State Street Global Advisors Issues 2012 ETF & Investment Outlook

State Street Global Advisors (SSgA)*, the asset management business of State Street Corporation (NYSE: STT), today announced the availability of 2012 ETF & Investment Outlook: Sink or Swim. Developed by the SPDR^® ETF Strategy & Consulting Group, the new report features insights on macroeconomic trends impacting the financial markets and examines key developments expected to shape the exchange traded funds (ETF) industry and asset flows in 2012.

According to the report, the US ETF industry grew to over $1.04 trillion in assets under management in 2011 – a 5.5 percent increase from the previous year with investor inflows offsetting declining equity prices. During the year, US ETFs attracted $119 billion of new assets, as investors increased their exposure to fixed income, dividend/fundamental strategies, and developed markets outside the US.

"Despite significant headwinds facing the financial markets in 2011, investors continued to increase their appetite for ETFs, which was evidenced by industry assets crossing the trillion dollar tipping point,” said Kevin Quigg, global head of ETF Strategy & Consulting at State Street Global Advisors. "Our 2012 investment outlook is cautious due to the European debt crisis, however, the ETF industry is well positioned to build on its success in recent years, as awareness of the benefits of ETFs continues to grow.”

We have outlined 3 potential market scenarios for 2012 in the report.

The report also highlights two investment themes expected to prevail regardless of what direction the markets may take. With the Federal Reserve intending to maintain a low rate environment until 2013 or longer, generating income via higher-yielding fixed income, dividend producing equities, and hybrid securities is one theme likely to continue to shape investment decisions in 2012. In an environment where the growth potential of developed nations seems relatively muted, another theme projected to garner investor attention is the opportunity for growth in emerging markets.

In addition to shaping ETF product development in 2012, these investment themes are also poised to drive asset flows, as an increasing number of investors use ETFs to implement their investment strategies.

To download a copy of 2012 ETF & Investment Outlook: Sink or Swim ,please visit SPDR University (www.spdru.com), State Street’s award winning online educational resource for investment professionals or ETF Fact or Fiction (www.etffactorfiction.com), a new website launched by State Street to provide individual investors with a comprehensive, trusted resource for ETF education.

State Street manages more than $274** billion in SPDR ETF assets worldwide (as of December 31, 2011) and is one of the largest ETF providers globally.

About SPDR Exchange Traded Funds

SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. SPDR ETFs are managed by SSgA Funds Management, Inc., a registered investment adviser and wholly owned subsidiary of State Street Bank and Trust Company. The funds provide professional investors with the flexibility to select investments that are precisely aligned to their investment strategy. Recognized as the industry pioneer, State Street created the first ETF in 1993 (SPDR S&P 500^® – Ticker SPY). Since then, we’ve sustained our place as an industry innovator through the introduction of many ground-breaking products, including first-to-market launches with gold, international real estate, international fixed income and sector ETFs. For more information, visit www.spdrs.com.

About State Street Global Advisors

State Street Global Advisors (SSgA) is a global leader in asset management. The firm is relied on by sophisticated investors worldwide for its disciplined investment process, powerful global investment platform and access to every major asset class, capitalization range and style. SSgA is the asset management business of State Street Corporation, one of the world’s leading providers of financial services to institutional investors.

_________________________________________________________

*SPDR ETFs are managed by SSgA Funds Management, Inc., a registered investment adviser and wholly owned subsidiary of State Street Bank & Trust Company.

**This AUM includes the assets of the SPDR Gold Trust (approx. $63 billion as of December 31, 2011), for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors serves as the marketing agent.

Important Risk Information:

ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.

"SPDR” is a registered trademark of Standard & Poor’s Financial Services, LLC ("S&P”) and has been licensed for use by State Street Corporation. No financial product offered by State Street or its affiliates is sponsored, endorsed, sold or promoted by S&P.

Distributor: State Street Global Markets, LLC, member FINRA, SIPC, a 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, consider the fund’s investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 1-866-787-2257 or visit www.spdrs.com. Read it carefully.

CORP-0442