The document discusses investment outlooks for 2016. Key points include: - Continued low global growth is expected, along with subdued inflation and accommodative monetary policy. - Risks remain skewed downward, and markets could become volatile on negative news. - In equities, favor areas with economic tailwinds like the Eurozone, Japan, and US financial and consumer sectors. - In fixed income, favor a balanced approach including credit sensitive sectors like high yield bonds and senior loans.

1. Michael Arone, CFA, Chief Investment Strategist for US Intermediary Business Group
David B. Mazza, Head of Research, SPDR ETFs and SSGA Funds
Matthew Bartolini, CFA, Research Strategist, SPDR ETFs and SSGA Funds
Jared Rowley, CFA, Research Strategist, SPDR ETFs and SSGA Funds
Key Points
• In 2016, we expect continued low growth, subdued
inflation and generally accommodative monetary policy.
• Risks are skewed to the downside as fragile markets could
quickly turn volatile on a single bad data point or negative
news event.
• In equities, we favor areas of growth with macro-economic
tailwinds such as the Eurozone, Japan, and financial and
consumer related sectors in the US.
• In fixed income, we favor taking a balanced approach with
a mix of interest rate and credit sensitive sectors such as
high yield and senior loans.
2016ETF&
INVESTMENT
OUTLOOK

2. State Street Global Advisors 22
2016 ETF and Investment Outlook
Key Takeaways
• Our base case for 2016 is that investors should be
prepared for more of the “low and slow” growth that
has characterized the global economy since the
financial crisis. That means in equities, we believe
investors should look for pockets of opportunities
and growth.
• Outside the US, tilting to the Eurozone and Japan
where the accommodative and pro-growth macro
currents provide the strongest tailwinds is ideal.
• For the US, a resilient consumer and a potential
Federal Reserve rate hike should continue to support
and fuel top and bottom line growth in consumer
related and financial sectors.
• In fixed income, still-low government bond yields
and the desire for protection from potentially rising
rates mean investors may have to explore more
credit- sensitive sectors including high yield, senior
loans and convertibles.
THEBIGPICTURE
Investing in a ‘Low and Slow’ Growth Environment
• In US equities, investors favored large-cap stocks
over small-cap names.
• In the style spectrum, investors paid up for growth
as consumer cyclicals, technology and health care led
the way, while some traditional value sectors such as
energy had a tough year.
• In international stocks, investors clearly preferred
developed markets as emerging economies continued
to struggle on China worries, weak commodity prices
and a strong US dollar.
• In fixed income, investors favored government bonds
over corporate credit, and within corporates they
favored investment grade over high yield, as concerns
over the impact of falling oil prices weighed on the
high yield market.
Figure 1: Comparison of Major Asset Classes’
2015 Performance
-12 -4-8
Large Cap vs. Small Cap
S&P 500 Index
Russell 2000 Index
Growth vs. Value
Russell 1000 Growth
Russell 1000 Value
Developed vs. Emerging
MSCI EAFE Index
MSCI EM Index
Gov’t vs. Corporate
US Treasuries
IG Corporate Bonds
Inv. Grade vs. High Yield
IG Corporate Bonds
High Yield
620 10
3.4
-1.5
-0.2
7.7
-10.1
0.7
0.9
-0.1
-0.1
-2.3
Performance (%)
Source: State Street Global Advisors, Bloomberg, as of November 24, 2015.
Indices representing each respective asset class are as follows – US Treasuries:
Barclays U.S. Treasury Index, IG Corporate Bonds: Barclays U.S. Corporate Investment
Grade Bond Index, High Yield: Barclays U.S. Corporate High Yield Bond Index.
Past performance is not a guarantee of future results.
The index returns are unmanaged and do not reflect the deduction of any fees
or expenses. The index returns reflect all items of income, gain and loss and the
reinvestment of dividends and other income.
What worked in 2015?
Looking at the relative performance of major asset classes
(see Figure 1), some clear trends emerge:

3. State Street Global Advisors 3State Street Global Advisors 3
2016 ETF and Investment Outlook
US Economy
There are many unknowns as we head into 2016, such as the
pace of potential Federal Reserve rate hikes, whether other
central banks will unleash more quantitative easing (QE) and
who will reside in the White House. However, there seems to
be broad consensus on two issues: global growth is slowing
and inflation remains subdued. US economic growth slowed to
2.1 percent in the third quarter after rising 3.9 percent in the
second quarter.1
Yet, there are still some reasons to be optimistic. The US
consumer has been incredibly resilient, while job growth and
the housing market are both trending in the right direction (see
Figure 2). The unemployment rate has fallen to 5 percent, its
lowest level since the financial crisis, with nonfarm payrolls
rising at an average of more than 200,000 a month in 2015.2
With these favorable conditions in place, it’s hard to argue
the US will slip into recession.
Fed Outlook
Our view is that the Fed most likely raises rates by 25 basis
points at the December 2015 meeting, which would be the
first hike in nearly a decade. After a likely lift-off in December,
we expect a series of four quarter-point rate hikes in 2016.
Rising rates may result in capital losses for investors in US
government bonds such as Treasuries, particularly in longer
duration debt. At the same time, the low level of absolute rates
makes credit-sensitive sectors more attractive.
Therefore, in fixed income, we favor sectors beyond traditional
bond benchmarks such as the Barclays U.S. Aggregate Bond
Index. We think investors should consider fixed income areas
that are more sensitive to credit conditions than to rising rates,
such as senior loans, convertible securities and high yield.
What could increase market
volatility in 2016?
• Further economic slowing and market dislocations
in China
• A major slowdown in US earnings growth at a time
when investors are questioning equity valuations
• US Presidential and Congressional elections
• Another debt flare-up in the Eurozone
• Escalating geopolitical tensions in the Middle East
Figure 2: Labor and Housing Markets are Improving
M (Full Time Employment) M (Home Sales)
— US Full Time Employment
— US New Home and Existing Home Sales
3
6
5
4
110
116
120
124
Dec
2007
20112009 2013 Dec
2015
Source: State Street Global Advisors, Bloomberg, as of November 9, 2015.
After a likely lift-off in December, we
expect a series of four quarter-point
rate hikes in 2016.
Setting the Scene for 2016

4. State Street Global Advisors 4
2016 ETF and Investment Outlook
Eurozone: Gaining Momentum
We think some of the best opportunities for developed
markets might be outside the US, and we like the Eurozone
in particular. We base our case for the Eurozone on continued
accommodative monetary policy, encouraging fundamental
growth trends and emerging stability in southern Europe.
Following a double-dip recession in 2012, the Eurozone has
gained traction and posted economic growth every quarter
since the third quarter of 2013 (see Figure 3).
Also, Europe is a large net importer of commodities—which
have fallen 21 percent in 20153
—and these lower input costs
should improve European corporate profits. Additionally,
the region’s exporters have benefitted from the euro’s
weakness, while other positives include a pick-up in
household consumption and retail sales. We project
Eurozone GDP full-year growth of 1.4 percent in 2015.
Looking ahead, we forecast 1.6 percent growth in 2016.
Emerging Markets: Focus on Quality
It was yet another disappointing year for developing markets
with the MSCI Emerging Markets Index down about 8.0
percent so far in 2015 and on track to underperform the US
for the third straight year.4
Yet, we don’t think investors should
give up on this notoriously volatile asset class. Instead, they
need to be selective and focus on quality, as decades of debt-
fueled growth have left many corporate balance sheets in poor
condition. Furthermore, emerging markets’ return on equity—a
key metric for assessing shareholder value—is now lower than
that of developed markets for the first time in 13 years.5
However, many emerging market countries have unveiled new
fiscal and economic reforms aimed at fostering sustainable
growth and boosting competitiveness. Therefore, a larger
emphasis on companies with strong corporate governance,
quality balance sheets and a high return on equity could
provide tailwinds for an emerging market allocation.
Emerging markets’ return on equity is
now lower than that of developed markets
for the first time in 13 years.
Figure 3: Eurozone Growth
42
44
46
48
50
52
54
56
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
Dec
2012
Sep
2013
Jun
2014
Mar
2015
Sep
2015
 Eurozone YoY GDP Growth — Markit Eurozone Manufacturing PMI Index
GDP Growth (%) PMI Index Level
Source: State Street Global Advisors, Bloomberg, as of November 9, 2015.
We think some of the best opportunities for
developed markets might be outside the US,
and we like the Eurozone in particular.

5. State Street Global Advisors 5
Key Takeaways
Standing at $2.1 trillion with more than 1,800 funds,6
the US ETF industry is on track for another record-setting
year with about $196 billion of net inflows through the
end of November 2015.7
Big picture, investors favored
equity funds.
In particular, currency hedged ETFs posted strong inflows in
2015 as investors in international developed equities looked
for protection against a rising US dollar (see Figure 4). We
also saw investors trying to time a bottom in the beleaguered
energy sector and herding behavior in high yield ETFs with
investors moving in and out of this category based on market
and credit conditions.
As for more nuanced flow trends, in US sectors, while there was
bargain hunting in the beaten-down energy sector, investors
paid up for growth and performance in health care (see Figure
5). Also, investors avoided rate-sensitive sectors, including
utilities and financials, although we did see the financial
sector attract a significant $4 billion over the last six months
of the year due to increased expectations for a Fed rate hike.8
Finally, in fixed income, investors favored core aggregate
funds and government debt, followed by investment-grade
and high yield corporate bonds (see Figure 6). For the most
part, investors didn’t venture too far outside their comfort
zone in fixed income ETFs, sticking to sectors in the Barclays
U.S. Aggregate Bond Index rather than more non-traditional
sectors such as senior loans and convertibles.
WHATTHEFLOWSARETELLINGUS
2016 ETF and Investment Outlook
Figure 4: Equity Fund Flows by Region
n Currency Hedged
n Int’l–Region
n US
n Int’l–Single Country
n Int’l–Broad
n Global
Billions ($)
0
30
60
90
120
150
1
46.7
34.4
27.4
12.4
8.3
4.8
Source: State Street Global Advisors, Bloomberg, as of November 24, 2015.
Figure 5: US Equity Sector Fund Flows
n Industrials
n Utilities
n Consumer Staples
n Telecom
n Health Care
n Energy
n Consumer Discretionary
n Technology
n Materials
Billions ($)
0
15
-10
25
1
-3.8
-2.9
7.5
3.4
7.755
Source: State Street Global Advisors, Bloomberg, as of November 24, 2015.
While there was bargain hunting in the
beaten-down energy sector, investors
paid up for growth and performance in
health care.

6. State Street Global Advisors 6
2016 ETF and Investment Outlook
Bottom Fishing in Energy
Although energy ETFs attracted the second-highest flows after
the white-hot health care sector, it was a tough year for the
energy sector in terms of performance, with the S&P Energy
Select Sector Index down 20 percent for the 12 months ending
in October.9
Focusing on the largest energy sector ETF, the
Energy Select Sector SPDR Fund (XLE), we see that the flows
this year reflect actual buying of the ETF, rather than short
positioning (see Figure 7). This suggests that investors are
indeed positioning for a bottom in the energy sector.
Currency Hedged ETFs:
Separating the Signal from the Noise
While currency hedged ETFs amassed nearly $47 billion
through the first 11 months of the year for a more than 200
percent increase from year-end 2014, about 75 percent of these
assets came into the funds in the first four months of the year,
with over $11 billion in March alone.10
In the same four-month
span, the US dollar strengthened 5 percent, nearly half of its
entire 2015 appreciation. So while total asset flows are
significant, the trend into the currency hedged space was the
strongest in the first quarter when the European Central Bank
(ECB) moved the currency markets with the implementation
of its QE program of buying 60 billion euros of bonds a month.
With the Fed on track to raise rates and the ECB hinting at
further stimulus, this trend may come back into fashion.
High Yield Herding
With $4 billion of high yield ETF fund flows this year (see
Figure 6), the speculative grade bond segment is poised
to finish 2015 in the black, unless there is a major shift in
sentiment. Of course, if the past is any prelude, this could
indeed occur.
As of the end of September, the category actually had
year-to-date outflows of close to $250 million as high
yield credit spreads widened 151 basis points over their
five-year average. However, since the end of September,
nearly $5 billion has rushed into the high yield category
as spreads tightened 83 basis points.11
Figure 7: Energy Select Sector SPDR Fund (XLE)
Flows vs. Short Interest
Fund Flows ($B) Short Interest Ratio (%)
40
June
2014
Oct
2014
Feb
2015
Jun
2015
Oct
2015
20
30
50
10
60
0
2
4
6
-2
8
 XLE Fund Flow Accumulation
— XLE Short Interest over Shares Outstanding Ratio
Source: State Street Global Advisors, Bloomberg, as of November 9, 2015.
Figure 6: Fixed Income Sector Flows
n Aggregate
n Government
n IG Corp
n Preferred
n High Yield Corp
n Municipals
n Inflation Protected
Billions ($)
0
30
60
n Mortgage-Backed
n Asset-Backed
n Convertible
15
45
11.3
20.3
11.0
4.5
4.0
Source: State Street Global Advisors, Bloomberg, as of November 24, 2015.

7. State Street Global Advisors 7
ETFIMPLEMENTATIONIDEAS
2016 ETF and Investment Outlook
Key Takeaways
Our base case is that investors should be prepared for a
challenging “low and slow” scenario for global growth. We
don’t think the growth story is over or that a bear market
is imminent, but investors may need to be more selective.
Rather than buy the equities market with broad exposures,
investors could target specific regions, sectors and
industries. In fixed income, we favor the more credit-
sensitive areas of the bond markets for yield and some
potential rising rate protection.
Equities: Go Where the Growth Is
In the US, we favor sector and industry investing to take
advantage of fundamental trends in the economy and macro
environment, such as earnings momentum and rising rates.
Financial stocks and related banking sub-industries including
regional banks have historically benefited from rising rates and
a strengthening economy. The early part of the tightening cycle
is especially constructive, as higher rates create more room for
banks to increase the margins on their loans without stifling
demand. Also, banks are generally more willing to lend against
a backdrop of improving economic conditions. So, to the degree
the Fed’s moves reflect its confidence in the economy, we’d
expect lending activity to respond in kind.
Implementation Idea
KRE SPDR® S&P® Regional Banking ETF
As the economy continues to gain steam and consumer
confidence trends higher, investors should consider the
consumer discretionary sector to add an element of growth
in a slow growth macro-driven world. Consumer discretionary
firms should benefit from this increased spending and
confidence as lower energy costs and a decline in import
prices translate into fatter wallets for consumers.
Earnings estimates reflect this macro oriented growth
backdrop, as discretionary is projected to have the highest
growth rate of any sector in 2016.12
Additionally, we believe homebuilders and the more
discretionary housing related industries are attractive
due to an improving employment picture and increasing
household spending. With home sales reaching levels
not seen since 2007 and homebuilder sentiment at decade
long highs, this theme of a stronger housing market should
continue to be well supported.13
Implementation Idea
XHB SPDR® S&P® Homebuilders ETF
Investors looking to further overweight market segments
with potentially higher earnings and revenue growth should
consider the health care and technology sectors. In the third
quarter, these two segments registered healthy upside earnings
revisions, with over 80 percent of firms beating estimates.14
We
feel future top and bottom line growth has the potential to be
fueled by the desire of US consumers and businesses to restrict
additional marginal spending to “must have” items.
Implementation Ideas
XLK Technology Select Sector SPDR® Fund
XLV Health Care Select Sector SPDR® Fund
In terms of equity regions, we think the Eurozone is attractive
due to continued ECB stimulus, downward pressure on the
euro, improving lending conditions and investors looking
for yield in equities due to extremely low or even negative
bond yields. In particular, a depreciating euro versus the
US dollar is supportive for the Eurozone as constituents
in the EURO STOXX 50® Index derive 60 percent or more
of their sales overseas.15
Implementation Idea
FEZ SPDR® EURO STOXX 50® ETF
We don’t think the growth story is over or that
a bear market is imminent, but investors may
need to be more selective.

8. State Street Global Advisors 8
2016 ETF and Investment Outlook
Looking to Japan, the Bank of Japan’s commitment to
increasing inflation and fueling growth remains one of the
arrows in the quiver of “Abenomics.” A second arrow is a focus
on creating shareholder value. Prime Minister Shinzo Abe’s
paramount emphasis on shareholder returns and improving
corporate performance has made return on equity a focus of
Japanese firms. Screening for these companies, which also
do not trade at expensive multiples, is one way to access the
growth engine of Japan.
Implementation Idea
QJPN SPDR® MSCI Japan Quality Mix ETF
Despite the underperformance of emerging markets in recent
years, we still think this asset class warrants an allocation. As
discussed earlier, the tide appears to be turning for emerging
markets in terms of reform. Many nations are enacting rules
and reforms that are aimed at improving corporate governance,
with a focus on increasing the quality of balance sheets and
other growth measures to support their economies. A smart
beta approach focused on companies with these pre-existing
traits may lower the volatility of investing in emerging
markets, and provide a compelling alternative to a market
cap-weighted portfolio.
Implementation Idea
QEMM SPDR® MSCI Emerging Markets Quality Mix ETF
Fixed Income: Navigate Rising Rates
and Still-Low Yields
We believe today’s diversified fixed income portfolio requires
more than a simple mix of US Treasuries, corporate debt and
high-quality structured credit. Meanwhile, predicting the path
of interest rates has proven to be an extremely difficult, if not
impossible, task for investors. Therefore, an active core fixed
income strategy with experienced managers may play a critical
role in a portfolio by seeking to provide stability, diversification
and income.
Investors seeking an actively managed core solution for their
fixed income portfolio can consider SPDR® DoubleLine® Total
Return Tactical ETF (TOTL). This active ETF mixes traditional
interest rate-sensitive sectors with non-traditional sectors in
seeking to maximize total return over a full market cycle.
These more credit-sensitive sectors include non-agency
mortgage-backed securities, high yield and emerging market
bonds, bank loans and collateralized loan obligations. With
TOTL, investors can rely on DoubleLine Capital’s expertise
to navigate rising rates by allocating across multiple bond
subsectors and applying individual security selection to
potentially deliver alpha.
Implementation Idea
TOTL SPDR® DoubleLine® Total Return Tactical ETF
For investors seeking additional income at low levels of
duration, and who are able to withstand a higher level of
credit risk, senior loans may be an attractive choice. By
further diversifying portfolios away from more traditional,
rate-sensitive sectors, investors can construct flexible and
customized portfolios for a rising rate environment still
characterized by low yields. For a senior loan allocation,
we prefer an active management approach to exploit
potential market inefficiencies through security selection.
Implementation Idea
SRLN SPDR® Blackstone / GSO Senior Loan ETF
By further diversifying away from more
traditional, rate-sensitive sectors, investors
can construct flexible and customized
portfolios for a rising rate environment.

9. State Street Global Advisors 9
2016 ETF and Investment Outlook
High-yield corporate bonds are another area that investors can
explore for income outside investment-grade bonds. High yield
bonds can be a fixed income portfolio diversifier due to their
relatively low correlation to the Barclays U.S. Aggregate Bond
Index. High yield bonds could potentially provide an attractive
balance of rising rate protection and yield, although there is no
free lunch as these exposures do contain an elevated level of
credit risk.
Implementation Idea
JNK SPDR® Barclays High Yield Bond ETF
We also like convertible securities as potential additions to
fixed income portfolios for their diversification benefits and
other characteristics. Based on the profile of convertible
security issuers, which tends to lean toward more growth
oriented sectors such as technology and consumer
discretionary, a convertible allocation features a cyclical
growth equity component with a bond floor that’s useful if
the issuer’s prospects go south. This profile typically lends
itself well to a rising rate environment that is driven by
economic improvements, such as strong labor growth and
robust domestic demand. In fact, convertible securities have
had strong positive relative returns during previous periods
of increasing rates.16
Implementation Idea
CWB SPDR® Barclays Convertible Securities ETF
1
U.S. Department of Commerce, as of November 24, 2015, third quarter 2015
GDP is “second” estimate.
2
Source: U.S. Bureau of Labor Statistics, as of November 6, 2015.
3
Bloomberg Commodity Index as of November 12, 2015.
4
Bloomberg, as of November 4, 2015. US equity market performance based on
S&P 500 Index.
5
Based on the MSCI World Index and the MSCI Emerging Markets Index. Source:
Bloomberg, as of October 30, 2015.
6
Bloomberg, as of November 24, 2015.
7
Bloomberg, State Street Global Advisors, as of November 24, 2015.
8
Bloomberg, State Street Global Advisors, as of November 24, 2015.
9
S&P Dow Jones Indices, data as of October 30, 2015.
10
Bloomberg, State Street Global Advisors, as of October 30, 2015.
11
Bloomberg, State Street Global Advisors, as of November 10, 2015.
12
FactSet, State Street Global Advisors, as of November 13, 2015.
13
Home Sales as measured by US New One Family Houses and US Existing Home
Sales, as of September 15, 2015, per US Census Bureau. Homebuilder sentiment
as measured by National Association of Home Builders/Wells Fargo Index, as of
September 16, 2015.
14
Bloomberg, as of November 12, 2015.
15
Bloomberg, State Street Global Advisors, as of October 30, 2015.
16
FactSet, as of July 31, 2015. Barclays Convertibles Bond > 500M Face Index
average monthly return during periods of increasing interest rates since 2004
(last time Fed raised rates) is 1.71%, Barclays U.S. Aggregate Bond Index -1.58%
per FactSet.
Implementation Ideas
US Sectors and Industries
KRE SPDR® S&P® Regional Banking ETF
XHB SPDR® S&P® Homebuilders ETF
XLV Health Care Select Sector SPDR® Fund
XLK Technology Select Sector SPDR® Fund
International Equities
FEZ SPDR® EURO STOXX 50® ETF
QEMM SPDR® MSCI Emerging Markets Quality Mix ETF
QJPN SPDR® MSCI Japan Quality Mix ETF
Fixed Income
TOTL SPDR® DoubleLine® Total Return Tactical ETF
SRLN SPDR® Blackstone / GSO Senior Loan ETF
JNK SPDR® Barclays High Yield Bond ETF
CWB SPDR® Barclays Convertible Securities ETF

10. State Street Global Advisors 10
2016 ETF and Investment Outlook
DEFINITIONS
Abenomics
Refers to the economic policies advocated by Shinzō Abe since
the December 2012 general election, which elected Abe to his
second term as prime minister of Japan. Abenomics is based
upon “three arrows” of fiscal stimulus, monetary easing and
structural reforms.
Barclays U.S. Aggregate Bond Index
A commonly used benchmark for determining the relative
performance of bond or fixed income portfolios. The index
includes Treasury, Government agency bonds, Mortgage-
backed bonds, corporate bonds and a small amount of foreign
bonds traded in the US.
Bank Loans
Bank loans, or leveraged loans, are syndicated loans made to
less-than-investment-grade companies, generally rated below
BBB-/Baa3. Their below-investment-grade ratings make them
similar to high-yield bonds. The vast majority of loans trading
in the secondary market are “leveraged,” senior secured,
fully-funded term loans.
Basis Point
One hundredth of one percent, or 0.01%.
Convertible Bonds
Hybrid securities that combine elements of stocks and bonds.
Convertible bonds pay a periodic fixed amount as a coupon
payment, and convertible bond covenants specify the price at
which they can be converted into common stock.
Correlation
The historical tendency of two investments to move together.
Investors often combine investments with low correlations
to diversify portfolios.
Credit Spreads
The spread between Treasury securities and non-Treasury
securities that are identical in all respects except for
quality rating.
Currency Hedged Funds
An investment fund with a financial contract that allows the
fund’s currency exposure to be hedged from fluctuations of
foreign currencies.
Diversification
A strategy of combining a broad mix of investments and asset
classes to potentially limit risk, although diversification does
not guarantee protection from a loss in falling markets.
Double-Dip Recession
A double-dip recession refers to a recession, followed by
short recovery, followed by another recession. Specifically,
a double-dip recession refers to gross domestic product (GDP)
growth sliding back to negative after a quarter or two of
positive growth.
Duration
A commonly used measure, expressed in years, that measures
the sensitivity of the price of a bond or a fixed-income portfolio
to changes in interest rates.
Earnings
The amount of profit that a company produces during a
specific period, which is usually defined as a quarter (three
calendar months) or a year. Earnings typically refer to after-
tax net income.
Earnings Per Share (EPS)
A profitability measure that is calculated by dividing a
company’s net income by the number of shares outstanding.
Euro STOXX 50 Index
A blue-chip index for the Eurozone, providing a representation
of super-sector leaders in the Eurozone. The index covers 50
stocks from 12 Eurozone countries.
Exchange Traded Fund (ETF)
An ETF is an open-ended fund that provides exposure to an
underlying investment, usually an index. Like an individual
stock, an ETF trades on an exchange throughout the day.
Floating-Rate Exposures
A debt instrument with a variable interest rate. Also known
as a “floater,” a floating-rate note’s interest rate is tied to a
benchmark such as the US Treasury bill rate, LIBOR, or the
Fed funds or prime rate. Floaters are mainly issued by financial
institutions and governments, and they typically have a two-
to five-year term to maturity.

11. State Street Global Advisors 11
2016 ETF and Investment Outlook
Gross Domestic Product (GDP)
The monetary value of all the finished goods and services
produced within a country’s borders in a specific time period.
High Yield Corporate Bonds
Corporate debt with generally lower credit ratings and higher
yields than investment-grade corporate bonds.
Inflation
Rising prices for goods and services that erodes consumers’
purchasing power.
M&A Activity
Mergers and acquisitions. Industries that are experiencing
M&A can see rising stock profits in smaller companies that
are acquisition targets.
Macro Trends
Overarching economic forces on financial markets such
as the movement of interest rates, inflation and changes
in employment.
Monetary Policy
The actions of a central bank, currency board or other
regulatory committee that determine the size and rate
of growth of the money supply, which in turn affects
interest rates.
MSCI Emerging Markets Index
A benchmark that captures large- and mid-cap representation
across 23 emerging markets countries. With 834 constituents,
the index covers approximately 85% of the free float-adjusted
market capitalization in each country.
Non-Agency Mortgage-Backed
Securities, or MBS
Groups of mortgage loans that are repackaged and sold to
investors who earn their collective income streams. Non-
agency MBS are repacked not by government agencies such
as Fannie Mae or Freddie Mac, but by private financial
institutions, such as banks.
Nonfarm Payrolls
The monthly data series produced by the US Department
of Labor measuring the amount of jobs added outside of the
agricultural sector. It is widely considered to be the single
most important data series for investors to gauge the health
of the economy and markets.
Price-to-Earnings Multiples, or P/E Ratio
A valuation metric that uses the ratio of the company’s current
stock price versus its earnings per share.
Profit Margins
Expressed as a percentage and, in effect, measures how
much out of every dollar of sales a company actually keeps
in earnings.
Quantitative Easing (QE)
An extraordinary monetary policy measure in which a central
bank buys government fixed-income securities to lower interest
rates, encourage borrowing and stimulate economic activity.
Recession
A contraction in economic activity lasting longer than a
few months.
S&P 500 Index
A benchmark composed of five hundred (500) selected stocks,
all of which are listed on national stock exchanges and spanning
more than 25 separate industry groups.
S&P Energy Select Sector Index
The Energy Select Sector Index is a benchmark of the GICS
energy sector companies from the following industries: oil,
gas & consumable fuels and energy equipment and services.
Sector Investing
Investing into one or more sectors of the economy such
as financials, energy or health care.
Senior Loans
Floating-rate debt issued by corporations and backed by
collateral such as real estate or other assets.
Styles
The investment approach or objectives used to make choices
in the selection of securities for a portfolio, with the most
common being value and growth for equities.
US Treasury Bonds
Debt obligations of the US government that pay an interest rate
to the owner.
Volatility
The tendency of a market index or security to jump around
in price. In modern portfolio theory, securities with higher
volatility are generally seen as riskier due to greater
potential for losses.
Yield
The income produced by an investment, typically calculated as
the interest received annually divided by the investment’s price.

12. State Street Global Advisors
ssga.com | spdrs.com
For public use.
State Street Global Advisors One Lincoln Street, Boston, MA 02111-2900.
T: +1 866.787.2257.
Important Risk Information
The views expressed in this material are the views of the SPDR ETFs and SSGA
Funds Research Team through the period ended November 18, 2015 and are subject
to change based on market and other conditions. This document contains certain
statements that may be deemed forward-looking statements. Please note that any
such statements are not guarantees of any future performance and actual results or
developments may differ materially from those projected.
ETFs trade like stocks, are subject to investment risk, fluctuate in market value and
may trade at prices above or below the ETFs net asset value. Brokerage commissions
and ETF expenses will reduce returns.
Frequent trading of ETFs could significantly increase commissions and other costs
such that they may offset any savings from low fees or costs.
Hedging involves taking offsetting positions intended to reduce the volatility of
an asset. If the hedging position behaves differently than expected, the volatility
of the strategy as a whole may increase and even exceed the volatility of the
asset being hedged.
Passively managed funds invest by sampling the index, holding a range of securities
that, in the aggregate, approximates the full Index in terms of key risk factors and
other characteristics. This may cause the fund to experience tracking errors relative
to performance of the index.
Counterparty risk to a derivative or other transaction is a risk based on whether each
party will be able or unable to honor its contractual obligations. If a party does not
meet its obligations, the Fund will be subject to losses or unable to realize gains.
Risks associated with equity investing include stock values which may fluctuate
in response to the activities of individual companies and general market and
economic conditions.
Concentrated investments in a particular industry may be more vulnerable to adverse
changes in that industry or the market as a whole.
A “value” style of investing emphasizes undervalued companies with characteristics
for improved valuations. This style of investing is subject to the risk that the
valuations never improve or that the returns on “value” equity securities are less than
returns on other styles of investing or the overall stock market.
Although subject to the risks of common stocks, low volatility stocks are seen as
having a lower risk profile than the overall markets. However, a fund that invests in
low volatility stocks may not produce investment exposure that has lower variability
to changes in such stocks’ price levels.
A “quality” style of investing emphasizes companies with high returns, stable
earnings, and low financial leverage. This style of investing is subject to the risk that
the past performance of these companies does not continue or that the returns on
“quality” equity securities are less than returns on other styles of investing or the
overall stock market.
Foreign investments involve greater risks than US investments, including political and
economic risks and the risk of currency fluctuations, all of which may be magnified in
emerging markets. Foreign investments involve greater risks than US investments,
including political and economic risks and the risk of currency fluctuations, all of
which may be magnified in emerging markets.
Securities with floating or variable interest rates may decline in value if their coupon
rates do not keep pace with comparable market interest rates. Narrowly focused
investments typically exhibit higher volatility and are subject to greater geographic or
asset class risk. The Fund is subject to credit risk, which refers to the possibility that
the debt issuers will not be able to make principal and interest payments.
The values of debt securities may decrease as a result of many factors, including,
by way of example, general market fluctuations; increases in interest rates; actual
or perceived inability or unwillingness of issuers, guarantors or liquidity providers to
make scheduled principal or interest payments; illiquidity in debt securities markets;
and prepayments of principal, which often must be reinvested in obligations paying
interest at lower rates.
Increase in real interest rates can cause the price of inflation-protected debt
securities to decrease. Interest payments on inflation-protected debt securities can
be unpredictable.
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.
Government bonds and corporate bonds generally have more moderate short-term
price fluctuations than stocks, but provide lower potential long-term returns.
Select Sector SPDR Funds bear a higher level of risk than more broadly
diversified funds.
Derivative investments may involve risks such as potential illiquidity of the markets
and additional risk of loss of principal.
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 small/mid-sized companies may involve greater risks than in those
of larger, better known companies.
Companies with large market capitalizations go in and out of favor based on
market and economic conditions. Larger companies tend to be less volatile than
companies with smaller market capitalizations. In exchange for this potentially
lower risk, the value of the security may not rise as much as companies with
smaller market capitalizations.
Bonds generally present less short-term risk and volatility than stocks, but contain
interest rate risk (as interest rates rise, bond prices usually fall); issuer default
risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually
pronounced for longer-term securities. Any fixed income security sold or redeemed
prior to maturity may be subject to a substantial gain or loss.
Investments in Senior Loans are subject to credit risk and general investment risk.
Credit risk refers to the possibility that the borrower of a Senior Loan will be unable
and/or unwilling to make timely interest payments and/or repay the principal on its
obligation. Default in the payment of interest or principal on a Senior Loan will result
in a reduction in the value of the Senior Loan and consequently a reduction in the
value of the Portfolio’s investments and a potential decrease in the net asset value
(“NAV”) of the Portfolio.
Investing in commodities entail significant risk and is not appropriate for all
investors. Commodities investing entail significant risk as commodity prices can be
extremely volatile due to wide range of factors. A few such factors include overall
market movements, real or perceived inflationary trends, commodity index volatility,
international, economic and political changes, change in interest and currency
exchange rates.
12
2016 ETF and Investment Outlook

13. State Street Global Advisors
Investing in high yield securities, otherwise known as “junk bonds”, is considered
speculative and involves greater risk of loss of principal and interest than investing in
investment grade fixed income securities. These lower-quality debt securities involve
greater risk of default or price changes due to potential changes in the credit quality
of the issuer.
Actively managed funds do not seek to replicate the performance of a specified
index. An actively managed fund may underperform its benchmark. 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.
These investments may have difficulty in liquidating an investment position without
taking a significant discount from current market value, which can be a significant
problem with certain lightly traded securities.
Standard & Poor’s®
, S&P®
and SPDR®
are registered trademarks of Standard &
Poor’s Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow
Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been
licensed for use by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain
purposes by State Street Corporation. State Street Corporation’s financial products
are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their
respective affiliates and third party licensors and none of such parties make any
representation regarding the advisability of investing in such product(s) nor do
they have any liability in relation thereto, including for any errors, omissions, or
interruptions of any index.
Barclays®
is a trademark of Barclays, Inc. and has been licensed for use in connection
with the listing and trading of the SPDR Barclays ETFs. SPDR Barclays ETFs are not
sponsored by, endorsed, sold or promoted by Barclays, Inc. and Barclays makes no
representation regarding the advisability of investing in them.
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. ALPS Distributors, Inc., a registered
broker-dealer, is distributor for SPDR®
S&P®
500, SPDR®
S&P®
MidCap 400 and
SPDR®
Dow Jones Industrial Average, and all unit investment trusts. ALPS Portfolio
Solutions Distributor, Inc. is distributor for Select Sector SPDRs. ALPS Distributors,
Inc. and ALPS Portfolio Solutions Distributor, Inc. are not affiliated with State Street
Global Markets, LLC.
Distributor: State Street Global Markets, LLC is the distributor for all registered
products on behalf of the advisor. SSGA Funds Management has retained GSO
Capital Partners, & DoubleLine Capital LP as the sub-advisor.
DoubleLine®
is a registered trademark of DoubleLine Capital LP.
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
866.787.2257 or visit spdrs.com
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© 2015 State Street Corporation. All Rights Reserved.
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2016 ETF and Investment Outlook