Company Press Release

ETF Inflows On Pace To Exceed $100 Billion In 2011, According To State Street Global Advisors’ 2011 Mid Year ETF Outlook Report

BOSTON – July 28, 2011 — State Street Global Advisors (SSgA)*, the asset management business of State Street Corporation (NYSE: STT), today released a new report titled, 2011 Mid Year SPDR® ETF Outlook, which details the developments that shaped the Exchange Traded Fund (ETF) industry’s growth during the first half of 2011 and offers insights into the trends expected to drive asset flows through year-end.

Against a backdrop of historically low interest rates and global economic uncertainty, US ETFs attracted an impressive $56.3 billion in new inflows during the first six months of 2011, up from $37.3 billion during the first half of 2010. According to the report, ETF investors increased their exposure to fixed-income, developed international markets, and dividend strategies while shifting away from emerging markets and small cap equities during this same period of time.

"With demand for income and non-correlated assets on the rise, a growing universe of professional and retail investors are using ETFs to access precise sources of return and improve the diversification of their portfolios," said Kevin Quigg, global head of the SPDR ETF Capital Markets Group at State Street Global Advisors. "If flows remain on their current pace, 2011 will mark the fifth consecutive year that ETFs attract more than $100 billion in positive cash flows."

Among the key themes highlighted in the 2011 Mid Year SPDR ETF Outlook report are:

Growth of ETF industry asset flows by category;

Increased investment in ETFs that provide access to high dividend paying stocks; and

Outlook for ETFs that track real assets and non-US equities and bonds, as investors rethink asset allocation.

For more information on these developments and others emerging in the ETF industry, financial professionals can download a copy of the 2011 Mid Year SPDR ETF Outlook report at SPDR University (www.spdru.com), State Street’s award winning online educational resource for investment professionals.

About SPDR Exchange Traded Funds

SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. SPDR ETFs are managed by SSgA Funds Management, Inc., a registered investment adviser and wholly owned subsidiary of State Street Bank and Trust Company. The funds provide professional investors with the flexibility to select investments that are precisely aligned to their investment strategy. Recognized as the industry pioneer, State Street created the first ETF in 1993 (SPDR S&P 500® – 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 launches with gold, international real estate, international fixed income and sector ETFs. For more information, visit www.spdrs.com.


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