Premium/Discount
One important difference between Select Sector SPDRs and conventional mutual fund shares is that Select Sector SPDRs are available for purchase or sale intraday on the American Stock Exchange. As a result, Select Sector SPDRs may trade at a premium or discount to the Funds underlying Net Asset Value ("NAV"). The NAV of each Select Sector SPDR is calculated each business day at the close of regular trading on the New York Stock Exchange, ordinarily 4:00 p.m. EST. The NAV of the shares will generally fluctuate with changes in the market value of the Select Sector SPDR’s security holdings. The trading prices of shares, will fluctuate in accordance with changes in the Fund’s NAV as well as market forces, including supply and demand, economic conditions and other factors. The adviser cannot predict whether shares will trade below, at, or above NAV. Price differences may be due, in large part, to the fact that supply and demand forces at work in the secondary trading market for shares will be closely related to, but not identical to, the same forces influencing the prices of the stocks of the Select Sector Index trading individually or in the aggregate at any point in time. However, given that Select Sector SPDRs can be created and redeemed in Creation Units at the Fund level, the adviser believes that large discounts or premiums should not be sustained.
The tables below are presented to illustrate i) the daily premium or discount between the prior closing NAV and the last trade price, ii) the daily premium or discount between the prior closing NAV and the midpoint price between the bid and offer on the American Stock Exchange and, iii) the frequency distribution of premium and discount per quarter between closing NAV and closing market price.
Daily Calculation (A/O 5/19/2013)
| Name (Symbol) | NAV | Last Trade |
Last Trade to NAV | 4PM Bid/Offer Midpoint |
Bid/Offer Mpt to NAV | ||
|---|---|---|---|---|---|---|---|
| $ (+/-) | % (+/-) | $ (+/-) | % (+/-) | ||||
| UTILITIES SELECT SECTOR SPDR FUND (XLU) |
40.19 | 40.16 | -0.03 | -0.07 | 40.18 | -0.02 | -0.04 |
The Select Sector SPDR Trust - The Utilities Select Sector SPDR Fund
Frequency Distribution of Discounts and Premiums
Closing Price vs. NAV
| Closing Price Above NAV |
Closing Price Below NAV |
|||||
|---|---|---|---|---|---|---|
| 50 - 99 Basis Points |
100 - 199 Basis Points |
> 200 Basis Points |
50 - 99 Basis Points |
100 - 199 Basis Points |
> 200 Basis Points |
|
| 2012 | ||||||
| Quarter Ending: 06/30/12 | 0 | 0 | 0 | 0 | 0 | 0 |
| Quarter Ending: 03/31/12 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2011 | ||||||
| Quarter Ending: 12/31/11 | 0 | 0 | 0 | 0 | 0 | 0 |
| Quarter Ending: 09/30/11 | 0 | 0 | 0 | 0 | 0 | 0 |
