Financial Select Sector SPDR Fund

Financial Select Sector SPDR Fund is an exchange-traded fund designed to track the performance of the financials segment of the large-cap U.S. equity market. It seeks results that correspond, before fees and expenses, to the Financials Select Sector Index, which draws its constituents from the S&P 500 and includes industries such as banks, capital markets, diversified financial services, insurance, consumer finance, and mortgage real estate investment trusts. The fund employs a full replication approach, generally investing at least 95% of assets in index constituents to closely mirror sector exposure and weights determined by a modified market-capitalization methodology. Its portfolio is concentrated in leading financial franchises, with top holdings typically including Berkshire Hathaway, JPMorgan Chase, Visa, Mastercard, and other major banking and payments firms, reflecting the sector’s blend of traditional lending, asset management, market-making, insurance, and transaction processing. With a low stated expense ratio and historically low turnover, the fund serves as a liquid, transparent vehicle for targeted financial sector exposure and for implementing sector allocation views within diversified portfolios.