News Details

BOSTON--(BUSINESS WIRE)-- State Street Global Advisors (SSgA), the investment management arm of State Street Corporation (NYSE: STT), today announced that the SPDR^(R) KBW Mortgage Finance ETF (Symbol: KME) began trading on the NYSE Arca on April 30, 2009. It is the first exchange traded fund (ETF) to provide US investors with precise access to equities in the mortgage finance industry.

The SPDR KBW Mortgage Finance ETF seeks to track the total return performance of the KBW Mortgage Finance Index, a modified market-capitalization weighted index of the stocks listed on US stock markets comprising of pure mortgage players, mortgage processors, title insurers, homebuilders, and banks and thrifts where mortgage loans dominate the loan book.

Created and maintained by Keefe, Bruyette & Woods, Inc., a full-service investment bank specializing in the financial services industry, the KBW Mortgage Finance Index included 24 stocks as of March 31, 2009. The Fund's expense ratio is 0.35 percent.

"As the first ETF to invest in the mortgage finance industry, the SPDR KBW Mortgage Finance ETF provides investors with an unmatched opportunity to gain diversified, cost-effective exposure to the real estate finance industry," said Anthony Rochte, senior managing director at State Street Global Advisors. "The introduction of KME strengthens our suite of SPDR KBW ETFs, which are designed to help investors express a tactical view on industries within the financial services sector."

The SPDR KBW family of exchange traded funds include: SPDR KBW Bank ETF (Symbol: KBE), SPDR KBW Capital Markets ETF (Symbol: KCE), SPDR KBW Insurance ETF (Symbol: KIE), SPDR KBW Regional Banking ETF (Symbol: KRE), and SPDR KBW Mortgage Finance ETF (Symbol: KME). Assets under management in these innovative financial services sector ETFs totaled about $1.2 billion as of March 31, 2009.

State Street Global Advisors is one of the largest ETF providers in the United States and globally. US assets under management for SPDR ETFs totaled more than $129.5 billion as of March 31, 2009.

About Keefe, Bruyette & Woods, Inc.

Keefe, Bruyette & Woods, Inc. is a full service investment bank specializing in the financial services industry. Founded in 1962, it is widely recognized as a leading authority in the banking, insurance, brokerage, asset management, mortgage banking and specialty finance sectors. The firm has established industry-leading positions in the areas of research, corporate finance, mergers and acquisitions, as well as sales and trading for financial services companies.

About State Street Global Advisors

State Street Global Advisors, the investment management arm of State Street Corporation (NYSE: STT), delivers investment strategies and integrated solutions to clients worldwide across every asset class, investment approach and style. With $1.4 trillion in assets under management at March 31, 2009, State Street Global Advisors has investment centers in Boston, Hong Kong, London, Montreal, Munich, Paris, Singapore, Sydney, Tokyo, Toronto and Zurich, and offices in 25 cities worldwide. For more information, visit State Street Global Advisors at www.ssga.com.

SPDR ETFs are managed by SSgA Funds Management, Inc., a registered investment adviser and wholly owned subsidiary of State Street Bank and Trust Company.

Note to Editors: SPDR Exchange Traded Funds

SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. SPDR ETFs provide professional investors with the flexibility to select investments that are precisely aligned to their investment strategy. Recognized as the industry pioneer, State Street--in partnership with the American Stock Exchange--created the first ETF in 1993 (SPDR S&P 500 ETF- Ticker SPY). Since then, we've sustained our place as an industry innovator through the introduction of many ground-breaking products, including first-to-market successes with gold, international real estate, international fixed income and sector ETFs. SPDR ETFs are managed or marketed by SSgA or SSgA Funds Management, Inc, a registered investment adviser and wholly owned subsidiary of State Street Bank and Trust Company.

ETFs trade like stocks, are subject to investment risk and will fluctuate in market value.

Investments in mortgage securities are subject to prepayment risk, which can limit the potential for gain during a declining interest rate environment and increase the potential for loss in a rising interest rate environment.

Distributor: State Street Global Markets, LLC, member FINRA, SIPC, a wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates.

Before investing, consider the funds' investment objectives, risks, charges and expenses. To obtain a prospectus which contains this and other information, call 1-866-787-2257 or visit www.spdrs.com. Read it carefully.

IBG-0191

Exp. Date: 6/30/2009

    Source: State Street Global Advisors