Mutual Fund Summary Prospectus (497k)
01 February 2013 - 4:27AM
Edgar (US Regulatory)
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SPDR
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S&P
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Emerging Markets Dividend ETF
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EDIV
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(NYSE Ticker)
SUMMARY PROSPECTUS - JANUARY 31, 2013
Before you invest in the SPDR S&P
Emerging Markets Dividend ETF (the Fund), you may want to review the Funds prospectus and statement of additional information, which contain more information about the Fund and the risks of investing in the Fund. The Funds
prospectus and statement of additional information dated January 31, 2013, are incorporated by reference into this summary prospectus. You can find the Funds prospectus and statement of additional information, as well as other information
about the Fund, online at https://www.spdrs.com/product/fund.seam?ticker=EDIV. You may also obtain this information at no charge by calling (866) 787-2257 or by sending an e-mail request to Fund_inquiry@ssga.com.
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INVESTMENT
OBJECTIVE
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The SPDR S&P Emerging Markets Dividend ETF (the Fund) seeks to provide investment results that, before fees and expenses,
correspond generally to the total return performance of an index that tracks dividend paying securities of publicly-traded companies in emerging markets.
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FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund (Shares). This table and the example below do not reflect brokerage commissions you may
pay on purchases and sales of the Funds Shares.
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ANNUAL FUND OPERATING EXPENSES
(expenses that you pay each year as a percentage of the value of your
investment):
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MANAGEMENT FEES
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0.59%
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DISTRIBUTION AND SERVICE (12b-1) FEES
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None
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OTHER EXPENSES*
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0.00%
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TOTAL ANNUAL FUND OPERATING EXPENSES*
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0.59%
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*
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Amounts do not reflect extraordinary expenses of 0.02% incurred during the prior fiscal year.
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EXAMPLE:
This example is
intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, and then sell all of your Shares at the end of
those periods. The example also assumes that your investment has a 5% return each year and that the Funds operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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YEAR 1
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YEAR 3
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YEAR 5
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YEAR 10
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$60
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$189
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$329
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$738
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PORTFOLIO TURNOVER:
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction
costs and may result in higher taxes when Fund Shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal
year, the Funds portfolio turnover rate was 134% of the average value of its portfolio.
THE FUNDS PRINCIPAL INVESTMENT
STRATEGY
In seeking to track the performance of the S&P Emerging Markets Dividend Opportunities Index (the Index),
the Fund employs a sampling strategy, which means that the Fund is not required to purchase all of the securities represented in the Index. Instead, the Fund may purchase a subset of the securities in the Index in an effort to hold a portfolio of
securities with generally the same risk and return characteristics of the Index. The quantity of holdings in the Fund will be
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based on a number of factors, including asset size of the Fund. SSgA Funds Management, Inc. (SSgA FM or the Adviser) generally expects the Fund to hold less than the total
number of securities in the Index, but reserves the right to hold as many securities as it believes necessary to achieve the Funds investment objective.
Under normal market conditions, the Fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the Index, or in American Depositary Receipts
(ADRs) or Global Depositary Receipts (GDRs) based on securities comprising the Index. The Fund will provide shareholders with at least 60 days notice prior to any material change in this 80% investment policy. In
addition, the Fund may invest in equity securities that are not included in the Index, cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds (including money market funds advised by the Adviser).
Swaps, options and futures contracts may be used by the Fund in seeking performance that corresponds to its Index and in managing cash flows.
The Index is comprised of 100 of the highest yielding emerging markets stocks, based on market capitalization, in the S&P Dividend Opportunities family of indices (excluding the S&P/CITIC
China A-Share Dividend Opportunities Index) that meet certain investability requirements. The S&P Dividend Opportunities family is comprised of the following five indices: the S&P Global Dividend Opportunities Index; the S&P
International Dividend Opportunities Index; the S&P Pan Asia Dividend Opportunities Index; the S&P Europe Dividend Opportunities Index and the S&P/CITIC China A-Share Dividend Opportunities Index. The Index includes publicly traded
companies with market capitalizations of at least U.S.$1 billion, float-adjusted market cap of US$300 million and three-month average daily value traded above the liquidity threshold of U.S.$1 million as of the rebalancing reference
date. The stocks must be listed on the primary exchanges of those countries included in the S&P/IFCI. In the event that a stock from an eligible country is listed on the local and the developed market exchanges, the preference will be given to a
more liquid listing. Stocks passing these criteria form the investible universe and are then subject to screening for two stability factors, earnings growth and profitability. Stocks must have a positive, cumulative three-year earnings growth and
stocks must be profitable, as measured by positive earning per share before extraordinary items, over the latest 12-month period as of the rebalancing reference date. The Index is rebalanced after the US market close on the third Friday of January.
In addition, S&P Dow Jones Indices LLC (S&P Dow Jones or Index Provider) is introducing a semi-annual review, effective on the third Friday of July. The results of the review may result in an update to the weights of
the constituents to comply with the index weighting requirements. No single country or sector can have more than 25% weight in the Index and no single stock can have a weight of more than 3% in the Index. Countries covered in the Index have
historically included, among others: Brazil, Chile, China, the Czech Republic, Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, South Korea, Taiwan, Thailand and Turkey. As of
December 31, 2012, the Index was comprised of 99 securities.
The Index is sponsored by S&P Dow Jones, which is not affiliated
with the Fund or the Adviser. The Index Provider determines the composition of the Index, relative weightings of the securities in the Index and publishes information regarding the market value of the Index.
PRINCIPAL RISKS OF INVESTING IN THE FUND
As with all investments, there are certain risks of investing in the Fund, and you could lose money on an investment in the Fund.
PASSIVE STRATEGY/INDEX RISK:
The Fund is managed with a passive investment strategy, attempting to track the performance of an unmanaged index of securities. This differs from an actively managed fund, which
typically seeks to outperform a benchmark index. As a result, the Fund may hold constituent securities of the Index regardless of the current or projected performance of a specific security or a particular industry or market sector. Maintaining
investments in securities regardless of market conditions or the performance of individual securities could cause the Funds return to be lower than if the Fund employed an active strategy.
INDEX TRACKING RISK:
While the Adviser seeks to track the performance of the Index as closely as possible (
i.e.,
achieve a high degree of correlation with the Index), the Funds return may not
match or achieve a high degree of correlation with the return of the Index due to operating expenses, transaction costs, cash flows, regulatory requirements, and operational inefficiencies. For example, the Adviser anticipates that it may take
several business days for additions and deletions to the Index to be reflected in the portfolio composition of the Fund.
EQUITY INVESTING RISK:
An investment in the Fund involves risks similar to those of investing in any fund of equity securities, such as market fluctuations, changes in interest rates and perceived trends in
stock prices.
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FOREIGN INVESTMENT RISK:
Returns on investments in foreign securities could be more volatile than, or trail the
returns on, investments in U.S. securities. Investments in securities issued by entities based outside the U.S. pose distinct risks since political and economic events unique to a country or region will affect those markets and their
issuers. Further, such entities and/or their securities may also be affected by currency controls; different accounting, auditing, financial reporting, and legal standards and practices; different practices for clearing and settling trades;
expropriation; changes in tax policy; greater market volatility; differing securities market structures; higher transaction costs; and various administrative difficulties, such as delays in clearing and settling portfolio transactions or in
receiving payment of dividends. Securities traded on foreign markets may be less liquid (harder to sell) than securities traded domestically. In addition, the value of the currency of the country in which the Fund has invested could decline relative
to the value of the U.S. dollar, which may affect the value of the investment to U.S. investors. These risks may be heightened in connection with investments in developing or emerging countries.
EMERGING MARKETS RISK:
Investment in emerging markets subjects the Fund to a greater risk of loss than investments in a developed market. This is due to, among other things, greater market volatility, lower
trading volume, political and economic instability, high levels of inflation, deflation or currency devaluation, greater risk of market shut down, and more governmental limitations on foreign investment policy than those typically found in a
developed market. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility in the
Funds investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar. Settlement practices for transactions in foreign markets may differ from those in U.S. markets. Such
differences include delays beyond periods customary in the United States and practices, such as delivery of securities prior to receipt of payment, which increase the likelihood of a failed settlement. Failed settlements can result in
losses to the Fund. For these and other reasons, investments in emerging markets are often considered speculative.
DERIVATIVES RISK:
A derivative is a financial contract the value of which depends on, or is derived from, the value of a financial asset (such as stock, bond or currency), a physical asset (such as gold)
or a market index (such as the S&P 500 Index). The Fund may invest in swaps, options and futures contracts. Swaps are contracts 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 for payments based on the return of a different specified rate, index or asset. Options involve the payment or receipt of a premium by an investor and the corresponding right or obligation to either
purchase or sell the underlying security for a specific price at a certain time or during a certain period. 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. Compared to conventional securities, derivatives can be more sensitive to changes in interest rates or to sudden fluctuations in market prices and thus a Funds losses may be greater if it invests
in derivatives than if it invests only in conventional securities.
NON-DIVERSIFICATION RISK:
The Fund is non-diversified and may invest a larger percentage of its assets in securities
of a few issuers or a single issuer than that of a diversified fund. As a result, the Funds performance may be disproportionately impacted by the performance of relatively few securities.
FUND PERFORMANCE
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The following bar chart and table provide an indication of the risks of investing in the Fund by showing the Funds performance for the most recent calendar year and by
showing how the Funds average annual returns for certain time periods compare with the average annual returns of the Index. The Funds past performance (before and after taxes) is not necessarily an indication of how the Fund will perform
in the future. Updated performance information is available online at
http://www.spdrs.com
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ANNUAL TOTAL RETURN
(years ended 12/31)
Highest
Quarterly Return: 8.64% (Q1 2012)
Lowest Quarterly Return: -10.14% (Q2 2012)
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AVERAGE ANNUAL TOTAL
RETURNS
(for periods ending 12/31/12)
The after-tax returns presented in the table below are calculated using highest
historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Your actual after-tax returns will depend on your specific tax situation and may differ from those shown below. After-tax returns are not
relevant to investors who hold Shares of the Fund through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. The returns after taxes can exceed the return before taxes due to the application of foreign tax credits
and/or an assumed tax benefit for a shareholder from realizing a capital loss on a sale of Fund Shares.
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ONE YEAR
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SINCE INCEPTION
(2/23/11)
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RETURN BEFORE TAXES
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5.45%
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1.72%
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RETURN AFTER TAXES ON DISTRIBUTIONS
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4.31%
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0.37%
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RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND SHARES
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4.36%
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0.92%
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S&P EMERGING MARKETS DIVIDEND OPPORTUNITIES INDEX
(reflects no deduction for fees, expenses or taxes)
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6.00%
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4.09%
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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 Mike Feehily and John Tucker.
MIKE FEEHILY, CFA,
is a Senior Managing Director of the Adviser. He
joined the Adviser in 1997, moved to State Street Global Markets LLC in 2006 and rejoined the Adviser in 2010.
JOHN TUCKER, CFA,
is a Senior Managing Director of SSgA and the Adviser. He joined the Adviser in 1988.
PURCHASE AND SALE INFORMATION
The Fund will issue (or redeem) Shares to certain institutional investors (typically market makers or other broker-dealers) only in large blocks of
50,000 Shares known as Creation Units. Creation Unit transactions are typically conducted in exchange for the deposit or delivery of in-kind securities and/or cash constituting a substantial replication, or a representation, of the
securities included in the Index.
Individual Shares of the Fund may only be purchased and sold on the NYSE Arca, Inc., other national
securities exchanges, electronic crossing networks and other alternative trading systems through your broker-dealer at market prices. Because Fund Shares trade at market prices rather than at net asset value (NAV), Shares may trade
at a price greater than NAV (premium) or less than NAV (discount).
TAX INFORMATION
The Funds distributions are expected to be taxed as ordinary income and/or capital gains, unless you are investing through a tax-deferred arrangement, such as 401(k) plan or individual
retirement account.
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EDIV SUM PRO