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Press release from Business Wire

State Street Unveils Low Volatility SPDR® Exchange Traded Funds Offering Targeted Exposure to Small and Large Cap Equities

Thursday, February 21, 2013

State Street Unveils Low Volatility SPDR® Exchange Traded Funds Offering Targeted Exposure to Small and Large Cap Equities09:30 EST Thursday, February 21, 2013 BOSTON (Business Wire) -- State Street Global Advisors (SSgA)*, the asset management arm of State Street Corporation (NYSE: STT), today announced the availability of the SPDR Russell 2000® Low Volatility ETF (Symbol: SMLV) and the SPDR Russell 1000® Low Volatility ETF (Symbol: LGLV). Designed to provide investors with exposure to small and large cap equities while managing risk, both funds began trading on the NYSE Arca on February 21, 2013. “Our new low volatility SPDR ETFs were developed in response to increasing demand from investors looking to improve the risk adjusted returns of their portfolio, increase their equity allocation while maintaining downside protection, or tactically take a more defensive approach to the US large cap or small cap markets,” said James Ross, senior managing director and global head of SPDR Exchange Traded Funds at SSgA. “By helping investors and advisors better manage risk in their portfolios, the SPDR Russell 2000 Low Volatility ETF and SPDR Russell 1000 Low Volatility ETF are key additions to our growing family of SPDR ETFs.” The SPDR Russell 2000® Low Volatility ETF seeks to track the performance of the Russell 2000® Low Volatility Index. The Index is composed of low volatility stocks from the Russell 2000® Index based on volatility from the previous 252 trading days. The Index is then optimized to provide low volatility small cap exposure while managing turnover and neutralizing other factors, such as beta and momentum. The Index is reconstituted monthly to maintain its focus on low volatility securities, and as of January 31, 2013, included approximately 164 securities. The SPDR Russell 2000® Low Volatility ETF's expense ratio is 0.25 percent. The SPDR Russell 1000® Low Volatility ETF seeks to track the performance of the Russell 1000® Low Volatility Index. The Index is composed of low volatility stock from the Russell 1000® Index based on volatility from the previous 252 trading days. The Index is then optimized to provide low volatility large cap exposure while managing turnover and neutralizing other factors, such as beta and momentum. The Index is reconstituted monthly, and as of January 31, 2013, included approximately 95 securities. The SPDR Russell 1000® Low Volatility ETF's expense ratio is 0.20 percent. “The Russell Low Volatility Indexes draw on Russell's objective, rules-based, transparent index methodology to help investors construct a focused portfolio of stocks with lower volatility than their parent Russell 1000® and Russell 2000® Indexes,” said Rolf Agather, managing director of index research and innovation for Russell Investments. “In addition, when used as the basis for investable products such as ETFs, the Russell Low Volatility Indexes may help lower the overall volatility of investors' equity portfolios.” State Street manages more than $340 billion** in SPDR ETF assets worldwide (as of December 31, 2012) 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 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 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 www.spdrs.com. 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. *SPDR ETFs are managed by SSgA Funds Management, Inc., a registered investment adviser and wholly owned subsidiary of State Street Bank& Trust Company. **This AUM includes the assets of the SPDR Gold Trust (approx. $72.2 billion as of December 31, 2012), for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors serves as the marketing agent. 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. Investments in small-sized companies may involve greater risks than in those of larger, better known companies. Returns on investments in stocks of small companies could trail the returns on investments in stocks of larger companies. 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 portfolio comprised of low volatility stocks may not produce investment exposure that has lower variability to changes in such stocks' price levels. Risk associated with equity investing include stock values which may fluctuate in response to the activities of individual companies and general market and economic conditions. 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. The Fund invests 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 which may cause the fund to experience tracking errors relative to performance of the Index. Returns on investments in stocks of large U.S. companies could trail the returns on investments in stocks of smaller and mid-sized companies. "SPDR" is a registered trademark of Standard & Poor Financial Services LLC ("S&P") and has been licensed for use by State Street Corporation. No financial product offered by State Street Corporation or its affiliates is sponsored, endorsed, sold or promoted by S&P or its Affiliates, and S&P and its affiliates make no representation, warranty or condition regarding the advisability of buying, selling or holding units/shares in such products. Further limitations and important information that could affect investors' rights are described in the prospectus for the applicable product. Russell Investments and Axioma, Inc. have entered into a strategic alliance with respect to the Russell-Axioma Factor Indexes, including the Russell 1000® and Russell 2000® Low Volatility Indexes. Russell and Axioma are the source and joint owners of the trademarks, service marks and copyrights related to the Russell-Axioma Factor Indexes. Russell is a trademark of Russell Investments. Axioma is the owner of all copyrights related to Axioma's optimized solutions. The SPDR products are not sponsored, endorsed, sold or promoted by Russell Investments or Axioma, Inc. and they make no representation regarding the advisability of investing in the SPDR products. 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 shares, MidCap SPDRs and Dow Jones Industrial Average, all unit investment trusts and Select Sector SPDRs. 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 or visit www.spdrs.com. Read it carefully. CORP-0684 State StreetAnne McNally, 617-664-8576orRiver CommunicationsTroy Mayclim, 914-686-5599