|
|
Year Ended September 30,
|
|
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
Net Asset Value, Beginning
of Year
|
|
$
|
367.34
|
|
|
$
|
326.43
|
|
|
$
|
282.20
|
|
|
$
|
248.94
|
|
|
$
|
249.39
|
|
|
Investment Operations:
|
|
Net investment income(1)
|
|
|
4.76
|
|
|
|
4.55
|
|
|
|
3.63
|
|
|
|
3.77
|
|
|
|
3.34
|
|
|
Net realized and
unrealized gain (loss)
on investments
|
|
|
(14.91
|
)
|
|
|
40.57
|
|
|
|
44.56
|
|
|
|
33.27
|
|
|
|
(0.28
|
)
|
|
Total from investment
operations
|
|
|
(10.15
|
)
|
|
|
45.12
|
|
|
|
48.19
|
|
|
|
37.04
|
|
|
|
3.06
|
|
|
Net equalization credits
and charges(1)
|
|
|
(0.03
|
)
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less Distributions from:
|
|
Net investment income
|
|
|
(4.86
|
)
|
|
|
(4.23
|
)
|
|
|
(3.96
|
)
|
|
|
(3.78
|
)
|
|
|
(3.51
|
)
|
|
Net asset value, end of year
|
|
$
|
352.30
|
|
|
$
|
367.34
|
|
|
$
|
326.43
|
|
|
$
|
282.20
|
|
|
$
|
248.94
|
|
|
Total investment return(2)
|
|
|
(2.77
|
)%
|
|
|
13.88
|
%
|
|
|
17.12
|
%
|
|
|
14.97
|
%
|
|
|
1.19
|
%
|
|
Ratios and Supplemental Data
|
|
Net assets, end of year
(000's omitted)
|
|
$
|
19,100,391
|
|
|
$
|
21,466,995
|
|
|
$
|
18,830,377
|
|
|
$
|
17,195,731
|
|
|
$
|
14,234,511
|
|
|
Ratio to average
net assets:
|
|
Ratio of expenses to
average net assets(3)
|
|
|
0.22
|
%
|
|
|
0.24
|
%
|
|
|
0.24
|
%
|
|
|
0.25
|
%
|
|
|
0.25
|
%
|
|
Ratio of net investment
income to average
net assets(3)
|
|
|
1.39
|
%
|
|
|
1.30
|
%
|
|
|
1.18
|
%
|
|
|
1.43
|
%
|
|
|
1.25
|
%
|
|
Portfolio turnover rate(4)
|
|
|
19.10
|
%
|
|
|
17.30
|
%
|
|
|
23.45
|
%
|
|
|
24.50
|
%
|
|
|
22.28
|
%
|
|
(1) Per Unit numbers have been calculated using the average shares method, which more appropriately presents per Unit data for the year.
(2) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. It excludes the offset of transaction fees connected to the creation and redemption of Creation Units and brokerage commissions incurred by purchasing and/or selling shares of the Trust in the secondary market.
(3) Net of voluntary fee reduction by the Trustee, if any. Before voluntary fee reduction by the Trustee, the net investment income and expenses to average net assets ratios would have been 1.39% and 0.23% for the year ended September 30, 2019, 1.30% and 0.25% for the year ended September 30, 2018, 1.18% and 0.24% for the year ended September 30, 2017, 1.43% and 0.25% for the year ended September 30, 2016, and 1.25% and 0.25% for the year ended September 30, 2015. The Trustee has notified the Trust that the voluntary fee reduction will cease on January 31, 2020. In addition, effective February 1, 2020, the Trustee and the Sponsor have amended the Trust Agreement to provide that the Trustee's fee will be 0.08% per annum for net asset value of $30,000,000,001 and above. (See Note 3)
(4) Portfolio turnover rate excludes securities received or delivered from processing creations or redemptions of Units.
Note 1 Organization
SPDR® S&P MidCap 400® ETF Trust (the "Trust") is a unit investment trust that issues securities called "Units." The Trust is organized under New York law and is governed by a trust agreement between The Bank of New York Mellon (formerly, The Bank of New York) (the "Trustee") and PDR Services LLC (the "Sponsor"), dated and executed as of April 27, 1995, as amended (the "Trust Agreement"). The Trust is an investment company registered under the Investment Company Act of 1940, as amended. The Trust is an "Exchange-Traded Fund", the units of which are listed on and traded on the New York Stock Exchange under the symbol "MDY", and operates under an exemptive order granted by the Securities and Exchange Commission (the "SEC"). Units represent an undivided ownership interest in a portfolio of all of the common stocks of the Standard & Poor's MidCap 400 IndexTM (the "Index").
The Sponsor is an indirect, wholly-owned subsidiary of Intercontinental Exchange, Inc. ("ICE"). ICE is a publicly-traded entity, trading on the New York Stock Exchange under the symbol "ICE."
Note 2 Summary of Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Trust in the preparation of the Trust's financial statements:
The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The Trust is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies in Financial Accounting Standards Board Accounting Standards Codification 946, Financial Services Investment Companies.
Security Valuation - Trust securities are generally valued based on the closing sale price on that day (unless the Trustee deems such price inappropriate as a basis for evaluation) on the exchange deemed to be the principal market for the security or, if there is no such appropriate closing sale price on such exchange, at the closing bid price (unless the Trustee deems such price inappropriate as a basis for evaluation). If the securities are not listed or, if so listed and the principal market for the securities is other than on such exchange or there is no such closing bid price available, such evaluation shall generally be made by the Trustee in good faith based on the closing price on the over-the-counter market (unless the Trustee deems
18
such price inappropriate as a basis for evaluation) or if there is no such appropriate closing price, (a) on current bid prices, (b) if bid prices are not available, on the basis of current bid prices for comparable securities, (c) by the Trustee's appraising the value of the securities in good faith on the bid side of the market or (d) by any combination thereof.
The Trust follows the authoritative guidance for fair value measurements and the fair value option for financial assets and financial liabilities. The guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.
The guidance establishes three levels of inputs that may be used to measure fair value:
• Level 1 - quoted prices in active markets for identical investments
• Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 - significant unobservable inputs (including the Trust's own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of September 30, 2019 in valuing the Trust's assets carried at fair value:
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Assets
|
|
Investment in Securities
|
|
Common Stocks
|
|
$
|
19,090,571,204
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
19,090,571,204
|
|
|
Total
|
|
$
|
19,090,571,204
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
19,090,571,204
|
|
|
Investment Risk - The Trust's investments are exposed to risks, such as market risk. Due to the level of risk associated with certain investments, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that those changes could materially affect the amounts reported in the financial statements.
An investment in the Trust involves risks similar to those of investing in any fund of equity securities, such as market fluctuations caused by such factors as economic and political developments, changes in interest rates and perceived trends in stock prices. The value of a Unit will decline, more or less, in correlation with any decline in value of the Index. The values of equity securities could decline generally or could underperform other investments. The Trust would not sell an equity security because the security's issuer was in financial trouble unless that security was removed from the Index.
19
Investment Transactions - Investment transactions are recorded on the trade date. Realized gains and losses from the sale or disposition of securities are recorded on a specific identification basis. Dividend income is recorded on the ex-dividend date. Distributions received by the Trust may include a return of capital that is estimated by the Trustee. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. The Trust invests in real estate investment trusts ("REITs"). REITs determine the characterization of their income annually and may characterize a portion of their distributions as a return of capital or capital gain. The Trust's policy is to record all REIT distributions as dividend income initially and re-designate a portion to return of capital or capital gain distributions at year end based on information provided by the REIT and/or Trustee's estimates of such re-designations for which actual information has not yet been reported.
Distributions to Unitholders - The Trust intends to declare and distribute dividends from net investment income quarterly. The Trust will distribute net realized capital gains, if any, at least annually, unless offset by available capital loss carryforwards.
Equalization - The Trust follows the accounting practice known as "Equalization" by which a portion of the proceeds from sales and costs of reacquiring the Trust's Units, equivalent on a per Unit basis to the amount of distributable net investment income on the date of the transaction, is credited or charged to undistributed net investment income. As a result, undistributed net investment income per Unit is unaffected by sales or reacquisitions of the Trust's Units. Amounts related to Equalization can be found on the Statements of Changes in Net Assets.
U.S. Federal Income Tax - For U.S. federal income tax purposes, the Trust has qualified as a "regulated investment company" under Subchapter M of the Internal Revenue Code of 1986, as amended (a "RIC"), and intends to continue to qualify as a RIC. As a RIC, the Trust will generally not be subject to U.S. federal income tax for any taxable year on income, including net capital gains, that it distributes to its Unitholders, provided that it distributes on a timely basis at least 90% of its "investment company taxable income" determined prior to the deduction for dividends paid by the Trust (generally, its taxable income other than net capital gain) for such taxable year. In addition, provided the Trust distributes during each calendar year substantially all of its ordinary income and capital gains, the Trust will not be subject to U.S. federal excise tax.
U.S. GAAP requires the evaluation of tax positions taken in the course of preparing the Trust's tax returns to determine whether the tax positions are "more-likely-than-not" to be sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. The Trustee has reviewed the Trust's tax positions for the tax years subject to audit as of September 30, 2019, and has determined that no provision for income taxes is necessary for the year ended
20
September 30, 2019. The tax returns of the Trust's 2016, 2017 and 2018 tax years and the year ended September 30, 2019 remain subject to audit. The Trust has not recognized any tax liabilities relating to the Trust's tax positions considered to be uncertain tax positions for the current year or prior years.
Note 3 Transactions with the Trustee and Sponsor
In accordance with the Trust Agreement, the Trustee maintains the Trust's accounting records, acts as custodian and transfer agent to the Trust, and provides administrative services, including the filing of all required regulatory reports. The Trustee is also responsible for determining the composition of the portfolio of securities which must be delivered and/or received in exchange for the issuance and/or redemption of large blocks of 25,000 Units (known as "Creation Units"), and for adjusting the composition of the Trust's portfolio from time to time to conform to changes in the composition and/or weighting structure of the Index. For these services, the Trustee receives a fee based on the following annual rates:
Net Asset Value of the Trust
|
|
Fee as a Percentage of
Net Asset Value of the Trust
|
|
$0-$500,000,000*
|
|
0.14% per annum
|
|
$500,000,001-$1,000,000,000*
|
|
0.12% per annum
|
|
$1,000,000,001 and above*
|
|
0.10% per annum
|
|
* The fee indicated applies to that portion of the net asset value of the Trust, which falls in the size category indicated. Effective February 1, 2020, the Trustee and the Sponsor have amended the Trust Agreement to provide that the fee will be 0.08% per annum for net asset value of $30,000,000,001 and above.
The Trustee has voluntarily agreed to reduce its fee for the years ended September 30, 2019, 2018 and 2017 as disclosed in the Statements of Operations. The amount of the reduction equals the daily Federal Funds Rate, as published in the Wall Street Journal, multiplied by the daily balance of the Trust's cash account, reduced by the amount of reserves for that account required by the Federal Reserve Board of Governors. The Trustee reserves the right to discontinue this voluntary fee reduction in the future, and has informed the Trust that the fee reduction will cease on January 31, 2020.
In accordance with the Trust Agreement and under the terms of the exemptive order issued by the SEC, dated January 18, 1995, the Sponsor is reimbursed by the Trust for certain expenses, to the extent such expenses do not exceed 0.30% per annum of the daily net asset value of the Trust as calculated by the Trustee. The expenses reimbursed to the Sponsor for the years ended September 30, 2019, 2018 and 2017 did not exceed 0.30% per annum.
21
Note 4 Trust Transactions in Units
Transactions in Trust Units were as follows:
|
|
Year Ended September 30, 2019
|
|
Year Ended September 30, 2018
|
|
|
|
Units
|
|
Amount
|
|
Units
|
|
Amount
|
|
Units sold
|
|
|
47,200,000
|
|
|
$
|
15,906,274,321
|
|
|
|
45,550,000
|
|
|
$
|
15,829,281,170
|
|
|
Dividend reinvestment
Units issued
|
|
|
1,755
|
|
|
|
601,792
|
|
|
|
2,664
|
|
|
|
923,251
|
|
|
Units redeemed
|
|
|
(51,425,000
|
)
|
|
|
(17,243,824,204
|
)
|
|
|
(44,800,000
|
)
|
|
|
(15,510,413,524
|
)
|
|
Net increase/(decrease)
|
|
|
(4,223,245
|
)
|
|
$
|
(1,336,948,091
|
)
|
|
|
752,664
|
|
|
$
|
319,790,897
|
|
|
|
|
Year Ended September 30, 2017
|
|
|
|
Units
|
|
Amount
|
|
Units sold
|
|
|
49,975,346
|
|
|
$
|
15,346,405,991
|
|
|
Dividend reinvestment
Units issued
|
|
|
2,306
|
|
|
|
682,830
|
|
|
Units redeemed
|
|
|
(53,225,000
|
)
|
|
|
(16,352,971,553
|
)
|
|
Net decrease
|
|
|
(3,247,348
|
)
|
|
$
|
(1,005,882,732
|
)
|
|
Except under the Trust's dividend reinvestment plan, Units are issued and redeemed by the Trust for authorized participants only in Creation Units. Such transactions are permitted only on an in-kind basis, with a separate cash payment that is equivalent to the undistributed net investment income per Unit (income equalization) and a balancing cash component to equate the transaction to the net asset value per Unit of the Trust on the transaction date. The transaction fee payable to the Trustee in connection with each creation and redemption of Creation Units made through the clearing process (the "Transaction Fee") is non-refundable, regardless of the net asset value of the Trust. The Transaction Fee is the lesser of $3,000 or 0.20% (20 basis points) of the value of one Creation Unit at the time of creation per participating party per day, regardless of the number of Creation Units created or redeemed on such day. The Transaction Fee is currently $3,000. For creations and redemptions outside the clearing process, including orders from a participating party restricted from engaging in transactions in one or more of the common stocks that are included in the Index, an additional amount not to exceed three (3) times the Transaction Fee applicable for one Creation Unit may be charged per Creation Unit per day. During the year ended September 30, 2019, the Trustee earned $1,029,000 in transaction fees. The Trustee, in its sole discretion, may voluntarily reduce or waive the transaction fee, or modify its transaction fee schedule, subject to certain limitations. There were no reductions or waivers of such fees for the year ended September 30, 2019.
At September 30, 2019, the Trustee and its affiliates held $2,522,223,504 or 13.21% of fractional undivided interest in the Trust.
22
Note 5 Investment Transactions
For the year ended September 30, 2019, the Trust had net in-kind contributions, net in-kind redemptions, purchases and sales of investment securities of $15,852,349,500, $17,191,677,579, $3,687,668,459, and $3,656,008,475, respectively.
Note 6 U.S. Federal Income Tax Status
The following details the distributions and net distributable earnings as of September 30, 2019. The components of distributable earnings for tax purposes differ from the amounts reflected in the Statement of Assets and Liabilities by temporary book/tax differences primarily arising from wash sales, distribution payable, post-October losses deferred and amortization of license fees.
The tax composition of dividends paid during the years ending September 30, 2019, September 30, 2018 and September 30, 2017, in the amounts disclosed on the statements of changes in net assets, was ordinary income.
At September 30, 2019, the Trust's cost of investments for federal income tax purposes and unrealized appreciation (depreciation) was as follows:
Cost of investments for federal income tax purposes
|
|
$
|
21,132,598,334
|
|
|
Gross unrealized appreciation
|
|
$
|
958,803,295
|
|
|
Gross unrealized depreciation
|
|
|
(3,000,830,425
|
)
|
|
Net unrealized depreciation
|
|
$
|
(2,042,027,130
|
)
|
|
Distributable earnings, ordinary income
|
|
$
|
67,153,765
|
|
|
Short-term capital loss carryforwards (no expiration):
|
|
$
|
|
|
|
Long-term capital loss carryforwards (no expiration):
|
|
$
|
65,956,156
|
|
|
During the year ended September 30, 2019, the Trust utilized $11,323,453 of capital loss carryforwards. To the extent that capital loss carryforwards are used to offset future capital gains, it is probable that the offset gains will not be distributed to Unitholders.
At September 30, 2019, the Trust deferred $782,381,598 of capital losses arising subsequent to October 31, 2018. For tax purposes, such losses will be reflected in the year ending September 30, 2020.
As of September 30, 2019, the Trust had permanent book/tax differences primarily attributable to gains or losses from in-kind redemptions and distributions received from REITs. To reflect reclassifications arising from these differences, total distributable earnings (loss) was increased by $856,656,029 and paid-in capital was increased by $856,656,029.
23
Note 7 Representations and Indemnifications
In the normal course of business, the Trustee or the Sponsor, on behalf of the Trust, may enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims which may be made against the Trust that have not yet occurred. However, based on experience, the Trust expects the risk of loss to be remote.
Note 8 Related Party Transactions
The Trustee used BNY Mellon Capital Markets, LLC ("BNYMellon CM"), an indirect-wholly-owned subsidiary of The Bank of New York Mellon Corporation, and an affiliate of the Trustee, to execute some brokerage transactions for the Trust. During the fiscal years ended September 30, 2019, 2018 and 2017, the Trust paid $846,089, $773,337 and $975,074 in commissions to BNYMellon CM, respectively.
Note 9 License Agreement and Distribution Expenses
A license agreement between State Street Global Advisors Funds Distributors, LLC ("SSGA FD") and S&P (the "License Agreement") grants SSGA FD a license to use the Index as a basis for determining the composition of the portfolio of all the common stocks of the Index. The Trustee (on behalf of the Trust), the Sponsor and NYSE Arca, Inc. have each received a sublicense from SSGA FD for the use of the Index and such trade names and trademarks in connection with their rights and duties with respect to the Trust. The License Agreement may be amended without the consent of any of the owners of Units.
Currently, the License Agreement is scheduled to terminate on November 29, 2031, but its term may be extended beyond such date without the consent of any of the owners of Units.
In addition, the following distribution expenses are or may be charged to the Trust: (a) reimbursement to the Sponsor of amounts paid by it to S&P in respect of annual licensing fees pursuant to the License Agreement; (b) federal and state annual registration fees for the issuance of Units; and (c) expenses of the Sponsor relating to the printing and distribution of marketing materials describing Units and the Trust (including, but not limited to, associated legal, consulting, advertising, and marketing costs and other out-of-pocket expenses such as printing). With respect to the marketing expenses described in item (c) above, the Sponsor has entered into an agreement with SSGA FD, pursuant to which SSGA FD has agreed to market and promote the Trust. SSGA FD is reimbursed by the Sponsor for the expenses it incurs for providing such services out of amounts that the Trust reimburses the Sponsor. Pursuant to the provisions of the exemptive order, the expenses set forth in this paragraph may be charged to the Trust by the Trustee in an amount equal to the actual costs incurred, but in no case shall such charges exceed
24
0.30% per annum of the daily net asset value of the Trust. These distribution expenses are presented on the Trust's Statements of Operations.
Note 10 Subsequent Event
The Trustee has evaluated the impact of all subsequent events of the Trust through the date on which the financial statements were issued and has determined that there were no subsequent events requiring adjustments or additional disclosure in the financial statements.
25
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Trustee and Unitholders of the SPDR S&P MidCap 400 ETF Trust
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the SPDR S&P MidCap 400 ETF Trust (the "Trust") as of September 30, 2019, the related statements of operations and of changes in net assets for each of the three years in the period ended September 30, 2019, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2019 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Trust as of September 30, 2019, the results of its operations and the changes in its net assets for each of the three years in the period ended September 30, 2019 and the financial highlights for each of the five years in the period ended September 30, 2019 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Trust's management (the Trustee). Our responsibility is to express an opinion on the Trust's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management (the Trustee), as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of September 30, 2019 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Boston, Massachusetts
January 14, 2020
We have served as the auditor of one or more investment companies in the SPDR Funds since 1993.
26
TAX INFORMATION
(Unaudited)
For U.S. federal income tax purposes, the percentage of Trust dividend distributions that qualify for the corporate dividends received deduction for the fiscal year ended September 30, 2019 is 100.0%.
For the fiscal year ended September 30, 2019, all dividends paid by the Trust may be designated as qualified dividend income for U.S. federal income tax purposes and subject to a maximum U.S. federal income tax rate of 20% in the case of certain non-corporate unitholders that meet applicable holding period requirements with respect to their Units. Complete information will be reported in conjunction with your 2019 Form 1099-DIV.
27
ESSENTIAL INFORMATION AS OF SEPTEMBER 30, 2019
(Unaudited)
Total Trust Assets:
|
|
$19,198,634,003
|
|
Trust Net Assets:
|
|
$19,100,390,591
|
|
Number of Units:
|
|
54,215,547
|
|
Fractional Undivided Interest in Trust Represented by each Unit:
|
|
1/54,215,547
|
|
Record Date:
|
|
Quarterly, on the first (1st) Business Day after the third Friday in each of March, June, September and December.
|
|
Dividend Payment Dates:
|
|
Quarterly, on the last Business Day of April, July, October and January.
|
|
Trustee's Annual Fee:*
|
|
From 0.10% to 0.14%, based on the net asset value of the Trust, as the same may be reduced by certain amounts, plus the Transaction Fee.
|
|
Estimated Ordinary Operating Expenses of the Trust:
|
|
0.25% (inclusive of Trustee's annual fee)
|
|
Net Asset Value per Unit (based on the value of the securities, other net assets of the Trust and number of Units outstanding):
|
|
$352.30
|
|
Evaluation Time:
|
|
Closing time of the regular trading session on the New York Stock Exchange LLC (ordinarily 4:00 p.m. New York time).
|
|
Licensor:
|
|
Standard & Poor's Financial Services LLC, a division of The McGraw-Hill Companies, Inc.
|
|
Mandatory Termination Date:**
|
|
The first to occur of (i) April 27, 2120 or (ii) the date 20 years after the death of the last survivor of eleven persons named in the Trust Agreement, the oldest of whom was born in 1990 and the youngest of whom was born in 1993.
|
|
Discretionary Termination:
|
|
The Trust may be terminated if the value of the securities held by the Trust is less than $100,000,000, as such amount shall be adjusted for inflation.
|
|
* The Trustee has notified the Trust that the voluntary fee reduction will cease on January 31, 2020. In addition, effective February 1, 2020, the Trustee and the Sponsor have amended the Trust Agreement to provide that the Trustee's fee will be 0.08% per annum for net asset value of $30,000,000,001 and above.
** The Trust Agreement became effective and the initial deposit was made on April 27, 1995.
28
ESSENTIAL INFORMATION AS OF SEPTEMBER 30, 2019
SPDR S&P MidCap 400 ETF Trust
Frequency Distribution of Discounts and Premiums
Bid/Ask Price vs. Net Asset Value (NAV)
(Unaudited)
Five Year Period Ending 9/30/2019
Premium/Discount Range
|
|
Number of
Trading Days
|
|
Percentage of
Total Trading Days
|
|
Greater than 0.25%
|
|
|
0
|
|
|
|
0.00
|
%
|
|
Between zero and 0.25%
|
|
|
689
|
|
|
|
54.77
|
%
|
|
Bid/Ask Price Equal to NAV
|
|
|
10
|
|
|
|
0.79
|
%
|
|
Between zero and -0.25%
|
|
|
556
|
|
|
|
44.20
|
%
|
|
Less than -0.25%
|
|
|
3
|
|
|
|
0.24
|
%
|
|
Total:
|
|
|
1,258
|
|
|
|
100.00
|
%
|
|
Comparison of Total Returns Based on NAV and Bid/Ask Price(1)(2)
From Inception to 9/30/19 (Unaudited)
Cumulative Total Return
|
|
1 Year
|
|
5 Year
|
|
10 Year
|
|
Since
Inception
|
|
SPDR S&P MidCap 400 ETF Trust
|
|
Return Based on NAV
|
|
|
-2.77
|
%
|
|
|
50.93
|
%
|
|
|
216.58
|
%
|
|
|
1,252.83
|
%
|
|
Return Based on Bid/Ask Price
|
|
|
-2.75
|
%
|
|
|
51.03
|
%
|
|
|
217.29
|
%
|
|
|
1,253.48
|
%
|
|
S&P MidCap 400 Index
|
|
|
-2.77
|
%
|
|
|
50.96
|
%
|
|
|
216.61
|
%
|
|
|
1,252.90
|
%
|
|
Annualized Total Return
|
|
1 Year
|
|
5 Year
|
|
10 Year
|
|
Since
Inception
|
|
SPDR S&P MidCap 400 ETF Trust
|
|
Return Based on NAV
|
|
|
-2.77
|
%
|
|
|
8.58
|
%
|
|
|
12.21
|
%
|
|
|
11.25
|
%
|
|
Return Based on Bid/Ask Price
|
|
|
-2.75
|
%
|
|
|
8.60
|
%
|
|
|
12.24
|
%
|
|
|
11.25
|
%
|
|
S&P MidCap 400 Index
|
|
|
-2.77
|
%
|
|
|
8.59
|
%
|
|
|
12.22
|
%
|
|
|
11.25
|
%
|
|
(1) Currently, the Bid/Ask Price is the midpoint of the NYSE Arca Bid/Ask price at the time the Trust's NAV was calculated, ordinarily 4:00 p.m.
(2) The Cumulative and Annualized Total Return for the Trust and the Index are calculated from the Trust's inception date of April 27, 1995.
29
SPDR S&P MidCap 400 ETF Trust
(Unaudited)
Sponsor
PDR Services LLC
c/o NYSE Holdings LLC
11 Wall Street
New York, NY 10005
Trustee
The Bank of New York Mellon
2 Hanson Place
Brooklyn, NY 11217
Distributor
ALPS Distributors, Inc.
1290 Broadway
Suite 1100
Denver, CO 80203
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
101 Seaport Boulevard
Suite 500
Boston, MA 02210
Legal Counsel
Davis Polk & Wardwell LLP
450 Lexington Avenue
New York, NY 10017
30