MBNE | SPDR Nuveen Municipal Bond ESG ETF

MBNE ISSUER

The MBNE issuer, State Street Global Advisors - advised funds, focuses its investment strategy on municipal bonds, aiming to generate income exempt from regular federal income tax. Under the management of Nuveen Asset Management, the Fund predominantly invests in municipal bonds within the Bloomberg 3-15 Year Blend Municipal Bond Index, with an emphasis on investment-grade securities ranging from 2 to 17 years in maturity. While primarily targeting bonds rated A3/A-/A- or higher by major rating agencies, the Fund also allows for investments in lower-rated bonds, including high-yield or junk bonds, comprising up to 20% of its net assets. With a value-oriented approach, the Sub-Adviser seeks out higher-yielding and undervalued municipal bonds, prioritizing issuers that demonstrate leadership in environmental, social, and governance (ESG) outcomes or contribute to positive environmental or social projects. To assess issuer performance, the Fund employs an ESG Municipal Bond Scoring Tool, allocating at least 80% of its net assets to bonds issued by entities with a score of 3 or higher. Additionally, the Fund may invest up to 20% of its net assets in thematic bonds, identified as those supporting projects aligned with UN Sustainable Development Goals. The Sub-Adviser's investment process incorporates various analyses, including credit, sector, and industry concentration analysis, enabling prudent decision-making in portfolio construction and management. In maintaining alignment with its investment objectives, the Fund remains adaptable, allowing for overweighting or underweighting of individual bonds and sector exposure within predefined limits compared to the Index.

MBNE DIVIDEND

The MBNE Dividend refers to the dividend payments distributed by the State Street Global Advisors-advised funds, which primarily invest in municipal bonds. These dividends are generated from the income earned on the portfolio's municipal bond holdings. As the Fund focuses on municipal bonds that pay income exempt from regular federal income tax, the dividends received by investors are typically tax-exempt at the federal level. The dividend payout frequency and amount can vary based on factors such as the performance of the underlying municipal bond investments and prevailing market conditions. Investors seeking tax-efficient income may find MBNE Dividends appealing due to their tax-exempt status at the federal level, potentially enhancing after-tax returns for investors in higher tax brackets.

MBNE TRACKING

MBNE tracking refers to the monitoring and evaluation of the performance of the State Street Global Advisors-advised funds, which predominantly invest in municipal bonds. Tracking MBNE involves assessing how well the fund is performing relative to its benchmark index, typically the Bloomberg 3-15 Year Blend Municipal Bond Index. This tracking process involves analyzing factors such as total returns, yield, duration, credit quality, and sector exposure of the fund's portfolio compared to those of the benchmark index. Investors and fund managers use tracking to gauge the effectiveness of the fund's investment strategy and to identify any discrepancies or deviations from the benchmark. By closely monitoring MBNE tracking, investors can make informed decisions about their investment allocations and adjust their portfolios accordingly to meet their financial objectives.

MBNE CORRELATION

MBNE correlation refers to the relationship between the performance of the State Street Global Advisors-advised funds, which primarily invest in municipal bonds, and other relevant market indices or asset classes. This correlation analysis helps investors understand how the fund's returns move in relation to changes in the broader market or specific asset classes. A high positive correlation indicates that the fund's returns tend to move in the same direction as the benchmark or asset class, while a negative correlation suggests that the fund's returns move in the opposite direction. Understanding MBNE correlation is crucial for portfolio diversification and risk management purposes. Investors can use correlation analysis to identify assets that behave differently under various market conditions, thereby potentially reducing overall portfolio volatility and enhancing risk-adjusted returns.

MBNE SECTOR

The MBNE Sector typically refers to the sectors within the municipal bond market that the State Street Global Advisors-advised funds focus on when constructing their portfolios. These sectors encompass various areas of municipal bond issuance, including but not limited to, state and local general obligation bonds, revenue bonds, pre-refunded bonds, insured bonds, and municipal lease obligations. The funds may invest in municipal bonds issued by states, cities, counties, districts, territories, or possessions of the United States, along with their respective subdivisions, agencies, authorities, and instrumentalities. Additionally, the funds may target specific sectors within the municipal bond market based on factors such as credit quality, duration, and yield opportunities. By strategically allocating assets across different sectors, the funds aim to achieve their investment objectives while managing risks associated with sector-specific factors and market conditions.

MBNE EXPOSURE

MBNE Exposure refers to the level of investment allocation that the State Street Global Advisors-advised funds have in various asset classes, sectors, or geographic regions. Specifically, in the context of municipal bond investing, MBNE Exposure indicates the extent to which the funds are invested in different types of municipal bonds, such as those issued by states, cities, counties, or special districts. It also includes exposure to different sectors within the municipal bond market, such as education, healthcare, transportation, or utilities. Moreover, MBNE Exposure may encompass geographic exposure, reflecting investments in bonds issued by municipalities across different regions or states within the United States. By analyzing MBNE Exposure, investors can assess the diversification of the fund's portfolio and understand its sensitivity to various market factors and economic conditions. Additionally, exposure analysis helps investors manage risk and optimize portfolio allocations according to their investment objectives and risk tolerance.