Investors Increasingly Concerned About Interest Rate Risk, Look to Short Term Instruments in Search for Yield

  Investors Increasingly Concerned About Interest Rate Risk, Look to Short
  Term Instruments in Search for Yield

State Street Global Advisors Launches Ultra Short Term Bond ETF as the
category captures more than $9 billion year to date^1

Business Wire

BOSTON -- October 10, 2013

State Street Global Advisors (SSgA)*, the asset management arm of State Street
Corporation (NYSE:STT), today announced the launch of the SPDR SSgA Ultra
Short Term Bond ETF (Symbol: ULST). The newest actively managed SPDR ETF began
trading on the NYSE Arca on October 10, 2013, and provides investors with
access to a diversified portfolio of ultra short term bonds.

“The SPDR SSgA Ultra Short Term Bond ETF is an attractive option for the cash
investor who is seeking incremental yield but does not want to sacrifice
liquidity,” said James Ross, senior managing director and global head of SPDR
ETFs at SSgA. “We are seeing tremendous flows year to date in short and ultra
short term bonds, as investors are increasingly anticipating rising interest

“As one of the world’s leading cash and high quality fixed income managers,
our team has significant experience and a proven, disciplined approach to
credit research,” said Steve Meier, SSgA’s chief investment officer of fixed
income, cash and currency. “This gives us the latitude to exploit
inefficiencies in the fixed income market allowing for opportunistic portfolio

SSgA is one of the largest cash managers, with more than 30 years of
experience, $385 billion in global cash assets and an established track record
as active manager of cash and fixed income strategies through many market

The SPDR SSgA Ultra Short Term Bond ETF seeks to provide income, preservation
of capital and daily liquidity by primarily investing in US dollar-denominated
investment grade bonds that are rated a minimum of A- or A3 and have an
effective duration between three and nine months. Portfolio holdings will
include a range of fixed and floating securities, including corporate
obligations, government bonds, agency securities and ETFs. The SPDR SSgA Ultra
Short Term Bond ETF’s expense ratio is 0.20 percent.

SSgA manages more than $337 billion** in SPDR ETF assets worldwide (as of June
30, 2013) and is one of the largest ETF providers globally.

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
Corporation. The funds provide investors with the flexibility to select
investments that are precisely aligned to their investment strategy.
Recognized as an industry pioneer, State Street created the first US listed
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

About State Street Global Advisors

State Street Global Advisors (SSgA) is a global leader in asset management.
The firm is relied on by sophisticated investors worldwide for its disciplined
investment process, powerful global investment platform and access to every
major asset class, capitalization range and style. SSgA is the asset
management business of State Street Corporation, one of the world’s leading
providers of financial services to institutional investors.


^1 Source: Morningstar 9/30/13, Ultra Short Bond Fund Inflows $9.4b

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

**This AUM includes the assets of the SPDR Gold Trust (approx. $37 billion as
of June 30, 2013), for which State Street Global Markets, LLC, an affiliate of
State Street Global Advisors, serves as the marketing agent.

In general, ETFs can be expected to move up or down in value with the value of
the applicable index. Although ETF shares may be bought and sold on the
exchange through any brokerage account, ETF shares are not individually
redeemable from the Fund. Investors may acquire ETFs and tender them for
redemption through the Fund in Creation Unit Aggregations only. Please see the
prospectus for more details.

ETFs trade like stocks, are subject to investment risk, fluctuate in market
value and may trade at prices above or below the ETF's net asset value.
Brokerage commissions and ETF expenses will reduce returns.

Bond funds contain interest rate risk (as interest rates rise bond prices
usually fall); the risk of issuer default; issuer credit risk; liquidity risk;
and inflation risk.

The Fund is actively managed and may underperform its benchmarks. An
investment in the fund is not appropriate for all investors and is not
intended to be a complete investment program. Investing in the fund involves
risks, including the risk that investors may receive little or no return on
the investment or that investors may lose part or even all of the investment.

Actively managed ETFs do not seek to replicate the performance of a specified

Non-diversified funds that focus on a relatively small number of securities
tend to be more volatile than diversified funds and the market as a whole.

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

Foreign investments involve greater risks than U.S. investments, including
political and economic risks and the risk of currency fluctuations, all of
which may be magnified in emerging markets. Investments in smaller companies
may involve greater risks than those in larger, better known companies.

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. Certain State Street
affiliates provide services and receive fees from the SPDR ETFs.

The Fund is not a money market fund and does not seek to maintain a stable net
asset value of $1.00 per share.

Before investing, consider the funds' investment objectives, risks, charges
and expenses. To obtain a prospectus or summary prospectus which contains this
and other information, call 1-866-787-2257, download a prospectus or summary
prospectus now, or talk to your financial advisor. Read it carefully before



State Street Corporation
Elizabeth Bartlett, +1-617-662-2903
River Communications
Troy Mayclim, +1-914-686-5599
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