Insights

Building a differentiated income portfolio with sectors

September 22, 2026 9 min read

Anqi Dong, CFA, CAIA

Global Head of Sector Strategy

Mariola Pokorska, CFA

Sector Research Strategist

Income investing used to feel simple. Not anymore. Generating reliable portfolio income just isn’t as straightforward as it used to be. Shifting interest rates, uncertain Fed policy, heavy government borrowing, and low stock dividend yields have put pressure on traditional income sources. At the same time, longer retirements mean investors need income today and for the future—plus enough growth to keep pace with inflation over time.

That’s prompting many investors to look beyond bonds and dividend-paying stocks—and consider a broader mix of income sources to diversify portfolio cash flow.

State Street’s® Select Sector SPDR® Premium Income ETFs (SSPI ETFs) are designed to help investors navigate this evolving income landscape by turning targeted sector stock exposures into a potential source of income. SSPI ETFs combine a sector ETF with a systematic covered call strategy with a goal of generating income from stock dividends and option premiums while maintaining participation in a portion of the underlying sector’s growth potential.

Traditional sources of income are under pressure

Many companies now use more of their cash to buy back shares rather than pay dividends.¹As a result, the dividend yield of the S&P 500® has remained near historic lows—around 1%—and growth-oriented sectors such as Technology have generally offered even less dividend income.²

At the same time, bond yields—long considered the cornerstone of income portfolios—have experienced elevated volatility in recent years³ driven by changes in interest rates and rising fiscal deficits, making them a less stable source of income. And while dividend-focused stock strategies may pay more than the broad equity market, their yields generally remain in the low single digits.⁴

Turning sector exposure into an income opportunity

SSPI ETFs seek to expand the ways investors can earn income from stocks. Instead of relying solely on dividends, the SSPI ETFs pair sector exposure with an actively managed, rules-based covered call strategy.

For example, each SSPI ETF starts with exposure to a specific sector, such as Technology, Energy, or Health Care, then adds an options overlay designed to generate additional income potential. Investors still receive exposure to a portion of the sector's growth potential, but some of the upside may be limited during strong sector rallies, while the income generated from option premiums may help offset a portion of downside during periods of market declines.

The strategy is based on a straightforward idea: option prices tend to rise when investors expect larger market moves. This expected movement is called implied volatility. By selling call options, SSPI ETFs seek to turn some of that volatility into income potential.

SSPI ETFs seek to generate income from two primary components that are distributed to investors monthly:

Underlying equity dividends: SSPI ETFs intend to pass through quarterly dividends paid by the underlying State Street® Sector ETFs, creating a traditional dividend component.
Options income: The strategy systematically sells call options on the State Street® Sector ETFs and receives cash premiums from buyers. Historically, this has accounted for more than 80% of the SSPI ETFs’ average dividend yield.⁵

Together, these two sources create a different income profile from traditional bonds or dividend stocks. Across the SSPI ETF lineup, average distribution yields have been in the mid-teens—well above the low single-digit yields commonly associated with broad stocks and core bonds.⁶

Sector-level precision may offer differentiated income opportunities

A key feature of the SSPI ETFs is their focus on stock-market sectors rather than the entire market or a single company.

Broad-market covered call funds spread exposure across many sectors. That diversification can be useful, but it may also smooth out differences in volatility across individual parts of the market—and potentially reduce the premiums available from more volatile sectors.

Single-stock covered call strategies sit at the other extreme. Because an individual stock can move more sharply, its options may offer higher premiums. However, investors also take on company-specific risk, including the possibility of a large loss tied to one business.

SSPI ETFs fall between these approaches. Sector exposure is more focused than the broad market but more diversified than a single stock. This may matter when market leadership, volatility, and investor sentiment differ significantly from one industry to another.

For example, Energy stocks historically often become more volatile during periods of geopolitical uncertainty, and that can potentially increase option premiums. With the higher implied volatility related to the US-Iran war, XLEI offered one of the highest dividend yields across the 11 SSPI ETFs, at 20%.⁷

Sector fundamentals can also reshape longer-term volatility patterns. Utilities, traditionally viewed as a defensive sector, experienced higher volatility as growing power and infrastructure demand linked to AI investment became a larger influence on the sector.⁸ These shifts may support higher option premiums, but it can also expose investors to greater price fluctuations that could result in an investor capturing less upside when conditions change quickly and the underlying sector rises sharply.

Because volatility varies by sector, each sector can offer different income opportunities, and a sector-based approach can offer investors several advantages:

Target specific sectors where volatility may support generating option income potential
A more balanced approach between single-stock concentration and broad-market diversification
Diversification across multiple sector-specific sources of option premium

Balancing income and long-term growth potential

SSPI ETFs are designed to generate premium income potential while maintaining the prospects for long-term capital appreciation. They do this by holding sector exposure and systematically selling call options on the underlying sector ETFs.

From a risk perspective, the premiums received may help reduce some of the day-to-day volatility compared with owning the sector ETF alone. Historically, these income strategies have experienced smaller drawdowns and lower volatility than their underlying sectors.⁹ But the option premiums provide only a partial cushion and generally will not entirely prevent losses in the event of a major decline.

Because SSPI ETFs retain exposure to their underlying sectors, investors can participate in some of the sectors upside potential. Historically, the strategies have had a beta of approximately 0.7 relative to their underlying sectors.¹⁰ In simple terms, that means they have tended to move roughly 7% for every 10% move in the underlying sector—although the relationship can vary over time. As a result, they generally captured less of the upside during strong rallies while experiencing smaller declines during market pullbacks.

The trade-off is important: covered calls can serve to limit returns during strong rallies. For example, as Technology gained on AI-related investment, XLKI’s return since inception trailed its underlying sector by 11.9%.¹¹ Over the same period, XLKI generated a 19.7% dividend yield versus 0.4% for the underlying sector.¹²

In other words, SSPI ETFs are not designed to maximize stock-price gains or guarantee a set level of income. They seek to convert part of a sector’s potential upside into current income, creating a different balance between income and growth.

SSPI ETFs and why a delta-based option strategy matters

A key consideration in any covered call strategy is determining which call options to sell. That choice affects both the amount of potential income generated, as well as how much of a sector’s potential gain the investor can potentially keep.

SSPI ETFs do not target a fixed yield or always sell options at the same percentage above the current market price (referred to as moneyness in options trading). Instead, they use delta to select options. Delta measures how much an option’s price is expected to change when the price of the underlying ETF changes. Using delta allows the strategy to adjust as volatility, price, and market trends shift across sectors.

For a call option, delta is also sometimes used as a rough estimate of the chance that the underlying stock price will rise above the options’ strike price by expiration. If that happens, the call option seller gives up gains above the strike price.

In simple terms:

Higher delta calls usually have a lower strike price and may pay a larger premium. Because the ETF has less room to rise before reaching the strike price, more potential upside is given up.
Lower delta calls usually have a higher strike price and may pay a smaller premium. The ETF has more room to rise before gains are capped, so the strategy keeps more upside potential.

Figure 4: Illustrative covered call strategy payoff

Ways to use sector-based covered call ETFs

Investors may use SSPI ETFs in several ways depending on their income needs, existing holdings, risk tolerance, time horizon, and views on particular sectors.

Dialing up income potential from equities

Many investors rely on stocks for long-term growth but receive relatively little income from their equity holdings. This is especially true in sectors such as Technology, where dividend yields have historically been low.¹³

For investors who want additional income without completely moving away from equities, SSPI ETFs may be used to replace a portion of an existing sector allocation. For example, an investor seeking exposure to the long-term growth opportunities within Technology could allocate part of a traditional Technology sector holding to the State Street® Technology Select Sector SPDR® Premium Income ETF (XLKI). This approach may increase income potential while still allowing participation in a portion of the sector's potential future gains.

Building income potential from a wider range of sources

Investors could also combine several SSPI ETFs to create a more income-focused stock allocation. The mix could follow market sector weights or emphasize specific sectors. This spreads potential income generation across different parts of the market rather than depending on one sector or a single company.

For example, an SSPI ETF portfolio mirroring the S&P 500 sector weights would have resulted in a weighted average dividend yield of about 16%, compared with roughly 1% for the S&P 500.¹⁴ Investors retain the ability to still participate in a portion of the sector’s potential market gains, with historical results suggesting less volatility and smaller drawdowns.¹⁵

Complementing existing income strategies

For investors already using dividend strategies or broad-market-based covered call funds, SSPI ETFs may serve as a complementary allocation to potentially boost income further. By adding sector-based covered call exposure, investors may add differentiated income streams and flexibility to how income is generated.

Similarly, complementing a single-stock-based covered call strategy with sectors may help investors access more targeted segments of growth relative to broad market options, while offering a more diversified alternative to options on single stocks. This can provide more focused exposure than a broad-market strategy while reducing reliance on the performance of one company.

Positioning for periods of elevated volatility

SSPI ETFs may also be used more tactically. If an investor expects a sector to remain volatile but is still positive on its longer-term prospects, the strategy seeks to offer investors the potential to earn higher option premiums while keeping the underlying sector exposure.

The Technology sector provides a recent example. Concerns about AI capital spending and disruption risks for software companies contributed to several pullbacks in late 2025 and the first quarter of 2026. During that period, the S&P 500® Technology sector fell 13.3%, while XLKI declined only 3.8%, largely because the fund collected higher option premiums during the period of volatility.¹⁶

Expanding the income toolkit with sector precision

Income investing continues to evolve with investor needs and structural market shifts. As traditional income sources face new pressures, investors are looking for more ways to generate income and help their portfolios adapt to changing markets.

While traditional income strategies have been built primarily around asset classes—stocks for dividends and fixed income for bond coupons—SSPI ETFs expand this framework by introducing a new dimension, with income potential sourced from underlying sector volatility. By combining sector investing with a covered call strategy, investors may be able to diversify their sources of equity income while maintaining exposure to sectors they believe offer attractive long-term growth potential.

Through a systematic, delta-based option strategy wrapped in a single product, SSPI ETFs seek to offer investors an efficient way to implement a covered call strategy relative to a do-it-yourself approach—providing access to active professional management and operational simplicity.

As investors build income-oriented portfolios to navigate the changing income landscape, SSPI ETFs can complement existing equity and fixed income allocations, as well as existing covered call strategies—adding a new building block and different source of yield potential to the investor’s income toolkit.

Appendix

Standard performance information

Name	Ticker	QTD (%)	YTD (%)	1 year (%)	3 year (%)	5 year (%)	10 year (%)	Since inception	Inception date	30-day SEC yield (%)	GER* (%)
Name	Ticker	QTD (%)	YTD (%)	Annualized returns					Inception date	30-day SEC yield (%)	GER* (%)
State Street® Communication Services Select Sector SPDR® ETF	XLC (NAV)	-3.06	-8.37	0.03	19.43	6.86	—	11.02	Jun 18 2018	1.15	0.08
State Street® Communication Services Select Sector SPDR® ETF	XLC (MKT)	-3.08	-8.42	-0.01	19.42	6.85	—	11.02	—	—	—
State Street® Communication Services Select Sector SPDR® Premium Income ETF	XLCI (NAV)	-1.88	-4.32	—	—	—	—	2.42	Jul 29 2025	1.05	0.35
State Street® Communication Services Select Sector SPDR® Premium Income ETF	XLCI (MKT)	-1.62	-4.15	—	—	—	—	2.53	—	—	—
State Street® Consumer Discretionary Select Sector SPDR® ETF	XLY (NAV)	7.87	-1.36	8.75	12.27	6.48	12.79	9.76	Dec 16 1998	0.76	0.08
State Street® Consumer Discretionary Select Sector SPDR® ETF	XLY (MKT)	7.86	-1.38	8.76	12.28	6.47	12.78	9.76	—	—	—
State Street® Consumer Discretionary Select Sector SPDR® Premium Income ETF	XLYI (NAV)	7.10	0.21	—	—	—	—	5.71	Jul 29 2025	0.52	0.35
State Street® Consumer Discretionary Select Sector SPDR® Premium Income ETF	XLYI (MKT)	7.08	0.11	—	—	—	—	5.65	—	—	—
State Street® Consumer Staples Select Sector SPDR® ETF	XLP (NAV)	2.09	8.32	5.45	6.72	6.26	7.02	6.77	Dec 16 1998	2.63	0.08
State Street® Consumer Staples Select Sector SPDR® ETF	XLP (MKT)	2.07	8.27	5.45	6.71	6.26	7.01	6.77	—	—	—
State Street® Consumer Staples Select Sector SPDR® Premium Income ETF	XLSI (NAV)	2.61	4.48	—	—	—	—	3.12	Jul 29 2025	2.34	0.35
State Street® Consumer Staples Select Sector SPDR® Premium Income ETF	XLSI (MKT)	2.51	4.17	—	—	—	—	3.06	—	—	—
State Street® Energy Select Sector SPDR® ETF	XLE (NAV)	-12.55	20.52	29.25	12.98	18.79	8.82	8.38	Dec 16 1998	2.84	0.08
State Street® Energy Select Sector SPDR® ETF	XLE (MKT)	-12.60	20.46	29.20	12.96	18.78	8.81	8.38	—	—	—
State Street® Energy Select Sector SPDR® Premium Income ETF	XLEI (NAV)	-6.90	12.42	—	—	—	—	18.52	Jul 29 2025	2.56	0.35
State Street® Energy Select Sector SPDR® Premium Income ETF	XLEI (MKT)	-6.72	12.48	—	—	—	—	18.65	—	—	—
State Street® Financial Select Sector SPDR® ETF	XLF (NAV)	8.98	-1.22	3.97	18.59	9.76	13.27	6.09	Dec 16 1998	1.37	0.08
State Street® Financial Select Sector SPDR® ETF	XLF (MKT)	8.94	-1.26	4.00	18.59	9.75	13.26	6.09	—	—	—
State Street® Financial Select Sector SPDR® Premium Income ETF	XLFI (NAV)	6.48	-1.53	—	—	—	—	3.65	Jul 29 2025	1.25	0.35
State Street® Financial Select Sector SPDR® Premium Income ETF	XLFI (MKT)	6.50	-1.53	—	—	—	—	3.71	—	—	—
State Street® Health Care Select Sector SPDR® ETF	XLV (NAV)	8.74	3.41	19.78	7.92	6.44	10.09	8.69	Dec 16 1998	1.59	0.08
State Street® Health Care Select Sector SPDR® ETF	XLV (MKT)	8.72	3.36	19.77	7.92	6.43	10.08	8.69	—	—	—
State Street® Health Care Select Sector SPDR® Premium Income ETF	XLVI (NAV)	8.18	5.02	—	—	—	—	18.39	Jul 29 2025	1.36	0.35
State Street® Health Care Select Sector SPDR® Premium Income ETF	XLVI (MKT)	8.37	5.19	—	—	—	—	18.62	—	—	—
State Street® Industrial Select Sector SPDR® ETF	XLI (NAV)	14.85	20.12	27.20	21.71	14.29	14.65	9.85	Dec 16 1998	0.98	0.08
State Street® Industrial Select Sector SPDR® ETF	XLI (MKT)	14.81	20.03	27.13	21.69	14.28	14.64	9.85	—	—	—
State Street® Industrial Select Sector SPDR® Premium Income ETF	XLII (NAV)	13.65	12.87	—	—	—	—	19.80	Jul 29 2025	0.88	0.35
State Street® Industrial Select Sector SPDR® Premium Income ETF	XLII (MKT)	13.66	12.84	—	—	—	—	19.79	—	—	—
State Street® Materials Select Sector SPDR® ETF	XLB (NAV)	2.19	13.11	17.93	9.13	6.40	10.35	8.32	Dec 16 1998	1.74	0.08
State Street® Materials Select Sector SPDR® ETF	XLB (MKT)	2.14	13.04	17.91	9.13	6.40	10.35	8.32	—	—	—
State Street® Materials Select Sector SPDR® Premium Income ETF	XLBI (NAV)	4.65	7.26	—	—	—	—	9.69	Jul 29 2025	1.43	0.35
State Street® Materials Select Sector SPDR® Premium Income ETF	XLBI (MKT)	4.94	7.21	—	—	—	—	9.75	—	—	—
State Street® Real Estate Select Sector SPDR® ETF	XLRE (NAV)	8.72	10.78	9.84	8.96	3.27	6.31	7.28	Oct 07 2015	3.23	0.08
State Street® Real Estate Select Sector SPDR® ETF	XLRE (MKT)	8.68	10.74	9.85	8.96	3.26	6.31	7.28	—	—	—
State Street® Real Estate Select Sector SPDR® Premium Income ETF	XLRI (NAV)	6.75	5.66	—	—	—	—	4.92	Jul 29 2025	2.93	0.35
State Street® Real Estate Select Sector SPDR® Premium Income ETF	XLRI (MKT)	6.71	5.69	—	—	—	—	4.96	—	—	—
State Street® Technology Select Sector SPDR® ETF	XLK (NAV)	43.48	32.68	51.24	30.74	21.78	25.57	10.84	Dec 16 1998	0.39	0.08
State Street® Technology Select Sector SPDR® ETF	XLK (MKT)	43.45	32.59	51.22	30.73	21.77	25.56	10.84	—	—	—
State Street® Technology Select Sector SPDR® Premium Income ETF	XLKI (NAV)	20.83	17.08	—	—	—	—	29.07	Jul 29 2025	0.36	0.35
State Street® Technology Select Sector SPDR® Premium Income ETF	XLKI (MKT)	20.75	16.99	—	—	—	—	28.98	—	—	—
S&P 500® Information Technology Index	—	31.79	19.76	37.48	30.88	22.14	26.59	14.29	—	—	—
State Street® Utilities Select Sector SPDR® ETF	XLU (NAV)	-0.56	7.62	14.09	14.86	10.76	9.00	7.87	Dec 16 1998	2.67	0.08
State Street® Utilities Select Sector SPDR® ETF	XLU (MKT)	-0.58	7.58	14.11	14.86	10.76	8.99	7.87	—	—	—
State Street® Utilities Select Sector SPDR® Premium Income ETF	XLUI (NAV)	2.12	9.53	—	—	—	—	10.32	Jul 29 2025	2.40	0.35
State Street® Utilities Select Sector SPDR® Premium Income ETF	XLUI (MKT)	2.18	9.37	—	—	—	—	10.30	—	—	—
S&P 500® Index	—	15.20	10.21	22.32	20.61	13.41	15.51	19.06	—	—	—

Source: State Street Investment Management, Bloomberg Finance, L.P., as of June 30, 2026. The performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that the investor's shares, when redeemed, may be worth more or less than the original cost. All results are historical and assume the reinvestment of dividends and capital gains. Performance is shown net of any fees. Periods of less than one year are not annualized. The market price used to calculate the Market Value return is the midpoint between the highest bid and the lowest offer on the exchange on which the shares of the Fund are listed for trading, as of the time that the Fund's NAV is calculated. If you trade your shares at another time, your return may differ.Index returns are unmanaged and do not reflect the deduction of any fees or expenses. Index returns reflect all items of income, gain/loss, and the reinvestment of dividends and other income as applicable. Performance of an index is not illustrative of any particular investment. It is not possible to invest directly in an index. Visit www.ssga.com for most recent month-end performance. The gross expense ratio is the fund’s total annual operating expenses ratio. It is gross of any fee waivers or expense reimbursements. It can be found in the fund’s most recent prospectus. The 30-day SEC yield is an annualized yield that is calculated by dividing the investment income earned by the fund less expenses over the most recent 30-day period by the current maximum offering price that does not take into account expense ratio subsidizations.

* GER = Gross Expense Ratio

Footnotes

¹ State Street Investment Management, “The new era of income investing,” May 28, 2026.
² Bloomberg Finance, L.P., as of August 3, 2026. The performance data quoted represents past performance. Past performance does not guarantee future results.
³ Bloomberg Finance, L.P., State Street Investment Management, as of August 3, 2026. Based on rolling 3-year standard deviation of monthly yield to worst of the Bloomberg US Aggregate Index, Bloomberg US Treasury Index, Bloomberg US 1-3 Month Treasury Bills Index, and Bloomberg US Corporate High Yield Bond Index for the period from August 31, 2016 to July 31, 2026. The performance data quoted represents past performance. Past performance does not guarantee future results.
⁴ Bloomberg Finance, L.P., as of August 3, 2026. Based on dividend yield history of the S&P 500® High Dividend Index and the S&P High Yield Dividend Aristocrats® Index. The performance data quoted represents past performance. Past performance does not guarantee future results.
⁵ Bloomberg Finance, L.P., State Street Investment Management, as of August 3, 2026. Option income component is approximated by calculating the difference between State Street Premium Income ETFs and the underlying State Street Sector ETFs twelve-month dividend yield. The performance data quoted represents past performance. Past performance does not guarantee future results.
⁶ Bloomberg Finance, L.P., as of August 3, 2026. Twelve-month dividend yield used for State Street Premium Income ETFs, State Street Sector ETFs, and equity indices. Yield to worst used for fixed income indices. The performance data quoted represents past performance. Past performance does not guarantee future results.
⁷ Bloomberg Finance, L.P., as of August 3, 2026. Volatility based on 107-day averages of 30-day implied volatilities of the at-the-money options on State Street® Energy Select Sector SPDR® ETF, comparing the two 107-business day periods: war period starting on March 1, 2026 through August 3, 2026 and comparable pre-war period from September 25, 2025 to February 27, 2026. The performance data quoted represents past performance. Past performance does not guarantee future results.
⁸ Bloomberg Finance, L.P., as of August 3, 2026. Based on 30-day implied volatilities of the at-the-money options on State Street® Utilities Select Sector SPDR® ETF.
⁹ FactSet, as of July 31, 2026. Based on weekly returns for the period from August 1, 2025 to July 31, 2026. The performance data quoted represents past performance. Past performance does not guarantee future results.
¹⁰ FactSet, as of July 31, 2026. Based on weekly returns for the period from August 1, 2025 to July 31, 2026. Based on average of the 11 SSPI ETFs’ betas to their underlying State Street Sector ETFs. The performance data quoted represents past performance. Past performance does not guarantee future results.
¹¹ FactSet, as of August 3, 2026. Based on XLKI’s and XLK’s total NAV returns. Inception date of XLKI and other SSPI ETFs is July 29, 2025. The performance data quoted represents past performance. Past performance does not guarantee future results.
¹² Bloomberg Finance, L.P., as of August 3, 2026. Based on 12-month dividend yields of XLKI and XLK. The performance data quoted represents past performance. Past performance does not guarantee future results.
¹³ Bloomberg Finance, L.P., as of August 3, 2026. The performance data quoted represents past performance. Past performance does not guarantee future results.
¹⁴ Bloomberg Finance, L.P., State Street Investment Management, as of August 3, 2026. Based on 12-month dividend yields of SSPI ETFs and S&P 500® Index. For SSPI portfolio, dividend yield is a weighted-average of State Street Premium Income ETFs’ dividend yields using S&P 500 Index GICS® sector allocation. The performance data quoted represents past performance. Past performance does not guarantee future results.
¹⁵ FactSet, as of July 31, 2026. Based on weekly returns since SSPI ETFs inception on July 29, 2025. Based on lower volatility and drawdowns of SSPI funds relative to underlying sector ETFs. The performance data quoted represents past performance. Past performance does not guarantee future results.
¹⁶ Bloomberg Finance, L.P., as of July 29, 2026. Based on State Street® Technology Select Sector SPDR® Premium Income ETF NAV total return and the S&P 500 Information Technology Index total return for the period from October 31, 2025 to March 31, 2026. The performance data quoted represents past performance. Past performance does not guarantee future results.

Glossary

At the money is a term in options trading to describe an option with the strike price that is equal to the current market value of the underlying asset.

Beta is a statistical measure of an investment’s historical sensitivity to changes in a specified market index, often used as an indicator of relative market risk. A beta above 1 suggests the investment has historically been more volatile than the market, while a beta below 1 suggests it has been less volatile. A beta of 1 indicates the investment has historically moved in line with the market. Beta is based on past performance and may not be indicative of future results.

Bloomberg 1-3 Month US T-Bill Index is a fixed-income benchmark including publicly issued dollar-denominated zero-coupon US Treasury Bills that have a remaining maturity of less than three months and more than one month. They must be rated investment grade, have $250 million or more of outstanding face value, and be fixed rate and non-convertible.

Bloomberg US Aggregate Index is a broad-based benchmark that provides a measure of the performance of the US dollar denominated investment grade bond market. The “Agg” includes investment-grade government bonds, investment-grade corporate bonds, mortgage pass through securities, commercial mortgage-backed securities and asset backed securities that are publicly for sale in the US.

Bloomberg US Corporate High Yield Bond Index is benchmark that includes all fixed income securities with a maximum quality rating of Ba1/BB+ (including defaulted issues), a minimum amount outstanding of $150 million, and at least one year to maturity.

Bloomberg US Treasury: Long Index is a benchmark that measures the performance of US dollar-denominated, fixed-rate, nominal debt issued by the US Treasury with a maturity greater than 10 years. STRIPS are excluded from the index.

Covered call strategy is an options trade where you own shares of a stock and sell call options on those same shares to earn cash.

Delta is a measure of how sensitive an option’s value is to price changes in the underlying assets.

Dividend yield (also known as distribution yield or trailing 12-month (TTM) yield) is the sum of the distributions within the past 12 months divided by the current net asset value per share, expressed as a percentage.

Fixed-moneyness or fixed-yield approaches in options trading refers to selecting or maintaining options contracts at a strike price that stays at a constant relative proportion or distance or a fixed percentage to the changing market price of the underlying asset.

Implied volatility represents the market’s forward-looking expectation of volatility based on current options pricing. Implied volatility tends to rise during times of market stress or uncertainty.

Option premium is the total cost to buy an options contract, consisting of intrinsic value and extrinsic time/volatility value. It is paid upfront by the buyer to the seller.

S&P 500® High Dividend Index is a benchmark that tracks the performance of the top 80 high dividend-yielding companies within the S&P 500 and is equally weighted to best represent the performance of this group, regardless of constituent size.

S&P High Yield Dividend Aristocrats® Index is a benchmark that measures the performance of companies within the S&P Composite 1500®—consisting of large, mid- and small-cap U.S. stocks—that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 years.

S&P 500® Index is a market-capitalization-weighted stock market index that measures the stock performance of the 500 largest publicly traded companies in the US.

S&P 500® Technology Sector Index is a market-capitalization-weighted index that comprises those companies included in the S&P 500® that are classified as members of the GICS® Information Technology sector.

Standard deviation is a historical measure of the degree to which a fund’s return varied over a certain period of time. The higher the standard deviation, the greater the likelihood (and risk) that a fund’s performance will fluctuate and have greater potential for volatility; a lower standard deviation indicates past returns have been less volatile.

State Street® Select Sector SPDR® ETFs seek to track the S&P Select Sector Indices. Each of the 11 Select Sector Indices is a modified market-capitalization weighted index that comprises those companies included in the S&P 500® that are classified as members of the respective GICS® sector.

State Street® Select Sector SPDR® Premium Income ETFs employ an actively managed strategy that is designed to provide potential for current income while maintaining the prospects for long-term growth of capital. The funds seek to achieve their investment objective by investing in shares of the underlying State Street Sector ETFs and selling call options on the underlying State Street Sector ETFs to generate additional income.

Strike price is the price at which a specific derivatives contract, such as an options contract, can be exercised. On call options, the strike price is the price that the security can be bought (until the expiration date), while for put options, the strike price is the price where the security can be sold.

Upside capture ratio is a measurement of an investment's relative performance in up markets and shows the percentage of a benchmark's gains an investment captured during rising markets.

Volatility is the tendency of a market index or security to jump around in price. Volatility is typically expressed as the annualized standard deviation of returns. In modern portfolio theory, securities with higher volatility are generally seen as riskier due to higher potential losses.

Yield is the income produced by an investment, typically calculated as the interest received annually divided by the price of the investment.

Yield to worst is the lowest potential yield that investors can expect if a bond is called or retired early according to the contract terms without the issuer defaulting.

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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 SSGA’s express written consent.

All information is from SSGA 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.

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.

Investing involves risk including the risk of loss of principal.

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.

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.

Diversification does not ensure a profit or guarantee against loss.

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.

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

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 the investment.

The Fund’s use of call options involves speculation and can lead to losses because of adverse movements in the price or value of the underlying stock, index, or other asset, which may be magnified by certain features of the options. If the Fund were to write (sell) a call option on an index or security based on the expectation that the price of an index or security would fall, but the price were to rise instead, the Fund could be required to sell the underlying asset upon exercise at a price below the current market price. When selling a call option, the Fund will receive a premium; however, this premium may not be enough to offset a loss incurred by the Fund if the price of the underlying asset is above the strike price by an amount equal to or greater than the premium. The Fund utilizes FLEX Options guaranteed for settlement by the Options Clearing Corporation (“OCC”). Although unlikely, it is possible the OCC is unable to meet its settlement obligations, which could result in substantial loss for the Fund. FLEX Options may be less liquid than more traditional exchange traded option contracts.

This communication is not intended to promote or recommend the use of options or options trading strategies and should not be relied upon as such.

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.

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.

The above SPDR ETFs are actively managed and may not seek to track the performance of an unmanaged index. The ETF may engage in active trading of its portfolio securities to achieve its principal investment strategies. Active trading can increase a fund’s transaction costs and may cause the fund to realize taxable gains, which could reduce the returns of those fund shareholders investing through a taxable account. Actively managed ETFs may have higher expense ratios than index based ETFs or mutual funds. The trading prices of an ETF’s shares will fluctuate continuously throughout trading hours based on market supply and demand rather than the Fund’s net asset value, which is calculated at the end of each business day. The Shares will trade on the Exchange at prices that may be above (i.e., at a premium) or below (i.e., at a discount), to varying degrees, the daily net asset value of the Shares. The trading prices of a Fund’s Shares may deviate significantly from its net asset value during periods of market volatility. Given, however, that Shares can be issued and redeemed daily in Creation Units, the Adviser believes that large discounts and premiums to net asset value should not be sustained for very long. Information on the ETF’s premiums or discount for various time periods is available by visiting statestreet.com/im.

The performance data quoted represents past performance. Past performance does not guarantee future results.

Intellectual Property Disclosures:

The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data. The S&P 500® Index is a product of S&P Dow Jones Indices LLC or its affiliates (“S&P DJI”) and have been licensed for use by State Street Global Advisors. S&P®, SPDR®, S&P 500®, SPY®, SPX®, US 500 and The 500 are 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 has been licensed for use by S&P Dow Jones Indices; and these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by State Street Global Advisors. The fund is not sponsored, endorsed, sold or promoted by S&P DJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of these indices.

Distributor: State Street Global Advisors Funds Distributors, LLC, member FINRA,SIPC, an indirect 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.

Before investing in a fund, consider its investment objectives, risks, charges, and expenses. A prospectus (and/or summary prospectus) containing this and other information is available here, at statestreet.com/im or by calling 1-866-787-2257. Read it carefully. For printed materials, the prospectus is available on request and must accompany or precede this material.

United States: State Street Investment Management, One Congress Street, Boston, MA 02114.

ID 9070307.2.1.AM.RTL Exp. Date: 10/31/2026

Not FDIC insured. No bank guarantee. May lose value

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