The S&P 500® Index is a market capitalization-weighted index of 500 large-cap firms listed on the New York Stock Exchange (NYSE Arca) or the NASDAQ. It is widely considered to be the benchmark for the US stock market, representing the performance of the largest and most widely held public companies in the country.

S27 is owned by its investors — the shareholders of the fund. When you buy shares of S27, you become a shareholder in the fund and are entitled to a proportional interest in the fund’s assets and earnings.

The State Street® SPDR® S&P 500® ETF Trust was created on January 22, 1993⁴. It was the first US ETF to be listed on a national stock exchange, and it remains the most widely traded ETF in the world. The creation of the State Street® SPDR® S&P 500® ETF Trust and other ETFs revolutionized the investment industry by providing investors with a new way to access diverse asset classes and investment strategies.

Here’s an overview on how the fund works:

1. State Street Investment Management manages the fund’s portfolio and maintains its strategy.
2. The fund’s portfolio consists of a basket of stocks that are designed to replicate the performance of the S&P 500® Index.
3. Investors can buy shares in S27 just like they would any other stock. The price of the ETF’s shares is generally determined by the value of the underlying stocks in the portfolio.
4. When an investor buys shares in S27, they are effectively buying a small piece of each of the underlying stocks in the fund’s portfolio. This allows investors to gain exposure to a broad range of stocks without having to buy them all individually.
5. The ETF generates income for its investors through dividends, which it receives from the underlying stocks in its portfolio. The ETF then distributes this dividend income to its investors.

The State Street® SPDR® S&P 500® ETF is listed on the New York Stock Exchange (NYSE Arca) under ticker symbol SPY⁴. It is also available for trading on other major exchanges around the world, including the NASDAQ, the Chicago Board Options Exchange (CBOE), the London Stock Exchange, the Tokyo Stock Exchange, the Australian Securities Exchange (ASX), among others. It is also available for trading on many online brokerage platforms, which makes it easy for investors to buy and sell shares of the ETF from anywhere in the world.

• Diversification: S27 provides investors with broad exposure to the stock market, as it holds a basket of stocks that are designed to replicate the performance of the S&P 500® Index. This diversification can help reduce risk and improve the stability of an investment portfolio.
  
• Convenience: S27 is a simple and convenient way for investors to gain exposure to the stock market, as it allows them to buy a single investment that holds a diverse range of stocks. This saves investors the time and effort of having to research and buy individual stocks.
  
• Low costs: ETFs like S27 tend to have lower expense ratios (i.e., the annual fee that the fund charges to manage its assets) than actively managed mutual funds. This can make them a cost-effective choice for investors.

Like any investment, S27 carries certain risks that investors should be aware of before making a decision to invest:

• Market risk: S27 is an investment in the stock market, and as a result, is subject to market fluctuations. The value of the ETF’s shares can go up or down depending on the performance of the underlying stocks in its portfolio.
  
• Inflation risk: S27 may be affected by inflation, as the value of the fund’s assets may be eroded by rising prices over time.
• Credit risk: S27 may be exposed to credit risk if one or more of the companies in its portfolio experiences financial difficulties or goes bankrupt. This could result in a decline in the value of the ETF’s shares.
• Liquidity risk: There is always a risk that it may be difficult to buy or sell shares of the ETF when you want to, due to market conditions or other factors.
  
  

It is important for investors to carefully consider their investment objectives and risk tolerance before investing in S27 or any other investment vehicle. For more information on the risks associated with S27, please review the fund’s prospectus.

Investors use S27 in a variety of ways, depending on their investment goals and risk tolerance, including:

• Liquidity: S27 trades on exchange and has multiple layers of liquidity through the unique ETF creation/redemption mechanism, which enables investors to trade whenever the market is open. In today’s market, liquidity is vital and can help investors get in and out of markets fast, easily, and at an attractive cost.
• Diversification: Some investors use the ETF as a core holding in their portfolio, as it provides broad exposure to the US stock market and can serve as a foundation for a diversified investment portfolio.

Investing involves risk including the risk of loss of principal.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without State Street Investment Management’ express written consent.

All information is from State Street Investment Management unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

Diversification does not ensure a profit or guarantee against loss.

There can be no assurance that a liquid market will be maintained for ETF shares.

Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.

Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions.

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.

While the shares of ETFs are tradable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress.

The Fund's investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile and prices of investments can change substantially due to various factors including, but not limited to, economic growth or recession, changes in interest rates, changes in the actual or perceived creditworthiness of issuers, and general market liquidity. The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments.