not disclose the maximum number <br> of options that can be issued per year and shareholders are unable to evaluate the dilution <br> impact. In this case, we cannot calculate the dilution level and, therefore, we may oppose <br> such plans for poor disclosure. We also oppose plans that allow for the repricing of the <br> exercise price.<br>|
|  | **Deep Discount Options** |
|  | &nbsp;&nbsp; As Japanese companies move away from the retirement bonus system, deep discount <br> options plans have become more popular. Typically, the exercise price is set at JPY 1 per <br> share. We evaluate deep discount options using the same criteria used to evaluate stock <br> options as well as considering the vesting period.<br>|
| **Environmental and Social** <br> **Issues**<br>| &nbsp;&nbsp; As a fiduciary, State Street Global Advisors takes a comprehensive approach to engaging <br> with our portfolio companies about material environmental and social (sustainability) <br> issues. We use our voice and our vote through engagement, proxy voting, and thought <br> leadership in order to communicate with issuers and educate market participants about <br> our perspective on important sustainability topics. Our Asset Stewardship program <br> prioritization process allows us to proactively identify companies for engagement and <br> voting in order to mitigate sustainability risks in our portfolio. Through engagement, we <br> address a broad range of topics that align with our stewardship priorities and build <br> long-term relationships with issuers. When voting, we fundamentally consider whether the <br> adoption of a shareholder proposal addressing a material sustainability issue would <br> promote long-term shareholder value in the context of the company's existing practices <br> and disclosures as well as existing market practice.<br>|
|  | &nbsp;&nbsp; For more information on our approach to environmental and social issues, please see our <br> Global Proxy Voting and Engagement Guidelines for Environmental and Social Issues and <br> our Frameworks for Voting Environmental and Social Shareholder Proposals, both <br> available at ssga.com/about-us/asset-stewardship.html.<br>|
| **Miscellaneous/ Routine** <br> **Items**<br>| **Expansion of Business Activities** |
|  | &nbsp;&nbsp; Japanese companies' articles of incorporation strictly define the types of businesses in <br> which a company is permitted to engage. In general, State Street Global Advisors views <br> proposals that expand and diversify the company's business activities as routine and <br> non-contentious. We will monitor instances in which there has been an inappropriate <br> acquisition and diversification away from the company's main area of competence that <br> resulted in a decrease of shareholder value.<br>|

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| **More Information** | &nbsp;&nbsp; Any client who wishes to receive information on how its proxies were voted should contact <br> its State Street Global Advisors relationship manager.<br>|
| **About State Street Global** <br> **Advisors**<br>| &nbsp;&nbsp; For four decades, State Street Global Advisors has served the world's governments, <br> institutions and financial advisors. With a rigorous, risk-aware approach built on research, <br> analysis and market-tested experience, we build from a breadth of active and index <br> strategies to create cost-effective solutions. As stewards, we help portfolio companies see <br> that what is fair for people and sustainable for the planet can deliver long-term <br> performance. And, as pioneers in index, ETF, and ESG investing, we are always inventing <br> new ways to invest. As a result, we have become the world's fourth-largest asset manager\* <br> with US $4.14 trillion† under our care.<br>|

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\*

Pensions & Investments Research Center, as of December 31, 2020.

†

This figure is presented as of December 31, 2021 and includes approximately $61.43 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

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**ssga.com** 

**State Street Global Advisors Worldwide Entities** 

**Abu Dhabi:** State Street Global Advisors Limited, ADGM Branch, Al Khatem Tower, Suite 42801, Level 28, ADGM Square, Al Maryah Island, P.O Box 76404, Abu Dhabi, United Arab Emirates. Regulated by the ADGM Financial Services Regulatory Authority. T: +971 2 245 9000. **Australia:** State Street Global Advisors, Australia, Limited (ABN 42 003 914 225) is the holder of an Australian Financial Services License (AFSL Number 238276). Registered office: Level 14, 420 George Street, Sydney, NSW 2000, Australia. T: +612 9240-7600. F: +612 9240-7611. **Belgium:** State Street Global Advisors Belgium, Chaussée de La Hulpe 185, 1170 Brussels, Belgium. T: +32 2 663 2036. State Street Global Advisors Belgium is a branch office of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorized and regulated by the Central Bank of

Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. **Canada:** State Street Global Advisors, Ltd., 1981 McGill College Avenue, Suite 500, Montreal, Qc, H3A 3A8, T: +514 282 2400 and 30 Adelaide Street East Suite 800, Toronto, Ontario M5C 3G6. T: +647 775 5900. **France:** State Street Global Advisors Europe Limited, France Branch ("State Street Global Advisors France") is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorized and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. State Street Global Advisors France is registered in France with company number RCS Nanterre 899 183 289, and its office is located at Coeur Défense — Tour A — La Défense 4, 33e étage, 100, Esplanade du Général de Gaulle, 92 932 Paris La Défense Cedex, France. T: +33 1 44 45 40 00. F: +33 1 44 45 41 92. **Germany:** State Street Global Advisors Europe Limited, Branch

in Germany, Brienner Strasse 59, D-80333 Munich, Germany ("State Street Global Advisors Germany"). T: +49 (0)89 55878 400. State Street Global Advisors Germany is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorized and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. **Hong Kong:** State Street Global Advisors Asia Limited, 68/F, Two International Finance Centre, 8 Finance Street, Central, Hong Kong. T: +852 2103-0288. F: +852 2103-0200. Ireland: State Street Global Advisors Europe Limited is regulated by the Central Bank of Ireland. Registered office address 78 Sir John Rogerson's Quay, Dublin 2. Registered Number: 49934. T: +353 (0)1 776 3000. F: +353 (0)1 776 3300. **Italy:** State Street Global Advisors Europe Limited, Italy Branch ("State Street Global Advisors Italy") is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company

number 49934, authorized and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. State Street Global Advisors Italy is registered in Italy with company number 11871450968 — REA: 2628603 and VAT number 11871450968, and its office is located at Via Ferrante Aporti, 10 -20125 Milan, Italy. T: +39 02 32066 100. F: +39 02 32066 155. **Japan:** State Street Global Advisors (Japan) Co., Ltd., Toranomon Hills Mori Tower 25F 1-23-1 Toranomon, Minato-ku, Tokyo 105-6325 Japan. T: +81-3-4530- 7380. Financial Instruments Business Operator, Kanto Local Financial Bureau (Kinsho #345), Membership: Japan Investment Advisers Association, The Investment Trust Association, Japan, Japan Securities Dealers' Association. **Netherlands:** State Street Global Advisors Netherlands, Apollo Building 7th floor, Herikerbergweg 29, 1101 CN Amsterdam, Netherlands. T: +31 20 7181 000. State Street Global Advisors Netherlands is a branch office of

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State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorized and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. **Singapore:** State Street Global Advisors Singapore Limited, 168, Robinson Road, #33-01 Capital Tower, Singapore 068912 (Company Reg. No: 200002719D, regulated by the Monetary Authority of Singapore).

T: +65 6826-7555. F: +65 6826-7501. **Switzerland:** State Street Global Advisors AG, Beethovenstr. 19, CH-8027 Zurich. Registered with the Register of Commerce Zurich CHE-105.078.458. T: +41 (0)44 245 70 00. F: +41 (0)44 245 70 16. **United Kingdom:** State Street Global Advisors Limited. Authorized and regulated by the Financial Conduct Authority. Registered in England. Registered No. 2509928. VAT No. 5776591 81. Registered office: 20 Churchill

Place, Canary Wharf, London, E14 5HJ. T: 020 3395 6000. F: 020 3395 6350. **United States:** State Street Global Advisors, 1 Iron Street, Boston, MA 02210-1641. T: +1 617 786 3000.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA's express written consent.© 2022 State Street Corporation.

All Rights Reserved.

ID949710-3479913.2.1.GBL.RTL 0322

Exp. Date: 03/31/2023

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| **March 2022** |
| North America (United States & Canada) |
| &nbsp;&nbsp; **Proxy Voting and** <br> **Engagement Guidelines**<br>|
| &nbsp;&nbsp; State Street Global Advisors' North America Proxy <br> Voting and Engagement Guidelines<sup>i</sup> outline our <br> expectations of companies listed on stock exchanges in <br> the US and Canada. These Guidelines complement and <br> should be read in conjunction with State Street Global <br> Advisors' Global Proxy Voting and Engagement <br> Principles, which provide a detailed explanation of our <br> approach to voting and engaging with companies, and <br> State Street Global Advisors' Conflict Mitigation <br> Guidance.<br>|

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i

These Proxy Voting and Engagement Guidelines are also applicable to SSGA Funds Management, Inc. SSGA Funds Management, Inc. is an SEC-registered investment adviser. SSGA Funds Management, Inc., State Street Global Advisors Trust Company, and other advisory affiliates of State Street make up State Street Global Advisors, the investment management arm of State Street Corporation.

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|  | &nbsp;&nbsp; State Street Global Advisors' North America Proxy Voting and Engagement Guidelines <br> address areas, including board structure, director tenure, audit related issues, capital <br> structure, executive compensation, as well as environmental, social, and other <br> governance-related issues of companies listed on stock exchanges in the US and Canada <br> ("North America").<br>|
|  | &nbsp;&nbsp; When voting and engaging with companies in global markets, we consider market specific <br> nuances in the manner that we believe will most likely protect and promote the long-term <br> economic value of client investments. We expect companies to observe the relevant laws <br> and regulations of their respective markets, as well as country specific best practice <br> guidelines and corporate governance codes. When we feel that a country's regulatory <br> requirements do not address some of the key philosophical principles that we believe are <br> fundamental to its global voting guidelines, we may hold companies in such markets to our <br> global standards.<br>|
|  | &nbsp;&nbsp; In its analysis and research about corporate governance issues in North America, we <br> expect all companies to act in a transparent manner and to provide detailed disclosure on <br> board profiles, related-party transactions, executive compensation, and other governance <br> issues that impact shareholders' long-term interests. Further, as a founding member of the <br> Investor Stewardship Group ("ISG"), we proactively monitor companies' adherence to the <br> Corporate Governance Principles for US listed companies. Consistent with the "comply-or-<br> explain" expectations established by the principles, we encourage companies to proactively <br> disclose their level of compliance with the principles. In instances of non-compliance when <br> companies cannot explain the nuances of their governance structure effectively, either <br> publicly or through engagement, we may vote against the independent board leader.<br>|
| **State Street Global** <br> **Advisors' Proxy Voting** <br> **and Engagement** <br> **Philosophy**<br>| &nbsp;&nbsp; Corporate governance and sustainability issues are an integral part of the investment <br> process. The Asset Stewardship Team consists of investment professionals with expertise <br> in corporate governance and company law, remuneration, accounting, and environmental <br> and social issues. We have established robust corporate governance principles and <br> practices that are backed with extensive analytical expertise to understand the <br> complexities of the corporate governance landscape. We engage with companies to <br> provide insight on the principles and practices that drive our voting decisions. We also <br> conduct proactive engagements to address significant shareholder concerns and <br> environmental, social, and governance ("ESG") issues in a manner consistent with <br> maximizing shareholder value.<br>|
|  | &nbsp;&nbsp; The team works alongside members of State Street Global Advisors' Active Fundamental <br> and various other investment teams, collaborating on issuer engagements and providing <br> input on company specific fundamentals. We are also a member of various investor <br> associations that seek to address broader corporate governance related policy issues in <br> North America.<br>|
|  | &nbsp;&nbsp; State Street Global Advisors is a signatory to the United Nations Principles of Responsible <br> Investment ("UNPRI") and is compliant with the US Investor Stewardship Group Principles. <br> We are committed to sustainable investing and are working to further integrate ESG <br> principles into investment and corporate governance practices, where applicable and <br> consistent with our fiduciary duty.<br>|

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| Directors and Boards | &nbsp;&nbsp; Principally, we believe the primary responsibility of the board of directors is to preserve <br> and enhance shareholder value and protect shareholder interests. In order to carry out <br> their primary responsibilities, directors have to undertake activities that range from setting <br> strategy and overseeing executive management to monitoring the risks that arise from a <br> company's business, including risks related to sustainability issues. Further, good <br> corporate governance necessitates the existence of effective internal controls and risk <br> management systems, which should be governed by the board.<br>|
|  | &nbsp;&nbsp; State Street Global Advisors believes that a well constituted board of directors, with a <br> balance of skills, expertise, and independence, provides the foundations for a well <br> governed company. We view board quality as a measure of director independence, director <br> succession planning, board diversity, evaluations and refreshment, and company <br> governance practices. We vote for the election/re-election of directors on a case-by-case <br> basis after considering various factors, including board quality, general market practice, <br> and availability of information on director skills and expertise. In principle, we believe <br> independent directors are crucial to robust corporate governance and help management <br> establish sound corporate governance policies and practices. A sufficiently independent <br> board will most effectively monitor management and perform oversight functions <br> necessary to protect shareholder interests.<br>|
|  | &nbsp;&nbsp; Director-related proposals include issues submitted to shareholders that deal with the <br> composition of the board or with members of a corporation's board of directors. In <br> deciding the director nominee to support, we consider numerous factors.<br>|
|  | **Director Elections** |
|  | &nbsp;&nbsp; Our director election guideline focuses on companies' governance profile to identify if a <br> company demonstrates appropriate governance practices or if it exhibits negative <br> governance practices. Factors we consider when evaluating governance practices include, <br> but are not limited to the following:<br>|
|  | •Shareholder rights |
|  | •Board independence |
|  | •Board structure |
|  | &nbsp;&nbsp; If a company demonstrates appropriate governance practices, we believe a director should <br> be classified as independent based upon the relevant listing standards or local market <br> practice standards. In such cases, the composition of the key oversight committees of a <br> board should meet the minimum standards of independence. Accordingly, we will vote <br> against a nominee at a company with appropriate governance practices if the director is <br> classified as non-independent under relevant listing standards or local market practice and <br> serves on a key committee of the board (compensation, audit, nominating, or committees <br> required to be fully independent by local market standards).<br>|
|  | &nbsp;&nbsp; Conversely, if a company demonstrates negative governance practices, State Street <br> Global Advisors believes the classification standards for director independence should be <br> elevated. In such circumstances, we will evaluate all director nominees based upon the <br> following classification standards:<br>|
|  | •Is the nominee an employee of or related to an employee of the issuer or its auditor? |
|  | •Does the nominee provide professional services to the issuer |

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| •Has the nominee attended an appropriate number of board meetings? |
| •Has the nominee received non-board related compensation from the issuer? |
| &nbsp;&nbsp; In the US market where companies demonstrate negative governance practices, these <br> stricter standards will apply not only to directors who are a member of a key committee but <br> to all directors on the board as market practice permits. Accordingly, we will vote against a <br> nominee (with the exception of the CEO) where the board has inappropriate governance <br> practices and is considered not independent based on the above independence criteria.<br>|
| Additionally, we may withhold votes from directors based on the following: |
| &nbsp;&nbsp; •Overall average board tenure is excessive. In assessing excessive tenure, we consider <br> factors such as the preponderance of long tenured directors, board refreshment <br> practices, and classified board structures<br>|
| &nbsp;&nbsp; •Directors attend less than 75 percent of board meetings without appropriate <br> explanation or providing reason for their failure to meet the attendance threshold<br>|
| &nbsp;&nbsp; •Directors of companies that have not been responsive to a shareholder proposal that <br> received a majority shareholder support at the last annual or special meeting<br>|
| &nbsp;&nbsp; •Consideration can be warranted if management submits the proposal(s) on the ballot <br> as a binding management proposal, recommending shareholders vote for the <br> particular proposal(s)<br>|
| &nbsp;&nbsp; •Directors of companies have unilaterally adopted/ amended company bylaws that <br> negatively impact our shareholder rights (such as fee-shifting, forum selection, and <br> exclusion service bylaws) without putting such amendments to a shareholder vote<br>|
| &nbsp;&nbsp; •Compensation committee members where there is a weak relationship between <br> executive pay and performance over a five-year period<br>|
| &nbsp;&nbsp; •Audit committee members if non-audit fees exceed 50 percent of total fees paid to the <br> auditors<br>|
| •Directors who appear to have been remiss in their duties |
| **Board Gender Diversity** |
| &nbsp;&nbsp; We expect boards of all listed companies to have at least one female board member. If a <br> company fails to meet this expectation, State Street Global Advisors may vote against the <br> Chair of the board's nominating committee or the board leader in the absence of a <br> nominating committee, if necessary. Additionally, if a company fails to meet this <br> expectation for three consecutive years, State Street Global Advisors may vote against all <br> incumbent members of the nominating committee.<br>|
| **Board Racial/Ethnic Diversity** |
| &nbsp;&nbsp; We believe that companies have a responsibility to effectively manage and disclose risks <br> and opportunities related to racial and ethnic diversity. If a company in the S&P 500 does <br> not disclose, at minimum, the gender, racial and ethnic composition of its board, we may <br> vote against the Chair of the nominating committee. We may withhold support from the <br> Chair of the nominating committee also when a company in the S&P 500 does not have at <br> least one director from an underrepresented community on its board.<br>|

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| **Workforce Diversity** |
| &nbsp;&nbsp; We may vote against the Chair of the compensation committee at companies in the S&P <br> 500 that do not disclose their EEO-1 reports. Acceptable disclosures include:<br>|
| •The original EEO-1 report response |
| •The exact content of the report translated into custom graphics |
| **Director Time Commitments** |
| &nbsp;&nbsp; When voting on the election or re-election of a director, we also consider the number of <br> outside board directorships a non-executive and an executive may undertake. Thus, State <br> Street Global Advisors may take voting action against a director who exceeds the number <br> of board mandates listed below:<br>|
| &nbsp;&nbsp; •Named Executive Officers (NEOs) of a public company who sit on more than two <br> public company boards<br>|
| &nbsp;&nbsp; •Non-executive board chairs or lead independent directors who sit on more than three <br> public company boards<br>|
| •Director nominees who sit on more than four public company boards |
| &nbsp;&nbsp; For non-executive board chairs/lead independent directors and director nominees who hold <br> excessive commitments, as defined above, we may consider waiving our policy and vote in <br> support of a director if a company discloses its director commitment policy in a publicly <br> available manner (e.g., corporate governance guidelines, proxy statement, company <br> website). This policy or associated disclosure must include:<br>|
| •A numerical limit on public company board seats a director can serve on |
| •This limit cannot exceed our policy by more than one seat |
| •Consideration of public company board leadership positions (e.g., Committee Chair) |
| •Affirmation that all directors are currently compliant with the company policy |
| &nbsp;&nbsp; •Description of an annual policy review process undertaken by the Nominating <br> Committee to evaluate outside director time commitments<br>|
| &nbsp;&nbsp; If a director is imminently leaving a board and this departure is disclosed in a written, <br> time-bound and publicly-available manner, we may consider waiving our withhold vote <br> when evaluating the director for excessive time commitments.<br>|
| &nbsp;&nbsp; Service on a mutual fund board, the board of a UK investment trust or a Special Purpose <br> Acquisition Company (SPAC) board is not considered when evaluating directors for <br> excessive commitments. However, we do expect these roles to be considered by <br> nominating committees when evaluating director time commitments.<br>|

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| **Incorporating R-Factor™ into Director Votes** |

| **Climate-related Disclosure** |
| We believe climate change poses a systemic risk to all companies in our portfolio. |
| &nbsp;&nbsp; State Street Global Advisors has publicly supported the global regulatory efforts to <br> establish a mandatory baseline of climate risk disclosures for all companies. Until these <br> consistent disclosure standards are established, we find that the recommendations of the <br> Taskforce on Climate-related Financial Disclosures (TCFD) provide the most effective <br> framework by which companies can develop strategies to plan for climate-related risks and <br> make their businesses more resilient to the impacts of climate change.<br>|
| &nbsp;&nbsp; As such, we may vote against the independent board leader at companies in the S&P 500 <br> and S&P/TSX Composite that fail to provide sufficient disclosure in accordance with the <br> TCFD framework, including:<br>|
| •Board oversight of climate-related risks and opportunities |
| •Total Scope 1 and Scope 2 greenhouse gas emissions |
| •Targets for reducing greenhouse gas emissions |
| **Director-Related Proposals** |
| We generally vote for the following director-related proposals: |
| &nbsp;&nbsp; •Discharge of board members' duties, in the absence of pending litigation, regulatory <br> investigation, charges of fraud, or other indications of significant concern<br>|
| &nbsp;&nbsp; •Proposals to restore shareholders' ability in order to remove directors with or without <br> cause<br>|
| •Proposals that permit shareholders to elect directors to fill board vacancies |
| &nbsp;&nbsp; •Shareholder proposals seeking disclosure regarding the company, board, or <br> compensation committee's use of compensation consultants, such as company name, <br> business relationship(s), and fees paid<br>|
| We generally vote against the following director-related proposals: |
| &nbsp;&nbsp; •Requirements that candidates for directorships own large amounts of stock before <br> being eligible to be elected<br>|
| &nbsp;&nbsp; •Proposals that relate to the "transaction of other business as properly comes before <br> the meeting," which extend "blank check" powers to those acting as proxy<br>|

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Bottom 10 percent of scores relative to industry peers.

Have consistently underperformed their peers over the last two years; bottom 30 percent of scores relative to industry peers.

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| •Proposals requiring two candidates per board seat |
| **Majority Voting** |
| &nbsp;&nbsp; We will generally support a majority vote standard based on votes cast for the election of <br> directors.<br>|
| &nbsp;&nbsp; We will generally vote to support amendments to bylaws that would require simple majority <br> of voting shares (i.e. shares cast) to pass or to repeal certain provisions.<br>|
| **Annual Elections** |
| &nbsp;&nbsp; We generally support the establishment of annual elections of the board of directors. <br> Consideration is given to the overall level of board independence and the independence of <br> the key committees, as well as the existence of a shareholder rights plan.<br>|
| **Cumulative Voting** |
| We do not support cumulative voting structures for the election of directors. |
| **Separation Chair/CEO** |
| &nbsp;&nbsp; We analyze proposals for the separation of Chair/CEO on a case-by-case basis taking into <br> consideration numerous factors, including the appointment of and role played by a lead <br> director, a company's performance, and the overall governance structure of the company.<br>|
| &nbsp;&nbsp; However, we may take voting action against the chair or members of the nominating <br> committee at S&P 500 companies that have combined the roles of chair and CEO and <br> have not appointed a lead independent director.<br>|
| **Proxy Access** |
| &nbsp;&nbsp; In general, we believe that proxy access is a fundamental right and an accountability <br> mechanism for all long-term shareholders. We will consider proposals relating to proxy <br> access on a case-by-case basis. We will support shareholder proposals that set <br> parameters to empower long-term shareholders while providing management the flexibility <br> to design a process that is appropriate for the company's circumstances.<br>|
| &nbsp;&nbsp; We will review the terms of all other proposals and will support those proposals that have <br> been introduced in the spirit of enhancing shareholder rights.<br>|
| Considerations include the following: |
| •The ownership thresholds and holding duration proposed in the resolution |
| •The binding nature of the proposal |
| •The number of directors that shareholders may be able to nominate each year |
| •Company governance structure |
| •Shareholder rights |
| •Board performance |
| **Age/Term Limits** |
| &nbsp;&nbsp; Generally, we will vote against age and term limits unless the company is found to have <br> poor board refreshment and director succession practices, and has a preponderance of <br> non-executive directors with excessively long tenures serving on the board.<br>|

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|  | **Approve Remuneration of Directors** |
|  | &nbsp;&nbsp; Generally, we will support directors' compensation, provided the amounts are not <br> excessive relative to other issuers in the market or industry. In making our determination, <br> we review whether the compensation is overly dilutive to existing shareholders.<br>|
|  | **Indemnification** |
|  | &nbsp;&nbsp; Generally, we support proposals to limit directors' liability and/or expand indemnification <br> and liability protection if he or she has not acted in bad faith, gross negligence, or reckless <br> disregard of the duties involved in the conduct of his or her office.<br>|
|  | **Classified Boards** |
|  | We generally support annual elections for the board of directors. |
|  | **Confidential Voting** |
|  | We will support confidential voting. |
|  | **Board Size** |
|  | &nbsp;&nbsp; We will support proposals seeking to fix the board size or designate a range for the board <br> size and will vote against proposals that give management the ability to alter the size of the <br> board outside of a specified range without shareholder approval.<br>|
|  | **Board Responsiveness** |
|  | &nbsp;&nbsp; We may vote against the re-election of members of the compensation committee if we <br> have serious concerns about remuneration practices and if the company has not been <br> responsive to shareholder pressure to review its approach. In addition, if the level of <br> dissent against a management proposal on executive pay is consistently high, and we <br> have determined that a vote against a pay-related proposal is warranted in the third <br> consecutive year, we may vote against the Chair of the compensation committee.<br>|
| **Audit-Related Issues** | **Ratifying Auditors and Approving Auditor Compensation** |
|  | &nbsp;&nbsp; We support the approval of auditors and auditor compensation provided that the issuer <br> has properly disclosed audit and non-audit fees relative to market practice and the audit <br> fees are not deemed excessive. We deem audit fees to be excessive if the non-audit fees <br> for the prior year constituted 50 percent or more of the total fees paid to the auditor. We will <br> also support the disclosure of auditor and consulting relationships when the same or <br> related entities are conducting both activities and will support the establishment of a <br> selection committee responsible for the final approval of significant management <br> consultant contract awards where existing firms are already acting in an auditing function.<br>|
|  | &nbsp;&nbsp; In circumstances where "other" fees include fees related to initial public offerings, <br> bankruptcy emergence, and spin-offs, and the company makes public disclosure of the <br> amount and nature of those fees which are determined to be an exception to the standard <br> "non-audit fee" category, then such fees may be excluded from the non-audit fees <br> considered in determining the ratio of non-audit to audit/audit-related fees/tax compliance <br> and preparation for purposes of determining whether non-audit fees are excessive.<br>|

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|  | &nbsp;&nbsp; We will support the discharge of auditors and requirements that auditors attend the annual <br> meeting of shareholders.<sup>3</sup> <br>|
|  | **Approval of Financial Statements** |
|  | &nbsp;&nbsp; The disclosure and availability of reliable financial statements in a timely manner is <br> imperative for the investment process. We expect external auditors to provide assurance of <br> a company's financial condition. Hence, we will vote against the approval of financial <br> statements if i) they have not been disclosed or audited; ii) the auditor opinion is qualified/ <br> adverse, or the auditor has issued a disclaimer of opinion; or iii) the auditor opinion is not <br> disclosed.<br>|
| **Capital-Related Issues** | &nbsp;&nbsp; Capital structure proposals include requests by management for approval of amendments <br> to the certificate of incorporation that will alter the capital structure of the company.<br>|
|  | &nbsp;&nbsp; The most common request is for an increase in the number of authorized shares of <br> common stock, usually in conjunction with a stock split or dividend. Typically, we support <br> requests that are not unreasonably dilutive or enhance the rights of common shareholders. <br> In considering authorized share proposals, the typical threshold for approval is 100 percent <br> over current authorized shares. However, the threshold may be increased if the company <br> offers a specific need or purpose (merger, stock splits, growth purposes, etc.). All <br> proposals are evaluated on a case-by-case basis taking into account the company's <br> specific financial situation.<br>|
|  | **Increase in Authorized Common Shares** |
|  | &nbsp;&nbsp; In general, we support share increases for general corporate purposes up to 100 percent <br> of current authorized stock.<br>|
|  | &nbsp;&nbsp; We support increases for specific corporate purposes up to 100 percent of the specific <br> need plus 50 percent of current authorized common stock for US and Canadian firms.<br>|
|  | &nbsp;&nbsp; When applying the thresholds, we will also consider the nature of the specific need, such <br> as mergers and acquisitions and stock splits.<br>|
|  | **Increase in Authorized Preferred Shares** |
|  | &nbsp;&nbsp; We vote on a case-by-case basis on proposals to increase the number of preferred <br> shares.<br>|
|  | &nbsp;&nbsp; Generally, we will vote for the authorization of preferred stock in cases where the company <br> specifies the voting, dividend, conversion, and other rights of such stock and the terms of <br> the preferred stock appear reasonable.<br>|
|  | &nbsp;&nbsp; We will support proposals to create "declawed" blank check preferred stock (stock that <br> cannot be used as a takeover defense). However, we will vote against proposals to <br> increase the number of blank check preferred stock authorized for issuance when no <br> shares have been issued or reserved for a specific purpose.<br>|

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Common for non-US issuers; request from the issuer to discharge from liability the directors or auditors with respect to actions taken by them during the previous year.

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|:---|:---|
|  | **Unequal Voting Rights** |
|  | &nbsp;&nbsp; We will not support proposals authorizing the creation of new classes of common stock <br> with superior voting rights and will vote against new classes of preferred stock with <br> unspecified voting, conversion, dividend distribution, and other rights. In addition, we will <br> not support capitalization changes that add "blank check" classes of stock (i.e. classes of <br> stock with undefined voting rights) or classes that dilute the voting interests of existing <br> shareholders.<br>|
|  | &nbsp;&nbsp; However, we will support capitalization changes that eliminate other classes of stock and/ <br> or unequal voting rights.<br>|
| **Mergers and Acquisitions** | &nbsp;&nbsp; Mergers or the reorganization of the structure of a company often involve proposals <br> relating to reincorporation, restructurings, liquidations, and other major changes to the <br> corporation.<br>|
|  | &nbsp;&nbsp; Proposals that are in the best interests of the shareholders, demonstrated by enhancing <br> share value or improving the effectiveness of the company's operations, will be supported.<br>|
|  | &nbsp;&nbsp; In general, provisions that are not viewed as economically sound or are thought to be <br> destructive to shareholders' rights are not supported.<br>|
|  | &nbsp;&nbsp; We will generally support transactions that maximize shareholder value. Some of the <br> considerations include the following:<br>|
|  | •Offer premium |
|  | •Strategic rationale |
|  | &nbsp;&nbsp; •Board oversight of the process for the recommended transaction, including, director <br> and/or management conflicts of interest<br>|
|  | •Offers made at a premium and where there are no other higher bidders |
|  | &nbsp;&nbsp; •Offers in which the secondary market price is substantially lower than the net asset <br> value<br>|
|  | We may vote against a transaction considering the following: |
|  | &nbsp;&nbsp; •Offers with potentially damaging consequences for minority shareholders because of <br> illiquid stock, especially in some non-US markets<br>|
|  | &nbsp;&nbsp; •Offers where we believe there is a reasonable prospect for an enhanced bid or other <br> bidders<br>|
|  | •The current market price of the security exceeds the bid price at the time of voting |
| **Anti–Takeover Issues** | &nbsp;&nbsp; Typically, these are proposals relating to requests by management to amend the certificate <br> of incorporation or bylaws to add or to delete a provision that is deemed to have an <br> anti-takeover effect. The majority of these proposals deal with management's attempt to <br> add some provision that makes a hostile takeover more difficult or will protect incumbent <br> management in the event of a change in control of the company.<br>|
|  | &nbsp;&nbsp; Proposals that reduce shareholders' rights or have the effect of entrenching incumbent <br> management will not be supported.<br>|

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|:---|
| &nbsp;&nbsp; Proposals that enhance the right of shareholders to make their own choices as to the <br> desirability of a merger or other proposal are supported.<br>|
| **Shareholder Rights Plans** |
| &nbsp;&nbsp; **US** We will support mandates requiring shareholder approval of a shareholder rights plans <br> ("poison pill") and repeals of various anti-takeover related provisions.<br>|
| &nbsp;&nbsp; In general, we will vote against the adoption or renewal of a US issuer's shareholder rights <br> plan ("poison pill").<br>|
| &nbsp;&nbsp; We will vote for an amendment to a shareholder rights plan ("poison pill") where the terms <br> of the new plans are more favorable to shareholders' ability to accept unsolicited offers <br> (i.e. if one of the following conditions are met: (i) minimum trigger, flip-in or flip-over of 20 <br> percent, (ii) maximum term of three years, (iii) no "dead hand," "slow hand," "no hand" <br> nor similar feature that limits the ability of a future board to redeem the pill, and (iv) <br> inclusion of a shareholder redemption feature (qualifying offer clause), permitting ten <br> percent of the shares to call a special meeting or seek a written consent to vote on <br> rescinding the pill if the board refuses to redeem the pill 90 days after a qualifying offer is <br> announced).<br>|
| &nbsp;&nbsp; **Canada** We analyze proposals for shareholder approval of a shareholder rights plan <br> ("poison pill") on a case-by-case basis taking into consideration numerous factors, <br> including but not limited to, whether it conforms to 'new generation' rights plans and the <br> scope of the plan.<br>|
| **Special Meetings** |
| &nbsp;&nbsp; We will vote for shareholder proposals related to special meetings at companies that do <br> not provide shareholders the right to call for a special meeting in their bylaws if:<br>|
| •The company also does not allow shareholders to act by written consent |
| &nbsp;&nbsp; •The company allows shareholders to act by written consent but the ownership <br> threshold for acting by written consent is set above 25 percent of outstanding shares<br>|
| &nbsp;&nbsp; We will vote for shareholder proposals related to special meetings at companies that give <br> shareholders (with a minimum 10 percent ownership threshold) the right to call for a <br> special meeting in their bylaws if:<br>|
| &nbsp;&nbsp; •The current ownership threshold to call for a special meeting is above 25 percent of <br> outstanding shares<br>|
| We will vote for management proposals related to special meetings. |
| **Written Consent** |
| We will vote for shareholder proposals on written consent at companies if: |
| &nbsp;&nbsp; •The company does not have provisions in their bylaws giving shareholders the right to <br> call for a special meeting<br>|
| &nbsp;&nbsp; •The company allows shareholders the right to call for a special meeting, but the <br> current ownership threshold to call for a special meeting is above 25 percent of <br> outstanding shares<br>|
| •The company has a poor governance profile |
| We will vote management proposals on written consent on a case-by-case basis. |

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| | |
|:---|:---|
|  | **Super–Majority** |
|  | &nbsp;&nbsp; We will generally vote against amendments to bylaws requiring super-majority shareholder <br> votes to pass or repeal certain provisions. We will vote for the reduction or elimination of <br> super-majority vote requirements, unless management of the issuer was concurrently <br> seeking to or had previously made such a reduction or elimination.<br>|
| **Remuneration Issues** | &nbsp;&nbsp; Despite the differences among the types of plans and the awards possible there is a <br> simple underlying philosophy that guides the analysis of all compensation plans; namely, <br> the terms of the plan should be designed to provide an incentive for executives and/or <br> employees to align their interests with those of the shareholders and thus work toward <br> enhancing shareholder value. Plans that benefit participants only when the shareholders <br> also benefit are those most likely to be supported.<br>|
|  | **Advisory Vote on Executive Compensation and Frequency** |
|  | &nbsp;&nbsp; State Street Global Advisors believes executive compensation plays a critical role in <br> aligning executives' interest with shareholders', attracting, retaining and incentivizing key <br> talent, and ensuring positive correlation between the performance achieved by <br> management and the benefits derived by shareholders. We support management <br> proposals on executive compensation where there is a strong relationship between <br> executive pay and performance over a five-year period. We seek adequate disclosure of <br> various compensation elements, absolute and relative pay levels, peer selection and <br> benchmarking, the mix of long-term and short-term incentives, alignment of pay structures <br> with shareholder interests as well as with corporate strategy, and performance. Further <br> shareholders should have the opportunity to assess whether pay structures and levels are <br> aligned with business performance on an annual basis.<br>|
|  | &nbsp;&nbsp; In Canada, where advisory votes on executive compensation are not commonplace, we will <br> rely primarily upon engagement to evaluate compensation plans.<br>|
|  | **Employee Equity Award Plans** |
|  | &nbsp;&nbsp; We consider numerous criteria when examining equity award proposals. Generally we do <br> not vote against plans for lack of performance or vesting criteria. Rather the main criteria <br> that will result in a vote against an equity award plan are:<br>|
|  | &nbsp;&nbsp; **Excessive voting power dilution** To assess the dilutive effect, we divide the number of <br> shares required to fully fund the proposed plan, the number of authorized but unissued <br> shares and the issued but unexercised shares by the fully diluted share count. We review <br> that number in light of certain factors, such as the industry of the issuer.<br>|
|  | &nbsp;&nbsp; **Historical option grants** Excessive historical option grants over the past three years. <br> Plans that provide for historical grant patterns of greater than five to eight percent are <br> generally not supported.<br>|
|  | &nbsp;&nbsp; **Repricing** We will vote against any plan where repricing is expressly permitted. If a <br> company has a history of repricing underwater options, the plan will not be supported.<br>|
|  | Other criteria include the following: |
|  | •Number of participants or eligible employees |
|  | •The variety of awards possible |
|  | •The period of time covered by the plan |

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|:---|:---|
|  | &nbsp;&nbsp; There are numerous factors that we view as negative. If combined they may result in a <br> vote against a proposal. Factors include:<br>|
|  | •Grants to individuals or very small groups of participants |
|  | •"Gun-jumping" grants which anticipate shareholder approval of a plan or amendment |
|  | &nbsp;&nbsp; •The power of the board to exchange "underwater" options without shareholder <br> approval. This pertains to the ability of a company to reprice options, not the actual act <br> of repricing described above<br>|
|  | •Below market rate loans to officers to exercise their options |
|  | •The ability to grant options at less than fair market value; |
|  | •Acceleration of vesting automatically upon a change in control |
|  | &nbsp;&nbsp; •Excessive compensation (i.e. compensation plans which we deem to be overly <br> dilutive)<br>|
|  | &nbsp;&nbsp; **Share Repurchases** If a company makes a clear connection between a share repurchase <br> program and its intent to offset dilution created from option plans and the company fully <br> discloses the amount of shares being repurchased, the voting dilution calculation may be <br> adjusted to account for the impact of the buy back.<br>|
|  | &nbsp;&nbsp; Companies will not have any such repurchase plan factored into the dilution calculation if <br> they do not (i) clearly state the intentions of any proposed share buy-back plan, (ii) <br> disclose a definitive number of the shares to be bought back, (iii) specify the range of <br> premium/discount to market price at which a company can repurchase shares, and (iv) <br> disclose the time frame during which the shares will be bought back.<br>|
|  | &nbsp;&nbsp; **162(m) Plan Amendments** If a plan would not normally meet our criteria described above, <br> but was primarily amended to add specific performance criteria to be used with awards <br> that were designed to qualify for performance-based exception from the tax deductibility <br> limitations of Section 162(m) of the Internal Revenue Code, then we will support the <br> proposal to amend the plan.<br>|
|  | **Employee Stock Option Plans** |
|  | &nbsp;&nbsp; We generally vote for stock purchase plans with an exercise price of not less than 85 <br> percent of fair market value. However, we take market practice into consideration.<br>|
|  | **Compensation-Related Items** |
|  | We generally support the following proposals: |
|  | •Expansions to reporting of financial or compensation-related information within reason |
|  | &nbsp;&nbsp; •Proposals requiring the disclosure of executive retirement benefits if the issuer does <br> not have an independent compensation committee<br>|
|  | We generally vote against the following proposal: |
|  | •Retirement bonuses for non-executive directors and auditors |
| **Miscellaneous/Routine** <br> **Items**<br>| We generally support the following miscellaneous/routine governance items: |

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| &nbsp;&nbsp; •Reimbursement of all appropriate proxy solicitation expenses associated with the <br> election when voting in conjunction with support of a dissident slate<br>|
| •Opting-out of business combination provision |
| &nbsp;&nbsp; •Proposals that remove restrictions on the right of shareholders to act independently of <br> management<br>|
| &nbsp;&nbsp; •Liquidation of the company if the company will file for bankruptcy if the proposal is not <br> approved<br>|
| •Shareholder proposals to put option repricings to a shareholder vote |
| &nbsp;&nbsp; •General updating of, or corrective amendments to, charter and bylaws not otherwise <br> specifically addressed herein, unless such amendments would reasonably be <br> expected to diminish shareholder rights (e.g. extension of directors' term limits, <br> amending shareholder vote requirement to amend the charter documents, insufficient <br> information provided as to the reason behind the amendment)<br>|
| •Change in corporation name |
| •Mandates that amendments to bylaws or charters have shareholder approval |
| &nbsp;&nbsp; •Management proposals to change the date, time, and/or location of the annual <br> meeting unless the proposed change is unreasonable<br>|
| •Repeals, prohibitions or adoption of anti-greenmail provisions |
| &nbsp;&nbsp; •Management proposals to implement a reverse stock split when the number of <br> authorized shares will be proportionately reduced and proposals to implement a <br> reverse stock split to avoid delisting<br>|
| •Exclusive forum provisions |
| &nbsp;&nbsp; State Street Global Advisors generally does not support the following miscellaneous/ <br> routine governance items:<br>|
| &nbsp;&nbsp; •Proposals requesting companies to adopt full tenure holding periods for their <br> executives<br>|
| &nbsp;&nbsp; •Reincorporation to a location that we believe has more negative attributes than its <br> current location of incorporation<br>|
| &nbsp;&nbsp; •Shareholder proposals to change the date, time, and/or location of the annual meeting <br> unless the current scheduling or location is unreasonable<br>|
| •Proposals to approve other business when it appears as a voting item |
| •Proposals giving the board exclusive authority to amend the bylaws |
| &nbsp;&nbsp; •Proposals to reduce quorum requirements for shareholder meetings below a majority <br> of the shares outstanding unless there are compelling reasons to support the proposal<br>|

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|:---|:---|
| **Environmental and Social** <br> **Issues**<br>| &nbsp;&nbsp; As a fiduciary, State Street Global Advisors takes a comprehensive approach to engaging <br> with our portfolio companies about material environmental and social (sustainability) <br> issues. We use our voice and our vote through engagement, proxy voting, and thought <br> leadership in order to communicate with issuers and educate market participants about <br> our perspective on important sustainability topics. Our Asset Stewardship program <br> prioritization process allows us to proactively identify companies for engagement and <br> voting in order to mitigate sustainability risks in our portfolio. Through engagement, we <br> address a broad range of topics that align with our stewardship priorities and build <br> long-term relationships with issuers. When voting, we fundamentally consider whether the <br> adoption of a shareholder proposal addressing a material sustainability issue would <br> promote long-term shareholder value in the context of the company's existing practices <br> and disclosures as well as existing market practice.<br>|
|  | &nbsp;&nbsp; For more information on our approach to environmental and social issues, please see our <br> Global Proxy Voting and Engagement Guidelines for Environmental and Social Issues and <br> our Frameworks for Voting Environmental and Social Shareholder Proposals, both <br> available at ssga.com/about-us/asset-stewardship.html.<br>|
| **More Information** | &nbsp;&nbsp; Any client who wishes to receive information on how its proxies were voted should contact <br> its State Street Global Advisors relationship manager.<br>|
| **About State Street Global** <br> **Advisors**<br>| &nbsp;&nbsp; For four decades, State Street Global Advisors has served the world's governments, <br> institutions and financial advisors. With a rigorous, risk-aware approach built on research, <br> analysis and market-tested experience, we build from a breadth of active and index <br> strategies to create cost-effective solutions. As stewards, we help portfolio companies see <br> that what is fair for people and sustainable for the planet can deliver long-term <br> performance. And, as pioneers in index, ETF, and ESG investing, we are always inventing <br> new ways to invest. As a result, we have become the world's fourth-largest asset manager\* <br> with US $4.14 trillion† under our care.<br>|

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\*

Pensions & Investments Research Center, as of December 31, 2020.

†

This figure is presented as of December 31, 2021 and includes approximately $61.43 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

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**ssga.com** 

**State Street Global Advisors Worldwide Entities** 

**Australia:** State Street Global Advisors, Australia, Limited (ABN 42 003 914 225) is the holder of an Australian Financial Services Licence (AFSL Number 238276). Registered Office: Level 17, 420 George Street, Sydney, NSW 2000, Australia. T: +612 9240 7600. F: +612 9240 7611.

**Belgium:** State Street Global Advisors Belgium, Chausse de La Hulpe 120, 1000 Brussels, Belgium. T: +32 2 663 2036, F: +32 2 672 2077. SSGA Belgium is a branch office of State Street Global Advisors Limited. State Street Global Advisors Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom. **Canada:** State Street Global Advisors, Ltd., 770 Sherbrooke Street West, Suite

1200 Montreal, Quebec, H3A 1G1, T: +514 282 2400 and 30 Adelaide Street East Suite 500, Toronto, Ontario M5C 3G6. T: +647 775 5900. **Dubai:** State Street Bank and Trust Company (Representative Office), Boulevard Plaza 1, 17th Floor, Office 1703 Near Dubai Mall & Burj Khalifa, P.O Box 26838, Dubai, United Arab Emirates. T: +971 (0)4 4372800. F: +971 (0)4 4372818. **France:** State Street Global

Advisors France. Authorised and regulated by the Autorité des Marchés Financiers. Registered with the Register of Commerce and Companies of Nanterre under the number: 412 052 680. Registered Office: Immeuble Défense Plaza, 23-25 rue Delarivière-Lefoullon, 92064 Paris La Défense Cedex, France. T: +33 1 44 45 40 00. F: +33 1 44 45 41 92. **Germany:** State Street Global Advisors GmbH, Brienner Strasse

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59, D-80333 Munich. T: +49 (0)89 55878 100. F: +49 (0)89 55878 440. **Hong Kong:** State Street Global Advisors Asia Limited, 68/F, Two International Finance Centre, 8 Finance Street, Central, Hong Kong. T: +852 2103 0288. F: +852 2103 0200. **Ireland:** State Street Global Advisors Ireland Limited is regulated by the Central Bank of Ireland. Incorporated and registered in Ireland at Two Park Place, Upper Hatch Street, Dublin 2. Registered Number: 145221. Member of the Irish Association of Investment Managers. T: +353 (0)1 776 3000. F: +353 (0)1 776 3300. **Italy:** State Street Global Advisors Limited, Milan Branch (Sede Secondaria di Milano) is a branch of State Street Global Advisors Limited, a company registered in the UK, authorised and regulated by the Financial Conduct Authority (FCA), with a

capital of GBP 71'650'000.00, and whose registered office is at 20 Churchill Place, London E14 5HJ. State Street Global Advisors Limited, Milan Branch (Sede Secondaria di Milano), is registered in Italy with company number 06353340968 - R.E.A. 1887090 and VAT number 06353340968 and whose office is at Via dei Bossi, 4 -20121 Milano, Italy. T: 39 02 32066 100. F: 39 02 32066 155. **Japan:** State Street Global Advisors (Japan) Co., Ltd., 9-7-1 Akasaka, Minato-ku, Tokyo 107-6239. T: +813 4530 7380. Financial Instruments Business Operator, Kanto Local Financial Bureau (Kinsho #345). Japan Investment Advisers Association, Investment Trusts Association Japan, Japan Securities Dealers Association. **Netherlands:** State Street Global Advisors Netherlands, Adam Smith

Building, Thomas Malthusstraat 1-3, 1066 JR Amsterdam, Netherlands. T: +31 (0)20 7181701. State Street Global Advisors Netherlands is a branch office of State Street Global Advisors Limited. State Street Global Advisors Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Singapore: State Street Global Advisors Singapore Limited, 168, Robinson Road, #33-01 Capital Tower, Singapore 068912 (Company Registered Number: 200002719D). T: +65 6826 7500. F: +65 6826 7501. **Switzerland:** State Street Global Advisors AG, Beethovenstr. 19, CH-8027 Zurich. T: +41 (0)44 245 70 00. F: +41 (0)44 245 70 16. **United Kingdom:** State Street Global Advisors Limited. Authorised and regulated by the Financial Conduct Authority.

Registered in England. Registered Number: 2509928. VAT Number: 5776591 81. Registered Office: 20 Churchill Place, Canary Wharf, London, E14 5HJ. T: +020 3395 6000. F: +020 3395 6350. **United States:** State Street Global Advisors, One Lincoln Street, Boston, MA 02111-2900. T: +617 786 3000.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without State Street Global Advisors' express written consent.© 2022 State Street Corporation.

All Rights Reserved.

ID949712-3479916.2.1.GBL.RTL 0322

Exp. Date: 03/31/2023

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| **March 2022** |
| United Kingdom and Ireland |
| &nbsp;&nbsp; **Proxy Voting and** <br> **Engagement Guidelines**<br>|
| &nbsp;&nbsp; State Street Global Advisors' United Kingdom and <br> Ireland Proxy Voting and Engagement Guidelines<sup>i</sup> <br> outline our expectations of companies listed on stock <br> exchanges in the United Kingdom and Ireland. These <br> Guidelines complement and should be read in <br> conjunction with State Street Global Advisors' Global <br> Proxy Voting and Engagement Principles, which provide <br> a detailed explanation of our approach to voting and <br> engaging with companies, and State Street Global <br> Advisors' Conflict Mitigation Guidelines.<br>|

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i

These Proxy Voting and Engagement Guidelines are also applicable to SSGA Funds Management, Inc. SSGA Funds Management, Inc. is an SEC-registered investment adviser. SSGA Funds Management, Inc., State Street Global Advisors Trust Company, and other advisory affiliates of State Street make up State Street Global Advisors, the investment management arm of State Street Corporation.

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|  | &nbsp;&nbsp; State Street Global Advisors' United Kingdom ("UK") and Ireland Proxy Voting and <br> Engagement Guidelines address areas including board structure, audit-related issues, <br> capital structure, remuneration, environmental, social and other governance-related issues.<br>|
|  | &nbsp;&nbsp; When voting and engaging with companies in global markets, we consider market specific <br> nuances in the manner that we believe will most likely protect and promote the long-term <br> economic value of client investments. We expect companies to observe the relevant laws <br> and regulations of their respective markets, as well as country-specific best practice <br> guidelines and corporate governance codes. When we identify that a country's regulatory <br> requirements do not address some of the key philosophical principles that we believe are <br> fundamental to our global voting guidelines, we may hold companies in such markets to <br> our global standards.<br>|
|  | &nbsp;&nbsp; In our analysis and research into corporate governance issues in the UK and Ireland, we <br> expect all companies that obtain a primary listing on the London Stock Exchange or the <br> Irish Stock Exchange, regardless of domicile, to comply with the UK Corporate <br> Governance Code, and proactively monitor companies' adherence to the Code. Consistent <br> with the 'comply or explain' expectations established by the Code, we encourage <br> companies to proactively disclose their level of compliance with the Code. In instances of <br> non-compliance in which companies cannot explain the nuances of their governance <br> structure effectively, either publicly or through engagement, we may vote against the <br> independent board leader.<br>|
| **State Street Global** <br> **Advisors' Proxy Voting** <br> **and Engagement** <br> **Philosophy**<br>| &nbsp;&nbsp; In our view, corporate governance and sustainability issues are an integral part of the <br> investment process. The Asset Stewardship Team consists of investment professionals <br> with expertise in corporate governance and company law, remuneration, accounting, and <br> environmental and social issues. We have established robust corporate governance <br> principles and practices that are backed with extensive analytical expertise to understand <br> the complexities of the corporate governance landscape. We engage with companies to <br> provide insight on the principles and practices that drive our voting decisions. We also <br> conduct proactive engagement to address significant shareholder concerns and <br> environmental, social and governance ("ESG") issues in a manner consistent with <br> maximizing shareholder value.<br>|
|  | &nbsp;&nbsp; The team works alongside members of State Street Global Advisors' Active Fundamental <br> and Europe, Middle East and Africa ("EMEA") Investment teams. We collaborate on issuer <br> engagements and provide input on company specific fundamentals. We are also a member <br> of various investor associations that seek to address broader corporate governance <br> related policy issues in the UK and European markets.<br>|
|  | &nbsp;&nbsp; State Street Global Advisors is a signatory to the United Nations Principles for <br> Responsible Investment ("UNPRI") and is compliant with the UK Stewardship Code. We <br> are committed to sustainable investing, and are working to further integrate ESG principles <br> into investment and corporate governance practice where applicable and consistent with <br> our fiduciary duty.<br>|

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| **Directors and Boards** | &nbsp;&nbsp; Principally, we believe the primary responsibility of a board of directors is to preserve and <br> enhance shareholder value and to protect shareholder interests. In order to carry out their <br> primary responsibilities, directors have to undertake activities that range from setting <br> strategy, overseeing executive management, and monitoring the risks that arise from a <br> company's business, including risks related to sustainability issues. Further, good <br> corporate governance necessitates the existence of effective internal controls and risk <br> management systems, which should be governed by the board.<br>|
|  | &nbsp;&nbsp; We believe that a well constituted board of directors, with a balance of skills, expertise and <br> independence, provides the foundations for a well governed company. We view board <br> quality as a measure of director independence, director succession planning, board <br> diversity, evaluations and refreshment, and company governance practices. We vote for the <br> (re-)election of directors on a case-by-case basis after considering various factors, <br> including board quality, general market practice, and availability of information on director <br> skills and expertise. In principle, we believe independent directors are crucial to robust <br> corporate governance and help management establish sound corporate governance <br> policies and practices. A sufficiently independent board will most effectively monitor <br> management and perform oversight functions necessary to protect shareholder interests.<br>|
|  | Our broad criteria for director independence for UK companies include factors such as: |
|  | &nbsp;&nbsp; •Participation in related-party transactions and other business relations with the <br> company<br>|
|  | •Employment history with company |
|  | •Excessive tenure and a preponderance of long-tenured directors |
|  | •Relations with controlling shareholders |
|  | •Family ties with any of the company's advisers, directors or senior employees |
|  | •Company classification of a director as non-independent |
|  | &nbsp;&nbsp; When voting on the election or re-election of a director, we also consider the number of <br> outside board directorships a non-executive and an executive may undertake. Thus, we <br> may withhold votes from board chairs and lead independent directors who sit on more than <br> three public company boards, and from non-executive directors who hold more than four <br> public company board mandates. We may also take voting action against Named <br> Executive Officers who undertake more than two public board memberships. Service on a <br> mutual fund board or a UK investment trust is not considered when evaluating directors for <br> excessive commitments.<br>|
|  | &nbsp;&nbsp; We also consider attendance at board meetings and may withhold votes from directors <br> who attend less than 75 percent of board meetings in a given year without appropriate <br> explanation or providing reason for their failure to meet the attendance threshold. In <br> addition, we monitor other factors that may influence the independence of a non-executive <br> director, such as performance-related pay, cross-directorships and significant <br> shareholdings.<br>|
|  | We support the annual election of directors. |

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| &nbsp;&nbsp; While we are generally supportive of having the roles of chair and CEO separated in the <br> UK market, we assess the division of responsibilities between chair and CEO on a <br> case-by-case basis, giving consideration to factors such as the company's specific <br> circumstances, overall level of independence on the board and general corporate <br> governance standards in the company. Similarly, we monitor for circumstances in which a <br> combined chair/CEO is appointed or a former CEO becomes chair.<br>|
| &nbsp;&nbsp; We may also consider factors such as board performance and directors who appear to be <br> remiss in the performance of their oversight responsibilities when considering their <br> suitability for reappointment (e.g. fraud, criminal wrongdoing and breach of fiduciary <br> responsibilities).<br>|
| &nbsp;&nbsp; We believe companies should have committees for audit, remuneration and nomination <br> oversight. The audit committee is responsible for monitoring the integrity of the financial <br> statements of the company, the appointment of external auditors, auditor qualifications <br> and independence, and effectiveness and resource levels. Similarly, executive pay is an <br> important aspect of corporate governance, and it should be determined by the board of <br> directors. We expect companies to have remuneration committees to provide independent <br> oversight over executive pay. We will vote against nominees who are executive members of <br> audit or remuneration committees.<br>|
| &nbsp;&nbsp; We consider whether board members have adequate skills to provide effective oversight of <br> corporate strategy, operations and risks, including environmental and social issues. Boards <br> should also have a regular evaluation process in place to assess the effectiveness of the <br> board and the skills of board members to address issues such as emerging risks, changes <br> to corporate strategy, and diversification of operations and geographic footprint. The <br> nomination committee is responsible for evaluating and reviewing the balance of skills, <br> knowledge, and experience of the board. It also ensures that adequate succession plans <br> are in place for directors and the CEO. We may vote against the re-election of members of <br> the nomination committee if, over time, the board has failed to address concerns over <br> board structure or succession.<br>|
| &nbsp;&nbsp; Poorly structured executive compensation plans pose increasing reputational risk to <br> companies. Ongoing high level of dissent against a company's compensation proposals <br> may indicate that the company is not receptive to investor concerns. If the level of dissent <br> against a company's remuneration report and/or remuneration policy is consistently high, <br> and we have determined that a vote against a pay-related proposal is warranted in the <br> third consecutive year, we will vote against the Chair of the remuneration committee.<br>|
| **Board Gender Diversity** |
| &nbsp;&nbsp; We expect boards of all listed companies to have at least one female board member. If a <br> company fails to meet this expectation, State Street Global Advisors may vote against the <br> chair of the board's nominating committee or the board leader in the absence of a <br> nominating committee, if necessary. Additionally, if a company fails to meet this <br> expectation for three consecutive years, State Street Global Advisors may vote against all <br> incumbent members of the nominating committee.<br>|

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| **Board Racial/Ethnic Diversity** |
| &nbsp;&nbsp; We believe that companies have a responsibility to effectively manage and disclose risks <br> and opportunities related to racial and ethnic diversity. If a company in the FTSE 100 does <br> not disclose, at minimum, the gender, racial and ethnic composition of its board, we will <br> vote against the Chair of the nominating committee. We may withhold support from the <br> Chair of the nominating committee also when a company in the FTSE 100 does not have <br> at least one director from an underrepresented community on its board.<br>|
| **Director Time Commitments** |
| &nbsp;&nbsp; When voting on the election or re-election of a director, we also consider the number of <br> outside board directorships a non-executive and an executive may undertake. Thus, State <br> Street Global Advisors may take voting action against a director who exceeds the number <br> of board mandates listed below:<br>|
| &nbsp;&nbsp; •Named Executive Officers (NEOs) of a public company who sit on more than two <br> public company boards<br>|
| &nbsp;&nbsp; •Non-executive board chairs or lead independent directors who sit on more than three <br> public company boards<br>|
| •Director nominees who sit on more than four public company boards |
| &nbsp;&nbsp; For non-executive board chairs/lead independent directors and director nominees who hold <br> excessive commitments, as defined above, we may consider waiving our policy and vote in <br> support of a director if a company discloses its director commitment policy in a publicly <br> available manner (e.g., corporate governance guidelines, proxy statement, company <br> website). This policy or associated disclosure must include:<br>|
| •A numerical limit on public company board seats a director can serve on |
| •This limit cannot exceed our policy by more than one seat |
| •Consideration of public company board leadership positions (e.g., Committee Chair) |
| •Affirmation that all directors are currently compliant with the company policy |
| &nbsp;&nbsp; •Description of an annual policy review process undertaken by the Nominating <br> Committee to evaluate outside director time commitments<br>|
| &nbsp;&nbsp; If a director is imminently leaving a board and this departure is disclosed in a written, <br> time-bound and publicly-available manner, we may consider waiving our withhold vote <br> when evaluating the director for excessive time commitments.<br>|
| &nbsp;&nbsp; Service on a mutual fund board, the board of a UK investment trust or a Special Purpose <br> Acquisition Company (SPAC) board is not considered when evaluating directors for <br> excessive commitments. However, we do expect these roles to be considered by <br> nominating committees when evaluating director time commitments.<br>|
| **Incorporating R-Factor**<sup>TM</sup> **into Director Votes** |

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|  | **Climate-related Disclosure** |
|  | We believe climate change poses a systemic risk to all companies in our portfolio. |
|  | &nbsp;&nbsp; State Street Global Advisors has publicly supported the global regulatory efforts to <br> establish a mandatory baseline of climate risk disclosures for all companies. Until these <br> consistent disclosure standards are established, we find that the recommendations of the <br> Taskforce on Climate-related Financial Disclosures (TCFD) provide the most effective <br> framework by which companies can develop strategies to plan for climate-related risks and <br> make their businesses more resilient to the impacts of climate change.<br>|
|  | &nbsp;&nbsp; As such, we may vote against the independent board leader at companies in the FTSE <br> 350 that fail to provide sufficient disclosure in accordance with the TCFD framework, <br> including:<br>|
|  | •Board oversight of climate-related risks and opportunities |
|  | •Total Scope 1 and Scope 2 greenhouse gas emissions |
|  | •Targets for reducing greenhouse gas emissions |
|  | **Indemnification and Limitations on Liability** |
|  | &nbsp;&nbsp; Generally, we support proposals to limit directors' liability and/or expand indemnification <br> and liability protection up to the limit provided by law. This holds if a director has not acted <br> in bad faith, gross negligence, nor reckless disregard of the duties involved in the conduct <br> of his or her office.<br>|
| **Audit-Related Issues** | &nbsp;&nbsp; Companies should have robust internal audit and internal control systems designed for <br> effective management of any potential and emerging risks to company operations and <br> strategy. The responsibility of setting out an internal audit function lies with the audit <br> committee, which should have as members independent non-executive directors.<br>|

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Bottom 10 percent of scores relative to industry peers.

Have consistently underperformed their peers over the last two years; bottom 30 percent of scores relative to industry peers.

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|  | **Appointment of External Auditors** |
|  | &nbsp;&nbsp; State Street Global Advisors believes that a company's auditor is an essential feature of <br> an effective and transparent system of external supervision. Shareholders should be given <br> the opportunity to vote on their appointment or re-appoint at the annual meeting. When <br> appointing external auditors and approving audit fees, we take into consideration the level <br> of detail in company disclosures and will generally not support such resolutions if an <br> adequate breakdown is not provided and if non-audit fees are more than 50% of audit <br> fees. In addition, we may vote against members of the audit committee if we have <br> concerns with audit-related issues or if the level of non-audit fees to audit fees is <br> significant. In certain circumstances, we may consider auditor tenure when evaluating the <br> audit process.<br>|
|  | **Limit Legal Liability of External Auditors** |
|  | &nbsp;&nbsp; We generally oppose limiting the legal liability of audit firms because we believe this could <br> create a negative impact on the quality of the audit function.<br>|
|  | **Approval of Financial Statements** |
|  | &nbsp;&nbsp; The disclosure and availability of reliable financial statements in a timely manner is <br> imperative for the investment process. We expect external auditors to provide assurance of <br> a company's financial condition. Hence, we will vote against the approval of financial <br> statements if i) they have not been disclosed or audited; ii) the auditor opinion is qualified/ <br> adverse, or the auditor has issued a disclaimer of opinion; or iii) the auditor opinion is not <br> disclosed.<br>|
| **Shareholder Rights and** <br> **Capital-Related Issues**<br>| **Share Issuances** |
|  | &nbsp;&nbsp; The ability to raise capital is critical for companies to carry out strategy, to grow, and to <br> achieve returns above their cost of capital. The approval of capital raising activities is <br> essential to shareholders' ability to monitor returns and to ensure capital is deployed <br> efficiently. We support capital increases that have sound business reasons and are not <br> excessive relative to a company's existing capital base.<br>|
|  | &nbsp;&nbsp; Pre-emption rights are a fundamental right for shareholders to protect their investment in a <br> company. Where companies seek to issue new shares without pre-emption rights, we may <br> vote against if such authorities are greater than 20% of the issued share capital. We may <br> also vote against resolutions that seek authority to issue capital with pre-emption rights if <br> the aggregate amount allowed seems excessive and is not justified by the board. <br> Generally, we are against capital issuance proposals greater than 100% of the issued <br> share capital when the proceeds are not intended for a specific purpose.<br>|
|  | **Share Repurchase Programs** |
|  | &nbsp;&nbsp; We generally support a proposal to repurchase shares. However, this is not the case if the <br> issuer does not clearly state the business purpose for the program, a definitive number of <br> shares to be repurchased, the range of premium/discount to market price at which a <br> company can repurchase shares, and the timeframe for the repurchase. We may vote <br> against share repurchase requests that allow share repurchases during a takeover period.<br>|

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|  | **Dividends** |
|  | &nbsp;&nbsp; We generally support dividend payouts that constitute 30% or more of net income. We may <br> vote against the dividend payouts if the dividend payout ratio has been consistently below <br> 30% without adequate explanation or the payout is excessive given the company's <br> financial position. Particular attention will be paid where the payment may damage the <br> company's long term financial health.<br>|
|  | **Mergers and Acquisitions** |
|  | &nbsp;&nbsp; Mergers or reorganizing the structure of a company often involve proposals relating to <br> reincorporation, restructurings, mergers, liquidations, and other major changes to the <br> corporation. Proposals that are in the best interests of the shareholders, demonstrated by <br> enhancing share value or improving the effectiveness of the company's operations, will be <br> supported. In general, provisions that are not viewed as financially sound or are thought to <br> be destructive to shareholders' rights and are not supported.<br>|
|  | &nbsp;&nbsp; We will generally support transactions that maximize shareholder value. Some of the <br> considerations include the following:<br>|
|  | •Offer premium |
|  | •Strategic rationale |
|  | &nbsp;&nbsp; •Board oversight of the process for the recommended transaction, including, director <br> and/ or management conflicts of interest<br>|
|  | •Offers made at a premium and where there are no other higher bidders |
|  | &nbsp;&nbsp; •Offers in which the secondary market price is substantially lower than the net asset <br> value<br>|
|  | We may vote against a transaction considering the following: |
|  | &nbsp;&nbsp; •Offers with potentially damaging consequences for minority shareholders because of <br> illiquid stock<br>|
|  | &nbsp;&nbsp; •Offers in which we believe there is a reasonable prospect for an enhanced bid or other <br> bidders<br>|
|  | •The current market price of the security exceeds the bid price at the time of voting |
|  | **Anti-Takeover Measures** |
|  | &nbsp;&nbsp; We oppose anti-takeover defenses such as authorities for the board when subject to a <br> hostile takeover to issue warrants convertible into shares to existing shareholders.<br>|
|  | **Notice Period to Convene a General Meeting** |
|  | &nbsp;&nbsp; We expect companies to give as much notice as is practicable when calling a general <br> meeting. Generally, we are not supportive of authorizations seeking to reduce the notice <br> period to 14 days.<br>|
| **Remuneration** | **Executive Pay** |
|  | &nbsp;&nbsp; Despite the differences among the types of plans and awards possible, there is a simple <br> underlying philosophy that guides our analysis of executive pay: there should be a direct <br> relationship between remuneration and company performance over the long term.<br>|

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|  | &nbsp;&nbsp; Shareholders should have the opportunity to assess whether pay structures and levels are <br> aligned with business performance. When assessing remuneration policies and reports, <br> we consider adequate disclosure of various remuneration elements, absolute and relative <br> pay levels, peer selection and benchmarking, the mix of long-term and short- term <br> incentives, alignment of pay structures with shareholder interests as well as with corporate <br> strategy and performance. We may oppose remuneration reports where pay seems <br> misaligned with shareholders' interests. We may also vote against the re-election of <br> members of the remuneration committee if we have serious concerns about remuneration <br> practices or if the company has not been responsive to shareholder concerns.<br>|
|  | **Equity Incentive Plans** |
|  | &nbsp;&nbsp; We may not support proposals on equity-based incentive plans where insufficient <br> information is provided on matters such as grant limits, performance metrics, performance, <br> vesting periods, and overall dilution. Generally we do not support options under such plans <br> being issued at a discount to market price or plans that allow for re-testing of performance <br> metrics.<br>|
|  | **Non-Executive Director Pay** |
|  | &nbsp;&nbsp; Authorities that seek shareholder approval for non-executive directors' fees are generally <br> not controversial. We typically support resolutions regarding directors' fees unless <br> disclosure is poor and we are unable to determine whether they are excessive relative to <br> fees paid by comparable companies. We will evaluate any non-cash or performance <br> related pay to non-executive directors on a company- by-company basis.<br>|
| **Risk Management** | &nbsp;&nbsp; State Street Global Advisors believes that risk management is a key function of the board, <br> which is responsible for setting the overall risk appetite of a company and for providing <br> oversight of the risk management process established by senior executives at a company. <br> We allow boards to have discretion over how they provide oversight in this area. We expect <br> companies to disclose how the board provides oversight on its risk management system <br> and risk identification. Boards should also review existing and emerging risks as they can <br> evolve with a changing political and economic landscape or as companies diversify their <br> operations into new areas.<br>|
| **Environmental and Social** <br> **Issues**<br>| &nbsp;&nbsp; As a fiduciary, State Street Global Advisors takes a comprehensive approach to engaging <br> with our portfolio companies about material environmental and social (sustainability) <br> issues. We use our voice and our vote through engagement, proxy voting, and thought <br> leadership in order to communicate with issuers and educate market participants about <br> our perspective on important sustainability topics. Our Asset Stewardship program <br> prioritization process allows us to proactively identify companies for engagement and <br> voting in order to mitigate sustainability risks in our portfolio. Through engagement, we <br> address a broad range of topics that align with our stewardship priorities and build <br> long-term relationships with issuers. When voting, we fundamentally consider whether the <br> adoption of a shareholder proposal addressing a material sustainability issue would <br> promote long-term shareholder value in the context of the company's existing practices <br> and disclosures as well as existing market practice.<br>|
|  | &nbsp;&nbsp; For more information on our approach to environmental and social issues, please see our <br> Global Proxy Voting and Engagement Guidelines for Environmental and Social Issues and <br> Frameworks for Voting Environmental and Social Shareholder Proposals, both available at <br> ssga.com/about-us/asset-stewardship.html.<br>|

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| **More Information** | &nbsp;&nbsp; Any client who wishes to receive information on how its proxies were voted should contact <br> its State Street Global Advisors relationship manager.<br>|
| **About State Street Global** <br> **Advisors**<br>| &nbsp;&nbsp; For four decades, State Street Global Advisors has served the world's governments, <br> institutions and financial advisors. With a rigorous, risk-aware approach built on research, <br> analysis and market-tested experience, we build from a breadth of active and index <br> strategies to create cost-effective solutions. As stewards, we help portfolio companies see <br> that what is fair for people and sustainable for the planet can deliver long-term <br> performance. And, as pioneers in index, ETF, and ESG investing, we are always inventing <br> new ways to invest. As a result, we have become the world's fourth-largest asset manager\* <br> with US $4.14 trillion† under our care.<br>|

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\*

Pensions & Investments Research Center, as of December 31, 2020.

†

This figure is presented as of December 31, 2021 and includes approximately $61.43 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

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**ssga.com** 

**State Street Global Advisors Worldwide Entities** 

**Abu Dhabi:** State Street Global Advisors Limited, ADGM Branch, Al Khatem Tower, Suite 42801, Level 28, ADGM Square, Al Maryah Island, P.O Box 76404, Abu Dhabi, United Arab Emirates. Regulated by the ADGM Financial Services Regulatory Authority. T: +971 2 245 9000. **Australia:** State Street Global Advisors, Australia, Limited (ABN 42 003 914 225) is the holder of an Australian Financial Services License (AFSL Number 238276). Registered office: Level 14, 420 George Street, Sydney, NSW 2000, Australia. T: +612 9240-7600. F: +612 9240-7611. **Belgium:** State Street Global Advisors Belgium, Chaussée de La Hulpe 185, 1170 Brussels, Belgium. T: +32 2 663 2036. State Street Global Advisors Belgium is a branch office of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorized and regulated by the Central Bank of

Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. **Canada:** State Street Global Advisors, Ltd., 1981 McGill College Avenue, Suite 500, Montreal, Qc, H3A 3A8, T: +514 282 2400 and 30 Adelaide Street East Suite 800, Toronto, Ontario M5C 3G6. T: +647 775 5900. **France:** State Street Global Advisors Europe Limited, France Branch ("State Street Global Advisors France") is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorized and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. State Street Global Advisors France is registered in France with company number RCS Nanterre 899 183 289, and its office is located at Coeur Défense — Tour A — La Défense 4, 33e étage, 100, Esplanade du Général de Gaulle, 92 932 Paris La Défense Cedex, France. T: +33 1 44 45 40 00. F: +33 1 44 45 41 92. **Germany:** State Street Global Advisors Europe Limited, Branch

in Germany, Brienner Strasse 59, D-80333 Munich, Germany ("State Street Global Advisors Germany"). T: +49 (0)89 55878 400. State Street Global Advisors Germany is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorized and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. **Hong Kong:** State Street Global Advisors Asia Limited, 68/F, Two International Finance Centre, 8 Finance Street, Central, Hong Kong. T: +852 2103-0288. F: +852 2103-0200. **Ireland:** State Street Global Advisors Europe Limited is regulated by the Central Bank of Ireland. Registered office address 78 Sir John Rogerson's Quay, Dublin 2. Registered Number: 49934. T: +353 (0)1 776 3000. F: +353 (0)1 776 3300. **Italy:** State Street Global Advisors Europe Limited, Italy Branch ("State Street Global Advisors Italy") is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company

number 49934, authorized and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. State Street Global Advisors Italy is registered in Italy with company number 11871450968 — REA: 2628603 and VAT number 11871450968, and its office is located at Via Ferrante Aporti, 10 -20125 Milan, Italy. T: +39 02 32066 100. F: +39 02 32066 155. **Japan:** State Street Global Advisors (Japan) Co., Ltd., Toranomon Hills Mori Tower 25F 1-23-1 Toranomon, Minato-ku, Tokyo 105-6325 Japan. T: +81-3-4530-7380. Financial Instruments Business Operator, Kanto Local Financial Bureau (Kinsho #345), Membership: Japan Investment Advisers Association, The Investment Trust Association, Japan, Japan Securities Dealers' Association. **Netherlands:** State Street Global Advisors Netherlands, Apollo Building 7th floor, Herikerbergweg 29, 1101 CN Amsterdam, Netherlands. T: +31 20 7181 000. State Street Global Advisors Netherlands is a branch office of

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State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorized and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. **Singapore:** State Street Global Advisors Singapore Limited, 168, Robinson Road, #33-01 Capital Tower, Singapore 068912 (Company Reg. No: 200002719D, regulated by the

Monetary Authority of Singapore). T: +65 6826-7555. F: +65 6826-7501. **Switzerland:** State Street Global Advisors AG, Beethovenstr. 19, CH-8027 Zurich. Registered with the Register of Commerce Zurich CHE-105.078.458. T: +41 (0)44 245 70 00. F: +41 (0)44 245 70 16. **United Kingdom:** State Street Global Advisors Limited. Authorized and regulated by the Financial Conduct Authority. Registered in England. Registered

No. 2509928. VAT No. 5776591 81. Registered office: 20 Churchill Place, Canary Wharf, London, E14 5HJ. T: 020 3395 6000. F: 020 3395 6350. United States: State Street Global Advisors, 1 Iron Street, Boston, MA 02210-1641. T: +1 617 786 3000.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents

disclosed to third parties without State Street Global Advisors' express written consent.© 2022 State Street Corporation.

All Rights Reserved.

ID949716-3479919.2.1.GBL.RTL 0322

Exp. Date: 03/31/2023

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| **March 2022** |
| Rest of the World |
| &nbsp;&nbsp; **Proxy Voting and** <br> **Engagement Guidelines**<br>|
| &nbsp;&nbsp; State Street Global Advisors' Rest of the World Proxy <br> Voting and Engagement Guidelines<sup>i</sup> cover different <br> corporate governance frameworks and practices in <br> international markets not covered under specific country/<br> regional guidelines. These Guidelines complement and <br> should be read in conjunction with State Street Global <br> Advisors' overarching Global Proxy Voting and <br> Engagement Principles, which provide a detailed <br> explanation of our approach to voting and engaging with <br> companies, and State Street Global Advisors' Conflict <br> Mitigation Guidelines.<br>|

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i

These Proxy Voting and Engagement Guidelines are also applicable to SSGA Funds Management, Inc. SSGA Funds Management, Inc. is an SEC-registered investment adviser. SSGA Funds Management, Inc., State Street Global Advisors Trust Company, and other advisory affiliates of State Street make up State Street Global Advisors, the investment management arm of State Street Corporation.

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|  | &nbsp;&nbsp; At State Street Global Advisors, we recognize that markets not covered under specific <br> country/regional guidelines, specifically emerging markets, are disparate in their corporate <br> governance frameworks and practices. While they tend to pose broad common <br> governance issues across all markets, such as concentrated ownership, poor disclosure of <br> financial and related-party transactions, and weak enforcement of rules and regulation, our <br> proxy voting Guidelines are designed to identify and to address specific governance <br> concerns in each market. We also evaluate the various factors that contribute to the <br> corporate governance framework of a country. These factors include, but are not limited to: <br> (i) the macroeconomic conditions and broader political system in a country; (ii) quality of <br> regulatory oversight, enforcement of property and shareholder rights; and (iii) the <br> independence of judiciary.<br>|
| **State Street Global** <br> **Advisors' Proxy Voting** <br> **and Engagement** <br> **Philosophy in Emerging** <br> **Markets**<br>| &nbsp;&nbsp; State Street Global Advisors' approach to proxy voting and issuer engagement in emerging <br> markets is designed to increase the value of our investments through the mitigation of <br> governance risks. The overall quality of the corporate governance framework in an <br> emerging market country drives the level of governance risks investors assign to a country. <br> Thus, improving the macro governance framework in a country may help to reduce <br> governance risks and to increase the overall value of our holdings over time. In order to <br> improve the overall governance framework and practices in a country, members of our <br> Asset Stewardship Team endeavor to engage with representatives from regulatory <br> agencies and stock markets to highlight potential concerns with the macro governance <br> framework of a country. We are also a member of various investor associations that seek <br> to address broader corporate governance-related policy issues in emerging markets. To <br> help mitigate company-specific risk, the State Street Global Advisors Asset Stewardship <br> Team works alongside members of the Active Fundamental and emerging market <br> specialists to engage with emerging market companies on governance issues and address <br> any specific concerns, or to get more information regarding shareholder items that are to <br> be voted on at upcoming shareholder meetings. This integrated approach to engagement <br> drives our proxy voting and engagement philosophy in emerging markets.<br>|
|  | Our proxy voting Guidelines in emerging markets address six broad areas: |
|  | •Directors and Boards |
|  | •Accounting and Audit-Related Issues |
|  | •Shareholder Rights and Capital-Related Issues |
|  | •Remuneration |
|  | •Environmental and Social Issues |
|  | •General/Routine Issues |

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| **Directors and Boards** | &nbsp;&nbsp; We believe that a well constituted board of directors, with a balance of skills, expertise and <br> independence, provides the foundation for a well governed company. However, several <br> factors, such as low overall independence level requirements by market regulators, poor <br> biographical disclosure of director profiles, prevalence of related-party transactions, and <br> the general resistance from controlling shareholders to increase board independence, <br> render the election of directors as one of the most important fiduciary duties we perform in <br> emerging market companies.<br>|
|  | &nbsp;&nbsp; We vote for the election/re-election of directors on a case-by-case basis after considering <br> various factors, including general market practice and availability of information on director <br> skills and expertise. We expect companies to meet minimum overall board independence <br> standards, as defined in a local corporate governance code or market practice. Therefore, <br> in several countries, we will vote against certain non-independent directors if overall board <br> independence levels do not meet market standards.<br>|
|  | &nbsp;&nbsp; Our broad criteria for director independence in emerging market companies include factors <br> such as:<br>|
|  | •Participation in related-party transactions |
|  | •Employment history with company |
|  | •Relations with controlling shareholders and employees |
|  | •Company classification of a director as non-independent |
|  | &nbsp;&nbsp; In some countries, market practice calls for the establishment of a board level audit <br> committee. We believe an audit committee should be responsible for monitoring the <br> integrity of the financial statements of a company and appointing external auditors. It <br> should also monitor their qualifications, independence, effectiveness and resource levels. <br> Based upon our desire to enhance the quality of financial and accounting oversight <br> provided by independent directors, we expect that listed companies have an audit <br> committee constituted of a majority of independent directors.<br>|
|  | &nbsp;&nbsp; Further, we expect boards of listed companies in all markets and indices to have at least <br> one female board member. If a company fails to meet this expectation, State Street Global <br> Advisors may vote against the Chair of the board's nominating committee or the board <br> leader in the absence of a nominating committee, if necessary. Additionally, if a company <br> fails to meet this expectation for three consecutive years, State Street Global Advisors may <br> vote against all incumbent members of the nominating committee or those persons <br> deemed responsible for the nomination process. We may waive the policy if a company <br> engages with State Street Global Advisors and provides a specific, timebound plan for <br> adding at least one woman to its board.<br>|
|  | &nbsp;&nbsp; Poorly structured executive compensation plans pose increasing reputational risk to <br> companies. Ongoing high level of dissent against a company's compensation proposals <br> may indicate that the company is not receptive to investor concerns. If the level of dissent <br> against a company's remuneration report and/or remuneration policy is consistently high, <br> and we have determined that a vote against a pay-related proposal is warranted in the <br> third consecutive year, we will vote against the Chair of the remuneration committee.<br>|

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![](g432546img87c4b5f71.jpg)

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| | |
|:---|:---|
| **Audit-Related Issues** | &nbsp;&nbsp; The disclosure and availability of reliable financial statements in a timely manner is <br> imperative for the investment process. As a result, board oversight of internal controls and <br> the independence of the audit process are essential if investors are to rely upon financial <br> statements. We believe that audit committees provide the necessary oversight for the <br> selection and appointment of auditors, the company's internal controls and the accounting <br> policies, and the overall audit process.<br>|
|  | **Appointment of External Auditors** |
|  | &nbsp;&nbsp; We believe that a company's auditor is an essential feature of an effective and transparent <br> system of external supervision. Shareholders should be given the opportunity to vote on <br> their appointment or re-appointment at the annual meeting. We believe that it is imperative <br> for audit committees to select outside auditors who are independent from management.<br>|
| Approval of Financial <br> Statements<br>| &nbsp;&nbsp; The disclosure and availability of reliable financial statements in a timely manner is <br> imperative for the investment process. We expect external auditors to provide assurance of <br> a company's financial condition. Hence, we will vote against the approval of financial <br> statements if i) they have not been disclosed or audited; ii) the auditor opinion is qualified/<br> adverse, or the auditor has issued a disclaimer of opinion; or iii) the auditor opinion is not <br> disclosed.<br>|
| **Shareholder Rights and** <br> **Capital-Related Issues**<br>| &nbsp;&nbsp; State Street Global Advisors believes that changes to a company's capital structure, such <br> as changes in authorized share capital, share repurchase and debt issuances, are critical <br> decisions made by the board. We believe the company should have a business rationale <br> that is consistent with corporate strategy and should not overly dilute its shareholders.<br>|
|  | **Related-Party Transactions** |
|  | &nbsp;&nbsp; Most companies in emerging markets have a controlled ownership structure that often <br> includes complex cross-shareholdings between subsidiaries and parent companies <br> ("related companies"). As a result, there is a high prevalence of related-party transactions <br> between the company and its various stakeholders, such as directors and management. In <br> addition, inter-group loan and loan guarantees provided to related companies are some of <br> the other related-party transactions that increase the risk profile of companies. In markets <br> where shareholders are required to approve such transactions, we expect companies to <br> provide details about the transaction, such as its nature, value and purpose. This also <br> encourages independent directors to ratify such transactions. Further, we encourage <br> companies to describe the level of independent board oversight and the approval process, <br> including details of any independent valuations provided by financial advisors on <br> related-party transactions.<br>|
|  | **Share Repurchase Programs** |
|  | &nbsp;&nbsp; With regard to share repurchase programs, we expect companies to clearly state the <br> business purpose for the program and a definitive number of shares to be repurchased.<br>|

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![](g432546img87c4b5f71.jpg)

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| | |
|:---|:---|
|  | **Mergers and Acquisitions** |
|  | &nbsp;&nbsp; Mergers or reorganization of the structure of a company often involve proposals relating to <br> reincorporation, restructurings, liquidations and other major changes to the corporation. <br> Proposals that are in the best interest of the shareholders, demonstrated by enhancing <br> share value or improving the effectiveness of the company's operations, will be supported. <br> In general, provisions that are not viewed as financially sound or are thought to be <br> destructive to shareholders' rights are not supported.<br>|
|  | &nbsp;&nbsp; We evaluate mergers and structural reorganizations on a case-by-case basis. We <br> generally support transactions that maximize shareholder value. Some of the <br> considerations include, but are not limited to, the following:<br>|
|  | •Offer premium |
|  | •Strategic rationale |
|  | &nbsp;&nbsp; •Board oversight of the process for the recommended transaction, including director <br> and/ or management conflicts of interest<br>|
|  | •Offers made at a premium and where there are no other higher bidders |
|  | &nbsp;&nbsp; •Offers in which the secondary market price is substantially lower than the net asset <br> value<br>|
|  | We may vote against a transaction considering the following: |
|  | &nbsp;&nbsp; •Offers with potentially damaging consequences for minority shareholders because of <br> illiquid stock<br>|
|  | &nbsp;&nbsp; •Offers where we believe there is a reasonable prospect for an enhanced bid or other <br> bidders<br>|
|  | •The current market price of the security exceeds the bid price at the time of voting |
|  | &nbsp;&nbsp; We will actively seek direct dialogue with the board and management of companies that <br> we have identified through our screening processes. Such engagements may lead to <br> further monitoring to ensure the company improves its governance or sustainability <br> practices. In these cases, the engagement process represents the most meaningful <br> opportunity for State Street Global Advisors to protect long-term shareholder value from <br> excessive risk due to poor governance and sustainability practices.<br>|
| **Remuneration** | &nbsp;&nbsp; We consider it to be the board's responsibility to set appropriate levels of executive <br> remuneration. Despite the differences among the types of plans and the potential awards, <br> there is a simple underlying philosophy that guides our analysis of executive remuneration: <br> there should be a direct relationship between executive compensation and company <br> performance over the long term. In emerging markets, we encourage companies to <br> disclose information on senior executive remuneration.<br>|

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![](g432546img87c4b5f71.jpg)

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| | |
|:---|:---|
|  | &nbsp;&nbsp; Shareholders should have the opportunity to assess whether pay structures and levels are <br> aligned with business performance. When assessing remuneration reports, we consider <br> factors such as adequate disclosure of remuneration elements, absolute and relative pay <br> levels, peer selection and benchmarking, the mix of long-term and short-term incentives, <br> alignment of pay structures with shareholder interests, corporate strategy and <br> performance. We may oppose remuneration reports where pay seems misaligned with <br> shareholders' interests. We may also vote against the re-election of members of the <br> remuneration committee if we have serious concerns about remuneration practices and if <br> the company has not been responsive to shareholder pressure to review its approach. <br> With regard to director remuneration, we support director pay provided the amounts are <br> not excessive relative to other issuers in the market or industry, and are not overly dilutive <br> to existing shareholders.<br>|
| **Environmental and Social** <br> **Issues**<br>| &nbsp;&nbsp; As a fiduciary, State Street Global Advisors takes a comprehensive approach to engaging <br> with our portfolio companies about material environmental and social (sustainability) <br> issues. We use our voice and our vote through engagement, proxy voting and thought <br> leadership in order to communicate with issuers and educate market participants about <br> our perspective on important sustainability topics. Our Asset Stewardship program <br> prioritization process allows us to proactively identify companies for engagement and <br> voting in order to mitigate sustainability risks in our portfolio. Through engagement, we <br> address a broad range of topics that align with our stewardship priorities and build <br> long-term relationships with issuers. When voting, we fundamentally consider whether the <br> adoption of a shareholder proposal addressing a material sustainability issue would <br> promote long-term shareholder value in the context of the company's existing practices <br> and disclosures as well as existing market practice.<br>|
|  | &nbsp;&nbsp; For more information on our approach to environmental and social issues, please see our <br> Global Proxy Voting and Engagement Guidelines for Environmental and Social Issues and <br> our Frameworks for Voting Environmental and Social Shareholder Proposals, both <br> available at ssga.com/about-us/asset-stewardship.html.<br>|
| **General/Routine Issues** | &nbsp;&nbsp; Some of the other issues that are routinely voted on in emerging markets include <br> approving the allocation of income and accepting financial statements and statutory <br> reports. For these voting items, our guidelines consider several factors, such as historical <br> dividend payouts, pending litigation, governmental investigations, charges of fraud, or <br> other indication of significant concerns.<br>|
| **More Information** | &nbsp;&nbsp; Any client who wishes to receive information on how its proxies were voted should contact <br> its State Street Global Advisors relationship manager.<br>|

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![](g432546img87c4b5f71.jpg)

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|:---|:---|
| **About State Street Global** <br> **Advisors**<br>| &nbsp;&nbsp; For four decades, State Street Global Advisors has served the world's governments, <br> institutions and financial advisors. With a rigorous, risk-aware approach built on research, <br> analysis and market-tested experience, we build from a breadth of active and index <br> strategies to create cost-effective solutions. As stewards, we help portfolio companies see <br> that what is fair for people and sustainable for the planet can deliver long-term <br> performance. And, as pioneers in index, ETF, and ESG investing, we are always inventing <br> new ways to invest. As a result, we have become the world's fourth-largest asset manager\* <br> with US $4.14 trillion† under our care.<br>|

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\*

Pensions & Investments Research Center, as of December 31, 2020.

†

This figure is presented as of December 31, 2021 and includes approximately $61.43 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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**ssga.com**

**State Street Global Advisors Worldwide Entities**

**Abu Dhabi:** State Street Global Advisors Limited, ADGM Branch, Al Khatem Tower, Suite 42801, Level 28, ADGM Square, Al Maryah Island, P.O Box 76404, Abu Dhabi, United Arab Emirates. Regulated by the ADGM Financial Services Regulatory Authority. T: +971 2 245 9000. **Australia:** State Street Global Advisors, Australia, Limited (ABN 42 003 914 225) is the holder of an Australian Financial Services License (AFSL Number 238276). Registered office: Level 14, 420 George Street, Sydney, NSW 2000, Australia. T: +612 9240-7600. F: +612 9240-7611. **Belgium:** State Street Global Advisors Belgium, Chaussée de La Hulpe 185, 1170 Brussels, Belgium. T: +32 2 663 2036. State Street Global Advisors Belgium is a branch office of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorised and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. **Canada:** State Street Global Advisors, Ltd., 1981

McGill College Avenue, Suite 500, Montreal, Qc, H3A 3A8, T: +514 282 2400 and 30 Adelaide Street East Suite 800, Toronto, Ontario M5C 3G6. T: +647 775 5900. **France:** State Street Global Advisors Europe Limited, France Branch ("State Street Global Advisors France") is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorised and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. State Street Global Advisors France is registered in France with company number RCS Nanterre 899 183 289, and its office is located at Coeur Défense — Tour A — La Défense 4, 33e étage, 100, Esplanade du Général de Gaulle, 92 932 Paris La Défense Cedex, France. T: +33 1 44 45 40 00. F: +33 1 44 45 41 92. **Germany:** State Street Global Advisors Europe Limited, Branch in Germany, Brienner Strasse 59, D-80333 Munich, Germany ("State Street Global Advisors Germany"). T: +49 (0)89 55878 400. State Street Global Advisors Germany is a branch of State Street Global Advisors Europe Limited, registered in Ireland with

company number 49934, authorised and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. **Hong Kong:** State Street Global Advisors Asia Limited, 68/F, Two International Finance Centre, 8 Finance Street, Central, Hong Kong. T: +852 2103-0288. F: +852 2103-0200. **Ireland:** State Street Global Advisors Europe Limited is regulated by the Central Bank of Ireland. Registered office address 78 Sir John Rogerson's Quay, Dublin 2. Registered Number: 49934. T: +353 (0)1 776 3000. F: +353 (0)1 776 3300. **Italy:** State Street Global Advisors Europe Limited, Italy Branch ("State Street Global Advisors Italy") is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorised and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. State Street Global Advisors Italy is registered in Italy with company number 11871450968 — REA: 2628603 and VAT number 11871450968, and its office is located at Via Ferrante Aporti, 10 -20125 Milan, Italy. T: +39 02 32066 100. F: +39

02 32066 155. **Japan:** State Street Global Advisors (Japan) Co., Ltd., Toranomon Hills Mori Tower 25F 1-23-1 Toranomon, Minato-ku, Tokyo 105-6325 Japan. T: +81-3-4530-7380. Financial Instruments Business Operator, Kanto Local Financial Bureau (Kinsho #345), Membership: Japan Investment Advisers Association, The Investment Trust Association, Japan, Japan Securities Dealers' Association. **Netherlands:** State Street Global Advisors Netherlands, Apollo Building 7th floor, Herikerbergweg 29, 1101 CN Amsterdam, Netherlands. T: +31 20 7181 000. State Street Global Advisors Netherlands is a branch office of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorised and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson's Quay, Dublin 2. **Singapore:** State Street Global Advisors Singapore Limited, 168, Robinson Road, #33-01 Capital Tower, Singapore 068912 (Company Reg. No: 200002719D, regulated by the Monetary Authority of Singapore). T: +65 6826-7555. F: +65 6826-7501. **Switzerland:** State Street

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![](g432546img87c4b5f71.jpg)

Global Advisors AG, Beethovenstr. 19, CH-8027 Zurich. Registered with the Register of Commerce Zurich CHE-105.078.458. T: +41 (0)44 245 70 00. F: +41 (0)44 245 70 16. **United Kingdom:** State Street Global Advisors Limited. Authorised and regulated by the Financial Conduct Authority.

Registered in England. Registered No. 2509928. VAT No. 5776591 81. Registered office: 20 Churchill Place, Canary Wharf, London, E14 5HJ. T: 020 3395 6000. F: 020 3395 6350. **United States:** 

State Street Global Advisors, 1 Iron Street, Boston, MA 02210-1641. T: +1 617 786 3000.

Investing involves risk including the risk of loss of principal.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents

disclosed to third parties without State Street Global Advisors' express written consent.© 2022 State Street Corporation.

All Rights Reserved.

ID949714-3479918.2.1.GBL.RTL 0322

Exp. Date: 03/31/2023

------

**PART C**

**OTHER INFORMATION** 

**Item 28.**

**Exhibits** 

---

| | |
|:---|:---|
| (a)(i) | &nbsp;&nbsp; [<u>Amended and Restated Declaration of Trust of The Select Sector SPDR Trust (the "Trust" or the "Registrant"),</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010022.txt)<br> [<u>originally dated June 9, 1998 and as last amended and restated October 23, 1998 (the "Declaration of Trust"), is</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010022.txt)<br> [<u>incorporated herein by reference to Exhibit (b)(i) of Pre-Effective Amendment No. 2 to the Registrant's Registration</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010022.txt)<br> [<u>Statement on Form N-1A, as filed with the U.S. Securities and Exchange Commission (the "SEC") on November 17,</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010022.txt)<br> [<u>1998.</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010022.txt)<br>|
| (a)(ii) | &nbsp;&nbsp; [<u>Amendment No. 1, dated November 13, 2007, to the Declaration of Trust is incorporated herein by reference to</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99aii.htm)<br> [<u>Exhibit (a)(ii) of Post-Effective Amendment No. 43 to the Registrant's Registration Statement on Form N-1A, as filed</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99aii.htm)<br> [<u>with the SEC on June 15, 2018.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99aii.htm)<br>|
| (a)(iii) | &nbsp;&nbsp; [<u>Amendment No. 2, dated January 4, 2016, to the Declaration of Trust is incorporated herein by reference to Exhibit</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312516442131/d118232dex99aiii.htm)<br> [<u>(a)(iii) of Post-Effective Amendment No. 30 to the Registrant's Registration Statement on Form N-1A, as filed with</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312516442131/d118232dex99aiii.htm)<br> [<u>the SEC on January 28, 2016.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312516442131/d118232dex99aiii.htm)<br>|
| (a)(iv) | &nbsp;&nbsp; [<u>Amendment No. 3, dated April 19, 2017, to the Declaration of Trust is incorporated herein by reference to Exhibit</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518021736/d517686dex99aiv.htm)<br> [<u>(a)(iv) of Post-Effective Amendment No. 39 to the Registrant's Registration Statement on Form N-1A, as filed with</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518021736/d517686dex99aiv.htm)<br> [<u>the SEC on January 26, 2018.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518021736/d517686dex99aiv.htm)<br>|
| (a)(v) | &nbsp;&nbsp; [<u>Amendment No. 4, dated May 10, 2018, to the Declaration of Trust is incorporated herein by reference to Exhibit</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99av.htm)<br> [<u>(a)(v) of Post-Effective Amendment No. 43 to the Registrant's Registration Statement on Form N-1A, as filed with the</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99av.htm)<br> [<u>SEC on June 15, 2018.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99av.htm)<br>|
| (b) | &nbsp;&nbsp; [<u>Registrant's Amended and Restated By-Laws dated August 12, 2021 (the "By-Laws") are incorporated herein by</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99b.htm)<br> [<u>reference to Exhibit (b) of Post-Effective Amendment No. 51 to the Registrant's Registration Statement on Form N-</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99b.htm)<br> [<u>1A, as filed with the SEC on January 27, 2022.</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99b.htm)<br>|
| (c) | &nbsp;&nbsp; [<u>Form of Global Certificate of Beneficial Interest, evidencing shares of Beneficial Interest, is incorporated herein by</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010022.txt)<br> [<u>reference to Exhibit (b)(4) of Pre-Effective Amendment No. 2 to the Registrant's Registration Statement on Form N-</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010022.txt)<br> [<u>1A, as filed with the SEC on November 17, 1998.</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010022.txt)<br>|
| (d)(i)(1) | &nbsp;&nbsp; [<u>Amended and Restated Investment Advisory Agreement between the Trust and SSGA Funds Management, Inc.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000095013504000354/b49183s1exv99wdwiii.txt)<br> [<u>("SSGA FM") dated December 1, 2003 (the "Investment Advisory Agreement") is incorporated herein by reference to</u>](http://www.sec.gov/Archives/edgar/data/1064641/000095013504000354/b49183s1exv99wdwiii.txt)<br> [<u>Exhibit (d)(iii) of Post-Effective Amendment No. 8 to the Registrant's Registration Statement on Form N-1A, as filed</u>](http://www.sec.gov/Archives/edgar/data/1064641/000095013504000354/b49183s1exv99wdwiii.txt)<br> [<u>with the SEC on January 28, 2004.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000095013504000354/b49183s1exv99wdwiii.txt)<br>|
| (2) | &nbsp;&nbsp; [<u>Amendment, dated January 27, 2006, to the Investment Advisory Agreement is incorporated herein by reference to</u>](http://www.sec.gov/Archives/edgar/data/1064641/000095013508000333/b67903a1exv99wxdyxivy.htm)<br> [<u>Exhibit (d)(iv) of Post-Effective Amendment No. 13 to the Registrant's Registration Statement on Form N-1A, as filed</u>](http://www.sec.gov/Archives/edgar/data/1064641/000095013508000333/b67903a1exv99wxdyxivy.htm)<br> [<u>with the SEC on January 25, 2008.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000095013508000333/b67903a1exv99wxdyxivy.htm)<br>|
| (3) | &nbsp;&nbsp; [<u>Revised Exhibit A, dated June 18, 2018, to the Investment Advisory Agreement is incorporated herein by reference to</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99di3.htm)<br> [<u>Exhibit (d)(i)(3) of Post-Effective Amendment No. 43 to the Registrant's Registration Statement on Form N-1A, as</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99di3.htm)<br> [<u>filed with the SEC on June 15, 2018.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99di3.htm)<br>|
| (d)(ii) | &nbsp;&nbsp; [<u>Expense Limitation Agreement between the Trust and SSGA FM dated June 15, 2018, relating to The Communication</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99diii.htm)<br> [<u>Services Select Sector SPDR Fund, is incorporated herein by reference to Exhibit (d)(iii) of Post-Effective</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99diii.htm)<br> [<u>Amendment No. 43 to the Registrant's Registration Statement on Form N-1A, as filed with the SEC on June 15, 2018.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99diii.htm)<br>|
| (e)(i) | &nbsp;&nbsp; [<u>Restated Distribution Agreement between the Trust and ALPS Portfolio Solutions Distributor, Inc. ("APSD") dated</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99ei.htm)<br> [<u>April 16, 2018 (the "Distribution Agreement") is incorporated herein by reference to Exhibit (e)(i) of Post-Effective</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99ei.htm)<br> [<u>Amendment No. 43 to the Registrant's Registration Statement on Form N-1A, as filed with the SEC on June 15, 2018.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99ei.htm)<br>|
| (e)(ii) | &nbsp;&nbsp; [<u>Form of Soliciting Dealer Agreement is incorporated herein by reference to Exhibit (b)(6)(d) of Pre-Effective</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010022.txt)<br> [<u>Amendment No. 2 to the Registrant's Registration Statement on Form N-1A, as filed with the SEC on November 17,</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010022.txt)<br> [<u>1998.</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010022.txt)<br>|
| (f) | Not applicable. |
| (g)(i) | &nbsp;&nbsp; [<u>Custodian Agreement between the Trust and State Street Bank and Trust Company dated December 1, 1998 (the</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518338032/d661475dex99gi.htm)<br> [<u>"Custodian Agreement") is incorporated herein by reference to Exhibit (g)(i) of Post-Effective Amendment No. 45 to</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518338032/d661475dex99gi.htm)<br> [<u>the Registrant's Registration Statement on Form N-1A, as filed with the SEC on November 29, 2018.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518338032/d661475dex99gi.htm)<br>|
| (g)(ii) | &nbsp;&nbsp; [<u>Amendment, dated November 11, 2005, to the Custodian Agreement is incorporated herein by reference to Exhibit</u>](http://www.sec.gov/Archives/edgar/data/1064641/000095013506000351/b58143ssexv99wxgyxiiy.txt)<br> [<u>(g)(ii) of Post-Effective Amendment No. 11 to the Registrant's Registration Statement on Form N-1A, as filed with the</u>](http://www.sec.gov/Archives/edgar/data/1064641/000095013506000351/b58143ssexv99wxgyxiiy.txt)<br> [<u>SEC on January 27, 2006.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000095013506000351/b58143ssexv99wxgyxiiy.txt)<br>|
| (g)(iii) | &nbsp;&nbsp; [<u>Second Amendment, dated September 30, 2020, to the Custodian Agreement is incorporated herein by reference to</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312521020549/d70582dex99giii.htm)<br> [<u>Exhibit (g)(iii) of Post-Effective Amendment No. 50 to the Registrant's Registration Statement on Form N-1A, as filed</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312521020549/d70582dex99giii.htm)<br> [<u>with the SEC on January 28, 2021.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312521020549/d70582dex99giii.htm)<br>|
| (g)(iv) | &nbsp;&nbsp; [<u>Revised Schedule of Series Portfolios, dated June 18, 2018, to the Custodian Agreement is incorporated herein by</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99giii.htm)<br> [<u>reference to Exhibit (g)(iii) of Post-Effective Amendment No. 43 to the Registrant's Registration Statement on Form</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99giii.htm)<br> [<u>N-1A, as filed with the SEC on June 15, 2018.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99giii.htm)<br>|

---

------

---

| | |
|:---|:---|
| (h)(i)(1) | &nbsp;&nbsp; [<u>Administration Agreement between the Trust and SSGA FM dated June 1, 2015 (the "Administration Agreement") is</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312516442131/d118232dex99hi1.htm)<br> [<u>incorporated herein by reference to Exhibit (h)(i)(1) of Post-Effective Amendment No. 30 to the Registrant's</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312516442131/d118232dex99hi1.htm)<br> [<u>Registration Statement on Form N-1A, as filed with the SEC on January 28, 2016.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312516442131/d118232dex99hi1.htm)<br>|
| (2) | &nbsp;&nbsp; [<u>Revised Schedule A, dated June 18, 2018, to the Administration Agreement is incorporated herein by reference to</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99hi2.htm)<br> [<u>Exhibit (h)(i)(2) of Post-Effective Amendment No. 43 to the Registrant's Registration Statement on Form N-1A, as</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99hi2.htm)<br> [<u>filed with the SEC on June 15, 2018.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99hi2.htm)<br>|
| (h)(ii)(1) | &nbsp;&nbsp; [<u>Sub-Administration Agreement between SSGA FM and State Street Bank and Trust Company dated June 1, 2015 (the</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312516442131/d118232dex99hi3.htm)<br> [<u>"Sub-Administration Agreement") is incorporated herein by reference to Exhibit (h)(i)(3) of Post-Effective</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312516442131/d118232dex99hi3.htm)<br> [<u>Amendment No. 30 to the Registrant's Registration Statement on Form N-1A, as filed with the SEC on January 28,</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312516442131/d118232dex99hi3.htm)<br> [<u>2016.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312516442131/d118232dex99hi3.htm)<br>|
| (2) | &nbsp;&nbsp; [<u>Amendment, dated June 29, 2018, to the Sub-Administration Agreement is incorporated herein by reference to Exhibit</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312519019003/d685543dex99hii2.htm)<br> [<u>(h)(ii)(2) of Post-Effective Amendment No. 46 to the Registrant's Registration Statement on Form N-1A, as filed with</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312519019003/d685543dex99hii2.htm)<br> [<u>the SEC on January 28, 2019.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312519019003/d685543dex99hii2.htm)<br>|
| (3) | &nbsp;&nbsp; [<u>Revised Schedule A, dated June 18, 2018, to the Sub-Administration Agreement is incorporated herein by reference to</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99hii2.htm)<br> [<u>Exhibit (h)(ii)(2) of Post-Effective Amendment No. 43 to the Registrant's Registration Statement on Form N-1A, as</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99hii2.htm)<br> [<u>filed with the SEC on June 15, 2018.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99hii2.htm)<br>|
| (h)(iii)(1) | &nbsp;&nbsp; [<u>Transfer Agency and Service Agreement between the Trust and State Street Bank and Trust Company (the "Transfer</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010022.txt)<br> [<u>Agency and Service Agreement") is incorporated herein by reference to Exhibit (b)(9)(b) of Pre-Effective Amendment</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010022.txt)<br> [<u>No. 2 to the Registrant's Registration Statement on Form N-1A, as filed with the SEC on November 17, 1998.</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010022.txt)<br>|
| (2) | &nbsp;&nbsp; [<u>Anti-Money Laundering Services Amendment, dated October 31, 2006, to the Transfer Agency and Service</u>](http://www.sec.gov/Archives/edgar/data/1064641/000095013508000333/b67903a1exv99wxhyxviy.htm)<br> [<u>Agreement is incorporated herein by reference to Exhibit (h)(vi) of Post-Effective Amendment No. 13 to the</u>](http://www.sec.gov/Archives/edgar/data/1064641/000095013508000333/b67903a1exv99wxhyxviy.htm)<br> [<u>Registrant's Registration Statement on Form N-1A, as filed with the SEC on January 25, 2008.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000095013508000333/b67903a1exv99wxhyxviy.htm)<br>|
| (3) | &nbsp;&nbsp; [<u>Amendment, dated December 17, 2018, to the Transfer Agency and Service Agreement is incorporated herein by</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312519019003/d685543dex99hiiii3.htm)<br> [<u>reference to Exhibit (h)(iii)(3) of Post-Effective Amendment No. 46 to the Registrant's Registration Statement on</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312519019003/d685543dex99hiiii3.htm)<br> [<u>Form N-1A, as filed with the SEC on January 28, 2019.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312519019003/d685543dex99hiiii3.htm)<br>|
| (4) | &nbsp;&nbsp; [<u>Revised Annex A, dated June 18, 2018, to the Transfer Agency and Service Agreement is incorporated herein by</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99hiii3.htm)<br> [<u>reference to Exhibit (h)(iii)(3) of Post-Effective Amendment No. 43 to the Registrant's Registration Statement on</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99hiii3.htm)<br> [<u>Form N-1A, as filed with the SEC on June 15, 2018.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99hiii3.htm)<br>|
| (h)(iv)(1) | &nbsp;&nbsp; [<u>Sub-License Agreement between the Trust, Merrill Lynch and Standard & Poor's dated December 15, 1998 (the "Sub-</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010650.txt)<br> [<u>License Agreement") is incorporated herein by reference to Exhibit (b)(9)(c) of Pre-Effective Amendment No. 3 to the</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010650.txt)<br> [<u>Registrant's Registration Statement on Form N-1A, as filed with the SEC on December 15, 1998.</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010650.txt)<br>|
| (2) | &nbsp;&nbsp; [<u>Amendment, dated October 17, 2008, to the Sub-License Agreement is incorporated herein by reference to Exhibit</u>](http://www.sec.gov/Archives/edgar/data/1064641/000095013509000501/b73472a1exv99w23xhyxviiiy.txt)<br> [<u>(h)(viii) of Post-Effective Amendment No. 14 to the Registrant's Registration Statement on Form N-1A, as filed with</u>](http://www.sec.gov/Archives/edgar/data/1064641/000095013509000501/b73472a1exv99w23xhyxviiiy.txt)<br> [<u>the SEC on January 28, 2009.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000095013509000501/b73472a1exv99w23xhyxviiiy.txt)<br>|
| (3) | &nbsp;&nbsp; [<u>Amendment, dated March 5, 2014, to the Sub-License Agreement is incorporated herein by reference to Exhibit</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312515262674/d99362dex99hiii3.htm)<br> [<u>(h)(iii)(3) of Post-Effective Amendment No. 27 to the Registrant's Registration Statement on Form N-1A, as filed with</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312515262674/d99362dex99hiii3.htm)<br> [<u>the SEC on July 24, 2015</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312515262674/d99362dex99hiii3.htm).<br>|
| (4) | &nbsp;&nbsp; [<u>Amendment, dated July 22, 2015, to the Sub-License Agreement is incorporated herein by reference to Exhibit</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312515338582/d79291dex99hiii4.htm)<br> [<u>(h)(iii)(4) of Post-Effective Amendment No. 28 to the Registrant's Registration Statement on Form N-1A, as filed with</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312515338582/d79291dex99hiii4.htm)<br> [<u>the SEC on October 6, 2015.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312515338582/d79291dex99hiii4.htm)<br>|
| (5) | &nbsp;&nbsp; [<u>Amendment, dated November 3, 2017, to the Sub-License Agreement is incorporated herein by reference to Exhibit</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518021736/d517686dex99hiv5.htm)<br> [<u>(h)(iv)(5) of Post-Effective Amendment No. 39 to the Registrant's Registration Statement on Form N-1A, as filed with</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518021736/d517686dex99hiv5.htm)<br> [<u>the SEC on January 26, 2018.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518021736/d517686dex99hiv5.htm)<br>|
| (6) | &nbsp;&nbsp; [<u>Amendment, dated March 1, 2018, to the Sub-License Agreement is incorporated herein by reference to Exhibit</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312519019003/d685543dex99hiv6.htm)<br> [<u>(h)(iv)(6) of Post-Effective Amendment No. 46 to the Registrant's Registration Statement on Form N-1A, as filed with</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312519019003/d685543dex99hiv6.htm)<br> [<u>the SEC on January 28, 2019.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312519019003/d685543dex99hiv6.htm)<br>|
| (h)(v)(1) | &nbsp;&nbsp; [<u>Amended and Restated Securities Lending Authorization Agreement between the Trust and State Street Bank and</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518021736/d517686dex99hv.htm)<br> [<u>Trust Company dated July 10, 2017 (the "Securities Lending Authorization Agreement") is incorporated herein by</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518021736/d517686dex99hv.htm)<br> [<u>reference to Exhibit (h)(v) of Post-Effective Amendment No. 39 to the Registrant's Registration Statement on Form</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518021736/d517686dex99hv.htm)<br> [<u>N-1A, as filed with the SEC on January 26, 2018.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518021736/d517686dex99hv.htm)<br>|
| (2) | &nbsp;&nbsp; [<u>Amendment, dated December 7, 2018, to the Securities Lending Authorization Agreement is incorporated herein by</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312519019003/d685543dex99hv2.htm)<br> [<u>reference to Exhibit (h)(v)(2) of Post-Effective Amendment No. 46 to the Registrant's Registration Statement on Form</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312519019003/d685543dex99hv2.htm)<br> [<u>N-1A, as filed with the SEC on January 28, 2019.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312519019003/d685543dex99hv2.htm)<br>|
| (3) | &nbsp;&nbsp; [<u>Second Amendment, dated February 25, 2019, to the Securities Lending Authorization Agreement is incorporated</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312520016793/d843854dex99hv3.htm)<br> [<u>herein by reference to Exhibit (h)(v)(3) of Post-Effective Amendment No. 48 to the Registrant's Registration</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312520016793/d843854dex99hv3.htm)<br> [<u>Statement on Form N-1A, as filed with the SEC on January 28, 2020.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312520016793/d843854dex99hv3.htm)<br>|
| (h)(vi) | &nbsp;&nbsp; [<u>Form of Participant Agreement is incorporated herein by reference to Exhibit (h)(viii) of Post-Effective Amendment</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312514024514/d653351dex99hviii.htm)<br> [<u>No. 23 to the Registrant's Registration Statement on Form N-1A, as filed with the SEC on January 28, 2014.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312514024514/d653351dex99hviii.htm)<br>|

---

------

---

| | |
|:---|:---|
| (h)(vii) | &nbsp;&nbsp; [<u>Form of Indemnification Agreement is incorporated herein by reference to Exhibit (h)(vi) of Post-Effective</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312516442131/d118232dex99hvi.htm)<br> [<u>Amendment No. 30 to the Registrant's Registration Statement on Form N-1A, as filed with the SEC on January 28,</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312516442131/d118232dex99hvi.htm)<br> [<u>2016.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312516442131/d118232dex99hvi.htm)<br>|
| (h)(viii) | &nbsp;&nbsp; [<u>Form of Fund of Funds Investment Agreement is incorporated herein by reference to Exhibit (h)(viii) of Post-Effective</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99hviii.htm)<br> [<u>Amendment No. 51 to the Registrant's Registration Statement on Form N-1A, as filed with the SEC on January 27,</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99hviii.htm)<br> [<u>2022.</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99hviii.htm)<br>|
| (i)(i) | &nbsp;&nbsp; [<u>Opinion and consent of counsel, Morgan, Lewis & Bockius LLP, relating to each series of the Trust (except The</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518021736/d517686dex99i.htm)<br> [<u>Communication Services Select Sector SPDR Fund), is incorporated herein by reference to Exhibit (i) of Post-</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518021736/d517686dex99i.htm)<br> [<u>Effective Amendment No. 39 to the Registrant's Registration Statement on Form N-1A, as filed with the SEC on</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518021736/d517686dex99i.htm)<br> [<u>January 26, 2018.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518021736/d517686dex99i.htm)<br>|
| (i)(ii) | &nbsp;&nbsp; [<u>Opinion and consent of counsel, Morgan, Lewis & Bockius LLP, relating to The Communication Services Select</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99i2.htm)<br> [<u>Sector SPDR Fund, is incorporated herein by reference to Exhibit (i)(ii) of Post-Effective Amendment No. 43 to the</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99i2.htm)<br> [<u>Registrant's Registration Statement on Form N-1A, as filed with the SEC on June 15, 2018.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99i2.htm)<br>|
| (j) | [<u>Consent of independent registered public accountant is filed herewith.</u>](d435817dex99j.htm) |
| (k) | Not applicable. |
| (l) | &nbsp;&nbsp; [<u>Subscription Agreement(s) between the Trust and ALPS Mutual Funds Services, Inc. is incorporated herein by</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010650.txt)<br> [<u>reference to Exhibit (b)(13) of Pre-Effective Amendment No. 3 to the Registrant's Registration Statement on Form</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010650.txt)<br> [<u>N-1A, as filed with the SEC on December 15, 1998.</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010650.txt)<br>|
| (m)(i)(1) | &nbsp;&nbsp; [<u>Distribution and Service Plan (12b-1 Plan) adopted February 1, 2022, relating to The Real Estate Select Sector SPDR</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi2.htm)<br> [<u>Fund is incorporated herein by reference to Exhibit (m)(i)(2) of Post-Effective Amendment No. 51 to the Registrant's</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi2.htm)<br> [<u>Registration Statement on Form N-1A, as filed with the SEC on January 27, 2022.</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi2.htm)<br>|
| (2) | &nbsp;&nbsp; [<u>Distribution and Service Plan (12b-1 Plan) adopted February 1, 2022, relating to The Communication Services Select</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi3.htm)<br> [<u>Sector SPDR Fund is incorporated herein by reference to Exhibit (m)(i)(3) of Post-Effective Amendment No. 51 to the</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi3.htm)<br> [<u>Registrant's Registration Statement on Form N-1A, as filed with the SEC on January 27, 2022.</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi3.htm)<br>|
| (3) | &nbsp;&nbsp; [<u>Distribution and Service Plan (12b-1 Plan) adopted February 1, 2022, relating to The Consumer Discretionary Select</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi4.htm)<br> [<u>Sector SPDR Fund is incorporated herein by reference to Exhibit (m)(i)(4) of Post-Effective Amendment No. 51 to the</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi4.htm)<br> [<u>Registrant's Registration Statement on Form N-1A, as filed with the SEC on January 27, 2022.</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi4.htm)<br>|
| (4) | &nbsp;&nbsp; [<u>Distribution and Service Plan (12b-1 Plan) adopted February 1, 2022, relating to The Consumer Staples Select Sector</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi5.htm)<br> [<u>SPDR Fund is incorporated herein by reference to Exhibit (m)(i)(5) of Post-Effective Amendment No. 51 to the</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi5.htm)<br> [<u>Registrant's Registration Statement on Form N-1A, as filed with the SEC on January 27, 2022.</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi5.htm)<br>|
| (5) | &nbsp;&nbsp; [<u>Distribution and Service Plan (12b-1 Plan) adopted February 1, 2022, relating to The Energy Select Sector SPDR</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi6.htm)<br> [<u>Fund is incorporated herein by reference to Exhibit (m)(i)(6) of Post-Effective Amendment No. 51 to the Registrant's</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi6.htm)<br> [<u>Registration Statement on Form N-1A, as filed with the SEC on January 27, 2022.</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi6.htm)<br>|
| (6) | &nbsp;&nbsp; [<u>Distribution and Service Plan (12b-1 Plan) adopted February 1, 2022, relating to The Financial Select Sector SPDR</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi7.htm)<br> [<u>Fund is incorporated herein by reference to Exhibit (m)(i)(7) of Post-Effective Amendment No. 51 to the Registrant's</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi7.htm)<br> [<u>Registration Statement on Form N-1A, as filed with the SEC on January 27, 2022.</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi7.htm)<br>|
| (7) | &nbsp;&nbsp; [<u>Distribution and Service Plan (12b-1 Plan) adopted February 1, 2022, relating to The Health Care Select Sector SPDR</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi8.htm)<br> [<u>Fund is incorporated herein by reference to Exhibit (m)(i)(8) of Post-Effective Amendment No. 51 to the Registrant's</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi8.htm)<br> [<u>Registration Statement on Form N-1A, as filed with the SEC on January 27, 2022.</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi8.htm)<br>|
| (8) | &nbsp;&nbsp; [<u>Distribution and Service Plan (12b-1 Plan) adopted February 1, 2022, relating to The Industrial Select Sector SPDR</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi9.htm)<br> [<u>Fund is incorporated herein by reference to Exhibit (m)(i)(9) of Post-Effective Amendment No. 51 to the Registrant's</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi9.htm)<br> [<u>Registration Statement on Form N-1A, as filed with the SEC on January 27, 2022.</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi9.htm)<br>|
| (9) | &nbsp;&nbsp; [<u>Distribution and Service Plan (12b-1 Plan) adopted February 1, 2022, relating to The Materials Select Sector SPDR</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi10.htm)<br> [<u>Fund is incorporated herein by reference to Exhibit (m)(i)(10) of Post-Effective Amendment No. 51 to the Registrant's</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi10.htm)<br> [<u>Registration Statement on Form N-1A, as filed with the SEC on January 27, 2022.</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi10.htm)<br>|
| (10) | &nbsp;&nbsp; [<u>Distribution and Service Plan (12b-1 Plan) adopted February 1, 2022, relating to The Technology Select Sector SPDR</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi11.htm)<br> [<u>Fund is incorporated herein by reference to Exhibit (m)(i)(11) of Post-Effective Amendment No. 51 to the Registrant's</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi11.htm)<br> [<u>Registration Statement on Form N-1A, as filed with the SEC on January 27, 2022.</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi11.htm)<br>|
| (11) | &nbsp;&nbsp; [<u>Distribution and Service Plan (12b-1 Plan) adopted February 1, 2022, relating to The Utilities Select Sector SPDR</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi12.htm)<br> [<u>Fund is incorporated herein by reference to Exhibit (m)(i)(12) of Post-Effective Amendment No. 51 to the Registrant's</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi12.htm)<br> [<u>Registration Statement on Form N-1A, as filed with the SEC on January 27, 2022.</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mi12.htm)<br>|
| (m)(ii) | &nbsp;&nbsp; [<u>Form of Investor Services Agreement is incorporated herein by reference to Exhibit (b)(6)(c) of Pre-Effective</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010022.txt)<br> [<u>Amendment No. 2 to the Registrant's Registration Statement on Form N-1A, as filed with the SEC on November 17,</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010022.txt)<br> [<u>1998.</u>](http://www.sec.gov/Archives/edgar/data/1064641/0000950123-98-010022.txt)<br>|
| (m)(iii) | &nbsp;&nbsp; [<u>Restated Marketing Agreement between the Trust and ALPS Fund Services, Inc. dated April 16, 2018 (the "Restated</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99miii.htm)<br> [<u>Marketing Agreement") is incorporated herein by reference to Exhibit (m)(iii) of Post-Effective Amendment No. 43 to</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99miii.htm)<br> [<u>the Registrant's Registration Statement on Form N-1A, as filed with the SEC on June 15, 2018.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99miii.htm)<br>|
| (m)(iv) | &nbsp;&nbsp; [<u>1st Amendment, dated February 1, 2022, to the Restated Marketing Agreement is incorporated herein by reference to</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99miv.htm)<br> [<u>Exhibit (m)(iv) of Post-Effective Amendment No. 51 to the Registrant's Registration Statement on Form N-1A, as</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99miv.htm)<br> [<u>filed with the SEC on January 27, 2022.</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99miv.htm)<br>|

---

------

---

| | |
|:---|:---|
| (m)(v) | &nbsp;&nbsp; [<u>Restated Distribution and Service Fee Agreement between the Trust and APSD dated April 16, 2018 (the "Restated</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99miv.htm)<br> [<u>Distribution and Service Fee Agreement") is incorporated herein by reference to Exhibit (m)(iv) of Post-Effective</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99miv.htm)<br> [<u>Amendment No. 43 to the Registrant's Registration Statement on Form N-1A, as filed with the SEC on June 15, 2018.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99miv.htm)<br>|
| (m)(vi) | &nbsp;&nbsp; [<u>1st Amendment, dated February 1, 2022, to the Restated Distribution and Service Fee Agreement is incorporated</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mvi.htm)<br> [<u>herein by reference to Exhibit (m)(i)(2) of Post-Effective Amendment No. 51 to the Registrant's Registration</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mvi.htm)<br> [<u>Statement on Form N-1A, as filed with the SEC on January 27, 2022.</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99mvi.htm)<br>|
| (n) | Not applicable. |
| (o) | Reserved. |
| (p)(i) | &nbsp;&nbsp; [<u>Code of Ethics of the Trust is incorporated herein by reference to Exhibit (p)(i) of Post-Effective Amendment No. 13</u>](http://www.sec.gov/Archives/edgar/data/1064641/000095013508000333/b67903a1exv99wxpyxiy.htm)<br> [<u>to the Registrant's Registration Statement on Form N-1A, as filed with the SEC on January 25, 2008.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000095013508000333/b67903a1exv99wxpyxiy.htm)<br>|
| (p)(ii) | [<u>Code of Ethics of SSGA FM dated March 31, 2022 is filed herewith.</u>](d435817dex99pii.htm) |
| (p)(iii) | &nbsp;&nbsp; [<u>Code of Ethics of APSD dated July 1, 2017 is incorporated herein by reference to Exhibit (p)(iii) of Post-Effective</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99piii.htm)<br> [<u>Amendment No. 43 to the Registrant's Registration Statement on Form N-1A, as filed with the SEC on June 15, 2018.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312518194115/d802298dex99piii.htm)<br>|
| (p)(iv) | &nbsp;&nbsp; [<u>Code of Ethics for the Independent Trustees, dated November 10, 2015, is incorporated herein by reference to Exhibit</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312516442131/d118232dex99piv.htm)<br> [<u>(p)(iv) of Post-Effective Amendment No. 30 to the Registrant's Registration Statement on Form N-1A, as filed with</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312516442131/d118232dex99piv.htm)<br> [<u>the SEC on January 28, 2016.</u>](http://www.sec.gov/Archives/edgar/data/1064641/000119312516442131/d118232dex99piv.htm)<br>|
| (q) | &nbsp;&nbsp; [<u>Power of Attorney dated January 14, 2022 is incorporated herein by reference to Exhibit (q) of Post-Effective</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99q.htm)<br> [<u>Amendment No. 51 to the Registrant's Registration Statement on Form N-1A, as filed with the SEC on January 27,</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99q.htm)<br> [<u>2022.</u>](https://www.sec.gov/Archives/edgar/data/1064641/000119312522019531/d262382dex99q.htm)<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| EX-101.INS | &nbsp;&nbsp; XBRL Instance Document - the Instance Document does not appear in the Interactive Data File because its XBRL <br> tags are embedded within the inline XBRL document.<br>|
| EX-101.SCH | XBRL Taxonomy Extension Schema Document |
| EX-101.CAL | XBRL Taxonomy Extension Calculation Linkbase |
| EX-101.DEF | XBRL Taxonomy Extension Definition Linkbase |
| EX-101.LAB | XBRL Taxonomy Extension Labels Linkbase |
| EX-101.PRE | XBRL Taxonomy Extension Presentation Linkbase |

---

**Item 29.**

**Persons Controlled By or Under Common Control With Registrant** 

See the "Control Persons and Principal Holders of Securities" section of the Statement of Additional Information for a list of shareholders who own more than 5% of a specific fund's outstanding shares and such information is incorporated by reference to this Item.

**Item 30.**

**Indemnification** 

Pursuant to Section 5.3 of the Registrant's Declaration of Trust and under Section 4.9 of the Registrant's By-Laws, the Trust will indemnify any person who is, or has been, a Trustee, officer, employee or agent of the Trust against all expenses reasonably incurred or paid by him/her in connection with any claim, action, suit or proceeding in which he/she becomes involved as a party or otherwise by virtue of his/her being or having been a Trustee, officer, employee or agent and against amounts paid or incurred by him/her in the settlement thereof, if he/she acted in good faith and in a manner he/she reasonably believed to be in or not opposed to the best interests of the Trust, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his/her conduct was unlawful. In addition, indemnification is permitted only if it is determined that the actions in question did not render him/her liable by reason of willful misfeasance, bad faith or gross negligence in the performance of his/her duties or by reason of reckless disregard of his/her obligations and duties to the Registrant. The Registrant may also advance money for litigation expenses provided that Trustees, officers, employees and/or agents give their undertakings to repay the Registrant unless their conduct is later determined to permit indemnification.

Pursuant to Section 5.2 of the Registrant's Amended and Restated Declaration of Trust, no Trustee, officer, employee or agent of the Registrant shall be liable for any action or failure to act, except in the case of willful misfeasance, bad faith or gross negligence or reckless disregard of duties to the Registrant. Pursuant to paragraph 9 of the Registrant's Investment Advisory Agreement, the Adviser shall not be liable for any action or failure to act, except in the case of willful misfeasance, bad faith or gross negligence or reckless disregard of duties to the Registrant.

Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the provisions of Rule 484 under the Act, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or

------

proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

The Registrant has entered into an Indemnification Agreement with each Independent Trustee of the Registrant providing for indemnification of the Independent Trustee by the Registrant consistent with the foregoing and providing procedures for seeking and obtaining indemnification and advancement of expenses.

The Registrant hereby undertakes that it will apply the indemnification provision of its By-Laws in a manner consistent with Release 11330 of the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the "1940 Act"), so long as the interpretation of Sections 17(h) and 17(i) of such Act remains in effect.

The Registrant maintains insurance on behalf of any person who is or was a Trustee, officer, employee or agent of Registrant, or who is or was serving at the request of Registrant as a trustee, director, officer, employee or agent of another trust or corporation, against any liability asserted against him/her and incurred by him/her or arising out of his/her position. However, in no event will Registrant maintain insurance to indemnify any such person for any act for which Registrant itself is not permitted to indemnify him/her.

**Item 31.**

**Business and Other Connections of Investment Adviser** 

Any other business, profession, vocation or employment of a substantial nature in which each director or principal officer of each investment adviser is or has been, at any time during the last two fiscal years, engaged for his or her own account or in the capacity of director, officer, employee, partner or trustee are as follows:

SSGA FM serves as the investment adviser for each series of the Trust. SSGA FM is a wholly-owned subsidiary of State Street Global Advisors, Inc., which itself is a wholly-owned subsidiary of State Street Corporation. SSGA FM and other advisory affiliates of State Street Corporation make up State Street Global Advisors ("SSGA"), the investment management arm of State Street Corporation. The principal address of SSGA FM is One Iron Street, Boston, Massachusetts 02210. SSGA FM is an investment adviser registered under the Investment Advisers Act of 1940.

Below is a list of the directors and principal executive officers of SSGA FM and their principal occupation(s). Unless otherwise noted, the address of each person listed is One Iron Street, Boston, Massachusetts 02210.

---

| | |
|:---|:---|
| **Name** | **Position with and Name of Other Company** |
| Ellen Needham | &nbsp;&nbsp; Chairman, Director and President of SSGA FM; Senior Vice President/Senior Managing Director of <br> SSGA<br>|
| Sean Driscoll | Director of SSGA FM; Managing Director of SSGA |
| Barry F.X. Smith | Director of SSGA FM; Executive Vice President of SSGA |
| Lori Heinel | Director of SSGA FM; Executive Vice President of SSGA |
| Apea Amoa | Director of SSGA FM; Managing Director and Chief Financial Officer of SSGA |
| Jaclyn Collier | &nbsp;&nbsp; Chief Compliance Officer of SSGA GM; Senior Vice President/Senior Managing Director and Chief <br> Compliance Officer of SSGA<br>|
| Bo Trevino | Treasurer of SSGA FM; Vice President of SSGA |
| Sean O'Malley, Esq. | &nbsp;&nbsp; Chief Legal Officer of SSGA FM; Senior Vice President/Senior Managing Director and General <br> Counsel of SSGA<br>|
| Ann Carpenter | Chief Operating Officer of SSGA FM; Managing Director of SSGA |
| Timothy Corbett | Chief Risk Officer of SSGA FM; Senior Vice President/Senior Managing Director of SSGA |
| Jamie Bernardi | Derivates Risk Manager of SSGA FM; Managing Director of SSGA |
| Christyann Weltens | Derivates Risk Manager of SSGA FM; Vice President of SSGA |
| David Urman, Esq. | Clerk of SSGA FM; Vice President and Senior Counsel of SSGA |
| Daniel Furman, Esq. | Assistant Clerk of SSGA FM; Managing Director and Managing Counsel of SSGA |
| Leanne Dunn, Esq. | Assistant Clerk of SSGA FM; Managing Director and Senior Counsel of SSGA |
| Michael Pastore, Esq. | Assistant Clerk of SSGA FM; Managing Director and Senior Counsel of SSGA |

---

See "Management" in the Prospectus and "Management of the Trust" in the Statement of Additional Information for information regarding the business of SSGA FM. For information regarding broker-dealers and investment advisers affiliated with SSGA FM, reference is made to SSGA FM's Form ADV, as amended, filed with the SEC and incorporated herein by reference.

------

**Item 32.**

**Principal Underwriters** 

(a) ALPS Portfolio Solutions Distributor, Inc. acts as the distributor for the Registrant and the following investment companies: ALPS ETF Trust, ALPS Variable Investment Trust, Clough Funds Trust, Financial Investors Trust, and Select Sector SPDR Trust.

(b) To the best of the Registrant's knowledge, the directors and executive officers of ALPS Portfolio Solutions Distributor, Inc., are as follows:

---

| | | |
|:---|:---|:---|
| **Name\*** | **Positions and Offices with Underwriter** | **Positions** <br> **and Offices** <br> **with Fund**<br>|
| Stephen Kyllo | President, Chief Operating Officer, Director, Chief Compliance Officer | None |
| Patrick J. Pedonti\*\* | Vice President, Treasurer and Assistant Secretary | None |
| Eric T. Parsons | Vice President, Controller and Assistant Treasurer | None |
| Jason White\*\*\* | Secretary | None |
| Richard C. Noyes | Senior Vice President, General Counsel, Assistant Secretary | None |
| Liza Orr | Vice President, Senior Counsel | None |
| Jed Stahl | Vice President, Senior Counsel | None |
| Terence Digan | Vice President | None |
| James Stegall | Vice President | None |
| Gary Ross | Senior Vice President | None |
| Hilary Quinn | Vice President | None |

---

\*

Except as otherwise noted, the principal business address for each of the above directors and executive officers is 1290 Broadway, Suite 1100, Denver, Colorado 80203.

\*\*

The principal business address for Mr. Pedonti is 333 W. 11th Street, 5th Floor, Kansas City, Missouri 64105.

\*\*\*

The principal business address for Mr. White is 4 Times Square, New York, NY 10036.

(c) Not Applicable

**Item 33.**

**Location of Accounts and Records** 

All accounts, books and other documents required to be maintained by Section 31(a) of the 1940 Act and the Rules thereunder are maintained at the offices of SSGA FM and/or State Street Bank and Trust Company, with offices located at One Iron Street, Boston, Massachusetts 02210 and One Lincoln Street, Boston, Massachusetts 02111, respectively.

**Item 34.**

**Management Services** 

Not applicable.

**Item 35.**

**Undertakings** 

Not applicable.

------

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended, the Registrant, certifies that it meets all of the requirements for effectiveness of this Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933, as amended, and has duly caused this Amendment to the Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of Boston, and the Commonwealth of Massachusetts, on the 26th day of January, 2023.

---

| | |
|:---|:---|
| THE SELECT SECTOR SPDR<sup>®</sup> TRUST | THE SELECT SECTOR SPDR<sup>®</sup> TRUST |
| By: | /s/ Ellen M. Needham |
|  | Ellen M. Needham |
|  | President |

---

Pursuant to the requirements of the Securities Act of 1933, as amended, this Amendment to the Registration Statement has been signed below by the following persons in the capacities and on the date indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ Ashley T. Rabun\* | Trustee | January 26, 2023 |
| Ashley T. Rabun | Trustee |  |
| /s/ Allison Grant Williams\* | Trustee | January 26, 2023 |
| Allison Grant Williams |  |  |
| /s/ Sheila Hartnett-Devlin\*  | Trustee | January 26, 2023 |
| Sheila Hartnett-Devlin |  |  |
| /s/ James Jessee\* | Trustee | January 26, 2023 |
| James Jessee |  |  |
| /s/ Teresa Polley\* | Trustee | January 26, 2023 |
| Teresa Polley |  |  |
| /s/ R. Charles Tschampion\* | Trustee | January 26, 2023 |
| R. Charles Tschampion |  |  |
| /s/ James E. Ross\* | Trustee | January 26, 2023 |
| James E. Ross |  |  |
| /s/ Rory Tobin\*  | Trustee | January 26, 2023 |
| Rory Tobin |  |  |
| /s/ Chad C. Hallett | &nbsp;&nbsp; Treasurer and Principal Financial Officer<br> (fulfills the role of Principal Accounting Officer) | January 26, 2023 |
| Chad C. Hallett | &nbsp;&nbsp; Treasurer and Principal Financial Officer<br> (fulfills the role of Principal Accounting Officer) |  |
| /s/ Ellen M. Needham  | President and Principal Executive Officer | January 26, 2023 |
| Ellen M. Needham | President and Principal Executive Officer |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| \*By: | /s/ David Urman |
|  | David Urman<br> As Attorney-in-Fact<br> Pursuant to Power of Attorney<br>|

---

------

**EXHIBIT INDEX** 

---

| | |
|:---|:---|
| **<u>Exhibit No.</u>** | **<u>Exhibit</u>** |
| (j) | Consent of Independent Registered Public Accountant |
| (p)(ii) | Code of Ethics of SSGA Funds Management, Inc. |

---

------

## Ex-99.(J)

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the references to our firm under the captions "Management and Organization" and "Financial Highlights" in the Prospectus and "Counsel and Independent Registered Public Accounting Firm" in the Statement of Additional Information, each dated January 31, 2023, and each included in this Post-Effective Amendment No. 52 on the Registration Statement (Form N-1A, File No. 333-57791) of The Select Sector SPDR Trust (the "Registration Statement").

We also consent to the incorporation by reference of our report dated November 23, 2022, with respect to The Select Sector SPDR Trust (comprising The Communication Services Select Sector SPDR Fund, The Consumer Discretionary Select Sector SPDR Fund, The Consumer Staples Select Sector SPDR Fund, The Energy Select Sector SPDR Fund , The Financial Select Sector SPDR Fund, The Health Care Select Sector SPDR Fund, The Industrial Select Sector SPDR Fund, The Materials Select Sector SPDR Fund , The Real Estate Select Sector SPDR Fund, The Technology Select Sector SPDR Fund and The Utilities Select Sector SPDR Fund (the "Funds") (eleven of the funds constituting The Select Sector SPDR Trust) included in the Annual Report to Shareholders (Form N-CSR) for the year ended September 30, 2022, into this Registration Statement filed with the Securities and Exchange Commission.

![LOGO](g435817g0121051017712.jpg)

Boston, Massachusetts

January 26, 2023

## Ex-99.(P)(Ii)

Exhibit (p)(ii)

![LOGO](g435817sp1.jpg)

**Code of Ethics** 

**Effective March 31, 2022** 

Information Classification: General 1

------

**Table of Contents** 

---

| | |
|:---|:---|
|  Overview | 3 |
|  Covered Person Classifications | 4 |
|  Code of Ethics Rule Summary | 5 |
|  Statement of General Fiduciary Principles | 6 |
|  Related Policies and Procedures | 6 |
|  General Requirements | 7 |
|  Personal Trading Requirements – Accounts and Holdings | 8 |
|  Reportable Accounts Guide | 10 |
|  Personal Trading Requirements – Transactions | 12 |
|  Exempted Transactions | 15 |
|  Pre-Clearance | 16 |
|  Personal Trading Requirements – Pre-Clearance | 16 |
|  Administration and Enforcement of the Code of Ethics | 20 |
| **Appendices** |  |
|  Appendix A – Terms and Definitions | 21 |
|  Appendix B – Beneficial Ownership of Accounts and Securities | 23 |
|  Appendix C – Guide: Requirements by Security Types | 25 |
|  Appendix D – Country Specific Requirements | 27 |
|  Appendix E – Contacts | 32 |
|  Appendix F – Code of Ethics Reporting Requirements | 33 |
|  Appendix G – Code of Ethics FAQs | 34 |

---

Information Classification: General 2

------

**The Purpose of this Code of Ethics** 

State Street Global Advisors<sup>+</sup> (the "Firm") will not tolerate misuse of information made available to us for the purpose of making investment decisions or providing advice to our clients. To do so would be a breach of trust that our clients place in us and may also breach securities laws.

**What is the Code of Ethics?** 

The State Street Global Advisors Code of Ethics (the "Code") is designed to promote compliance with regulations that apply to our business and to ensure Firm personnel meet expected standards of conduct. The Code is supplemental to the State Street Standard of Conduct, and Firm personnel are required to comply with both.

In certain countries outside the US, local laws, regulations or customs may impose additional requirements. **Personnel located in countries outside the US must also refer to Appendix D for information on those additional requirements.**

The Conduct Risk Management Team administers this Code in coordination with State Street Global Advisors' Chief Compliance Officer ("CCO").

---

| |
|:---|
| &nbsp;&nbsp; <br> **Questions about the Code?**<br>|
| &nbsp;&nbsp;&nbsp; Contact the Conduct Risk |
| &nbsp;&nbsp;&nbsp; Management Team**:** |
| &nbsp;&nbsp;&nbsp; <u>**ethics@statestreet.com**</u><br>|

---

&nbsp;&nbsp;&nbsp; <br> **Definitions for some of the terms used in this Code of Ethics are provided in Appendix A.**<br>

**Who is subject to the Code of Ethics?** 

The Code of Ethics applies to you if:

· You are a full-time or part-time employee at State Street Global Advisors;

· You are a contingent worker at State Street Global Advisors and have been notified that you are subject to the Code of
Ethics;

· You are an officer of the registered investment companies managed\* by SSGA Funds Management, Inc. ("SSGA FM")
who is not employed by the Firm, but is employed by another business unit with access to Firm data such as non-public information regarding any client's purchase or sale of securities, non-public information regarding any client's portfolio holdings, or non-public securities recommendations made to clients; or

· The **  Conduct Risk Management Team has designated you as a person subject to the Code of Ethics.

For the purposes of the remainder of this document, those personnel who are subject the Code of Ethics will be called "Covered Persons".

**Your family members may also be subject to the Code of Ethics.** 

If you are a Covered Person, the requirements of this Code also apply to people related to you, such as spouses, domestic partners, minor children, financial dependents, including adult children and other relatives living in your household if they are financially dependent on you, as well as other persons designated as Covered Persons by the CCO or the Conduct Risk Management Team, or their designee(s).

+ For purposes of this Code of Ethics, "State Street Global Advisors" refers to all State Street Global Advisors legal entities globally.

\*This excludes registered investment companies for which SSGA FM serves as sub-adviser.

3.0 ------

**Covered Person Classifications** 

As a Covered Person, you are either an **Access Person**, **Investment Person**, or **Non-Access Person**. Your classification is determined by your access to information. The Conduct Risk Management Team will notify you of your classification. Your classification may change as your responsibilities and access to information change. It is your responsibility to notify the Conduct Risk Management Team if your role or level of access to information changes.

**Access Person** Access Persons are those Covered Persons who:

· as part of their regular functions or duties have access to non-public information about a client's holdings, or a client's previous securities transactions; have access to non-public information about Firm portfolio holdings; or manage or are managed by employees who
execute these functions;

· are officers of the funds; or

· have been designated as Access Persons by the Firm's CCO or the Conduct Risk Management Team.

**Investment Person** Investment Persons are Covered Persons who are involved in or have access to the investment decision-making process, or who have access to information regarding pending securities transactions, or decisions to buy or sell securities on behalf of clients. Investment Persons include those Covered Persons who:

· as part of their regular functions or duties, make investment recommendations or decisions on behalf of client
portfolios; participate in making investment recommendations or decisions on behalf of client portfolios; are responsible for day-to-day management of a client or
proprietary fund portfolio; have knowledge of or access to investment decisions under consideration for a client or proprietary fund portfolio; execute trades on behalf of

client or proprietary fund portfolios; have access to information regarding pending trades; analyze and research securities on behalf of client or proprietary fund portfolios; have access to information regarding pending trade orders for any client or proprietary fund portfolio; have access to or knowledge of changes in investment recommendations; have access to mathematical models used by the Firm as basis for investment strategy for client or proprietary fund portfolios; or manage or are managed by employees who execute those functions; or

· other persons designated as Investment Persons by the Firm's CCO or the Conduct Risk Management Team.

**Non-Access Persons** are Covered Persons who are not categorized as Access Persons or Investment Persons.

&nbsp;&nbsp;&nbsp; **Examples of Investment Persons** include, but are not limited to, portfolio managers, research analysts, IT and Operations professionals with certain systems access, and Investment Risk personnel.<br>

---

| |
|:---|
| &nbsp;&nbsp; <br> **Unsure what classification applies to you?**<br>|
| &nbsp;&nbsp;&nbsp; The Conduct Risk Management Team will notify you of your classification, which is based on your responsibilities and level of access to information at the Firm. |
| &nbsp;&nbsp;&nbsp; Dual employees may also be subject to the State Street Securities Trading policy and/or the Global Personal Investment Policy. |
| &nbsp;&nbsp;&nbsp; Contact the Conduct Risk Management Team at <u>ethics@StateStreet.com</u> if you have questions.<br>|

---

Information Classification: General 4

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**Code of Ethics Rule Summary** 

Refer to the list below to understand which rules apply to you based on your Covered Person Classification. Read the full text of the Code of Ethics to fully understand the requirements and prohibitions, as well as any exceptions to these rules.

&nbsp;&nbsp;&nbsp;&nbsp;All Covered Persons

&nbsp;&nbsp;&nbsp;&nbsp;**Required** 

&nbsp;&nbsp;&nbsp;&nbsp;• Ensure compliance with the Code on the part of your spouse, domestic partner or other Covered Persons [p. 3]

&nbsp;&nbsp;&nbsp;&nbsp;• Comply with applicable securities laws [p. 7]

&nbsp;&nbsp;&nbsp;&nbsp;• Acknowledge the Code of Ethics when you become a Covered Person and annually thereafter [p. 7]

&nbsp;&nbsp;&nbsp;&nbsp;• Report accounts and holdings when you become a Covered Person and annually thereafter [p. 8]

&nbsp;&nbsp;&nbsp;&nbsp;• Report or confirm transactions quarterly [p. 12]

&nbsp;&nbsp;&nbsp;&nbsp;• Maintain accounts at Approved Brokers if required in your region [p. 9]

&nbsp;&nbsp;&nbsp;&nbsp;• Provide duplicate statements and confirmations to the Conduct Risk Management Team [p. 8]

&nbsp;&nbsp;&nbsp;&nbsp;• Report any actual, attempted, or suspected violation of this policy as soon as you are aware of it [p. 7]

&nbsp;&nbsp;&nbsp;&nbsp;• Obtain pre-approval from the Conduct Risk Management Team before participating in
investment clubs [p. 13]

&nbsp;&nbsp;&nbsp;&nbsp;• Contact the Conduct Risk Management Team for any exemption to this Code of Ethics [p. 20]

&nbsp;&nbsp;&nbsp;&nbsp;• Understand if and how the State Street Securities Trading Policy applies to you [p. 15]

&nbsp;&nbsp;&nbsp;&nbsp;**Prohibited** 

&nbsp;&nbsp;&nbsp;&nbsp;• Do not misuse client or proprietary fund information, or State Street proprietary information for personal gain [p. 14]

&nbsp;&nbsp;&nbsp;&nbsp;• Do not trade excessively [p. 13]

&nbsp;&nbsp;&nbsp;&nbsp;• Do not sell securities short [p. 13]

&nbsp;&nbsp;&nbsp;&nbsp;• Do not trade options or futures on Covered Securities or engage in spread-betting [p. 13]

Do not participate in Initial Public Offerings [p. 13]

&nbsp;&nbsp;&nbsp;&nbsp;Access Persons

&nbsp;&nbsp;&nbsp;&nbsp;**Required** 

&nbsp;&nbsp;&nbsp;&nbsp;• Follow all above rules for Covered Persons

&nbsp;&nbsp;&nbsp;&nbsp;• Pre-Clear trades in Covered Securities [p. 16]

&nbsp;&nbsp;&nbsp;&nbsp;**Prohibited** 

&nbsp;&nbsp;&nbsp;&nbsp;• Do not sell or dispose of positions in Covered Securities for a profit that have been held for less than 60 days [p. 14]

&nbsp;&nbsp;&nbsp;&nbsp;Investment Persons

&nbsp;&nbsp;&nbsp;&nbsp;**Required** 

&nbsp;&nbsp;&nbsp;&nbsp;• Follow all the above rules for Covered Persons and for Access Persons

&nbsp;&nbsp;&nbsp;&nbsp;**Prohibited** 

&nbsp;&nbsp;&nbsp;&nbsp;• Do not personally trade Covered Securities when there is an open order on any trading desk for a client portfolio or fund
for the same or similar security (Open Order Rule) [p. 17]

&nbsp;&nbsp;&nbsp;&nbsp;• Do not personally trade Covered Securities within seven days (before or after) of a trade in the same or equivalent
security in a client portfolio with which you are associated (Blackout Period) [p. 17]

&nbsp;&nbsp;&nbsp;&nbsp;• Research Analysts: Do not personally trade Covered Securities in proximity to a recommendation you have made or to which
you have access (Research Analyst Waiting Period) [p. 18]. This Rule applies regardless of the direction of trade, nature of recommendation, or amount traded.

Information Classification: General 5

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## Statement of General Fiduciary Principles
State Street Global Advisors, its subsidiaries and affiliates, and the officers of the Funds owe a fiduciary duty to their advisory clients (including the Funds) and are subject to certain laws and regulations governing personal securities trading. As a Covered Person, you have an obligation to adhere to the following principles:

• At all times, avoid placing your personal interest ahead of the interests of the clients or Funds of the Firm;

• Avoid actual and potential conflicts of interests between personal activities and the activities of the Firm's clients or Funds;

• Do not misappropriate investment opportunities from clients or Funds;

• Do not employ or engage in any device, scheme, artifice, act, course of business, or manipulative practice to defraud clients or Funds; and

• Do not make untrue or misleading statements that defraud clients or Funds.

As such, your personal financial transactions and related activities, along with those of your family members and other Covered Persons, must be conducted consistently with this Code, including the principles herein, to avoid any actual or potential conflicts of interest with the Firm's clients or funds, or abuse of your position of trust and responsibility.

When making personal investment decisions, you must ensure that you do not violate the letter or the spirit of this Code. We have developed this Code to promote the highest standards of behavior and ensure compliance with applicable laws. The Code sets forth procedures and limitations that govern the personal securities transactions of every Covered Person.

---

| |
|:---|
|  <br> **Related Policies and Procedures** |
| &nbsp;&nbsp; All employees of the Firm are required to comply with the following key policies and procedures, which set forth ethical standards required of all Firm personnel. This is not an exhaustive list of State Street or State Street Global Advisors Policies or Procedures to which employees are subject. |
| &nbsp;&nbsp; **State Street Corporate Policies and Procedures** |
| &nbsp;&nbsp;&nbsp;&nbsp;· Standard of Conduct |
| &nbsp;&nbsp;&nbsp;&nbsp;· Gifts and Entertainment Policy |
| &nbsp;&nbsp;&nbsp;&nbsp;· Political Contributions and Activities Policy |
| &nbsp;&nbsp;&nbsp;&nbsp;· Outside Activities Policy |
| &nbsp;&nbsp;&nbsp;&nbsp;· Conflicts of Interest Policy |
| &nbsp;&nbsp;&nbsp;&nbsp;· Anti-Corruption and Bribery Policy |
| &nbsp;&nbsp;&nbsp;&nbsp;· Conduct Standards Policy |
| &nbsp;&nbsp;&nbsp;&nbsp;· Inside Information Standard |
| &nbsp;&nbsp; **State Street Global Advisors Policies and Procedures** |
| &nbsp;&nbsp;&nbsp;&nbsp;· Inside Information/Information Barriers Policy and Procedure |
| &nbsp;&nbsp;&nbsp;&nbsp;· Global Conflicts of Interest Procedure |
| &nbsp;&nbsp;&nbsp;&nbsp;· Anti-Corruption and Bribery Procedure |
| &nbsp;&nbsp;&nbsp; Note: Policies and related procedures or guidance may be revised from time to time. Employees will find the most up-to-date policies on the intranet. |

---

It is not possible for this Code to address every situation involving the personal trading of Covered Persons. The Conduct Risk Management Team is charged with oversight and interpretation of the Code in a manner considered fair and equitable, in all cases placing the Firm's clients' interests first.

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; <br> It is not enough to only comply with the technical aspects of the Code – **it is every Covered Person's responsibility to ensure their pesona investments do not, in any way, compromise the Firm's fiduciary duty to any client.** |
| &nbsp;&nbsp;&nbsp;&nbsp; If you are unsure whether a personal investment matter meets the required ethical standard, contact the Conduct Risk Management Team. |

---

Information Classification: General 6

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## Code Requirements of the Code
**General Requirements** 

Applicable to All Covered Persons

**001.** **Comply with Applicable Securities Laws** 

As a Covered Person, you must comply with securities laws and firm-wide policies and procedures, including this Code of Ethics. Securities laws include the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Sarbanes-Oxley Act of 2002, Title V of the Gramm-Leach-Bliley Act, any rules adopted by the SEC under these statutes, the Bank Secrecy Act and rules adopted there under by the SEC or the Department of the Treasury. Covered Persons outside the US may be subject to additional country-specific requirements and securities laws, which are included in Appendix D.

**002.** **Report Violations** 

Covered Persons are required to promptly report any violation of the Code, whether their own or another individual's, to the Conduct Risk Management Team. Alternatively, you may contact the Senior Compliance Officer in your region, the CCO, or, to report anonymously, The Speakup Line (see Appendix E for contact information).

Nothing in the Code is intended to or should be understood to prohibit or otherwise discourage certain disclosures of confidential information protected by "whistleblower" laws to appropriate government authorities. State Street will not tolerate any discipline or other retaliation against employees who properly make such legally-protected disclosures.

This language does not apply to Covered Persons in France and Italy. Please see Appendix D.

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; <br> **Keep in mind** |
| &nbsp;&nbsp;&nbsp;&nbsp; <br> Our policies and procedures and the Code of Ethics may be more restrictive than applicable securities laws.<br>|

---

**003.** **Certify Receipt and Compliance with the Code** 

*Initial Certification (New Covered Person)*

Within 10 calendar days of becoming subject to the Code, each new Covered Person must certify in writing that they (i) have read, understand, and will comply with the Code, (ii) will promptly report violations or possible violations, and (iii) recognize that an employee conduct issue related to the Code may be grounds for action under the *State Street Conduct Standards Policy.*

*Annual Certification (All Covered Persons)*

Each Covered Person is required to certify annually in writing that they (i) have read and understand the Code, (ii) have complied with the Code during the course of their association with the Advisor; (iii) will continue to comply with the Code in the future; (iv) will promptly report violations or possible violations, (iv) recognize that an employee conduct issue with the Code may be grounds for action under the *State Street Conduct Standards Policy*.

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; <br> **Certification Required**<br>Covered persons are required to certify to the Code of Ethics <u>within 10 days</u> of becoming subject to the Code of Ethics and on an <u>annual</u> basis. |
| &nbsp;&nbsp;&nbsp;&nbsp; <br> **Certification Required**<br>Covered persons are required to certify to the Code of Ethics <u>within 10 days</u> of becoming subject to the Code of Ethics and on an <u>annual</u> basis. |

---

Information Classification: General 7

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**Personal Trading Requirements – Accounts and Holdings** 

Applicable to All Covered Persons

You must disclose all Reportable Accounts (as defined on page 10) when you become a Covered Person and continue to make accurate and timely account and holding reports. If you are an employee in the US, you must maintain your account(s) with an Approved Broker. Employees in other regions are encouraged to maintain accounts with "Preferred Brokers" where available. All Covered Persons must ensure the Conduct Risk Management Team receives timely and accurate reporting from your broker.

**004.** **File Initial and Annual Holding Reports** 

Covered Persons must file initial and annual holdings reports ("Holdings Reports") in StarCompliance as follows:

a. Content of Holdings Reports

i. The name of any broker, dealer or bank with whom the Covered Person maintained a Reportable Account. Please note that
all Reportable Accounts (see page 10) must be reported in StarCompliance.

ii. The title, number of shares and principal amount of each Covered Security.

b. Timing of Holdings Reports

i. Initial Report – No later than 10 calendar days after becoming a Covered Person. The information must be current
as of a date no more than 45 days prior to the date the Covered Person became an Access Person, Investment Person, or Non-Access Person.

ii. Annual Report – Annually, within 30 calendar days following calendar year end, and the information must be
current as of a date no more than 45 calendar days prior to the date the report is submitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

c. Exceptions from Holdings Report Requirements

i. Holdings in securities which are not Covered Securities are not required to be included in Holdings Reports (please
see Appendix C).

Any Reportable Accounts opened during the Covered Person's employment or engagement with the Firm must also be immediately disclosed in StarCompliance regardless of whether there is any activity in the account. Any Reportable Accounts and holdings that become newly associated with a Covered Person through marriage, gift, inheritance, or any other life event, must be disclosed within 30 days of the event.

**005.** **Provide Duplicate Statements and Confirms** 

Each Covered Person is responsible for ensuring the Conduct Risk Management Team receives timely reporting for their Reportable Accounts holdings, (as well as timely reporting for transactions of Covered Securities within the Reportable Account). This applies to any Reportable Accounts (including Fully Managed Accounts) active during the Covered Person's employment or engagement with the Firm. Covered Persons must ensure that on a regular basis the Conduct Risk Management Team or their designee(s) receives account statements (e.g. monthly, quarterly statements) listing all transactions for the reporting period. (See Section 007 – Filing Quarterly Transaction Reports.)

The Covered Person can accomplish this one of two ways:

a. Maintain Reportable Accounts at Approved Brokers (or Preferred Brokers for employees based in non-US jurisdictions, where available). Approved Brokers and Preferred Brokers send electronic feeds to the Conduct Risk Management Team; Covered Persons are not required to provide paper-based reporting for
accounts with Approved Brokers or Preferred Brokers. However, it

Information Classification: General 8

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is the responsibility of the Covered Person to verify the accuracy of these feeds through Quarterly Transaction Reports and Annual Holdings Reports. Employees in the US, with limited exceptions, are required to maintain their accounts at Approved Brokers. (See Section 006- Maintain Accounts with Approved Brokers.) <br>

b. For accounts not on an electronic feed, the Covered Person must supply the Conduct Risk Management Team with required
duplicate documents. Please see Appendix D for regional requirements.

**006.** **Maintain Accounts with Approved Brokers (US Employees) or Preferred Brokers (Non-US employees)** 

Unless an exemption applies, Covered Persons must maintain accounts with Approved Brokers or Preferred Brokers if required in their region. Please refer to the Personal Securities Trading FAQs on the Conduct Risk Management sharepoint site for regional requirements and for a list of Approved Brokers. The Approved Brokers provide both the holdings and transaction activity in each account through an electronic feed into StarCompliance.

The categorical exemptions to the Approved Broker and Preferred Broker requirement are:

a. Accounts approved by the Conduct Risk Management Team as Fully Managed Accounts (also known as Discretionary Accounts.
See Appendix A.)

b. Accounts that are part of a former employer's retirement plan (such as a 401(k)); or accounts that are part of a
spouse's or other Covered family member's retirement plan at their employer.

c. Employees who are not US citizens and are working in the US on an ex-pat assignment or whose status is non-permanent resident.

d. Securities held in physical form.

e. Securities restricted from transfer.

f. Accounts held by employees, or any Covered Persons, in countries outside the

region where they are currently assigned, which are not eligible for transfer to an Approved or Preferred Broker in that region.

To apply for an exception to maintain an account outside of an Approved Broker, contact the Conduct Risk Management Team at <u>ethics@statestreet.com</u>.

Please see Appendix D for additional regional requirements.

Information Classification: General 9

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## Reportable Accounts Guide
To determine whether an account is a Reportable Account, determine who owns or benefits from the account *and* what types of investments the account can hold. If you have a beneficial interest in an account and the account can hold Covered Securities, it is likely a Reportable Account.

**What is a Beneficially Owned Account?** 

A Beneficially Owned Account is:

· An account where the Covered Person enjoys the benefits of ownership (even if title is held in another name); and/or

· An account where the Covered Person, either directly or indirectly, has investment control or the power to vote or
influence the transaction decisions of the account.

Generally, an individual is considered to be a beneficial owner of accounts or securities when the individual has or shares direct or indirect pecuniary interest in the accounts or securities. Pecuniary interest means that an individual has the ability to profit, directly or indirectly, or share in any profit from a transaction. Indirect pecuniary interest extends to, but is not limited to:

· Accounts and securities held by immediate family members sharing the same household;

· Securities held in trust (certain restrictions may apply, see Appendix B for more details); and

· A right to acquire Covered Securities through the exercise or conversion of any derivative security, whether or not
presently exercisable

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| |
|:---|
| &nbsp;&nbsp; <br> **No Reporting Required** |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;· Checking and savings accounts holding only cash<br>&nbsp;&nbsp;&nbsp;&nbsp;· Government-subsidized pension saving products<br>&nbsp;&nbsp;&nbsp;&nbsp;· Pension Accounts established under the Hong Kong regulation or Singapore Regulation with **no capacity** to invest in Covered Securities<br>&nbsp;&nbsp;&nbsp;&nbsp;· Savings Plans within the course of company pension schemes which only allow unaffiliated open-end mutual funds<br>&nbsp;&nbsp;&nbsp;&nbsp;· Educational Savings Plans which only allow unaffiliated open-end mutual funds<br>&nbsp;&nbsp;&nbsp;&nbsp;· Other Registered Commingled Funds (such as IRC 529 Plans in the US)<br>**When in doubt, contact the Conduct Risk Management Team** <u>ethics@statestreet.com</u><br>|

---

**What are Covered Securities?** 

For a complete list of Covered Securities, see Appendix C. Some of the most common types are listed below.

· Stocks, including State Street Corp. ("STT")

· Exchange-traded funds ("ETFs")

· Exchange-traded notes ("ETNs")

· Open-ended mutual funds advised by the Firm

· Municipal and Corporate bonds

Information Classification: General 10

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; **Do I Have to Report this Account?**<br>![LOGO](g435817sp100.jpg) <br>**Common Reportable Account Types**<br>The list of account types below is not all-inclusive. Consult the Conduct Risk Management Team if you have questions about whether an account is a Reportable Account.<br>· **Brokerage Account**<br> All brokerage accounts are reportable, including but not limited to retirement accounts, non-retirement accounts, IRAs, RRSPs, UTMA and UGMA accounts. For further definition see Appendix A.<br> · **Employee Incentive Awards Deposit Account Provided by the Firm**<br> Accounts that are provided to employees into which their Employee Incentive Awards are deposited are reportable.<br> · **Employee Stock Ownership and Purchase Plans ("ESOPs"/ "ESPPs")**<br> · **Employer-sponsored Retirement Plans that invest/hold Covered Securities** | <br> **Practical Examples of Beneficial Ownership**<br>**See Appendix B for a more detailed discussion of Beneficial Ownership. For the purposes of this sidebar, "you" includes you, your spouse or domestic partner, or anyone else in your household who would be covered by the Code of Ethics, as discussed on page 3.**<br>**UGMA/UTMA Accounts**<br> If you are the custodian of an UGMA/UTMA account for a minor, and one or both of you is a parent of the minor, you are a beneficial owner. If you are the beneficiary of an UGMA/UTMA and are of majority age, you are a beneficial owner.<br>**Education Accounts**<br> If you are the custodian of an Education Savings Account (ESA), or Coverdell IRA, you are a beneficial owner.<br>**Trusts**<br> If you are a trustee <u>or</u> the settlor of the trust who can independently revoke the trust and participate in making investment decisions for the trust, you are a beneficial owner.<br> If you are a beneficiary of the trust but have no investment control, the account is beneficially owned as of the date the trust is distributed, not before.<br>**Investment Powers over an Account**<br> If you have any form of investment control, such as trading authorization or power of attorney, the account is beneficially owned as of the date you are able to direct or participate in the trading decisions.<br>|

---

Employer-sponsored retirement plans and accounts globally in which the employee/participant invests in or transacts in Covered Securities are reportable. Please see Appendix G "Code of Ethics FAQs" for further clarification on Reportable Retirement Plans.

Information Classification: General 11

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**Personal Trading Requirements – Transactions** 

Applicable to All Covered Persons

The Code of Ethics requires quarterly reporting of all Covered Transactions and imposes restrictions on certain types of transactions.

**007.** **Filing Quarterly Transaction Reports** 

Each Covered Person is required to submit a quarterly transaction report for and certify to transactions during the calendar quarter in all Covered Securities. Each Covered Person shall also certify that the Reportable Accounts listed in the transaction report are the only Reportable Accounts in which Covered Securities were traded during the quarter for their direct or indirect benefit. For the purposes of this report, transactions in Covered Securities that are effected in Automatic Investment Plans or accounts approved by the Conduct Risk Management Team as Fully Managed Accounts need not be reported.

Covered Persons must file quarterly transaction reports ("Transaction Reports") in StarCompliance

a. Quarterly Transactions Report For Transactions in Covered Securities are reported on a standardized form in
StarCompliance that identifies the date, security, price, volume, amount, and effecting broker of each Covered Security transaction.

b. Quarterly Transactions Report For Newly Established Reportable Accounts reported in StarCompliance Holding ANY
Securities (provided there were transactions during the quarter) include the broker dealer or bank with whom the reportable account is held, the date the account was opened, and the date the report was submitted to Ethics.

c. Timing of Transactions Report: No later than 30 calendar days after the end of the calendar quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

d. Exception from Transactions Report Requirements

i. Transactions effected pursuant to an Automatic Investment Plan as well as transactions in securities that are not
Covered Securities,

ii. Transactions effected in accounts that are not Reportable Accounts are not required to be included in the Quarterly
Transaction Report (please see Appendix C), and

iii. Transactions effected in a previously-approved Fully Managed Account.

e. Confirmation of Trades

i. Employees must confirm their transactions in StarCompliance after execution and before or simultaneously with their
quarterly transaction certification.

ii. If an electronic feed has been set up for broker account (e.g. Fidelity account), the trading data will flow
automatically to StarCompliance overnight, however, it is still the employee's responsibility to maintain accurate data in StarCompliance and it is best practice to check whether electronic feeds were accurate by checking records in
StarCompliance prior to completing a quarterly certification.

f. State Street Employee Incentive Stock Awards

i. STT employee incentive stock awards must be treated as Covered Securities. Employees receiving awards during a quarter
should ensure any awards vested during the quarter are appropriately reflected in their holdings, and

ii. All employees must preclear  **<u>any</u>** transactions in STT (note, STT employee incentive awards are not subject
to the 60 day profit prohibition when they become vested).

Information Classification: General 12

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**008.** **Excessive Trading** 

Excessive trading may interfere with job performance or compromise the duty that the Firm owes to clients and consequently is not permitted. Levels of personal trading will be monitored by the Conduct Risk Management Team and high levels of personal trading will be reported to senior management A pattern of excessive trading may lead to action under the *State Street Conduct Standards Policy*.

**009.** **Futures, Options, Contracts for Difference, and Spread Betting** 

Covered Persons are prohibited from buying or selling options and futures on Covered Securities (other than employee stock options). Covered Persons are also prohibited from engaging in Contracts for Difference ("CFDs") and spread betting related to Covered Securities.

**010.** **Shorting of Securities** 

Covered Persons are prohibited from selling securities short.

**011.** **Initial Public Offerings** 

Covered Persons are prohibited from acquiring securities through an allocation by an underwriter of an initial public offering ("IPO"). An exception may be considered for situations where the spouse/domestic partner/partner of a Covered Person ("PACs") is eligible to acquire shares in an IPO of his/her employer with prior written disclosure to and written approval from the Conduct Risk Management Team.

**012.** **Private Transactions** 

Covered Persons must obtain prior written approval from the Conduct Risk Management Team before participating in a Private Placement or any other private securities transaction. To request prior approval, Covered Persons must provide the Conduct Risk Management Team with a completed Private Placement Request form, which is available on StarCompliance.

If the request is approved, the Covered Person must confirm the transaction in StarCompliance, verify the details on the next

Quarterly Transaction Report, and report the holding on the Annual Holdings Report. If the transaction has already been loaded to the Covered Person's Transaction report, the Covered Person must confirm the transaction in the Quarterly Transaction Report.

Covered Persons may not invest in Private Transactions if the opportunity to invest could be considered a favor or gift designed to influence the Covered Person's judgment in the performance of his/her job duties, or as compensation for services rendered to the issuer, or if there are any other potential conflicts of interest with State Street business. In determining whether to grant approval for any investment for a Private Transaction, the Conduct Risk Management Team will consider, among other things, whether it would be possible (and appropriate) to reserve that investment opportunity for one or more of the Firm's clients, as well as whether the opportunity to invest has been offered to the Covered Person as a gift, or as compensation for services rendered.

See Appendix A for definition and Appendix D for further regional definitions in France and Italy.

**013.** **Investment Clubs and Investment Contests** 

Covered Persons must obtain prior written approval from the Conduct Risk Management Team before participating in an Investment Club. If approved, the brokerage account(s) of the Investment Club are subject to the Approved Broker, pre-clearance and reporting requirements of the Code. Sharing research or other proprietary information obtained through employment with State Street with Investment Club participants is prohibited.

Covered Persons are prohibited from direct or indirect participation in an investment contest. These prohibitions extend to the direct or indirect acceptance of payment or offers of payments of compensation, gifts, prizes, or winnings as a result of participation in such activities.

Information Classification: General 13

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**014.** **Use of the Firm's Proprietary Information** 

The Firm's investment recommendations and other Proprietary Information are for the exclusive use of the Firm and may not be used to inform employees' personal investment decisions. Examples of Proprietary Information include but are not limited to:

– Information about Firm or issuer business strategies, technologies, or ideas;

– client or proprietary transactions;

– changes to recommended portfolio weightings, portfolio composition, or target prices for any security;

– voluntary actions to be taken on any corporate actions;

– research produced by employees of the Firm that could influence client investment decisions, such as employees' recommendations in Tamale and ArtPro; or

– any other information that may reasonably be expected could influence an investor's decision-making that has not been made public without violation of law or our policies.

The definition of Proprietary Information does not include information that has been made public or comes from a service that broadly disseminates published information, such as Bloomberg. You should always assume that information is confidential, and treat it as such, unless it is clearly indicated otherwise. It is our responsibility to protect Proprietary Information and Confidential Information against unintentional, malicious, or unauthorized disclosure or misuse. Any pattern of personal trading suggesting misuse of proprietary information may be investigated. Any misuse or distribution of information that is proprietary, confidential, or non-public is prohibited.

Applicable to Access Persons and Investment Persons

**015.** **Short-Term Trading** 

All Access Persons and Investment Persons are prohibited from profiting from the purchase and sale (or sale and purchase) of the same or equivalent Covered Security within sixty (60) calendar days. Transactions that result in a profit will be considered an employee conduct issue and may result in action under *the State Street Conduct Standards Policy*. Any profit amount shall be calculated by the Conduct Risk Management Team or their designee(s), the calculation of which shall be binding. The following will not be matched with other purchases and sales for purposes of this provision:

a. Transactions in securities that are not Covered Securities such as money market funds (see Appendix C);

b. Transactions in ETFs, except certain actively-managed SSGA ETFs (see Appendix C);

c. Securities received as a gift or inheritance that cannot be matched to another transaction effected by a Covered
Person within 60 days;

d. Involuntary actions such as vested employer stock awards, dividend reinvestments, or other corporate actions;

e. Cashless exercise of a Covered Person's employer stock options

f. Transactions executed in Fully Managed Accounts that have been approved by the Conduct Risk Management Team; or

g. Transactions effected through an Automatic Investment Plan, the details of which the Conduct Risk Management Team has
been notified of in advance.

Information Classification: General 14

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**Exempted Transactions** 

Pre-clearance is **not required** for certain common transactions.

**Automatic Investment Plans** 

*Prior Notification to Conduct Risk Management Team Required* 

Purchases or sales that are part of an Automatic Investment Plan where the investment decisions are non-discretionary after the initial selections by the account owner (although the initial selection requires pre-clearance). These include dividend reinvestment plans, payroll and employer contributions to retirement plans, transactions in Employee Stock Ownership Programs ("ESOPs") and similar services. Initiation of an Automatic Investment Plan must be disclosed to the Conduct Risk Management Team in advance.

**Certain Exempt Covered Securities** 

Transaction(s) in Covered Securities for which the Conduct Risk Management Team has determined pre-clearance is not required (see Appendix C).

**Discretionary Accounts (Fully Managed Accounts)** 

*Prior Approval from Ethics Office Required* 

Subject to prior approval of the account from the Conduct Risk Management Team, transactions made in a Discretionary Account. An account will not be deemed a Discretionary Account until the Conduct Risk Management Team has approved the account as such.

**Certain Educational Savings Plans** 

Transactions in educational savings plans that only allow unaffiliated open-end mutual funds, unit-investment trusts, or other registered commingled products (such as IRC 529 Plans in the US).

**Involuntary Transactions** 

**Involuntary** purchases or sales such as mandatory tenders, dividend reinvestments, broker disposition of fractional shares, debt maturities. **Voluntary** tenders, transactions executed as a result of a margin call, and other non-mandatory corporate actions are to be pre-cleared, unless the timing of the action is outside the control of the Covered Person, or the Conduct Risk Management Team has determined pre-clearance is not required for a particular voluntary transaction.

**Gifts or Inheritance** 

Covered Securities received via a gift or inheritance, although such Covered Securities must be reported in StarCompliance. Note that pre-clearance is required prior to giving or donating Covered Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**016.** **State Street Securities** 

Each Covered Person must ensure that they have reported any Reportable Account holding State Street securities, and that they have reported in StarCompliance any vested State Street shares acquired through an employee incentive award. During certain trading windows, employees may be permitted to exercise Employee Incentive Awards without being subject to the blackout and open order rules. **However, these transactions remain subject to the pre-clearance and reporting requirements of the Code at all times**. Employees will be notified when a trading window commences and terminates. During this period, all employees remain subject to the *State Street Global Advisors Inside Information/Information Barrier Policy and Procedure*, as well as the Personal Trading in Securities section of the State Street Standard of Conduct.

Additionally, certain employees of the Firm are subject to the State Street Securities Trading Policy ("SSTP") and will be notified of this by the Conduct Risk Management Team. Employees subject to SSTP must also comply with all notifications under that Policy.

Information Classification: General 15

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## Pre-Clearance
The Pre-Clearance requirement mitigates the risk of creating actual or perceived conflicts of interest with the trading activities made on behalf of Firm clients. **With limited exceptions, pre-clearance approval is required before you make any personal trades of Covered Securities.**

It applies to all your Reportable Accounts, including those belonging to, or in which, your spouse or other Covered family member has an economic interest or control. (See Appendix B)

It applies to transactions in most types of securities, including transactions in State Street Corp. stock (STT). (See Appendix C)

![LOGO](g435817snap0026.jpg)

**Personal Trading Requirements – Pre-Clearance** 

Applicable to Access Persons and Investment Persons

You are required to receive pre-clearance approval before trading in any Covered Security, with limited exceptions. This applies to transactions made by your spouse, other Covered family member and/or in any other accounts in which you or they have beneficial ownership or control.

**017.** **Pre-Clearance** 

Access Persons and Investment Persons must request and receive pre-clearance approval prior to effecting a personal transaction in all Covered Securities (see Appendix C).

a. All pre-clearance requests must be made by submitting a Trade Request for the
amount of shares to be transacted in StarCompliance.

b. Pre-clearance is required for donations and/or gifts of securities made.

Trade requests may be approved or denied at the discretion of the Conduct Risk Management Team, In general, a transaction will be denied if the Covered Security is on any relevant Restricted List or if the Conduct Risk Management Team has reason to believe that the Covered Person has access to relevant information concerning the security or the issuer that is intended for the sole purpose of the Firm or its clients. **If the Covered Person has access to such information, it is the Covered Person's responsibility not to seek pre-clearance nor to trade in the security even if pre-clearance approval has been granted**. For Investment Persons, a transaction may also be denied if the Covered Security is actively being purchased or sold for a client account or account of a Fund, or the Covered Security has been traded within seven days in a portfolio for which they have management discretion.

Information Classification: General 16

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**018.** **Restricted List** 

To manage potential conflicts of interest, lists of issuers whose securities (including options and futures) may not be traded are integrated into the pre-clearance approval process. A security that you already own could be placed on a Restricted List at any time. If this happens, you may be unable to sell the security until it is removed from any Restricted List. Employees are not entitled to review any Restricted List.

The contents of any Restricted Lists shall be considered material non-public information and is subject to the considerations of the *Inside Information/Information Barrier Policy and Procedure*.

**019.** **Pre-Clearance Approval** 

Pre-clearance approval granted by the Conduct Risk Management Team is valid only for the same business day the approval is granted and is ineffective on all dates where the relevant Exchange is not open for business. Make note of any expiration time and date displayed on any approved Trade Request. Because approvals are strictly time-limited, place day orders only. "Good-till-cancelled" orders are not permitted, including stop-loss, limit, and stop-limit orders other than day orders. This is a result of the pre-clearance function relying upon point-in-time data in order to have any effect.

Applicable to Investment Persons

**020.** **Open Order Rule** 

Subject to the de minimis transaction threshold (Section 023-De Minimis Transactions), Investment Persons may not trade in a Covered Security, with the exception of ETFs, on any day that the Firm, globally, has a pending buy or sell order in the same Covered Security on any of the trading desk(s) for any client or proprietary fund portfolio until the order is executed or withdrawn (note: Executed trades are considered with regards to the Blackout Period, as outlined below).

&nbsp;&nbsp;&nbsp;&nbsp; <br> **By seeking pre-clearance, you are attesting that you understand that the proposed trade:**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Is not influenced by any non-public information that is proprietary or confidential to State Street or to our clients<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Does not create any conflict with State Street's responsibilities to its clients<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Is lawful<br>If you are not certain whether it is appropriate to trade, then do not trade. Contact the Conduct Risk Management Team at <u>Ethics@StateStreet.com</u> for guidance prior to placing any order to trade.<br>

**021.** **Blackout Period for Investment Persons** 

Subject to the de minimis transaction threshold described below, Investment Persons may not buy or sell a Covered Security for seven calendar days before or after a transaction in the same or equivalent security for a client or proprietary fund portfolio with which they are associated. An employee is considered "associated" with a client or proprietary fund portfolio if they have ability to exercise, or direct, trades for the portfolio.

All Covered Persons are required to avoid placing their personal interest ahead of the interests of the clients of the Firm. Investment Persons associated with portfolios with fundamental strategies must be particularly careful not to engage in personal trading that calls into question whether they have placed their interests ahead of the interest of their clients. Trading in securities personally in advance of similar trades made by the respective Portfolio may lead to questions about the Covered Person's priorities. In such cases, it will be incumbent upon the Covered Person to demonstrate that the clients' priorities were not subordinated to their own priorities. Similarly, failing to trade in a security for a Portfolio because of a personal trade that has recently been made is also a subordination of client interest. Covered Persons with responsibility for portfolios with fundamental strategies finding themselves needing to violate the Blackout Period in order to avoid placing their personal interest

Information Classification: General 17

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ahead of the clients' interest must inform the Conduct Risk Management Team. Such violations are subject to action under the State Street Conduct Standards Policy.

**022.** **Waiting Period for Research Analysts** 

Research Analysts with access to tools containing proprietary buy or sell recommendations, who receive internal communications regarding buy or sell recommendations, or participate in investment meetings where buy or sell recommendations are discussed, must refrain from trading in securities that are the subject of such recommendations for their personal account if it could reasonably be presumed that such information was relevant to an investment decision. Examples of recommendations that could reasonably be presumed to be relevant to investment decisions on behalf of client portfolios include but are not limited to buy or sell recommendations, internal analyst upgrades or downgrades related to an issuer, changes to recommended portfolio weightings, portfolio composition, or target prices for any security, or recommendations regarding voluntary corporate actions. Examples of information that are not presumed to be relevant to investment decisions include market analyses, economic updates, or financial updates regarding an issuer that do not also include a buy/sell recommendation or ratings analysis. Research Analysts who trade Covered Securities for their personal account in close

proximity to proprietary investment recommendations regarding the same issuer should expect heightened monitoring of such trades. If there is a reason to question whether such trades were made on the basis of confidential or proprietary non-public information, it will be incumbent upon the Covered Person to demonstrate otherwise.

Please see Appendix D for additional regional requirements.

**023.** **De Minimis Transactions** 

De Minimis transactions are subject to the pre-clearance and reporting requirements of the Code; and must follow all holding period and Restricted List requirements of this Code. However, there is a limited exclusion applied for De Minimis transactions in that they are not subject to the Open Order Rule or the Blackout Rule as described above. This exclusion exists because of the breadth and frequency with which securities are being traded across all of the portfolios of the Firm, which would effectively prohibit almost all equity trading by Investment Persons.

A "De Minimis transaction" is a personal trade that meets one of the following conditions: A single transaction in a security with a value equal to or less than US $5,000 (or the local country equivalent) or multiple transactions in a security within a five business day window that have an aggregate value equal to or less than US $5,000.

De Minimis Transaction Examples: (*All values are in US Dollars)*

---

| | | |
|:---|:---|:---|
| **Status**  | **Transaction(s)**<br>| **Notes**<br>|
| &nbsp;&nbsp; De minimis<br>| <br> Day One: Buy $5,000 of ABC, Inc.<br>| No subsequent transactions in the following five business days<br>|
| &nbsp;&nbsp; <br> De minimis | <br> Day One: Sell $1,000 of XYZ Corp.<br> Day Two: Sell $3,000 of XYZ Corp.<br> Day Four: Sell $800 of XYZ Corp.<br>| <br> Within five business days, less than $5,000 worth of XYZ Corp. is sold; all transactions in the aggregate is under the de minimis threshold<br>|
| &nbsp;&nbsp; <br> NOT de minimis | <br> Day One: Buy $4,500 of PQR, Inc.<br> Day Three: Buy $1,000 of PQR, Inc.<br>| <br> Day Three transaction is not considered de minimis, as it brings the total for the five business day window over $5,000<br>|
| &nbsp;&nbsp; <br> NOT de minimis | <br> Day One: Sell $1,000 of Acme Corp.<br> Day Two: Sell $3,000 of Acme Corp.<br> Day Three: Sell $1,500 of Acme Corp. | <br> Day Three transaction is not considered de minimis, as it brings the total for the five business day window over $5,000 |

---

StarCompliance will calculate whether a transaction meets the De Minimis thresholds and will take this into account when determining whether to approve or deny a personal trade.

Information Classification: General 18

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**024.** **Additional Requirements for Fundamental Equity Investment Persons** 

Investment Persons on Fundamental Equity Teams are required to obtain the respective Asset Class CIO's approval before transacting in single name equities and securities that can convert to single name equities for their personal accounts, including but not limited to transactions in stock, preferred stock, warrants, and any security convertible to an equity. This additional preapproval requirement includes the purchase of new positions and purchase of additional shares of existing positions, with the exception of dividend reinvestments and other involuntary corporate actions. With prior approval from the Conduct Risk Management Team, exceptions from the additional preapproval requirement may be allowed for Fully Managed Accounts. Prior approval can also be requested to transact in securities directly through an employer stock plan or employer stock options, or in circumstances of hardship.

Pre-approvals provided by Asset-Class CIOs will be effected after a trade pre-clearance request has been approved in StarCompliance. Upon receipt of the StarCompliance approval email, the employee shall forward the approval to the appropriate CIO and cc GA_Compliance_CIO_CodeReview. The employee shall provide the Asset Class CIO with any relevant information regarding the trade request. The CIO will review the request and "reply all" when approving or denying the request. Employees may not trade if the request has been denied by Conduct Risk Management Team via StarCompliance or by the CIO. Pre-approvals provided by Asset-Class CIOs expire at the same time and date noted on the StarCompliance pre-approval.

Information Classification: General 19

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## Administration and Enforcement of the Code
The Code of Ethics is administered by the Conduct Risk Management Team and reviewed and approved by State Street Global Advisors' Global Operations and Compliance Committee. Violations of the Code are subject to consideration under the conduct standards framework and the *State Street Conduct Standards Policy.*

**025. Distribution of the Code** 

Each new Covered Person will be given a copy of the Code. Each new employee's offer letter will include a statement advising the individual that he/she will be subject to the Code if he/she accepts the offer or employment. If, outside the US due to local employment practices it is necessary to modify this approach, then the offer letters will be revised in accordance with local law.

**026.** **Applicability of the Code of Ethics' Provisions** 

The Conduct Risk Management Team has the discretion to determine that the provisions of the Code do not apply to a specific transaction or activity and may exempt any transaction from one or more trading prohibitions. The Conduct Risk Management Team will review applicable facts and circumstances of such situations, such as specific legal requirements, contractual obligations or financial hardship. Any Covered Person who would like such consideration must submit a request in writing to the Conduct Risk Management Team. Further, all granted exemptions must be in writing.

**027.** **Review of Reports** 

The Conduct Risk Management Team shall review and monitor reports filed by Covered Persons. Covered Persons and their supervisors may or may not be notified of the Conduct Risk Management Team's review.

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<sup>1</sup> In the US, recordkeeping requirements for code of ethics are set forth in Rule 17j-1 of the Investment Company Act of 1940 and Rule 204-2 of the Investment Advisers Act of 1940.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**028.** **Violations and Sanctions** 

Any potential employee conduct issues related to the provisions of the Code may be investigated. If a determination is made that an employee conduct issue occurred, the issue will be addressed under the *State Street Conduct Standards Policy*. Where consistent with applicable law, and among other appropriate sanctions that should be considered, sanctions may include a requirement to disgorge an amount equivalent to profits earned or losses avoided as a result of personal trading made in egregious violation of the Code. Material violations will be reported promptly to the respective Firm Committees, boards of trustees/managers of the Reportable Funds or relevant committees of the boards and, when relevant, impacted clients. Please see Appendix D for additional regional requirements.

**029.** **Amendments and Committee Procedures** 

The Global Operations and Compliance Committee ("the Committee") will review and approve the Code, including appendices and exhibits, and any amendments thereto. The Committee may, from time to time, amend the Code and any appendices and exhibits to the Code to reflect updated business practice or changes in applicable law and regulation. In addition, the Committee, or its designee, shall submit any material amendments to this Code to the respective boards of trustees/managers of the Reportable Funds, or their designee(s), for ratification no later than six months after adoption of the material change.

**030.** **Recordkeeping** 

The Conduct Risk Management Team shall maintain records in accordance with the requirements set forth in applicable securities laws.<sup>1</sup>

Information Classification: General 20

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## Appendix A
Terms and Definitions

These definitions are designed to help you, as a Covered Person, understand and apply the Code. These definitions are integral and a proper comprehension of them is necessary to comply with the Code.

Please contact the Conduct Risk Management Team <u>(ethics@statestreet.com)</u> if you have any questions.

**Covered Person** employees of the Firm, including full-time and part-time, exempt and non-exempt employees (where applicable); officers of the Funds who are not employed by the Firm; and other such persons as designated by the Conduct Risk Management Team. Covered Person also includes certain designated contingent workers engaged at the Firm, including but not limited to consultants, contractors, and temporary help, as well as an employee of another business unit with access to Firm data such as non-public information regarding any client's purchase or sale of securities, non-public information regarding any client's portfolio holdings, or non-public securities recommendations made to clients (SSGS APAC, corporate functions, etc.).

Covered Persons are subject to the provisions of this Code. The personal trading requirements of the Code also apply to related persons of Covered Persons, such as spouses, domestic partners, minor children, adult children and other relatives living in the Covered Person's household, as well as other persons designated as a Covered Person by the CCO or the Conduct Risk Management Team, or their designee(s).

**Automatic Investment Plan** means a program in which regular periodic purchases (or withdrawals) are made automatically in (or from) investment accounts in accordance with a predetermined schedule and allocation. This includes a dividend reinvestment plan and some payroll or employer contributions to retirement plans.

**Brokerage Account** means an account with a financial institution in which the account owner can hold or trade a wide variety of securities and

exercises brokerage capabilities. Covered Persons should contact their financial institution(s) to verify whether or not their account(s) can hold Covered Securities.

**Covered Securities** are those securities subject to certain provisions of the Code. See Appendix C - Guide: Requirements by Security Types.

**Contract for Difference** ("CFD") a financial derivative, a contract between two parties typically described as "buyer" and "seller", stipulating that the seller will pay to the buyer the difference between the current value of an asset and its value at contract time. If the difference is negative, then the buyer pays instead to the seller. CFD allows investors to take advantage of prices moving up (long positions) or prices moving down (short positions) on underlying financial instruments and are often used to speculate on those markets.

**Employees Incentive Awards** means Firm Performance Equity Plan ("PEP") Awards in State Street Corporation ("STT") stock, Deferred Stock Awards ("DSAs"), Restricted Stock Awards ("RSAs"), STT stock options which are granted to employees, and any other awards that are convertible into or otherwise based on STT common stock.

**Fully Managed Account (also known as Discretionary Account)** means an account Beneficially Owned by you or your Related Persons in which you or your Related Persons have ceded all direct control, influence, and approval, and have contractually assigned responsibility for the timing and nature of all trades and all day-to-day investment management decisions to an independent party. For the purpose of this Policy, the Conduct Risk Management Team is required to approve in advance account arrangements qualifying as Fully Managed Accounts.

**Private Transaction** means a securities offering that is executed outside of a recognized securities exchange. Examples of private transactions include private placements, co-operative investments in real estate, commingled investment vehicles such as hedge funds, investments in family owned or privately held businesses, private company shares, and Initial Coin or Token Offerings promoted by a Decentralized

Information Classification: General 21

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Autonomous Organization ("DAO")<sup>2</sup> where there is investment in a venture or project for expectation of profit. Time-shares and cooperative investments in real estate used as a primary or secondary residence are not considered to be private placements. Please see Appendix D for regional definitions of Private Placement in France and Italy.

**Reportable Fund** means any commingled investment vehicle (except money market funds), or Exchange Traded Note ("ETN") for which the Firm act as investment advisor, sub-advisor, principal underwriter, or marketing agent.

**Selling Short** is the practice of selling a stock that is not currently owned, while simultaneously borrowing the shares from a lending party and delivering the borrowed shares to the buyer.

**State Street Global Advisors Compliance Department** means all global Firm compliance staff, including those in local offices, in charge of ensuring compliance with the laws and regulations in force worldwide and who report up to the Chief Compliance Officer of the Firm.

**Spread Betting** is any of various types of wagering, such as on sports, financial instruments or house prices for example, on the outcome of an event where the pay-off is based on the accuracy of the wager, rather than a simple "win or lose" outcome. As an example, spread betting on a stock allows the investor to speculate on the price movement of the stock.

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<sup>2</sup> A "virtual" organization embodied in computer code and executed on a distributed ledger of blockchain.

Information Classification: General 22

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## Appendix B
Beneficial Ownership of Accounts and Securities

**A Beneficially Owned Account is:** 

· An account where the Covered Person enjoys the benefits of ownership (even if title is held in another name); and/or

· An account where the Covered Person either directly or indirectly, has investment control or the power to vote or
influence the transaction decisions of the account.

The Code's provisions apply to accounts beneficially owned by the Covered Person, as well as accounts under direct or indirect influence or control of the Covered Person.

Generally, an individual is considered to be a beneficial owner of accounts or securities when the individual has or shares direct or indirect pecuniary interest in the accounts or securities. Pecuniary interest means that an individual has the ability to profit, directly or indirectly, or share in any profit from a transaction. Indirect pecuniary interest extends to, but is not limited to:

· Accounts and securities held by immediate family members sharing the same household;

· Securities held in trust (certain restrictions may apply); and

· A right to acquire Covered Securities through the exercise or conversion of any derivative security, whether or not
presently exercisable.

Practical Application

**If an adult child is living with his or her parents:** If the child is living in the parents' house, but does not financially support the parent, the parents' accounts and securities are not beneficially owned by the child. If the child works for the Firm and does not financially support the parents, accounts and securities owned by the parents are not subject to the Code, with the exception of UGMA/UTMA, or similar types of accounts, which are legally owned by the child. If one or both parents work for the Firm, and the child is supported by the parent(s), the child's accounts and securities are subject to the Code because the parent(s) is a beneficial owner of the child's accounts and securities.

**Co-habitation (domestic partnership or PACS):** Domestic partnerships or PACS are generally considered to be permanent, committed arrangements. Accounts where the Covered Person is a joint owner are subject to the Code. If the Covered Person contributes to the maintenance of the household and the financial support of the partner, the partner's accounts and securities are beneficially owned by the Covered Person and are therefore subject to the Code.

**Co-habitation (roommate):** Generally, roommates are presumed to be temporary and have no beneficial interest in one another's accounts and securities.

**UGMA/UTMA and similar types of accounts:** If the Covered Person or the Covered Person's spouse or other Covered family member is the custodian for a minor child, the account is beneficially owned by the Covered Person. If someone other than the Covered Person, or the Covered Person's spouse or other Covered family member, is the custodian for the Covered Person's minor child, the account is not beneficially owned by the Covered Person. If a Covered Person is the minor/beneficiary of the account, the account is a Reportable Account.

**Transfer on Death accounts ("TOD accounts"):** TOD accounts where the Covered Person receives the interest of the account upon death of the account owner are not beneficially owned by the Covered Person until the account transfer occurs (this particular account registration is not common).

Information Classification: General 23

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**Trusts** 

· If the Covered Person is the trustee for an account where the beneficiaries are not immediate family members, the
position should be reviewed in light of outside business activity reporting requirements and generally will be subject to a case-by-case review for Code applicability.

· If the Covered Person is a beneficiary and does not share investment control with a trustee, the Covered Person is not a
beneficial owner until the Trust assets are distributed.

· If a Covered Person is a beneficiary and can make investment decisions without consultation with a trustee, the trust is
beneficially owned by the Covered Person.

· If the Covered Person is a trustee and a beneficiary, the trust is beneficially owned by the Covered Person.

· If the Covered Person is a trustee, and a family member is beneficiary, then the account is beneficially owned by the
Covered Person.

· If the Covered Person is a settler of a revocable trust, the trust is beneficially owned by the Covered Person.

· If the Covered Person's spouse/domestic partner is trustee and beneficiary, a case-by-case review will be performed to determine applicability of the Code.

**College age children:** If a Covered Person has a child in college and still claims the child as a dependent for tax purposes, the Covered Person is a beneficial owner of the child's accounts and securities.

**Powers of Attorney:** If a Covered Person has been granted durable or conditional power of attorney over an account, the Covered Person is not the beneficial owner of the account until such time as the power of attorney is exercised. If a Covered Person has been granted full power of attorney over an account, the account is a Reportable Account. Beneficial ownership runs until revocation/termination of the power of attorney.

Information Classification: General 24

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![LOGO](g435817g74a00.jpg)

Information Classification: General 25

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![LOGO](g435817g81f91.jpg)

Information Classification: General 26

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## Appendix D
Country Specific Requirements

All Countries

**Personal Data**

Refer to the Global Privacy and Personal Data Protection Standard (Standard) for the minimum requirements on how to handle and protect personal data in all jurisdictions in which State Street operates. Also reference the regional addenda to the Standard for any laws of a specific country that may require additional privacy or data protection measures.

Australia

**Additional Blackout Period** 

From time to time the Responsible Entity ("RE") of the Australian domiciled Exchange Traded Funds (ETFs) may determine certain Covered Persons could be in possession of material, non-public information relating to one or more ETFs for which State Street Global Advisors, Australia, Limited is the investment advisor, and request a blackout period covering the securities be implemented, whether due to consideration of Australian Securities Exchange listing rules, the insider trading provisions of the Corporations Act 2001 or similar. Typically this may occur during the two weeks prior to the public announcement of income distributions for an ETF.

Upon receipt of a request from the RE, the Conduct Risk Management Team, or their designee, will review the request and may initiate a blackout period over the relevant ETFs on such terms as are deemed appropriate. Covered Persons to whom a blackout period applies will be advised of the commencement, duration and other specifics of any such blackout period. Any trading in contravention of the blackout period will be treated as an employee conduct issue.

France

At the date of this Code, Covered Persons of State Street Global Advisors France are required in France to comply, in addition to the Code, with the following provisions:

**Laws and Regulations** 

· The Monetary and Financial Code, and in the particular the rules of good conduct provided in Articles L.533-10 of the Monetary and Financial Code;

· The General Regulation of the Financial Markets Authority, and in particular the organizational and good conduct rules
provided in Book III of this Regulation;

· Instructions, recommendations and decisions issued as the case may be by the French Markets Authority.

**Policies and Procedures Issued Locally by State Street Global Advisors France** 

· Provisions of the Internal Regulation, as updated on July 1, 2011

Further, as indicated in the Code, certain sections of the Code are not applicable in France, or are applicable in a modified version set forth below. References are to section headings used in the Code.

**Private Placement** 

In France, a Private Placement means a securities offering that is exempt from registration or which is not subject to the obligation to publish a prospectus under certain relevant provisions of French law and regulation and/or similar laws of jurisdictions outside of France (if you are unsure whether the securities are issued in a private placement, you must consult with the Conduct Risk Management Team). In France, the rules relating to Private Placements are set forth in Articles L.411-2 and D.411-1 et seq. of the Monetary and Financial Code.

Information Classification: General 27

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**Discretionary Account** 

In France, the requirements of the Code shall not apply to personal transactions entered into under a Discretionary Account management service where there is no prior communication in connection with the transaction between the portfolio manager and the Covered Person.

**Reporting Violations** 

If a Covered Person in France has reason to believe that a violation of law or regulations relating to internal control procedures in the financial, accounting, banking or anti-corruption areas or that a violation of an interest vital to State Street Global Advisors France or of the physical or moral integrity of its Covered Persons has been committed, he/she is encouraged to notify the Conduct Risk Management Team so that State Street Global Advisors France may carefully examine the facts and take corrective measures.

Covered Persons may identify themselves in order to allow State Street Global Advisors France to obtain a complete report on the relevant facts as rapidly as possible. Nonetheless, if circumstances require, Covered Persons may communicate the facts anonymously.

The information furnished to the company by a Covered Person believing in good faith that his/her action is necessary to protect State Street Global Advisors France from illegal or inappropriate behavior will be treated in a strictly confidential and secure manner to the extent allowed by law. Any person reporting violations, as identified within the framework of the procedure, will have a right to access, obtain further information, and if applicable, object to and correct the data regarding him/her.

State Street Global Advisors France will not take any sanctions or retaliatory measures against a Covered Person for reporting suspected violations in good faith. Failure to report will not give rise to any consequences for Covered Persons. However, an abusive use of the reporting procedure may in certain cases expose a Covered Person to sanctions.

**Violations and Sanctions** 

Any potential employee conduct issues related to the provisions of the Code or related policies by Covered Persons in France will be investigated by the Conduct Risk Management Team. Covered Persons are invited to review the list of misconduct which may, among other violations, give rise to the disciplinary sanctions contemplated by State Street Global Advisors France's Internal Regulation. If a determination is made that an employee conduct issue has occurred, the issue will be addressed under the *State Street Conduct Standards Policy* and enforcement actions, modified where necessary per Internal Regulation, may be imposed by the employer, State Street Global Advisors France. Material violations will be reported promptly to the respective Firm Committees, boards of trustees/managers of the Reportable Funds or relevant committees of the boards and related clients.

In France, all sanctions will be notified in writing to the employee concerned, indicating the grounds for the sanction.

Prior to any sanction affecting the duties, career, remuneration or presence of the employee, the following procedure will be implemented:

· The employee will be convened to a prior meeting within the two-month period
described in Article L.1332-4 of the Labor Code, by registered letter or by hand delivery against receipt.

· This letter will state the purpose for the convocation and will indicate the date, place and time of the meeting, as
well as the possibility for the employee to be assisted by a person of his/her choice from a list which can be consulted at the town hall of State Street Global Advisors, Defense Plaza, 23-25 rue
Delariviere-Lefoullon, 92064 Paris La Defense Cedex and/or the town hall of the employee's domicile (if the employee's domicile is located in the same department as the

Information Classification: General 28

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offices of State Street Global Advisors France), or at the Labor Inspectorate located at State Street Global Advisors, Defense Plaza, 23-25 rue Delariviere-Lefoullon, 92064 Paris La Defense Cedex.

· A preliminary meeting will be held during which the facts relating to the employee's alleged misconduct will be
presented to the employee and to the person assisting the employee and at which the employee's explanations will be obtained.

· As the case may be depending on the explanations given, a sanction letter will be sent by registered post, return
receipt requested, at the earliest one full day and at the latest one month after the meeting. This letter should set forth the grounds for the sanction.

When the behavior of an employee renders such actions indispensable, conservatory measures may be taken prior to implementing the procedure described above. No sanction may be taken until the procedure has been completed.

**Publicity and Entry into Force** 

This Code, which has been filed in France with the secretariat of the clerk of the Labor Court of State Street Global Advisors, Defense Plaza, 23-25 rue Delariviere-Lefoullon, 92064 Paris La Defense Cedex and posted in compliance with the provisions of Articles R.1321-1 and R.1321-2 of the Labor Code, entered into force on December 1, 2009.

It will be provided to all Covered Persons and other relevant persons at the time of hire or arrival on the premises of State Street Global Advisors France.

Material modifications and additions to these internal rules shall be subject to the same consultation, communication and publicity procedures.

The Code has been previously submitted to the Labor Inspectorate, and is displayed on State Street Global Advisors France's premises.

Germany

The German rules on personal account dealing are contained in the Securities Trading Act and specified in more detail by the BaFin circular 4/2010 (WA) MaComp "Minimum Requirements for the Compliance Function and Additional Requirements Governing Rules of Conduct, Organisation and Transparency pursuant to Sections 31 et seq. of the Securities Trading Act (Wertpapierhandelsgesetz - WpHG) for Investment Services Enterprises."

Italy

At the date of this Code, the Firm's Covered Persons are required in Italy to comply, in addition to the Code, with the following provisions:

**Laws and regulations** 

· Legislative Decree No. 58 of 24 February 1998, as amended (the "Italian Financial Act"), containing,
inter alia, general provisions concerning investment services;

· Legislative Decree No. 231 of 21 November 2007, as amended (the "Anti-money Laundering Act"),
containing, inter alia, the duty to identify each client and subsequently record his data, as well as to keep a unified electronic archive and to notify any suspect transactions;

· Regulation No.16190 of 29 October 2007, adopted by CONSOB (the "Intermediaries Regulation"), with
reference to the investment services and the financial activities carried out in Italy;

· Instructions containing information duties and statistical reporting requirements, recommendations and
decisions issued as the case may be by any Italian supervisory authorities, including CONSOB and the Bank of Italy.

Further, as indicated in the Code, certain sections of the Code are not applicable in Italy, or are applicable in a modified version set forth below. References are to section headings used in the Code.

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**Statement of General Fiduciary Principles** 

Please note that in Italy, the Code does not necessarily apply to transactions of family members or persons in a similar relationship to you. Rather, the Code applies to your personal transactions and related activities, and any transactions of which you are a direct or indirect beneficiary.

**Covered Person** 

In Italy, a Covered Person includes employees of the Advisors, including full-time and part-time, exempt and non-exempt employees (where applicable), and other such persons as designated by the Conduct Risk Management Team. Covered Person also includes certain designated contingent workers engaged at the Firm, including but not limited to consultants, contractors, and temporary help. Covered Persons are subject to the provisions of this Code. Persons related to an employee or a contingent worker, such as spouses, children and other relatives living in the employee's or the contingent worker's household are not covered by the Code, except to the extent the employee or the contingent worker is a direct or indirect beneficiary of transactions entered into by such persons.

**Private Placement** 

In Italy, a Private Placement means a securities offering that is exempt from registration or which is not subject to the obligation to publish a prospectus under certain relevant provisions of Italian law and regulation and/or similar laws of jurisdictions outside of Italy (if you are unsure whether the securities are issued in a private placement, you must consult with the Conduct Risk Management Team). In Italy, the rules relating to Private Placements are set forth in Article 100 of the Italian Financial Act, as implemented by CONSOB.

**Reporting Violations** 

If a Covered Person in Italy has reason to believe that a violation of law or regulations

relating to internal control procedures in the financial, accounting, banking or anti-corruption areas or that an employee conduct issue of an interest vital to the Firm or of the physical or moral integrity of its Covered Persons has been committed, he/she is encouraged to notify the Conduct Risk Management Team so that the Firm may carefully examine the facts and the Conduct Risk Management Team may take corrective measures.

Covered Persons should identify themselves in order to allow the Firm to obtain a complete report on the relevant facts as rapidly as possible. Nonetheless, if circumstances require, Covered Persons may communicate the facts anonymously.

The Italian branch of the Firm will not take any sanctions or retaliatory measures against a Covered Person for reporting suspected employee conduct issues in good faith. Failure to report will not give rise to any consequences for employees. However, an abusive use of the reporting procedure may in certain cases expose a Covered Person to sanctions.

**Certification of Receipt and Compliance with the Code** 

With reference to Italy, further to the provisions set forth under the Code, the following shall apply: the Code is displayed on the premises of the Italian branch of the Firm and constitutes an integral part of its disciplinary code.

**Violations and Sanctions** 

The requirements of this Code have a binding value vis-à-vis the Covered Persons of the Italian branch of the Firm and are to be considered in addition to the provisions contained in the disciplinary code in force within the Italian branch of the Firm.

Any potential violation of the provisions of the Code or related policies by Covered Persons in Italy will be investigated by the Conduct Risk Management Team. Violations of the Code are reported to the EMG. If a determination is made that an employee

Information Classification: General 30

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conduct issue has occurred, a sanction may be imposed in accordance with the *State Street Conduct Standards Policy* and pursuant to the rules established by Italian Law and by the applicable national collective bargaining agreement.

As discussed in the *State Street Conduct Standards Policy*, enforcement shall be differentiated and graduated based on the seriousness of the individual breaches, taking into consideration the objective circumstances, the intentionality, the existence of justifications, the recidivism and the possible repetition of the conducts concerned.

Enforcement may also apply to any supervisor who directs or approves such actions, or has knowledge of them and does not promptly correct them. Conduct which violates this Code may also violate laws and therefore subject the offending Covered Person to civil and criminal liabilities as well.

The Firm may also be subject to prosecution and fines for the conduct of its employees. Reimbursement of losses of damages deriving from any breach of this Code will be requested to the employees according to the procedures set forth by the applicable national collective bargaining agreement.

In Italy, prior to inflict to employee any sanction deriving from possible violations of this Code, the specific disciplinary procedure provided for by Law. No. 300/1970 (the so called "Workers' Statute") shall be implemented. In particular, the Conduct Risk Management Team shall notify in writing to the employee concerned the facts relating to the alleged misconduct and shall ask the employee concerned to furnish his/her justifications within 5 days from the receipt of such disciplinary letter.

The disciplinary sanction, if any, shall be adopted following the 5-days' term granted to the employee to render his/her justifications. The disciplinary sanctions shall be proportional to the employee's behaviour in breach.

Japan

**Holding Period** 

Covered Persons in Japan are subject to a minimum holding period of 6 months regardless of whether a transaction would result in the Covered Person realizing a loss or profit. (Section V. B. Short - Term Trading) This requirement applies to equities, equity warrants, convertible bonds and other equity related products, and does not apply to ETFs, mutual funds, and non-convertible bonds.

United Kingdom

The U.K. Financial Conduct Authority ("FCA") rules on personal account dealing are contained in the FCA Conduct of Business Sourcebook ("COBS").

Under COBS, State Street Global Advisors Limited must take reasonable steps to ensure that any investment activities conducted by Covered Persons do not conflict with the firms duties to its customers. In ensuring this is, and continues to be, the case, the Advisors must ensure they have in place processes and procedures which enable them to identify and record any Covered Person transactions and permission to continue with any transaction is only given where the requirements of COBS are met.

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## Appendix E
Contacts

Questions or Concerns about Policies or Situations:

The Conduct Risk Management Team *(<u>ethics@statestreet.com</u>)*

Actual or Possible Violations of Policy:

The Conduct Risk Management Team *(<u>ethics@statestreet.com</u>)*

Speak Up Line

<u>https://secure.ethicspoint.com/domain/media/en/gui/55139/index.html</u>

Information Classification: General 32

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## Appendix F
Code of Ethics Reporting Requirements

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Report** | **Frequency** | **Requirements** | **Notes** |
| &nbsp;&nbsp;&nbsp;**Initial Holdings Report** | Once; completed after becoming Covered Person | Disclose all Reportable Accounts and Holdings in StarCompliance (See Page 8) | Remember to set up duplicate statements and confirmations from your broker, if necessary (See 005. Duplicate Statements and Confirms on Page 8). |
| &nbsp;&nbsp;&nbsp;**Annual Holdings Report** | Annually in January | Ensure all holdings in Covered Securities (See Appendix C) are correctly reflected in StarCompliance. This includes updating holdings to account for involuntary transactions that have occurred, such as mergers, stock splits, and other corporate actions. | **You are responsible for ensuring the data in this report is accurate.** If you hold an account at an Approved Broker and holdings data is fed to StarCompliance (See 006. Maintain Accounts with Approved Brokers), you must still review the data on the report for accuracy. |
| &nbsp;&nbsp;&nbsp;**Quarterly Transaction Report** | Quarterly | Ensure all Reportable Transactions for the quarter are correctly reflected in StarCompliance.<br>Transactions in accounts previously approved by the Conduct Risk Management Team as Fully Managed Accounts or Automatic Investment Plans are not Reportable Transactions. | **You are responsible for ensuring the data in this report is accurate.** If you hold an account at an Approved Broker and holdings data is fed to StarCompliance (See 006. Maintain Accounts with Approved Brokers), you must still review the data on the report for accuracy. |
| &nbsp;&nbsp;&nbsp;**Ad Hoc Holdings Report** | Ad hoc<br>*Marriage, new children, inheritance, and financial planning activities may cause accounts and holdings to be opened or associated to you.* | Disclose any newly opened or newly associated Reportable Accounts and Holdings in StarCompliance within 30 days of opening or association. | Remember to set up Duplicate Statements and Confirms (See 005. Duplicate Statements and Confirms on Page 8). |

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## Appendix G
Code of Ethics FAQs

The Conduct Risk Management Team has additional FAQ and How-To documents related to using Star and completing required reporting (e.g., Initial and Annual Holdings Reports) available on StarCompliance.

I work in the United States. Do I have to report my State Street 401(k)?

No, you are not required to disclose your State Street 401(k) at this time unless you have chosen to participate in the linked brokerage account option, in which case the linked brokerage account, and the holdings in the account, do need to be reported. 401(k) and other self-invested workplace pension accounts are reportable where you or your Covered Persons have investment discretion beyond that of allocating a monthly value to a specific risk profile or sector, or selecting from a limited number of pre-selected funds.

However, if you have activated the Brokerage Link feature for your 401(k), you must report that account and ensure that all transactions and holdings are reflected accurately in Quarterly Transaction Reports and Annual Holdings Reports, respectively.

**My spouse (or I) has a company- or government-sponsored retirement plan** (such as a 401(k) in the US, or a superannuation plan in Australia). How do I determine what accounts, holdings, and transactions must be disclosed and pre-cleared?

*Due to the wide variety of plans available globally, it's important to check with the Conduct Risk Management Team if you have any questions about how this applies to you.* 

**Accounts** 

If the account or plan currently holds Covered Securities (see Appendix C), you must disclose the account.

Retirement plans usually have a "line up" of available investments from which the account owner can choose; if there is a Covered Security in the lineup of available investments, but you do not currently invest in Covered Securities, you are not required to disclose the account. If at any point, your retirement plan invests in Covered Securities, you must disclose the account, the holdings in Covered Securities, and the Transactions in Covered Securities, as described below.

**Holdings** 

You must disclose <u>any</u> holdings in Covered Securities (see Appendix C).

**Transactions** 

<u>Usually</u>, transactions in a retirement plan you are actively participating in fall under the Automatic Investment Plan definition (see Appendix A) and are treated as such. However, you must pre-clear and disclose any transactions over which you exercised discretion. For example, the following types of transactions must be pre-cleared and disclosed:

· A change in future investment allocations in Covered Securities, such as increasing your automatic payroll investment in
Security XYX from 15% to 20%. Note: only the initial change must be pre-cleared and reported.

· Re-allocating your existing holdings in Covered Securities, such as changing
your portfolio from 50% Security XYZ and 50% Security ABC to 75% Security XYZ and 25% Security ABC.

If you or your Covered Person are automatically enrolled in a plan with default investment percentages (e.g., 7% of salary) and investment options, any transactions made as a result of your automatic enrollment are not subject to disclosure or pre-clearance.

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![LOGO](g435817g40l84.jpg)

**I have an account with an Approved or Preferred Broker** which feeds my transactions to Star. Can you tell me what I have to do with regards to pre-clearance and reporting whenever I make personal trades?

In order to ensure your trades are properly pre-cleared and reported, make sure that you:

(1) Pre-clear the trade by submitting a Trade Request in StarCompliance. Trade
Requests:

· Must be for the correct security, account, and trade direction (buy vs. sell).

· Must be for at least the amount of shares that you plan on trading. You may always trade **fewer** shares than you
were approved for, but you may not trade **more**.

(2) Are valid only for the day they are approved. Wait for the result (Approved or Denied) from Star before trading.
You'll typically receive the result within seconds on screen and will receive an email with the results. Trade Request approvals are valid only for the day they are approved. Make note of the expiration time and date for any approved Trade
Request.

(3) Ensure your transactions are accurately reflected in Star.

· You are **required** to do this on a quarterly basis (known as the Quarterly Transactions Report), but many people
find it easier to compare their transactions in Star with their broker's records (e.g., a statement or trade confirmations) more frequently.

· When you submit your Quarterly Transactions Report, it must accurately reflect all Reportable Transactions for the
quarter.

· The Approved Broker feeds are tools to help keep accurate records in Star; you are responsible for the accuracy of the
data in your Code of Ethics reports.

**My account is not with an Approved Broker.** Can you tell me what I have to do with regards to pre-clearance and reporting whenever I make personal trades?

In order to ensure your trades are properly pre-cleared and reported, make sure that you:

(1) Pre-clear the trade by submitting a Trade Request in StarCompliance. Trade
Requests:

· Must be for the correct security, account, and trade direction (buy vs. sell).

· Must be for at least the amount of shares that you plan on trading. You may always trade **fewer** shares than you
were approved for, but you may not trade **more**.

· Are valid only for the day they are approved.

(2) Wait for the result (Approved or Denied) from Star before trading. You'll typically receive the result within
seconds on screen and will receive an email with the results. Trade Request approvals are valid only for the day they are approved. Make note of any expiration time and date for any approved Trade Request.

(3) Ensure your transactions are accurately reflected in Star.

· You are **required** to do this on a quarterly basis (known as the Quarterly Transactions Report), but many people
find it easier to use the StarCompliance "Execute" function after they trade. The <u>StarCompliance User Guide</u> on the StarCompliance home page provides step-by-step instructions.

· When you submit your Quarterly Transactions Report, it must accurately reflect all Reportable Transactions for the
quarter.

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